Very recent and important news from Washington

Last week, our national affiliate, AHCA/NCAL, notified members about one very important piece of federal legislation and one very important regulation from CMS.  We wanted to make sure you saw the communication which is set forth in its entirety below.

The federal legislation concerned the passage of a comprehensive budget package which ended a short partial federal shutdown.  Significantly, the package included a two-year extension of a variety of telehealth expansions that were originally enacted during the COVID pandemic.  These policies favorably impact long term care facility operations.

The CMS regulation proposes to implement the provider tax provisions enacted as part of the “One Big Beautiful Bill Act (OBBBA)” signed into law on July 4, 2025.  WHCA/WiCAL staff will be monitoring closely the progress of this proposal as it winds its way through the regulatory process.  At this time, the impact upon Wisconsin is minimal.

Please do not hesitate to contact Eric, ekoch@whcawical.org , or Rick, rick@whca/wical.org , if we can be of further assistance.

House Passes Budget Package, Government Fully Reopens

Today, the House passed the budget spending package passed in the Senate late last week to end the partial government shutdown. It now heads to the President’s desk, where he is sure to sign.

All federal government activities should resume as normal, including all survey and enforcement activities.

What’s Included

Congress has now funded the federal government through September 30, 2026. The spending package includes five funding bills, which cover the departments of Defense, Transportation, Housing and Urban Development, Health and Human Services, and Labor and Education. It also includes a stopgap measure funding the Department of Homeland Security for two weeks.

Specific to long term care, the funding extends several telehealth policies through December 31, 2027, including:

• Geographic Limit Waivers: These preserve telehealth access nationwide whether in a facility or in a beneficiary home such as assisted living and ID/DD settings.

• Expanded list of telehealth providers: This preserves the ability for PT/OT/SLP services via telehealth.

• Delay of in-person requirements for mental health services furnished via telehealth and telecommunications technology: This preserves access to mental health care especially in provider shortage areas.

• Extending the waiver to permit audio-only telehealth services: This preserves access to distant site care providers when telehealth is not available or per patient preference.

• Extended use of telehealth for hospice recertifications.

Also included is an extension of the work geographic floor index multiplier of 0.0 through January 1, 2027, preventing rate cuts for Part B services in certain rural locations.

AHCA/NCAL will continue to monitor developments and provide updates as necessary.

Additional Updates

CMS Finalizes Provider Tax Rule: CMS finalized “Preserving Medicaid Funding for Vulnerable Populations – Closing a Health Care-Related Tax Loophole Final Rule,” tightening federal oversight of Medicaid provider taxes, a key mechanism utilized by State Medicaid Agencies to finance their share of Medicaid. Read More