Government Funding Update

On February 3, after lawmakers and the White House reached a bipartisan deal to extend government funding, the U.S. Congress passed and the White House signed Consolidated Appropriations Act of 2026 (H.R. 7148) (with a Senate Amendment) to reinstate government funding as well as extend key federal programs and policies affecting telehealth, payment policy, and diabetes prevention and treatment.

Key Provisions of the Funding Package Include:

Extension of Medicare Telehealth Flexibilities

Critical Medicare telehealth flexibilities are extended through December 31, 2027, providing much needed stability for health care providers and hospitals alike while helping ensure continued access to care for beneficiaries regardless of geographic location. These provisions support ongoing use of telehealth services, which are particularly important for individuals who may be unable to consistently access in-person care for nutrition services.

Extension of Work Geographic Practice Cost Index (GPCI) Floor

The Medicare Work Geographic Practice Cost Index (GPCI) floor is extended through January 1, 2027. This provision will prevent scheduled payment reductions for providers in certain geographic areas as GPCI adjusts Medicare payment rates to reflect regional differences in the cost of delivering care, such as wages, rent, and other practice expenses, rather than applying a single national rate. Maintaining the GPCI floor protects providers in rural and lower-cost areas from disproportionately low payment rates, helping preserve provider participation and beneficiary access to care.

The MDPP is modernized and expanded by removing the once-in-a-lifetime program cap, allowing fully virtual providers to participate in the program, and allowing providers to bill for services for patients who are receiving virtual services but live in another state.

Special Diabetes Programs Extended

Funding for the Special Diabetes Programs is extended through December 31, 2026, ensuring continued investment in type 1 diabetes research and diabetes prevention and treatment services for American Indian and Alaska Native communities.