WASHINGTON WIRE
February 6, 2009
Issue 189
DASCHLE WITHDRAWS NOMINATION FOR HHS SECRETARY; REPLACEMENT UNCLEAR
SENATE CONTINUES TO DEBATE ECONOMIC RECOVERY PACKAGE
PRESIDENT OBAMA SIGNS SCHIP REAUTHORIZATION WITHOUT SPECIALTY HOSPITAL BAN
Top Story
DASCHLE WITHDRAWS NOMINATION FOR HHS SECRETARY; REPLACEMENT UNCLEAR
Former Senate Majority Leader Thomas Daschle (D-SD) February 3 withdrew his nomination to be secretary of the Department of Health and Human Services. Daschle's withdrawal came as he was under sustained scrutiny for recently paying more than $100,000 in back taxes.
Daschle had also been designated the director of the new White House Office of Health Reform.The administration has begun the search for a new nominee for HHS and a new director of WHOHR. It could be another month or more before the heads of HHS and its agencies, including the Centers for Medicare & Medicaid Services, are in place.
Daschle's exit has raised concerns that healthcare reform could be significantly delayed. Senate Finance Committee Chairman Max Baucus (D-MT) and Senate HELP Committee Chairman Ted Kennedy (D-MA), both dedicated to healthcare reform, penned a letter to President Obama saying they planned to work on healthcare reform this year and that they hoped a replacement for Daschle would be named soon.
Health Care News
SENATE CONTINUES TO DEBATE ECONOMIC RECOVERY PACKAGE
On Friday, February 6, the Senate continued to debate the American Recovery and Reinvestment Act (ARRA) well into the afternoon, with the possibility that the debate could extend into the weekend. Since debate of the bill began, senators have added a number of amendments to the bill, including an amendment which increases NIH funding by $6.1 billion and an amendment which provides a Sense of the Senate that controversial Medicaid regulations under moratoria should be rescinded.
A bipartisan group of senators continue to work behind the scenes on a compromise that would cut the cost of legislation by around $100 billion. Since the Senate has begun debating the legislation, the cost of the package has breached the $900 billion mark.
Once the Senate passes ARRA, a Senate and House conference committee will meet to reconcile the differences in their versions of the bill. Currently, the House version extends the moratoria on seven Medicaid regulations and the Senate version excludes the moratoria. The Senate version distributes more of the FMAP funding across all states, while the House version reserves more of the FMAP funding for states with higher unemployment rates.
PRESIDENT OBAMA SIGNS SCHIP REAUHTORIZATION WITHOUT SPECIALTY HOSPITAL BAN
On Wednesday, February 4, President Barack Obama signed the first healthcare bill of the year, a bill that reauthorizes and expands the State Children's Health Insurance Program. The bill excluded a House provision that placed a one-year moratorium on new physician-owned hospitals and required physicians divest from investments in hospitals.
The bill distributes $32.8 billion over the next 4 1/2 years to expand health insurance coverage to 4 million uninsured children. In a separate move last week, President Obama overturned a controversial CMS directive that prohibited states from enrolling patients above 250 percent of the federal poverty level (FPL) into SCHIP unless states proved they had enrolled 95 percent of eligible beneficiaries below 200 percent of the FPL.
Upcoming Events
Hearings
Tuesday, February. 10
Budget Options for Health Programs
Senate Budget Committee
Full Committee Hearing
10 a.m., 608 Dirksen Bldg.
Wednesday, February. 11
Competitive Bidding for Durable Medical Equipment
House Small Business - Subcommittee on Rural and Urban Entrepreneurship
10 a.m., 2360 Rayburn Bldg.
For More Information
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