/ en Fri, 25 Apr 2025 19:24:11 -0500 Tue, 15 Apr 25 14:51:58 -0500 /news/headline/2025-04-15-new-aha-resources-demonstrate-impacts-potential-medicaid-cuts-expiration-enhanced-premium-tax-credits <p>The AHA yesterday released two new resources highlighting the significance of Medicaid and the potential impacts if Congress makes cuts to the program. An <a href="/fact-sheets/2025-04-14-protect-access-care-reject-cuts-medicaid-program-and-premium-hikes-working-families" title="infographic">infographic</a> demonstrates the national impact on hospitals and individuals if Medicaid cuts are implemented and enhanced premium tax credits expire, and a new <a href="/fact-sheets/2025-04-14-whats-stake-medicaid-covers-people-you-know" title="fact sheet">fact sheet</a> shows the makeup of Medicaid coverage nationwide and what’s at stake for patients and communities. </p> Tue, 15 Apr 2025 14:51:58 -0500 Finance & Budgeting <div class="container"><div class="row"><div class="col-md-8"><p>Senate Budget Committee Chair Lindsey Graham, R-S.C., April 2 released the <a href="https://www.budget.senate.gov/imo/media/doc/senate_amendment_h_con_res_14.pdf?mkt_tok=NzEwLVpMTC02NTEAAAGZl8RTAeR77E_lSejQRLXuYl1AOsKjOdJI0nU2PMfXA8wXmmXVYF7CcZk5tv11NHb3ujccKHrsSVucOEOWX58ycMOSAOS21R7ZAFkGPAKzprtG7Q" target="_blank">Senate's amendment</a> to the House budget resolution for fiscal year 2025. This marks the next step toward reaching a common budget resolution that will allow Congress to move forward with the <a href="/issue-landing-page/2025-02-07-budget-reconciliation-process-resource-page" target="_blank">reconciliation process</a>.  </p><p>The amendment is drafted to provide flexibility to Senate and House Committees when they begin drafting their individual bills. As is customary, the budget resolution does not provide details on potential cuts to Medicaid or Medicare, as well as the extension of the Enhanced Premium Tax Credits (EPTCs).</p><h2>Key Highlights of the Budget Resolution</h2><p><strong>Debt Ceiling:</strong> The resolution includes instructions to allow Congress to increase the debt limit. The House Ways & Means Committee instruction is $4 trillion, and the Senate Finance Committee’s is $5 trillion.</p><p><strong>Tax Policy: </strong>The resolution assumes a budget mechanism called “current policy baseline” to set up a pathway toward making the tax cuts within the Tax Cuts & Jobs Act (TCJA) permanent.</p><p><strong>Preserves House Instructions:</strong></p><ul><li>The House Ways & Means Committee is instructed to increase deficits by not more than $4.5 trillion (TCJA extension).</li><li>The House Energy and Commerce Committee is instructed to reduce deficits by not less than $880 billion. The Energy and Commerce Committee has primary jurisdiction over Medicaid and other health care programs.</li><li>The resolution reflects the desire of the House-passed budget resolution to reach $2 trillion in spending cuts.</li></ul><p><strong>Adds Senate Health Committee Instructions:</strong></p><ul><li>The Senate Finance Committee is instructed to increase deficits by not more than $1.5 trillion (TCJA extension and other tax policy).</li><li>The Senate Health, Education, Labor and Pensions (HELP) Committee is instructed to reduce deficits by not less than $1 billion. This is a change from the  Senate’s original previous budget resolution. The HELP Committee has jurisdiction over measures relating to education, labor, health and public welfare.</li></ul><p><strong>Deadline for Committees:</strong> The budget resolution gives Senate and House committees a May 9 deadline to report legislation, but this is not a binding deadline.</p><h2>Next Steps</h2><p>The Senate is expected to begin consideration of the budget resolution as soon as tonight. We anticipate the Senate to potentially work into the weekend processing amendments prior to a final vote. Health-related amendments are expected, particularly around Medicaid and EPTCs. We will be monitoring these developments.</p><p>If the revised resolution passes the Senate, it will move to the House for consideration next week. Congressional leaders hope to complete work on the budget resolution before leaving for their two-week April recess (April 14-25).</p><p>Once both chambers have passed the budget resolution, committees that have received instructions in the budget resolution will begin drafting the reconciliation bill.</p><h2>AHA Take</h2><p>As the Senate and House forge ahead on the fiscal year 2025 budget resolution and reconciliation process, the AHA continues to urge Congress to take seriously the impact of reductions in health care programs, particularly Medicaid. We ask Congress to construct a path forward that protects Medicaid and patients from harmful cuts that would impact access to care for millions of Americans. The AHA will continue to keep the field updated on the latest developments and action needed.