Last night, the House of Representatives passed the last appropriations funding package, which includes funding for the Department of Health and Human Services (HHS) through September 30, 2026. The bipartisan package (passed 341-88) now heads to the Senate and is expected to be taken up next week for final passage before the January 30th funding deadline. The spending package includes 300 pages of health care policy riders that address multiple provider priorities, including:
 

Medicaid Policies: 

  • Eliminating Scheduled ACA Medicaid Disproportionate Share Hospital cuts until 2028 

Medicare Policies: 

  • Telehealth Flexibilities Extended (End of 2027) 
  • Low Volume Program Extended (End of 2026) 
  • Dependent Hospital Program Extended (End of 2026) 
  • Physician Fee Schedule GPCI (rural payment floor) Extended (End of 2026) 
  • Hospital-at-Home Waiver Flexibilities Extended (Sept 30, 2030) 
  • APM Participation Payment increased from 1.88% to 3.1% for performance year 2026 

The cost of these policies is offset by pharmacy benefit manager reforms and requiring off-campus Hospital Outpatient Departments to have a unique National Provider Identifier, which lays groundwork for targeted site-neutral payment reform. 

Just prior to passing the spending package, Congressman Ralph Norman (R-SC) offered an amendment to gut the HHS bill of all Congressionally Directed Spending projects, which benefited multiple AHPA communities. Only the Senate included these projects, formerly known as earmarks, in the HHS bill so the House Amendment was targeting Senate spending priorities. The amendment was soundly defeated by a vote of 136-291, signaling that the reformed process of Members of Congress funding specific projects in their States and Districts is here to stay.