Stakeholders try to ‘push through’
By Theresa Flaherty, Managing Editor
Updated 9:05 AM CST, Fri March 7, 2025
WASHINGTON – With Republicans looking to make steep cuts to government spending, it’s wait-and-see as to whether Medicare or Medicaid will be on the chopping block.
Industry stakeholders are optimistic, however, that these two large funding sources are safe – for now.
“There’s probably 10 moderate Republicans that will oppose any cuts in care – that’s kind of the third rail in politics,” says Jay Witter, senior vice president of public policy for AAHomecare.
Still, at press time, several media outlets were reporting that the Republicans will not be able to meet their budget target without making cuts to Medicare or Medicaid based on estimates from the Congressional Budget Office (CBO).
Medicaid might be a likelier target, which would be “significant” for the industry, says AAHomecare President & CEO Tom Ryan. That population skews younger – and often disabled – requiring a significant amount of DMEPOS, including complex rehab, disposable medical supplies and pediatric equipment.
“I think at the end of the day, we just have to (show) how we can help save costs across the health care continuum,” he said.
Adding to the chaos on Capitol Hill: Federal funding is set to expire at midnight on March 14, putting pressure to pass a continuing resolution to avoid furloughs and a reduction in services. Stakeholders had been eyeing the CR as a vehicle for legislation that would extend Medicare’s 75/25 blended rates in certain areas, but that's unlikely to happen at this point, say stakeholders.
“The idea that (lawmakers) would add anything into the package at this point – I don’t think there’s the appetite for it,” said Ike Isaacson, senior vice president of government and regulatory relations for VGM & Associates. “Nobody is against the bill, but trying to find a vehicle for it has been the biggest challenge.”
The industry is ready to go with a bill when the opportunity does arise. With industry champion Sen. John Thune, R-S.D., now serving as Senate Majority Leader, stakeholders are working to line up a new lead sponsor.
“We’ve dealt with this many times – everything is pretty chaotic right now – so we’ll just keep pushing through,” Witter said.
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