What is the Consolidated Appropriations Act?

In 2022, President Biden signed this act. It provides $1.5 trillion in appropriations and funding through the 2022 fiscal year. Like any other House Resolution, this act is complex and provides funding through 12 appropriations bills.

Funding

This act provides funding for various programs and agencies. Initially, it included more Covid-19 relief funds. However, approximately $15.6 billion of relief funds were removed to focus on other areas. Non-defense spending increased by roughly 6.7 percent from the previous fiscal year. Meanwhile, defense spending increased by 5.6 percent.

Portions of the $1.5 trillion went to:

• Supplemental Nutrition Assistance Program - $140.4 billion
• State and Tribal Assistance Grants - $4.352 billion
• Workforce Innovation and Opportunity State Grants - $2.9 billion
• Department of Homeland Security - $57.5 billion
• Military Constriction and Veterans Affairs - $284.6 billion

Consumer Protections

While funding was the primary focus of this act, it also established consumer protections. The act aims to increase transparency in healthcare and prevent surprise billing for consumers.

The No Surprise Act

A big part of this act is the changes to the QPA, or qualifying payment amount. The QPA determines individual cost-sharing for items in Title I of Division BB of the Consolidated Appropriations Act (CAA). It applies protections broadly to providers, facilities, and the providers of air ambulance services. The goal is to adopt a universal methodology for calculating qualifying payment amounts, offering more transparency and decreasing the chances of inflated costs.

The No Surprise Act also includes details about Remittance Advice Remark Codes (RARCs). The RARCs can be used by plans and insurers to communicate claim information to providers and facilities.

Prescription Drug Transparency

Another detail of this act pertains to drug transparency. Under section 204 of Title II of Division BB, the act states that insurance companies and employer-based health care plans must provide data about spending. They must submit information about prescription drugs and health care spending to various government departments. These include the Departments of Health & Human Services, the Department of Labor, and the Department of Treasury.

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