WASHINGTON WIRE
September 26, 2008
Issue 182
BAILOUT, STIMULUS AND CR BILLS POSTPONE CONGRESS ADJOURNMENT
CONGRESS PASSES SEPARATE MENTAL HEALTH PARITY PROVISIONS
BAUCUS SPEAKS TO USE OF RECONCILIATION FOR HEALTH REFORM
NEW COMMITTEE REPORT POINTS TO MEDICARE FRAUD
CONGRESS APPROVES SERIES OF BILLS
Top Story
BAILOUT, STIMULUS AND CR BILLS POSTPONE CONGRESS ADJOURNMENT
Congress will continue working into the weekend, and potentially into next week, as lawmakers hammer out three bills meant to address the current economic crisis and extend funding for federal programs into next year. The outcome of these legislative efforts could impact when the Congress recesses, the potential for a lame duck session and the feasibility of taking up health care reform next year.
An unpopular $700 billion rescue plan for failing financial institutions has come under attack by House Republicans who late this week offered an alternative to Treasury Secretary Paulson's plan. These objectives to the Paulson plan were raised during a White House meeting with Congressional leaders and Presidential candidates McCain and Obama on Thursday. The administrations' plan would allow the government to buy bad mortgage debt from banks, but House Republicans would rather the Treasury Department instead insure a significant amount of mortgage-backed securities. It appears negotiators are trying to find a middle ground between the two options: allow the Treasury to purchase debt outright and to insure more securities. It is unclear if House Republicans will accept such a compromise, but it also appears that the Treasury has accepted many of the terms needed to gain the support of many other lawmakers, particularly Democrats in both chambers, including doling out the subsidy in installments and including limits on executive compensation.
In addition, on Saturday the Senate is expected to take up a House passed Continuing Resolution, priced at $600 billion, that would fund federal programs until March of next year.
On Friday, the Senate failed to reach cloture on a $56.2 billion economic stimulus package that enhances unemployment insurance benefits, increases Federal funds for Medicaid by $19.6 billion and extends for one-year a ban on oil shale energy development or production. The White House has threatened to veto the Senate bill over the ban extension and on the grounds the bill would hurt the economy. The House is expected to take up its own stimulus legislation, worth $60.7 billion, Friday evening. If passed, the Senate would consider the House version.
Negotiators from both houses are scheduled to meet Friday evening, and both the Senate and House are expected to convene again Saturday morning to continue bailout negotiations. The weekend session could extend into Sunday, or possibly Monday.
Health Care News
CONGRESS PASSES SEPARATE MENTAL HEALTH PARITY PROVISIONS
On Tuesday, Sept. 23, Congress passed a mental health parity agreement in separate legislative vehicles. House and Senate leaders have yet to agree on a final package. The Senate version, which was attached to a tax extenders bill, does not include funding, but the parity provision is identical to that included in the House stand-alone bill (H.R. 6983).
BAUCUS SPEAKS TO USE OF RECONCILIATION FOR HEALTH REFORM
Senator Max Baucus (D-MT), chair of the Senate Finance Committee, earlier this week spoke to the possibility of using the budget reconciliation process to achieve health care reform. Baucus said that a bi-partisan approach to health care reform would be ideal, but that Democrats would resort to using reconciliation lacking any other option. The resolution process would require 51 votes to pass legislation, as opposed to the 60 needed to reach cloture and avoid a filibuster.
NEW COMMITTEE REPORT POINTS TO MEDICARE FRAUD
A Sept. 24 Associated Press article reports that the Senate Homeland Security & Governmental Affairs Subcommittee on Investigations has evidence that CMS might have paid more than $1 billion for medical supplies that had little relation to patients' conditions.
The committee report found that Medicare paid claims with blank or invalid diagnosis codes. In the report, CMS said IT has validated diagnosis codes on all medical equipment claims since 2003.
CONGRESS APPROVES SERIES OF BILLS
The week of Sept. 22nd, the House approved a series of public health bills already passed by the Senate, including:
The Physician Workforce and Graduate Medical Education Enhancement Act of 2007 (H.R. 2583), to create a loan program for hospitals to establish residency training programs;
The National Pain Care Policy Act of 2007 (H.R. 2994), to coordinate efforts within HHS and other federal agencies working on pain research;
The Stephanie Tubbs Jones Organ Transplant Act (H.R. 6469), to increase funding for the Organ Procurement and Transplant Network;
The Health Care Safety Net Act of 2008 (H.R. 1343), to authorize $2.2 billion for fiscal year 2008 and $3.3 billion in FY 2012, and to reauthorize the National Health Service Corps and the Rural Health Care Programs.
Upcoming Events
HEARINGS
There are no hearings scheduled for the week of September 29.
For More Information
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