</p><h2>Resources on Protecting Medicaid, Other Health Programs</h2><p>The AHA continues to develop and share resources with hospitals and health systems on the importance of protecting Medicaid and other health programs. Please visit our <a href="/advocacy/action-center" target="_blank">Action Center</a> for a host of resources on key advocacy issues. In addition, the Coalition to Strengthen America’s Healthcare, of which the AHA is a founding member, continues to run advertising, share digital resources and engage in grassroots activity on the importance of protecting Medicaid. See the Coalition <a href="https://strengthenhealthcare.org/" target="_blank">website</a> for the latest advertising and resources.</p><h2>Further Questions</h2><p>If you have further questions, please contact Rachel Jenkins, AHA senior associate director of federal relations, at <a href="mailto:rjenkins@aha.org">rjenkins@aha.org</a>. </p></div><div class="col-md-4"><a href="/system/files/media/file/2025/04/senate-unveils-amendment-to-house-budget-resolution-with-vote-expected-this-week-bulletin-4-3-2025.pdf"><img src="/sites/default/files/2025-04/cover-senate-unveils-amendment-to-house-budget-resolution-with-vote-expected-this-week-bulletin-4-3-2025.png" data-entity-uuid data-entity-type="file" alt="Special Bulletin Cover Image" width="640" height="833"></a></div></div></div> Thu, 03 Apr 2025 16:02:35 -0500 Finance & Budgeting /news/headline/2025-03-27-cms-host-webinar-ahead-model-hospital-global-budget-methodology <p>The Centers for Medicare & Medicaid Services will host a <a href="https://cms.zoomgov.com/webinar/register/WN_8H39OvHGQ-eXCPruX5L7xw#/registration">webinar</a> April 8 at 2 p.m. ET to review the States Advancing All-Payer Health Equity Approaches and Development Model hospital global budget methodology. The webinar will specifically highlight enhancements in the upcoming Version 3.0 HGB Financial Specifications. The webinar will discuss the model and key concepts, changes from Version 2.0 to 3.0, the case for hospital participation in HGBs and how CMS will calculate HGB payments for hospitals. </p> Thu, 27 Mar 2025 15:46:19 -0500 Finance & Budgeting /news/headline/2025-02-14-administration-unveils-plan-reciprocal-tariffs <p>President Trump Feb. 13 signed a presidential memorandum ordering the development of a comprehensive plan for “restoring fairness in U.S. trade relationships and countering non-reciprocal trading arrangements.”</p><p>The announcement directs the U.S. Trade Representative and the Secretary of Commerce, in consultation with the secretaries of a number of U.S. agencies, to develop plans for reciprocal tariffs on every country that taxes U.S. imports and submit a report to the president. In addition, within 180 days of the memo, the director of the Office of Management and Budget will assess all fiscal impacts on the federal government and the impacts of any information collection requests on the public and deliver an assessment in writing to the president.</p><p>For more information, see the <a href="https://www.whitehouse.gov/articles/2025/02/reciprocal-trade-and-tariffs/">presidential memo</a> and <a href="https://www.whitehouse.gov/fact-sheets/2025/02/fact-sheet-president-donald-j-trump-announces-fair-and-reciprocal-plan-on-trade/">fact sheet</a>.</p> Fri, 14 Feb 2025 16:02:27 -0600 Finance & Budgeting /news/headline/2025-02-13-senate-budget-committee-passes-fy-2025-budget-resolution-house-marking-its-own-resolution <p>The Senate Budget Committee Feb. 12 advanced a <a href="https://www.budget.senate.gov/imo/media/doc/chairmans_mark_-_fy25_budget_resolution.pdf">budget resolution</a> for fiscal year 2025 focusing on the border, military and energy by a vote of 11-10. The resolution, <a href="https://www.budget.senate.gov/chairman/newsroom/press/chairman-graham-unveils-fy-2025-budget-resolution-to-secure-the-border-revitalize-our-military-unleash-american-energy-production-and-begin-the-process-of-restoring-fiscal-sanity">announced</a> Feb. 7 by Sen. Lindsey Graham, R-S.C., chairman of the committee, would authorize $85.5 billion in spending per year, to be fully offset by corresponding spending cuts. This is the first of two budget reconciliation bills the Senate hopes to enact this year, with the second focusing on extending tax cuts and cutting spending. <br><br>Meanwhile, the House Budget Committee met today to mark up their <a