National Rural Health Association: 2024 Year-End Health Package Update

The National Rural Health Association provided a 2024 Year-End Health Package Update as summarized below.

The House Appropriations Committee has released the proposed Continuing Resolution (C.R.) for funding the federal government through March 14, 2025. The path forward for passage remains uncertain due to opposition within the House. Key health provisions in the C.R. include:

• Medicare Telehealth Flexibilities: Extended for two years, ensuring continued access for beneficiaries.
• Rural Healthcare Funding:Medicare payment adjustments for rural hospitals, including a one-year extension for low-volume and Medicare-dependent hospitals.
• Rural ambulance services will receive two years of extended payment support.
• Rural physician practices will benefit from an extended Medicare Geographic Practice Cost Index.
• Community Health Centers funding extended for two years, with allocations for FY 2025 and FY 2026.
• Seniors and Home-based Care: The C.R. includes funding for Medicare’s Acute Hospital Care at Home program for five years, supporting home care models.
• Extension of Funding for various programs such as the National Health Service Corps and Medicaid DSH relief.
• Payment Boosts: A 2.5% increase to the Medicare Physician Fee Schedule for one year, which helps mitigate cuts from the 2025 Physician Fee Schedule rule.

In addition to healthcare provisions, the package includes measures for cost-offsetting, including a six-month extension of Medicare sequestration and reforms to pharmacy benefit managers.

• A longer-term extension (3-5 years) of rural hospital and ambulance payment supports.
• Preserving telehealth flexibilities.
• Supporting the addition of Medicare Advantage prior authorization reform to the package.
• Delaying Medicare sequestration extensions.

NRHA calls for focused advocacy to maintain these provisions and ensure continued support for rural healthcare.