House Approves Major Health Funding Bill, Extends Telehealth & Hospital-at-Home Flexibilities

The U.S. House of Representatives has passed a significant health care funding package for fiscal year 2026. The bipartisan bill, passed with a 341-88 vote on January 22, extends several critical Medicare and Medicaid provisions that directly impact hospitals and patient access to care.
The legislation, a three-bill “minibus,” funds key rural health, workforce, maternal health, and behavioral health programs. It includes several extensions strongly supported by the American Hospital Association (AHA), providing stability for healthcare providers.

Key Extensions for Hospitals and Patients

The bill provides multi-year extensions for several pandemic-era flexibilities that have become essential to modern care delivery:
* Telehealth Flexibilities: Extended for two years, ensuring continued access to virtual care.
* Hospital-at-Home Programs: Extended for five years, allowing patients to receive acute-level care in their homes.
* Medicare-Dependent Hospital & Low-Volume Adjustments: Extended for one year, providing crucial financial support for small, rural hospitals that serve a high proportion of Medicare patients.
Additional Financial Protections and Next Steps
The package includes other important financial measures:
* Delays payment reductions for clinical laboratory services by one year.
* Eliminates Medicaid Disproportionate Share Hospital (DSH) cuts until fiscal year 2028, offering relief to hospitals that serve a large number of low-income and uninsured patients.
The legislation now moves to the Senate, which is expected to consider the funding package next week. Its strong bipartisan support in the House indicates a high likelihood of passage, providing much-needed certainty for the healthcare sector as it plans for the coming years.