WASHINGTON WIRE
March 7, 2008
Issue 162
House and Senate Committees Mark-up Budget Resolutions
House Approves Mental Health Parity Bill
House Report Finds Medicaid Regulations Will Cost States $50 Billion
Hearings
Top Story
House and Senate Committees Mark-up Budget Resolutions
Both the House and Senate Budget Committee approved their respective fiscal year (FY) 2009 budget resolutions along party lines this week.
Both budgets reject the President's proposed Medicare and Medicaid cuts, as outlined in his FY 2009 budget proposal released in early February. Both budgets moderately increase discretionary, non-defense spending from last year's levels.
Additionally, the House budget contains reconciliation instructions to the Ways and Means Committee to save $750 million over five years. Such reconciliation legislation will likely be used to advance a Medicare physician payment bill this year as reconciliation legislation requires the support of only a simple majority (e.g. 51 votes in the Senate) to pass.
The budgets also contain several budget-neutral "reserve funds" to be used for various spending priorities such as a children's health, moratoria on several pending Medicaid regulations, and the adoption of electronic prescribing. Although initially unfunded, these "set-asides" allow either spending cuts or increased revenues (taxes) to pay for these priorities.
Committee passage of the budgets clears the way for floor consideration in both chambers next week.
Health Care News
House Approves Mental Health Parity Bill
On Wednesday, the House approved a popular mental health parity bill (H.R.1424), championed by Congressman Patrick Kennedy (D-RI).
The legislation requires employers to offer mental health coverage equal to coverage offered for other physical medical conditions. The bill outlines a series of mental health conditions to be included in the parity requirement.
The House bill is to be "paid for" under current pay-as-you-go (PAYGO) rules by halting the growth of "specialty," or physician-owned hospitals, which commonly perform a specific procedure or service. The bill would also increase the discount pharmaceutical companies are required to provide Medicaid.
The Senate passed mental health parity legislation, introduced by Senator Edward Kennedy (D-MA), Representative Kennedy's father, last year. The Senate bill was drafted as a compromise between insurers, businesses and mental health advocates. Supporters of the House bill argue that the Senate bill does not go far enough in mandating coverage given that it would allow insurers to determine what mental health benefits would be covered. However, the White House has stated its opposition to the House bill, and supports the Senate legislation.
Negotiations between the lead sponsors of both bills have been underway for months, however, prospects for and content of a final bill remain very unclear.
House Report Finds Medicaid Regulations Will Cost States $50 Billion
The House Committee on Oversight and Government Reform released a report this week that found that a series of recent Medicaid regulations would reduce federal Medicaid payments to states by almost $50 billion over five years. The report was based upon responses received from 43 states and the District of Columbia regarding the impact of the regulations.
The Centers for Medicare and Medicaid Services (CMS) has issued seven regulations over the past year or so that would reduce federal Medicaid payments for rehabilitative services, school-based services, targeted case management services, teaching and public hospitals, and outpatient hospital services. Advocates argue that these rules will significant reduce access to care for low-income beneficiaries.
CMS stated that the Committee's report is not credible. The Administration has estimated that, as a result of the regulations, payments to states will be reduced by approximately $15 billion over five years.
Upcoming Events
Hearings
Tuesday, March 11, 2007
Departments of Defense and VA Cooperation in Care for Wounded
Senate Veterans' Affairs Committee
9:30 a.m., 418 Russell
Medicare Payment Policies
House Ways and Means - Subcommittee on Health
10 a.m., 1100 Longworth
Veterans' Substance Abuse
House Veterans' Affairs - Subcommittee on Health
10 a.m., 334 Cannon
Fiscal 2009 Appropriations: Labor, Health and Human Services; Education
House Appropriations - Subcommittee on Labor, Health and Human Services, Education, and Related Agencies
Subcommittee Hearing
10 a.m., 2358-C Rayburn
Life Sciences Research
Senate Health, Education, Labor and Pensions Committee
11 a.m., 430 Dirksen
Health Bills
House Energy and Commerce - Subcommittee on Health
Markup
2 p.m., 2123 Rayburn
Medicare Payment Advisory Commission Report
House Energy and Commerce - Subcommittee on Health
2 p.m., 2322 Rayburn
Wednesday, March 12, 2007
Fiscal 2009 Appropriations: Labor, Health and Human Services; Education
House Appropriations - Subcommittee on Labor, Health and Human Services, Education, and Related Agencies
Subcommittee Hearing
1 p.m.
Military Health Issues
House Armed Services - Subcommittee on Military Personnel
9 a.m., 2118 Rayburn
Prescription Drug Abuse
Senate Judiciary Committee
2 p.m., 226 Dirksen
Thursday, March 13, 2007
Fiscal 2009 Appropriations: Labor, Health and Human Services; Education
House Appropriations - Subcommittee on Labor, Health and Human Services, Education, and Related Agencies
10 a.m.; 2 p.m.
Care of Seriously Wounded
House Veterans' Affairs - Subcommittee on Oversight and Investigations
10 a.m., 340 Cannon
For More Information
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