Congress Approves Spending Package to Prevent Shutdown, Fund Healthcare

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TL/DR –

Congress has approved a spending package that includes financing for key healthcare programs, averting a potential government shutdown. The package extends telehealth programs into the spring and includes provisions to prevent cuts to Medicaid Disproportionate Share Hospital Payments, but does not address planned reductions in Medicare payments to physicians. The spending package also includes extensions for the Medicare-dependent Hospitals and Low-volume Adjustment programs, which provide funding to hospitals, as well as funding for community health centers.


Congress Approves Federal Programs Spending Package

Congress has approved a spending package to avoid a government shutdown and fund crucial federal programs, including health care. The package includes key healthcare priorities for hospitals and health providers, and was passed by the House and Senate before being sent to President Biden for approval.

Telehealth Programs Extended

The spending plan extends the telehealth programs into spring, supporting healthcare organizations and trade groups who have been advocating for this extension. Despite this, the plan does not block reductions in Medicare payments to physicians.

Hospital-at-Home Programs Extended

The package supports hospital-at-home programs, providing a short-term extension until March 31. Congressmen Brian Fitzpatrick and Lisa Blunt Rochester have both praised these extensions but highlight a need for long-term solutions.

Telehealth Support

Despite an initial plan for a two-year and five-year extension for telehealth and hospital-at-home programs respectively, the final plan includes a short-term extension. The American Telemedicine Association and nearly 300 healthcare organizations have been tirelessly pushing for the continuation of telehealth programs.

Medicare Payments to Doctors

The latest spending plan does not address the planned reductions in Medicare payments to physicians, causing unrest among healthcare lobbyists and physicians’ trade groups. The American Medical Association expressed disappointment in the absence of a solution in the spending package.

Aid for Safety-Net Hospitals

To the relief of hospitals, the spending package includes language preventing cuts in Medicaid Disproportionate Share Hospital Payments. These payments are vital for safety net hospitals with a high percentage of Medicaid patients.

Rural Hospitals Support

The package includes extensions for two important Medicare programs that provide funding to hospitals. The Medicare-dependent Hospitals and Low-volume Adjustment programs, set to expire at year-end, have now been extended.

Pharmacy Benefit Managers and Community Health Centers

Provisions to reform pharmacy benefit managers were not included in the package. However, the spending plan includes funding for community health centers, which are critical for one in ten Americans.

Children’s Cancer Research

The Senate also passed the Gabriella Miller Kids First Research Act 2.0, which allocates funds for pediatric cancer studies.

Shutdown Avoided

Key federal health programs, such as the Centers for Disease Control and Prevention and the National Institutes of Health, would’ve been affected by a government shutdown. Thankfully, the new spending package prevents such a scenario.


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