Washington D.C. – The U.S. Congress has successfully passed legislation to fund the federal government through fiscal year 2025, averting a potential partial shutdown while extending several critical healthcare programs, including expanded access to telehealth services. Signed into law by President Donald Trump on March 15, 2025, the bill notably preserved many pandemic-era healthcare flexibilities but did not address a recent cut to Medicare physician reimbursement rates.
Congressional Action and Bill Details
The measure, formally titled the Full-Year Continuing Appropriations and Extensions Act, 2025 (H.R. 1968), ensures government operations are funded through September 30, 2025. Its passage followed a complex legislative process, receiving approval from the House of Representatives with a vote of 217-213 on March 11, 2025, and subsequently clearing the Senate by a margin of 54-46 on March 14, 2025.
Extending Critical Health Services
A central feature of the new law is the extension of key health-related provisions that were set to expire. Among the most significant are the flexibilities surrounding Medicare telehealth services and the Acute Hospital Care at Home program. Both programs have been extended through September 30, 2025, ensuring continued access to remote healthcare options for millions of beneficiaries.
The extended telehealth waivers are comprehensive, covering a range of measures initially implemented during the COVID-19 public health emergency. These include the waiver of geographic and originating site restrictions, allowing patients in more locations to access telehealth from their homes. Provisions for audio-only services remain in place, crucial for individuals without broadband internet access or video capabilities. Waivers facilitating hospice recertification via telehealth and specific waivers for Rural Health Clinics (RHCs) and Federally Qualified Health Centers (FQHCs) have also been prolonged.
Other Key Healthcare Provisions
Beyond telehealth, the Act includes several other extensions vital to healthcare providers and patients. It delays scheduled reductions to Medicaid Disproportionate Share Hospital (DSH) payments through September 30, 2025. This provides relief to hospitals that serve a high volume of low-income patients.
Extensions were also granted for specific Medicare payment programs: the Medicare Dependent Hospital (MDH) program and the Low-Volume Adjustment (LVA) program, both extended through September 30 or October 1, 2025, depending on specific program rules. Medicare add-on payments for ambulance services received an extension through October 1, 2025, as did the Work Geographic Practice Cost Index (GPCI) floor, which helps stabilize physician payments in different areas of the country.
Funding Allocations
The legislation includes dedicated funding extensions for several critical healthcare infrastructure and workforce programs. Community Health Centers (CHCs), which provide essential primary care services in underserved areas, will receive $2.14 billion allocated for the period from April 1 through September 30, 2025.
Funding was also extended for the National Health Service Corps, which supports healthcare professionals serving in areas with shortages, and the Teaching Health Centers Graduate Medical Education (THCGME) program, which trains residents in community-based settings. The THCGME program is allocated $87.7 million from April 1 through September 30, 2025.
Additional extensions were provided for the Special Diabetes Programs, which fund research and treatment initiatives, and funding for family-to-family health information centers, which assist families of children with special healthcare needs.
The Omission: Physician Payment Rates
Despite extending numerous programs beneficial to providers and patients, the Act notably failed to reverse a 2.8% (or 2.83%) cut to Medicare physician reimbursement rates that took effect on January 1, 2025. This cut has been a significant concern for physician groups, who argue it threatens the financial viability of practices and could impact patient access to care. The decision not to address this reduction in the stopgap funding measure leaves providers facing continued financial pressure.
Broader Fiscal Context
While generally extending fiscal year 2024 funding levels, the Full-Year Continuing Appropriations and Extensions Act, 2025, includes certain reductions in non-defense spending. Among these are an $890 million cut in grants designated for healthcare facilities and equipment. Additionally, the bill rescinds $20.2 billion in funding previously allocated to the Internal Revenue Service (IRS).
The passage of this legislation ensures government funding and provides temporary stability for numerous healthcare programs, offering a reprieve for both providers and patients who rely on these services. However, the absence of action on the Medicare physician payment cut underscores ongoing fiscal challenges within the healthcare system and sets the stage for future debates over provider reimbursement.
