Article: Senate Passes Bill with Key Healthcare Extensions, no Medicare Physician Pay Fix

March 17, 2025

Article: Senate Passes Bill with Key Healthcare Extensions, no Medicare Physician Pay Fix

The Senate voted March 14 to approve a government funding bill that extends key healthcare provisions, delays Medicaid disproportionate share hospital cuts and provides additional support for rural hospitals.

The legislation passed the Senate in a 54 – 46 vote and president Donald Trump signed it into law on March 15.

The House had earlier passed the bill on March 11 in a 217 – 213 vote, ensuring government operations continue through September 30. Key healthcare provisions in the bill include:

  • Elimination of Medicaid DSH cuts through September 30,
  • Extension of telehealth waivers and the hospital-at-home program through September 30,
  • Expansion of the enhanced low-volume adjustment program through September 30 and the Medicare-dependent hospital program through October 1,
  • Continuation of add-on payments for rural ambulance services through October 1

However, the bill does not address the 2.83% Medicare physician pay cut, a major setback for physicians and medical groups. A temporary 2.5% Medicare physician pay bump that took effect January 1 is absent from the funding package. The legislation does, however, review a boost to the Medicare work geographic practice cost index, which benefits rural physicians.

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