Spending Package Includes Significant Health Measures

On February 3, President Trump signed into law a $1.2 trillion spending package that ended a brief partial federal government shut down. The package is notable for the numerous bipartisan health care provisions, including an extension of Medicare telehealth flexibilities through December 31, 2027.

Other provisions included:

• Prevents pharmacy benefit managers (PBMs) from getting paid under Medicare Part D based on drug prices or rebates, instead tying compensation to fees they charge to clients that reflects services the PBMs perform.
• Requires PBMs to pass through rebates to commercial plans in an attempt to reduce incentives for PBMs to favor higher-priced drugs that can obtain higher rebates.
• Allocates $4.6 billion in additional funding for community health centers through 2026.
• Provides substantial increases to graduate medical education programs through fiscal year (FY) 2029 when funding will rise to $300 million.
• Provides a 3.1 percent alternative payment model incentive payment for eligible clinicians who are determined to be qualified participants for the 2026 performance year.
• Requires insurers offering Medicare Advantage plans to verify, starting in 2028, the accuracy of their provider directories every 90 days.
• Expands, on a trial basis, the Medicare Diabetes Prevention Program to include virtual diabetes prevention programs, January 1, 2026 through December 31, 2029.
• Extends the Acute Hospital Care at Home waiver through September 30, 2030.
• Reauthorizes for five years the Dr. Lorna Breen Health Care Provider Protection Act, which is dedicated to preventing suicide, reducing occupational burnout, and improving mental health support for clinicians.