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Biden’s 2025 Budget Blueprint for Health

March 12, 2024

President Joe Biden has unveiled a $7.3 trillion budget proposal for fiscal year (FY) 2025 that includes a focus on drug pricing, cybersecurity, and Affordable Care Act subsidies, among other health priorities.

The budget proposal is a starting point to set the key topics for debate. The rollout kicks off 2025 fiscal negotiations for federal lawmakers who still need to finalize a funding plan for the U.S. Department of Health and Human Services and other departments through fiscal 2024.

Response to the budget blueprint was mixed along party lines, with Senate majority leaders hailing the plan, and Republican leaders criticizing the proposed price tag.

Here’s what you need to know:

  • Health insurance:  Biden’s proposal would make permanent expanded Affordable Care Act subsidies to reduce the cost of coverage.
  • Medicare solvency:  The FY budget would extend Medicare solvency, directing revenues from the tax code (with reforms for those making above $400,000) to the Part A trust fund.
  • Maternal health:  The proposal would extend $215 million to the Health Resources and Services Administration to reduce maternal mortality and morbidity and $1.8 billion for HRSA’s maternal and child health programs.
  • Behavioral health:  The budget proposes $2.2 billion in additional behavioral health investments. This includes a focus on expanding coverage for behavioral health services.
  • Cybersecurity:  The proposal would invest $141 million for cybersecurity initiatives in the Office of the Chief Information Officer and $12 million in the Administration of Strategic Preparedness and Response.
    • It also would create a $1.3 billion Medicare incentive program to encourage hospitals to adopt essential and enhanced cybersecurity practices.

Notably, the proposal also projects $200 billion in savings over a decade from the Medicare Drug Price Negotiation program. The Inflation Reduction Act program faces legal scrutiny from drugmakers as they begin the first round of counteroffers.

“This budget lays out a vision for a nation that invests in all aspects of health, fosters innovation, and supports its most vulnerable,” HHS Secretary Xavier Becerra said in a statement.

The budget brief from the U.S. Department of Health and Human Services is available online.

HAP continues to advocate at the state and federal level for resources to support Pennsylvania’s hospitals and the patients they serve. For additional information, contact John Myers, vice president, federal advocacy.