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2021 Budget Proposal Released

The President released the 2021 Budget proposal on Monday, Feb. 10, 2020. History has shown that items listed in the Budget (once scored as savings) can and do show up in legislation later in the year. There are two items that VGM Government will focus on:

  1. The Budget calls for a 10% reduction from HHS 2020 enacted levels. 

“The 2021 Budget requests $94.5 billion for HHS, a 10-percent decrease from the 2020 enacted level. The Budget proposes $1.6 trillion in net mandatory health savings, reducing longer-term deficits by eliminating wasteful spending while preserving beneficiaries access to care, enhancing competition, and prioritizing Federal resources for the most vulnerable.”

  1. The Budget calls for improved access to rural healthcare.

The Budget includes proposals to address the healthcare needs of rural America. The Budget proposes to expand access to telemedicine services by offering increased flexibility to providers who serve predominantly rural or vulnerable patient populations, including IHS providers and providers participating in Medicare payment models requiring financial risk. The Budget proposes to modify payments to Rural Health Clinics to ensure that Medicare beneficiaries continue to benefit from primary care services in their communities. To address the trend of rural hospital closures, the Budget proposes to allow critical access hospitals to voluntarily convert to rural standalone emergency hospitals and remove the requirement to maintain inpatient beds. In addition, the Budget maintains funding for Rural Health Outreach grants in HRSA.

Click here to read the HHS’ 2021 Budget in Brief.

VGM Government will be reviewing the budget in more detail and will provide more information as warrented.