The new Bipartisan Budget Act of 2018 (the Act), recently signed into law by President Trump, includes extensive Medicare, Medicaid, and other health policy and payment provisions.  Policy changes that will be welcome to health care providers and manufacturers include:  repeal of the Independent Payment Advisory Board (IPAB); elimination of the Medicare outpatient therapy caps; Stark Act revisions; and extension of various expired Medicare payment provisions.  On the other hand, the Act includes significant Medicare and Medicaid offsets, such as: reduced Medicare provider payment updates; increased Medicaid rebate obligations with respect to line extension drugs; cuts in Medicaid disproportionate share hospital allotments; changes to manufacturer discount obligations in the Medicare Part D “donut hole”; and inclusion of hospice care in the hospital post-acute transfer policy.  Moreover, the Act once again significantly increases penalties for violations of various anti-fraud statutes.

Reed Smith has prepared a Client Alert focusing on the major Medicare, Medicaid, and public health provisions of the Act; the Alert is available here.