January 6, 2025
In December 2024, Congress passed a continuing resolution (CR) aimed at funding the federal government through March 14, 2025, and addressing various health-care issues. This package, signed into law by President Biden on December 20, 2024, includes several key provisions impacting post-acute and long-term care (PALTC) clinicians.
Telemedicine Extensions
On a second attempt, without the contentious debt ceiling provision, the House approved a three-month extension of essential health programs, including Medicare telehealth flexibilities. This was a shorter period compared to the previous agreement, which would have prolonged the waivers for an additional two years. PALTmed remains committed to advocating for a longer and permanent extension of these waivers.
Physician Payment Implications
Unfortunately, the CR did not include the proposed 2.5% boost to the 2025 Medicare Physician Fee Schedule, which would have mitigated scheduled cuts to providers paid under this fee schedule. This omission means PALTC clinicians will face continued financial challenges while navigating the scheduled 2.83% payment cuts. PALTmed has been advocating for Congress to reverse the cuts to physician pay that the Centers for Medicare & Medicaid Services (CMS) finalized in November 2024.
Additional Provisions
The CR provides $1.05 billion for community health centers, $85.1 million for the National Health Service Corps, and $43.2 million for Teaching Health Centers Graduate Medical Education programs through March 14, 2025. It also extends Medicare add-on payments to low-volume hospitals, Medicare-dependent hospitals, and ambulance services while allocating $78.5 million for the Type 1 Diabetes Program.
While the CR does not include full reauthorization of the Pandemic And All-Hazards Preparedness Act (PAHPA), it does include extensions of key PAHPA authorities, including the authorization of the Biomedical Research and Development Authority, the authority of the HHS secretary to declare a public health emergency, and antitrust exemptions for the development of emergency medical countermeasures. It also extends the authority for state and local health departments to exercise flexibilities during a public health emergency.
Looking Ahead
As the 119th Congress begins to convene, there will be a renewed focus on long-term policies for telehealth and reforms to the Medicare fee schedule.
PALTmed will continue its advocacy efforts on several fronts:
- Medicare Payment Adjustments: PALTmed will continue to urge Congress to reverse the 2.83% cut to physician pay and to secure a longer-term solution for Medicare payment rates.
- Extension of Telehealth Flexibilities: We will continue to push for a permanent extension of Medicare telehealth flexibilities, which are crucial for providing accessible patient care.
- Engagement with the New Congress: With the new Congress taking shape, PALTmed will monitor legislative developments and engage with policymakers to ensure that the needs of post-acute and long-term care clinicians and their patients are addressed.
