Congress Ends Partial Shutdown and Extends Key Waivers

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Congress Ends Partial Shutdown and Extends Key Waivers

On February 3, 2026, the U.S. House of Representatives gave final approval to the federal government funding package. Along with the President’s signature later in the day, this action served to end the partial government shutdown, which started on February 1st, while also providing physicians and other health care providers with answers to the fate of Medicare telehealth coverage, acute hospital care at home, and other significant health care issues.

The American Medical Association (AMA) reported the following eight wins for physicians and patients in the approved package:

1. Medicare telehealth coverage renewed for two years. This extension helps restore continuity of telehealth services for Medicare patients. The Michigan State Medical Society (MSMS) joins the AMA and other state and national associations in celebrating the extension and continuing to advocate for the permanent authorization of Medicare telehealth flexibilities.
2. 3.1% bonus restored for physicians participating in Medicare alternative payment models (APMs). The bonus, which expired in 2024, will be restored for one year. This provision strengthens physician participation in APMs and value-based care by restoring meaningful incentives and reducing barriers to entry.
3. Access to the Medicare Diabetes Prevention Program (DPP) expanded. MSMS was an early proponent of the adoption and payment for DPP programs in Michigan. The efforts of MSMS and other partners in this effort have been used as a model supporting the expansion of DPP. We are excited that the Centers for Disease Control and Prevention-recognized virtual DDPs will be included in the expanded model on a trial basis over the next 3-4 years; thereby, helping to remove access barriers created by in-person participation requirements especially in rural and underserved communities.
4. Medicare Advantage plans required to maintain accurate, regularly updated provider directories and publicly report directory accuracy in order to give patients reliable information regarding which physicians are in-network for Medicare Advantage patients.
5. Acute Hospital Care at Home waiver extended for five years. This extension, which runs through 2030, preserves a proven, physician-led model that delivers hospital-level care safely in the home, improving outcomes and patient satisfaction. In 2024, the MSMS House of Delegates passed policy in support of making the acute care at home model permanent.
6. The Dr. Lorna Breen Health Care Provider Protection Act extended for five years. The federal budget deal continues funding for this effort through fiscal year 2030, mandates annual stigma-reduction campaigns and broadens grant eligibility to address administrative burden. For more information, visit the Dr. Lorna Breen Heroes’ Foundation.
7. Targeted pharmacy benefit manager (PBM) reforms. These reforms are intended to lower prescription-drug costs and improve fairness in the drug supply chain for patients and physicians by enhancing transparency, curbing abusive Medicare drug rebate practices, and strengthening enforcement against anticompetitive behavior.
8. More funding to address preterm births and maternal health. The budget deal reauthorizes the PREEMIE Reauthorization Act to expand federal research on preterm birth and improve outcomes for premature infants, as well as the Preventing Maternal Deaths Act. The latter measure increases authorized funding to $100 million annually through 2030, expands the scope of state maternal mortality review committees, and directs federal agencies to more regularly disseminate best practices.

The Medical Group Management Association (MGMA) also lauded the extension of the 1.0 work RVU GPCI floor through the end of 2026 and delay of clinical laboratory cuts until 2027.

Questions can be sent to Stacey P. Hettiger, MSMS Director of Advocacy and Payor Relations, at shettiger@msms.org.