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- How the Debt Limit Deal Affects Pathologists
The threat of a Medicare pay stoppage in early June would have occurred if the federal government hit its debt limit and could no longer borrow money to pay its bills. But with the White House and Congress reaching a deal to raise the debt ceiling, Medicare payments will continue uninterrupted for patient services.
The House of Representatives voted to pass the bipartisan Financial Responsibility Act of 2023 on May 31 and the Senate followed by voting for the package on June 1. The bill, signed into law by President Joe Biden on June 3, extends the debt limit for the next two years.
Passage of the bill alleviated immediate concerns of default on the nation’s debts and obligations, which include funding federal health programs. The deal cut by the Biden Administration and congressional leaders will keep nondefense spending for 2024 at 2023 levels. Topline federal spending will be limited to 1% annual growth. Medicare, Medicaid, and Social Security programs were left untouched.
Negotiators agreed to recoup nearly $28 billion in unspent funds allocated to combat the COVID-19 pandemic. New work requirements and time limits were also enacted for the Supplemental Nutrition Assistance Program and Temporary Assistance for Needy Families programs. IRS funding was also cut by $1.4 billion in 2023.
With the debt deal reached, Congress will now turn to legislating on other priorities. The CAP remains engaged on representing the interests of pathologists on Capitol Hill.