Reed Smith Client Briefing

The Bipartisan Budget Act of 2018 (the Act), signed into law by President Trump on February 9, 2018, includes extensive and far-reaching Medicare, Medicaid, and other health policy and payment provisions. Many of these provisions will impact federal health policy for years to come.

Some of the provisions will be welcome to health care providers and manufacturers, such as: repeal of the Independent Payment Advisory Board (IPAB); elimination of the Medicare outpatient therapy caps; codification of certain recent changes to the Stark Act; and extension of various Medicare provisions that are regularly renewed (so-called extenders).

On the other hand, the Act includes health-related offsets that the Congressional Budget Office (CBO) estimates will save more than $38 billion over 10 years. Significant Medicare and Medicaid offsets include: reduced Medicare payment updates for various types of providers; increased Medicaid rebate obligations with respect to line extension drugs; cuts in Medicaid disproportionate share hospital (DSH) allotments; changes to manufacturer discount obligations in the Medicare Part D “donut hole”; and extension of the hospital post-acute transfer policy to early discharges to hospice care. Moreover, the Act once again significantly hikes penalties for violations of various anti-fraud statutes.

This Client Briefing focuses on the major Medicare, Medicaid, and public health provisions of the Act. We would be pleased to provide you with additional information about any of these provisions.

Download the PDF below to learn more!


Client Briefing 2018-051