Updated CMS Payment for Medicare Part B Preventive Vaccines & Their Administration for Rural Health Clinics & Federally Qualified Health Centers

The Centers for Medicare & Medicaid Services (CMS) released updated information on vaccine payment policies for Rural Health Clinics (RHCs) and Federally Qualified Health Centers (FQHCs). Effective January 1, 2025, CMS Hepatitis B vaccines are paid like other Part B preventive vaccines. New claim-based payments for Part B preventive vaccines and their administration are effective July 1, 2025. RHCs and FQHCs will need to annually reconcile payments with the facilities’ actual vaccine and vaccine administration costs on their cost reports. Get more information from CMS.gov.

Health Clinics Grapple with US Funding Squeeze

President Donald Trump’s executive orders have begun to disrupt patient care in the United States, as some providers cannot access essential federal funding, according to interviews with a dozen healthcare providers and policy advocates. Facilities in Virginia and West Virginia told Reuters they were forced to shutter primary care clinics or lay off staff. Other community health clinics in California and Virginia said they received notices of termination for federal grants that support HIV prevention care. Source-Reuters

Medicaid Data Dashboard and Reports Released

With Medicaid and CHIP Enrollment at more than 79 million people nationally, data shows the wide range of services accessed by consumers ranging from preventative care to hospital stays and prescription drugs. Medicaid pays for half of all U.S. births and is the largest payer of long-term care and behavioral health services. Pennsylvania has over three million enrollees with more than 750,000 due to Medicaid expansion. Access the Department of Human Services Data Dashboard and Reports for more information.

Rural Provider Participation in Medicare ACOs Grows

The Centers for Medicare & Medicaid Services (CMS) Shared Savings Program Fast Facts updates data on provider and beneficiary participation in an accountable care organization (ACO). An ACO is a group of healthcare providers that work together to coordinate care for Medicare patients. As of January 2025, 53.4% of beneficiaries in Traditional Medicare are enrolled in an accountable care relationship with a provider participating in the Medicare Shared Savings Program (MSSP) and the Center for Medicare and Medicaid Innovation (Innovation Center) accountable care models. In MSSP, the number of rural and safety net providers has grown since last year. There are now 2,872 Rural Health Clinics, 547 Critical Access Hospitals, and 7,036 Federally Qualified Health Centers participating.

Tom Engels Sworn in as the (Returning) HRSA Administrator

This week, Tom Engels was sworn in as the HRSA Administrator, returning to a role he held from April 2019 to January 2021. Mr. Engels is originally from Wisconsin, where he began his political career as Governor Tommy Thompson’s Deputy Press Secretary and eventually served as the Deputy Secretary for the Department of Health Services. During his first term at HRSA, his tasks included overseeing the roll-out of the Provider Relief Fund created in response to the COVID pandemic, and he demonstrated an understanding of and appreciation for HRSA programs and staff, including support of Community Health Centers.

Workforce Innovation Act Re-Introduced in Pennsylvania

On Feb.5, Representatives Andrew Garbarino (R-NY) and Angie Craig (D- MN) introduced the Health Care Workforce Innovation Act of 2025 (H.R. 935). Similar to the legislation Representative Craig authored last year, the bill aims to expand the workforce pipeline for local health care providers particularly CHCs. It creates a new HRSA grant program for this purpose but provides no funding for grants. Here are press releases from Representatives Garbarino and Craig.

Rapp Bill to Help Rural Health Recruitment Clears Pennsylvania Health Committee

Rep. Kathy L. Rapp (R-Warren/Crawford/Forest), Republican chair of the House Health Committee, announced her bill to provide financial incentives to recruit rural healthcare providers has unanimously passed the House Health Committee. House Bill 157, the reintroduction of House Bill 2382 from last session, would create the Rural Health Care Grant Program, which would allow specified facilities, including Federal Qualified Health Centers (FQHCs) to help certain providers in paying off their student loans. To be eligible to receive grant dollars, House Bill 157 would require: licensed nurses, physicians, midwives, dentists and dental hygienists to begin practicing at a rural hospital, FQHC, rural health clinic, or birth center within six months of accepting a position; be classified as full-time by working 30 hours or more per week, or 130 hours per month; and work in the facility for a minimum of three years.

Pennsylvania Among States Absorbing Big Increases in Medicaid for Sicker-Than-Expected Enrollees after Coronavirus Pandemic

States are absorbing substantial increases in healthcare costs for the poor, as they realize that the people remaining on Medicaid rolls after the COVID-19 pandemic are sicker than anticipated and costlier to care for. In Pennsylvania, state budget makers recently unveiled the scale of that miscalculation, with Democratic Gov. Josh Shapiro proposing an increase of $2.5 billion in Medicaid spending in the next fiscal year. That amounts to a roughly 5% increase in overall state spending, mostly driven by the cost-to-care for unexpectedly sick people remaining on the state’s Medicaid rolls. Costs went up partly because some people put off medical treatment during the pandemic, Shapiro’s administration said. As a result, their conditions worsened and became costlier to treat. The Alliance of Community Health Plans last fall asked the federal government to review Medicaid reimbursement rates in Pennsylvania and a handful of other states that it said were unrealistically low and relying on outdated claims data that showed a relatively healthier population of Medicaid enrollees. In Pennsylvania, the $2.5 billion projected Medicaid cost increase will be a big pill to swallow in a state with a slow-growing economy and a shrinking workforce that is delivering relatively meager gains in tax collections. Tax collections are projected to rise by less than $800 million in the 2025-26 fiscal year, and Republican lawmakers are wary about spending down the state’s roughly $10.5 billion surplus for fear of depleting it within a few years.