Biden Signs Anti-Shutdown Bill With Some Medicare Funding Provisions

News December 21, 2024 at 04:27 PM
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What You Need To Know

  • The American Relief Act will keep the government running through March 14.
  • It does not increase the current federal debt limit.
  • It could lead to a new government shutdown fight in the spring.
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President Joe Biden today signed the American Relief Act, 2025 package into law.

The federal government was set to begin shutting down at midnight Friday. The Relief Act gives the government funding to stay open until March 14, 2025.

The signing was the culmination of a legislative battle that led to the first public results Tuesday, when the House posted a 1,547-page anti-shutdown package, the Further Continuing Appropriations and Disaster Relief Supplemental Appropriations Act, 2025, that included many provisions for maintaining current measures that increase reimbursements for Medicare health care, ambulance services and telehealth services providers.

That Further Continuing Appropriations package could have also set new standards for Medicare Advantage plan provider directories, moved toward letting Medicare cover new services that can screen a patient's blood for dozens of different types of cancer at the same time, and required pharmacy benefit managers to pass any discounts they negotiate for Medicare Part D prescription drug plans on to the plans and the enrollees.

President-elect Donald Trump blocked progress on the first package by arguing that Congress should pass a shorter package that would keep the government open and also increase the federal debt ceiling.

The current federal debt limit is an obstacle to extending the tax breaks included in the Tax Cuts and Jobs Act of 2017, including a provision that lightened the impact of the federal estate tax on wealthy families by doubling the estate-size exemption that was in effect before the TCJA came along. The current exemption is $13.61 million for an individual and $27.22 million for a couple that files jointly. It's now set to fall by about 50% Jan. 1, 2026.

Republican House leaders responded to Trump's concerns by developing a shorter anti-shutdown package, the first version of the ARA package, that excluded many of the Medicare provisions in the original package and included an increase in the federal debt ceiling.

When some House Republicans refused to vote for that package, House leaders regrouped and introduced a revised version that left out the increase in the debt ceiling.

Drafters do not seem to have included sections referring directly to life insurance, retirement plans or estate planning, such as a new bill that could help workers roll assets directly from 401(k) plans into annuities.

House members voted 366-34 for the ARA, 2025 package. All members who opposed the package were Republicans.

Senate members approved the package by an 85-11 vote. At press time, the party breakdown was not available.

Package details: The new spending package:

  • Maintains current provisions that boost Medicare reimbursement rates for doctors and hospitals.
  • Maintains current provisions that boost Medicare reimbursement rates for ambulance services.
  • Extends the current, temporary Medicare telehealth coverage rules, which are more flexible than the older Medicare telehealth coverage rules and were adopted in response to the COVID-19 pandemic.

The package excludes Further Continuing Appropriations provisions that would:

  • Require Medicare Advantage plans to review their provider directories more often and correct errors promptly.
  • Move toward having Medicare cover Grail's Galleri blood test and other blood tests that screen people for many different kinds of cancer at the same time.
  • Limit pharmacy benefit managers that serve Medicare prescription drug plans to collecting service fees and prohibit the PBMs from basing compensation on the value of discounts negotiated.
  • Reauthorize the Older Americans Act.

Sen. Ron Wyden, R-Ore., said he was unhappy about provisions like the provider directory provision dropping out of the anti-shutdown package because of Trump's complaints.

The povider directory provision "goes after ghost networks that are blocking Americans from getting the care they need," Wyden said. "What these ghost networks are all about is, essentially, the insurance companies take your money, and then there aren't any providers, there aren't any navigators, there isn't anybody to help you get your coverage. So under what we are calling for in a bipartisan way, the insurance companies would have to have a list of doctors that actually are going to make care available, so Americans who need care can contact them, make an appointments, and not have to pay extra costs by going out of the health care network they paid for."

When plans fail to keep the provider directories current, "there is no there... there," Wyden said. "You paid your money, and you can't get access to real care. Either the doctors don't take new patients, nobody picks up the phone, you aren't able to get what you paid for."

The 119th Congress: Senate Majority Leader Chuck Schumer said the Senate votes that took place this morning were the last votes of the 118th Congress.

The 119th Congress starts Jan. 3.

Many provisions in the bigger Further Continuing Appropriations package appear to have broad, bipartisan support, and they could return in the 119th Congress, either as stand-alone bills or as part of new packages.

The looming spending negotiations in March could produce a new anti-shutdown package that might ferry some of the provisions left out of the American Relief Act to passage in the House and the Senate.

The White House. Credit: Matthew/Adobe Stock

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