In a major victory for essential hospitals, President Joe Biden March 9 signed a $460 billion appropriations bill that eliminates the scheduled $8 billion Medicaid disproportionate share hospital (DSH) payment cut for fiscal year (FY) 2024.
The funding package, the Consolidated Appropriations Act, 2024, also delays implementation of the FY 2025 Medicaid DSH cut to Jan. 1, 2025. In a statement, America’s Essential Hospitals praised lawmakers for protecting DSH and urged them to formally define the hospitals at the center of the nation’s health care safety net.
The package, comprising six funding bills, sets spending levels for nearly a quarter of federal agency spending. Notably, the package does not include harmful site-neutral payment cut policies or burdensome hospital price transparency measures. However, these provisions, alongside the elimination of remaining scheduled Medicaid DSH cuts, likely will be part of the conversation during year-end negotiations.
With the first six agencies funded, Congress now is expected to release and vote on the remaining six FY 2024 appropriations bills, including Labor, Health and Human Services, and Education, before a March 22 deadline.
Also last week, Biden delivered his State of the Union Address, which touched on several health-related items, including giving Medicare more latitude to negotiate drug prices, bolstering Medicaid coverage, and expanding access to reproductive health services. On Monday, Biden released his $7.3 trillion budget proposal for FY 2025. Although it will not pass Congress as it is, it highlights administration priorities heading into the election cycle and foreshadows what a second term might look like. It includes protecting Medicare and Social Security, bolstering the drug price negotiations program, and investing in hospital cybersecurity.
Committee Activity This Week
The House and Senate are in session Monday through Wednesday this week, with the latter also convening on Thursday.
The House Committee on Energy and Commerce will hold a Health Subcommittee markup of 19 bills March 12, at 10 am ET. The House Committee on Ways and Means will hold a hearing, “Hearing on Enhancing Access to Care at Home in Rural and Underserved Communities,” March 12, at 11 am ET.
The Senate Committee on the Budget will hold a hearing, “The President’s Fiscal Year 2025 Budget Proposal,” March 12, at 10:15 am ET. The Senate Committee on Finance will hold a hearing, “The President’s Fiscal Year 2025 Health and Human Services Budget,” March 14, at 10 am ET.
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