To prevent across-the-board direct spending cuts, and for other purposes.

This bill makes several budgetary and technical changes to provisions under Medicare, Medicaid, and the American Rescue Plan Act of 2021, which provided additional relief to address the ongoing impact of COVID-19 (i.e., coronavirus disease 2019). The bill exempts the budgetary effects of the American Rescue Plan Act of 2021 and this bill from the Statutory Pay-As-You-Go Act of 2010 (PAYGO), and exempts this bill from the Senate PAYGO rule. The bill also continues to exempt Medicare from sequestration until December 31, 2021. (Sequestration is a process of automatic, usually across-the-board spending reductions under which budgetary resources are permanently cancelled to enforce specific budget policy goals.) The bill also specifically excludes mixed-earner unemployment compensation from Medicaid and Children's Health Insurance Program (CHIP) eligibility determinations; applies certain modified payment limits to rural health clinics that temporarily enrolled in Medicare during the public health emergency or that applied to enroll by December 31, 2020; and preserves higher Medicaid disproportionate-share hospital payments for public hospitals in California under forthcoming payment methodology changes.