A recently passed federal funding package delivers eight key wins for both physicians and patients, addressing critical areas from telehealth access to physician burnout. The bipartisan agreement, reached to avert a government shutdown similar to the 43-day lapse experienced in 2025, incorporates significant portions of the American Medical Association’s (AMA) policy agenda.
Key Provisions of the New Budget Deal
The budget deal includes several important provisions. Medicare telehealth coverage has been renewed for two years, restoring continuity of care following the previous disruption. A 3.1% bonus for physicians participating in Medicare alternative payment models (APMs) will also be reinstated for one year, incentivizing value-based care.
Access to the Medicare Diabetes Prevention Program is expanding to include virtual, Centers for Disease Control and Prevention-recognized programs through December 31, 2029, addressing access barriers for beneficiaries in rural and underserved communities. Medicare Advantage plans are now required to maintain accurate and updated provider directories, tackling the long-standing issue of “ghost networks.”
The Acute Hospital Care at Home waiver has been extended through 2030, preserving a physician-led model for delivering hospital-level care in patients’ homes. The Dr. Lorna Breen Health Care Provider Protection Act, aimed at reducing physician burnout, has also been extended for five years, with funding through fiscal year 2030.
Further, the deal introduces targeted reforms to pharmacy benefit managers (PBMs) to enhance transparency and curb abusive practices. Finally, increased funding is allocated to address preterm births and maternal health, reauthorizing the PREEMIE Reauthorization Act and increasing funding for the Preventing Maternal Deaths Act to $100 million annually through 2030.
What’s Next?
While these provisions represent significant progress, several aspects have limited durations. The two-year extension of telehealth coverage and the one-year restoration of the APM bonus could lead to renewed uncertainty as those deadlines approach. It is likely that the AMA will continue to advocate for permanent authorization of these programs. Further legislative action may be needed to address these issues long-term.
Frequently Asked Questions
What is the Dr. Lorna Breen Health Care Provider Protection Act?
The Dr. Lorna Breen Health Care Provider Protection Act continues funding through fiscal year 2030, mandates annual stigma-reduction campaigns, and broadens grant eligibility to address administrative burden.
What are PBM reforms?
Targeted pharmacy benefit manager (PBM) reforms are introduced to enhance transparency, curb abusive Medicare drug rebate practices, and strengthen enforcement against anticompetitive behavior.
What is being done to address maternal health?
The budget deal reauthorizes the PREEMIE Reauthorization Act and the Preventing Maternal Deaths Act, increasing funding to $100 million annually through 2030 for the latter, and expanding the scope of state maternal mortality review committees.
Given these recent developments, how do you believe the healthcare landscape will evolve in the coming years?
