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President Trump on Tuesday signed into law a funding bill that ended a short-term partial government shutdown, funds the Department of Health and Human Services, extends telehealth and virtual care flexibilities, and enacts pharmacy benefit manager reform.
The minibus package did not revive Affordable Care Act enhanced premium tax credits that expired Dec. 31, 2025. Nor did it include provisions from President Trump's healthcare plan to send money directly to consumers' health savings accounts.
The minibus ended a three-day government shutdown. The sticking point to the funding bill was Democrat opposition to funding the Department of Homeland Security. The bill funds the Department of Homeland Security for only two weeks, according to Politico.
The Senate on Jan. 29 voted 71-29 to advance the package, and the House on Feb. 3 voted 217-214 to send the bill to President Trump for his signature.
The bill includes a two-year extension of Medicare telehealth flexibilities and a five-year extension of the Acute Hospital Care at Home waiver. These flexibilities were first allowed during the COVID-19 pandemic, and have been extended with congressional approval and the support of the American Telemedicine Association and provider advocates, such as the American Hospital Association.
"This is a significant and hard-earned win for ATA Action, the ATA and our members, as well as for patients, caregivers, clinicians and healthcare organizations, demonstrating the strength of sustained, credible, strategic advocacy," said Kyle Zebley, CEO of the ATA and executive director, ATA Action. "We are deeply grateful for the continued bipartisan, bicameral backing of our congressional champions, holding steady on their support for telehealth and virtual care services."
Medicare telehealth flexibilities are extended through Dec. 31, 2027.
Acute Hospital Care at Home is extended through Sept. 30, 2030.
In-home cardiopulmonary rehabilitation flexibilities are extended through Jan. 1, 2028.
The bill includes a requirement that HHS issue guidance within one year on furnishing telehealth services to individuals with limited English proficiency, the ATA said.
Alexis Apple, deputy executive director of ATA Action and vice president of public affairs at the ATA said, "These multiyear extensions will give government agencies, legislators and advocates needed time to hammer out the details of permanent provisions."
The government spending bill includes bipartisan prescription drug pricing reforms in a provision, known as Q1/Q2, which was previously included in the Lower Costs, More Transparency Act, according to Patients for Affordable Drugs Now.
The Q1/Q2 provision would require the U.S. Food and Drug Administration to provide clearer guidance on ingredient differences in drugs, helping generic manufacturers bring more affordable alternatives to the market, according to P4ADNow.
PBM revenue would be separated from the price of a drug in Medicare Part D, reducing incentives to steer patients toward higher-priced drugs, the organization said.
PBMs are required to report pricing and other data to Part D plan sponsors and to pass 100% of rebates to Medicare plans.
Merith Basey, CEO of Patients For Affordable Drugs Now, said by statement: "Strengthening competition and increasing transparency are key to lowering prescription drug prices. One in three Americans is unable to afford their prescriptions, and Congress must go further to tackle the root causes of high drug prices and rein in Big Pharma."
Email the writer: SMorse@himss.org