href="https://docs.house.gov/meetings/BU/BU00/20250213/117894/BILLS-119NAih.pdf">budget resolution</a> that calls for increasing the debt ceiling by $4 trillion and allows for $4.5 trillion in spending for tax cuts. The House bill would also allocate $200 billion for border and defense spending. Additionally, it instructs seven committees to come up with no less than $1.502 trillion in mandatory cuts over 10 years. Notably, for health care, the bill instructs the House Energy and Commerce Committee to cut mandatory spending by a minimum of $880 billion. The Energy and Commerce Committee has primary jurisdiction over numerous health care programs, including Medicaid, and some proposals have been circulating that would enact significant cuts to Medicaid. As of press time, the markup is still ongoing. <br><br>“As the Senate and House Budget Committees begin deliberations on their Fiscal Year 2025 budget resolutions, the ���������� Association urges Congress to take seriously the impact of reductions in health care programs, particularly Medicaid,” said AHA President and CEO Rick Pollack in a statement shared yesterday with the <a href="/press-releases/2025-02-12-aha-statement-congressional-budget-resolution-deliberations">media</a>. “While some have suggested dramatic reductions in the Medicaid program as part of a reconciliation vehicle, we would urge Congress to reject that approach. Medicaid provides health care to many of our most vulnerable populations, including pregnant women, children, the elderly, disabled and many of our working class.” <br><br>A common budget resolution must be passed by both chambers to move forward with the reconciliation process. The full Senate is expected to consider the budget resolution next week. View the <a href="/issue-landing-page/2025-02-07-budget-reconciliation-process-resource-page">AHA's webpage</a> and <a href="/fact-sheets/2025-02-07-fact-sheet-budget-reconciliation-101">fact sheet</a> for more information on budget reconciliation. </p> Thu, 13 Feb 2025 17:01:44 -0600 Finance & Budgeting <div class="container"><div class="row"><div class="col-md-8"><p>The National Institutes of Health (NIH) late Feb. 7 issued <a href="https://grants.nih.gov/grants/guide/notice-files/NOT-OD-25-068.html" target="_blank" title="grants.nih.gov: Supplemental Guidance to the 2024 NIH Grants Policy Statement: Indirect Cost Rates">supplemental guidance</a> that updates negotiated indirect cost rates for new and existing NIH grants. Specifically, the agency will apply a straight 15% indirect cost rate across all new and existing grant awards. This will be applied to all current grants for “go forward expenses” from Feb. 10, 2025 onward, as well as for all new grants issued. The agency clarified that the 15% indirect cost rate will replace any negotiated rates for existing grant awards. In addition, NIH indicated it would not apply the policy retroactively, although it asserts in the guidance that it believes it has the authority to do so.</p><p>The guidance cites the authority under 45 C.F.R. 75.414(c)(1) for Department of Health and Human Services awarding agencies to use “a rate different from the negotiated rate for either a class of Federal awards or a single Federal award” so long as the agency outlines policies, procedures and rationale for changes publicly. Early reporting indicates that grantees may soon challenge this policy in court as violating statutory limits on changing negotiated rates that are tied to appropriations, as well as requirements for public rulemaking.</p><p>The indirect cost rate applies to overhead expenses for facilities and administration infrastructure. These expenses may include operations and maintenance, building depreciation, capital improvement costs and outlays for administrative staff. NIH indicates that the average indirect cost rate has been between 27% and 28% with many organizations charging upwards of 50% and 60%.</p><h2>Additional Information on Executive Actions</h2><p>The Trump administration has issued many executive orders and administrative actions. The AHA has compiled a <a href="/system/files/media/file/2025/01/2025-New-Executive-Orders-20250127.pdf">tracker</a> of the actions the administration has taken that may be of interest to hospitals and health systems. The tracker will be updated regularly as new actions are released.</p><h2>Further Questions</h2><p>If you have further questions, please contact the AHA at <a href="tel:1-800-424-4301">800-424-4301</a>.</p></div><div class="col-md-4"><p><a href="/system/files/media/file/2025/02/Member-Advisory-NIH-to-Significantly-Reduce-Funding-for-Indirect-Cost-Rates-for-Grants.pdf" target="_blank" title="Click here to download the Member Advisory: NIH to Significantly Reduce Funding for Indirect Cost Rates for Grants PDF."