Major Healthcare Changes in Continuing Resolution

The continuing resolution brings significant but limited changes to healthcare provisions, particularly affecting telehealth services and hospital programs. While some healthcare advocates found relief in certain provisions, many express disappointment over excluded reforms.

Telehealth Extensions and Limitations

Medicare telehealth flexibilities and CMS’ acute hospital at home program received a 90-day extension, substantially less than the initially proposed two-year period. Notable exclusions include first-dollar coverage of HDHP-HSAs and virtual diabetes program suppliers.

Impact on Physician Compensation

A critical 2.83% payment cut to doctors remains unaddressed, despite rising healthcare delivery costs of 3.5%. The American Medical Association highlights that Medicare payment rates have decreased by 33% over two decades when adjusted for practice costs.

PBM Reform and Hospital Funding

The legislation notably excluded comprehensive PBM reform, prompting calls from the National Community Pharmacists Association for immediate action in 2025. However, the bill did eliminate planned cuts to disproportionate share hospital funding.

Political Influences and Opposition

The bill faced significant opposition from key political figures, including Elon Musk and President-elect Donald Trump, leading to substantial revisions and the removal of several healthcare provisions. This political pressure resulted in a scaled-back version of the original healthcare package.

Future Healthcare Implications

Healthcare organizations emphasize the need for long-term solutions and sustainable reforms. The limited scope of the current legislation creates uncertainty for healthcare providers and patients, particularly regarding Medicare services and telehealth accessibility.