Passage last week of a continuing resolution to fund the federal government brought the 43-day shutdown to an end – and relief for many health care organizations and the people and communities they serve.
The final continuing resolution, which extended federal funding through the end of January of next year, includes:
- Restoring the delay of reductions of Medicaid disproportionate share hospital (Medicaid DSH) payments.
- Extending authorization for the Medicare Acute Hospital Care at Home program and Medicare telehealth flexibilities.
- Extending the low-volume hospital adjustment program and the Medicare-dependent hospital program all through that same date.
The bill waives the pay-as-you-go requirements (PAYGO) that would have resulted in a new four percent Medicare sequester beginning in January of 2026, although it extends the existing two percent sequester for an additional month into 2032.
The continuing resolution did not address one of the major causes of the long shutdown: the much-discussed extension of enhanced premium subsidies for Affordable Care Act plans for individuals and families that meet certain financial criteria. To secure enough Democratic support for the continuing resolution, Senate Majority Leader Thune (R-SD) promised Democrats a vote on the issue before those subsidies expire at the end of 2025. House Speaker Mike Johnson (R-LA), however, has not yet agreed to put a bill proposing the subsidies’ extension before the House for a vote.