><img src="/sites/default/files/inline-images/Member-Advisory-NIH-to-Significantly-Reduce-Funding-for-Indirect-Cost-Rates-for-Grants.png" data-entity-uuid="9e0ae3f2-551d-4853-9c19-242b3fb23cd4" data-entity-type="file" alt="Member Advisory: NIH to Significantly Reduce Funding for Indirect Cost Rates for Grants" width="695" height="900"></a></p></div></div></div> Mon, 10 Feb 2025 08:11:47 -0600 Finance & Budgeting /news/headline/2025-02-03-tariff <p>The White House Feb. 1 <a href="https://www.whitehouse.gov/fact-sheets/2025/02/fact-sheet-president-donald-j-trump-imposes-tariffs-on-imports-from-canada-mexico-and-china/" target="_blank">announced</a> it placed tariffs on imported goods from Canada, Mexico and China. The tariffs for Mexico and Canada have since been delayed for 30 days, while tariffs for China are scheduled to begin Feb. 4.</p> Mon, 03 Feb 2025 15:40:32 -0600 Finance & Budgeting /news/headline/2025-01-30-administration-rescinds-memo-pausing-federal-grants-loans-and-other-financial-assistance-programs <p>The White House Office of Management and Budget Jan. 29 rescinded a <a href="https://sponsors.aha.org/rs/710-ZLL-651/images/01282025_omb-memo-on-federal-aid-freeze.pdf?version=0" title="aid freeze">memo</a> it issued two days earlier directing federal agencies to temporarily pause federal grants, loans and other financial assistance programs implicated by President Trump’s recent executive orders. </p><p>Following the rescission of the memo, White House Press Secretary Karoline Leavitt said, “This is NOT a recission of the federal funding freeze. It is simply a recission of the OMB memo…the President’s <a href="https://www.whitehouse.gov/fact-sheets/2025/01/omb-q-a-regarding-memorandum-m-25-13/" title="fed funding">EO’s on federal funding</a> remain in full force and effect and will be rigorously implemented.” </p><p>The Jan. 27 OMB memo that has been rescinded directed federal agencies to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”  </p><p>The pause was not going to affect Social Security, Medicare benefits, <a href="https://www.whitehouse.gov/fact-sheets/2025/01/omb-q-a-regarding-memorandum-m-25-13/" title="medicaid">Medicaid</a> or “assistance provided directly to individuals.” </p><p>A federal judge in Washington, D.C., had temporarily halted the pause shortly before it was set to take effect on Jan. 28 at 5 p.m. ET. </p><p>In a separate court case brought by some Democratic attorneys general, U.S. District Judge Jack McConnell said Jan. 29 that even though the OMB memo had been rescinded he was considering blocking the freeze, according to reports. “I fear … that the administration is acting with a distinction without a difference.”</p> Thu, 30 Jan 2025 15:07:12 -0600 Finance & Budgeting /news/headline/2025-01-16-report-hospitals-and-health-systems-stabilized-2024-continue-face-distress <p>A <a href="https://www.kaufmanhall.com/insights/research-report/hospital-and-health-system-ma-review-despite-industry-stabilization" title="research report">report</a> released Jan. 9 by Kaufman Hall highlights hospital and health system merger and acquisition activity from last year. <br> </p><p>The report said that announced transactions involving a financially distressed party hit a record high 30.6%. It also found that 62.5% of the announced transactions involved a divestiture, the highest percentage the industry has experienced and more than double the percentage from 2023. The percentage of announced transactions in which the smaller party had a credit rating of A- or higher dropped to an all-time low of 2.8%. </p> Thu, 16 Jan 2025 15:26:31 -0600 Finance & Budgeting /news/headline/2024-12-19-cms-national-health-spending-increased-75-2023 <p>The U.S. spent $4.9 trillion on health care in 2023 — a 7.5% increase from 2022 — the Centers for Medicare & Medicaid Services <a href="https://www.healthaffairs.org/doi/full/10.1377/hlthaff.2024.01375" target="_blank">reported</a> Dec. 18 in Health Affairs. The report cited increases in service utilization and intensity as primary drivers of the growth. Hospital spending increased 10.4%, driven by higher patient acuity and post-pandemic rebounds in hospital volumes. However, hospital price growth remained stable at 2.7% compared to 2.8% in 2022 and was lower than the rate of general inflation.  <br>  <br>Prescription drug spending increased 11.4%, mostly due to rapid growth in diabetes and obesity treatments and faster growth in retail prescription drug prices, the report found.</p> Thu, 19 Dec 2024 14:20:10 -0600 Finance & Budgeting