If the federal government shuts down at midnight tonight, which seems increasingly more likely, implementation of the healthcare reform law wouldn't stop and Medicare payments would continue, at least for now, according to a report by Politico.
The reform law involves mandatory spending; this is not affected by the budget, which covers discretionary spending, an HHS official said. However, the salaries of HHS and CMS employees are paid discretionary funds, so many of them would be sent home, slowing down progress on drafting reform-based regulations.
Federal officials have already stated that Medicare reimbursements to hospitals, physicians and other providers would continue unless the shutdown dragged on for some time. But Politico reported outcomes would differ depending on the provider group:
Medicare Part A. This funding for hospitals is paid out of a trust fund that is shielded from any changes in the federal budget.
Medicare Part B. These payments for physicians are "more complicated," a former HHS official said. "If, God forbid, a shutdown goes on for more than a month or two, then you get into interesting questions."
Medicare Parts B and D. CMS has the authority to pay for Part B and D through the end of May through the Supplemental Medical Insurance Trust Fund.
Read the Politico report on the potential federal shutdown affecting healthcare spending.
Read more coverage of the possible shutdown of the federal government:
- Short Federal Shutdown Wouldn't Harm Medicare, Medicaid Payment
- Federal Shutdown Likely Saturday Due to Budget Impasse
- Federal Shutdown Becoming Likely With 10 Days to Go
The reform law involves mandatory spending; this is not affected by the budget, which covers discretionary spending, an HHS official said. However, the salaries of HHS and CMS employees are paid discretionary funds, so many of them would be sent home, slowing down progress on drafting reform-based regulations.
Federal officials have already stated that Medicare reimbursements to hospitals, physicians and other providers would continue unless the shutdown dragged on for some time. But Politico reported outcomes would differ depending on the provider group:
Medicare Part A. This funding for hospitals is paid out of a trust fund that is shielded from any changes in the federal budget.
Medicare Part B. These payments for physicians are "more complicated," a former HHS official said. "If, God forbid, a shutdown goes on for more than a month or two, then you get into interesting questions."
Medicare Parts B and D. CMS has the authority to pay for Part B and D through the end of May through the Supplemental Medical Insurance Trust Fund.
Read the Politico report on the potential federal shutdown affecting healthcare spending.
Read more coverage of the possible shutdown of the federal government:
- Short Federal Shutdown Wouldn't Harm Medicare, Medicaid Payment
- Federal Shutdown Likely Saturday Due to Budget Impasse
- Federal Shutdown Becoming Likely With 10 Days to Go