The Health Care Priorities in Proposed Government Funding Agreement

December 18, 2024

Federal lawmakers late last evening unveiled the text of their proposed spending bill, which includes several key priorities for the hospital community.

The bill would extend government funding through March 14. Both parties will need to vote on the proposal to avert a shutdown before Friday’s deadline. The proposal has faced political pushback today related to the size and scope of the deal.

Notably, the legislation would:

• Prevent cuts to the Medicaid Disproportionate Share Hospital (DSH) program from taking effect this year and delay those cuts from starting until January 1, 2027.
• Extend telehealth flexibilities for two years and the Hospital-at-Home Program for five years.
• Prevent a 4 percent Medicare Pay As You Go (PAYGO) cut from taking effect.
• Significantly reduce proposed Medicare physician payment cuts.

• Streamline provider screening and the enrollment process for children on Medicaid needing care outside their home states.

The bill, as written, also does not include harmful policies related to site-neutral payment proposals or price transparency. It does include reforms for pharmacy benefit managers.

HAP and Pennsylvania’s hospital community thank members of Pennsylvania’s delegation and other advocates who continue to support key hospital priorities, including preventing cuts to the DSH program from taking effect.  This fall, HAP has urged Congress to act before the end of this session to support quality health care for all Pennsylvanians. 

For additional information and to follow the funding negotiations, contact John Myers, vice president, federal advocacy.