House passes bill with short-term wins for hospitals

House Republicans on March 11 passed legislation to keep the government running through Sept. 30 and extend several critical healthcare provisions that were due to expire March 31. 

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The continuing resolution, which passed the House in a 217-213 vote, would:

  • Eliminate the Medicaid disproportionate share hospital cuts through Sept. 30;
  • Extend certain telehealth waivers and the hospital-at-home program through Sept. 30;
  • Expand the enhanced low-volume adjustment program through Sept. 30 and the Medicare-dependent hospital program through Oct. 1;
  • Extend add-on payments for rural ambulance services through Oct. 1. 

Physicians and medical groups criticized lawmakers for failing to address the 2.83% cut to Medicare physician reimbursement. A temporary 2.5% Medicare physician pay bump took effect Jan. 1 but is missing from the latest government funding package. 

Current government funding is set to expire March 14, with the Senate expected to vote on the continuing resolution this week. 

Separately, the Senate is also expected to vote this month on legislation that aims to reduce federal spending by up to $2 trillion over the next 10 years. The Republican-backed proposal calls for at least $880 billion in spending reductions through fiscal 2034, with Medicaid widely expected to bear the brunt of these cuts. Hospital leaders across the country have urged lawmakers to reconsider the legislation. 

A March 5 report from the Congressional Budget Office found that $880 billion in savings cannot be achieved without significant cuts to Medicaid or Children’s Health Insurance Program.

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