WASHINGTON WIRE


October 16, 2009
Issue 218

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Senate Finance Committee Passes Healthcare Reform Bill

Bill to Provide SGR Fix Introduced in the Senate

House Committee Sends Ryan White Bill to the Floor

Hearings

Top Story

SENATE FINANCE COMMITTEE PASSES HEALTHCARE REFORM BILL

On Tuesday, October 13, the Senate Finance Committee passed 14-9 their version of the healthcare reform bill, America's Healthy Future Act. Senator Olympia Snowe (R-ME) cast the only Republican vote in favor of the legislation, solidifying her position as a key legislator in the bill negotiations once the debate moves to the Senate floor. Snowe indicated that although she voted to pass the bill out of committee, she would not guarantee a vote for the bill once it was brought to a vote on the floor. All of the committee's Democrats voted for the proposal, despite the bill's lack of more liberal policies such as a public option and an employer mandate.

Senate leadership must now merge the Finance bill with the Senate HELP Committee legislation. The Senate Finance bill, which recently scored at $829 billion, is considered the more conservative bill. Once the bills are merged, it is likely the single bill will need to be added to a revenue bill already passed out of the House. Press reports indicate that the Constitution requires revenue raisers, such as the healthcare reform bill, to start in the House.

The Finance proposal would require individuals to have health insurance, expand eligibility for Medicaid to 133 percent of the federal poverty level, create state health exchanges for the individual and small group markets and authorize the development of non-profit cooperatives. 

Health Care News

BILL TO PROVIDE SGR FIX INTRODUCED IN THE SENATE

On Monday, October 19, the Senate is scheduled to debate a bill that would provide a permanent fix to the "physician fee problem," a problem that would result in a 21 percent reduction in Medicare payments to doctors in 2010 if not fixed. Previously, Congress has blocked the cuts and provided annual updates for physicians under Medicare. This bill blocks the cut and prevents similar cuts in future years while Congress creates a new payment system.

As a cost-control measure, Congress implemented the sustainable growth rate, a formula that would have resulted in reductions in Medicare physician pay for the past several years. But in most years, Congress has stepped in to block the cuts from being implemented, thereby raising the percentage of the pending cut for each successive year.

The bill, introduced by Debbie Stabenow (D-MI), is separate from the larger healthcare reform bills in the Senate, and is not offset. The legislation would "reset" to zero the baseline used in the sustainable growth rate formula. Some Republican lawmakers and fiscally conservative Democrats expressed skepticism about the bill, however, saying the $245 billion price tag needs to be fully offset. Fiscal Democrats in the House - known as Blue Dogs - have also expressed concern about the need for an offset. House leadership has reportedly reassured them that any physician fee fix passed by the House will be paid for. 

HOUSE COMMITTEE SENDS RYAN WHITE BILL TO THE FLOOR

On Thursday, October 15, the House Energy and Commerce Committee passed a bill that would extend the Ryan White CARE Act for three years. The ACT was scheduled to expire on October 30. The House is scheduled to consider the bill on October 21.

The federal program provides assistance to low-income and uninsured Americans with HIV/AIDS. The bill would authorize $2.5 billion a year for the program. About 500,000 people each year receive services through the ACT.

Upcoming Events

Hearings

October 20

Health Care Overhaul and Small Business
Senate Small Business and Entrepreneurship Committee
Full Committee Hearing
10:30 a.m., 253 Russell Bldg.

High Cost of Small Business Health Insurance
House Energy and Commerce - Subcommittee on Oversight and Investigations
1 p.m., 2123 Rayburn Bldg.

Indian Health Care
House Energy and Commerce - Subcommittee on Health
2 p.m., 2237 Rayburn Bldg.

October 21

Monitoring Response to H1N1 Flu
Senate Homeland Security and Governmental Affairs Committee
Full Committee Hearing
9:30 a.m., 342 Dirksen Bldg.

Health, Education, Labor and Pensions Nominations
Senate Health, Education, Labor and Pensions Committee
Full Committee Markup
10 a.m., 430 Dirksen Bldg.

October 22

Food Safety
Senate Health, Education, Labor and Pensions Committee
Full Committee Hearing
10 a.m., 430 Dirksen Bldg.

Veterans' Health Bills
House Veterans' Affairs - Subcommittee on Health
10 a.m., 334 Cannon 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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