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Breaking: Year-End Package Update

Published in VGM Government Relations on December 18, 2024

As lawmakers race to avert a government shutdown ahead of this Friday’s deadline, we have learned that the provision to reinstate and extend the 75/25 blended rate will not be included in the proposed continuing resolution that is expected to fund the federal government until March 14, 2025. Despite exhaustive bipartisan efforts from all reaches of the HME community, including providers and stakeholders, there was not enough support to get it included in the package.  

As we understand, negotiations resulted in disagreement as to whether the 75/25 blend fit the definition of a “Medicare extender” or not. Ultimately, a consensus could not be reached and was therefore abandoned. The final package is reported to, however, include a two-year extension of Medicare telehealth flexibilities such as expanding geographic, originating sites, and allowing more provider types to bill for telehealth visits. 

Additionally, the legislation waives the PAYGO (Pay-as-you-go) rule. (PAYGO is a budget rule that requires any new legislation affecting revenues and mandatory spending not to increase the federal deficit.) 

Although we share in the disappointment brought by this news, we remain optimistic. We are confident the groundwork laid in the 118th Congress will lead to results in the 119th. The inroads that we as an industry have made with legislators coupled with the fact that we have an ever-increasing number of our champions are now in leadership roles on several key committees across both houses of government are reasons for optimism. The HME industry is as well positioned as any time in the recent past. 

At the federal level, the incoming administration has clearly articulated a focus on cost-savings and efficiency. We believe that the DMEPOS industry fits this focus very well and will continue our conversations to make the case that our services are an answer to reducing costs. 

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