WASHINGTON WIRE
February 27, 2009
Issue 191
WHITE HOUSE UNVEILS FY 2010 BUDGET “BOOK”
SENATE TO TAKE UP FY 2009 OMNIBUS BILL
WHITE HOUSE PLANS HEALTH CARE SUMMIT
Top Story
WHITE HOUSE UNVEILS FY 2010 BUDGET "BOOK"
On Thursday, February 26, President Obama released details of a $3.6 trillion FY 2010 budget request. The spending plan includes a $634 billion, 10-year health care reserve fund for reform of the American healthcare system. A complete budget is not expected until the last week of March or early April.
The healthcare reforms would be funded through savings from a number of healthcare payment changes, including competitive bidding programs for Medicare Advantage and bundling payments for hospital post-acute settings. But nearly 50 percent of the funding comes from limiting the value of itemized deductions claimed by taxpayers in the top two income tax brackets, a policy that is sure to gain conservative critics in Congress.
The budget would also means test Medicare's prescription drug benefit - Part D - by requiring beneficiaries earning $85,000 to pay higher premiums; premiums for Medicare Part B are already means tested. The plan would also produce savings through pay-for-performance by linking some payments to hospitals to the quality of health care they deliver. Hospitals would also be paid less for some patients that are readmitted.
Health Care News
SENATE TO TAKE UP FY 2009 OMNIBUS BILL
On Monday, March 2, the Senate is expected to begin debate on the $410 billion fiscal 2009 appropriations omnibus that the House passed 245-178 last Wednesday, February 25. H.R. 1105 includes nine spending bills Congress failed to pass last year; several federal agencies have been operating under a 2008 Continuing Resolution set to expire on March 6.
The belated FY 2009 spending plan provides about $152 billion to labor, health & human services and education programs, nearly a $6 billion increase over 2008. When entitlement spending such as Medicare and Medicaid is included, the total reaches $625 billion, which is approximately $25 billion more than last year.
The increased funding comes on the heels of President Obama's signing of a $787 billion economic stimulus bill in an attempt to bring the economy out of the current recession. That package also includes significant boosts for healthcare and education programs, including nearly $90 billion in Medicaid funding and $10 billion additional federal dollars for the National Institutes of Health.
Senate Republicans are expected to offer resistance to a quick passage of the omnibus bill and Senator John McCain (R-AZ) told reporters he will offer a substitute amendment that would fund the government at last fiscal year’s levels.
WHITE HOUSE PLANS HEALTH CARE SUMMIT
On Thursday, March 5, the White House will host a one-day health care summit, a meeting which a number of provider and patient advocates are hoping to attend. The meeting follows shortly on the heels of a fiscal responsibility summit, which was held on February 23.
For Congress' part, both Senators Max Baucus (D-MT) and Senator Ted Kennedy (D-MA) have taken on healthcare reform as a priority for 2009. The two lawmakers' staff are meeting with healthcare stakeholders to discuss a variety of healthcare policies. Senate leaders have indicated that a healthcare reform legislative proposal is expected this year, possibly by the end of this summer.
Upcoming Events
Hearings
Tuesday, March 3
Budget Challenges
Senate Budget Committee
Full Committee Hearing
10 a.m., 608 Dirksen Bldg.
Fiscal 2010 Budget: Overview
House Budget Committee
Full Committee Hearing
10 a.m., 210 Cannon Bldg.
Fiscal 2010 Budget: Overview
House Ways and Means Committee
Full Committee Hearing
12:30 p.m., 1100 Longworth Bldg.
Psychological Health and Traumatic Brain Injury Programs
House Appropriations - Subcommittee on Defense
10 a.m., H-140 Capitol Bldg.
Science Funding Overview
House Appropriations - Subcommittee on Commerce, Justice, Science, and Related Agencies
10 a.m., H-309 Capitol Bldg.
Veterans' Health Bills
House Veterans' Affairs - Subcommittee on Health
10 a.m., 334 Cannon Bldg.
Wednesday, March 4
Fiscal 2010 Budget: Overview
Senate Budget Committee
Full Committee Hearing
9:30 a.m., 608 Dirksen Bldg.
Fiscal 2010 Budget: Overview
Senate Finance Committee
Full Committee Hearing
10 a.m., 215 Dirksen Bldg.
Health Care Revision and the Elderly
Senate Special Aging Committee
10 a.m., 562 Dirksen Bldg.
Health Related Legislation
House Energy and Commerce Committee
Full Committee Markup
10 a.m., 2123 Rayburn Bldg.
Fiscal 2010 Budget: Overview
House Ways and Means Committee
Full Committee Hearing
2 p.m., 1100 Longworth Bldg.
For More Information
For further information on any topics discussed or publications listed, or to get copies of anything mentioned in this alert, please call (202) 466-6550 and ask for the Legislative Practice Group.
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