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New Health Care Policies in FY 2023

February 1, 2023

March 2023

Congress has reached a major deal concerning health care policies, which was signed into law by President Biden on December 29, 2022. The legislation covers a variety of health care policies including Medicare, Medicaid, telehealth, and pandemic preparedness.

One change enacted by the legislation is a decrease in Medicare pay cuts. The proposed decrease in 2023 is 2% versus the previously proposed 4.5%. Other Medicare provisions include a two-year extension of the Medicare hospital at home program.

Medicaid is also facing a few changes. In April 2023, states will be allowed to kick ineligible people off Medicaid despite the ongoing public health emergency. On the other hand, the Children’s Health Insurance Program will be extended to 2029 and children on Medicaid will get one year of continuous eligibility.

Other adjustments include increased funding for the National Institutes of Health (NIH), Advanced Research Projects Agency for Health, Centers for Disease Control and Prevention (CDC), Agency for Healthcare Research and Quality, Health Resources and Services Administration, and National Science Foundation.

The bill also includes the previously proposed pandemic preparedness package, though it is not as robust as originally intended. One of the standout changes in this package is a requirement for Senate approval of the CDC director beginning in 2025.

Gun violence prevention research will also receive dedicated funding at the same level as fiscal year 2022 with half going to the CDC and the other to the NIH.

Sources: Stat News, December 19, 2022. Association of American Medical Colleges, January 4, 2023.

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