WASHINGTON WIRE

In this issue, you'll find:

• House and Senate Continue Budget Negotiations
• L-HHS Spending Bill Faces Uncertainty in the Senate
• White House Conference on Aging Recommends Changes to the Administration
• Hearings

Top Story

House and Senate Continue Budget Negotiations

House and Senate leaders continue negotiations on a final Budget Reconciliation bill with talks likely stretching into this weekend and possibly next week.

Although Senate conferees were appointed today and House conferees have yet to be announced, the Republican leadership has participated in a number of closed door meetings to discuss possible compromises over the last several weeks.

Until this week, it remained unclear as to the fate of the controversial Arctic National Wildlife Refuge (ANWR) drilling provision which was included in the Senate reconciliation bill but not in the House bill. However, it now appears that ANWR might be attached to the Department of Defense Appropriations Bill - a "must-pass" bill for Congress.

With the removal of ANWR from the debate, negotiators can focus on a number of other differing provisions including the Medicaid and Medicare portions of the Senate and House bills. The House bill makes almost $10 billion in Medicaid spending reductions and contains no Medicare reductions, while the Senate bill achieves savings by targeting both programs. There is significant debate over a provision in the Senate bill that would replace a 2006 scheduled 4.4% reduction in physician payments under Medicare with a 1% increase in such payments. With no Medicare provisions included in its legislation, the House bill does not address the physician fee schedule.

In related news, House Energy and Commerce Committee Chairman Joe Barton (R-TX) suffered a heart attack on Thursday, December 15, 2005 during reconciliation negotiations. The Chairman remains hospitalized today and is said to be resting comfortably.

Health Care News

L-HHS Spending Bill Faces Uncertainty in the Senate

On Wednesday, December 14, 2005, the House approved the $602 billion Labor-Health and Human Services spending bill with a vote of 215-213.

Last month the bill failed to receive enough votes after all House Democrats and 22 Republicans rejected the bill due to cuts to rural health care and low-income families. To secure enough votes for passage, appropriators made several changes to the bill including spending increases to rural health programs. Total discretionary funding was cut by almost $1.5 billion compared to last year’s spending.

The Senate was scheduled to vote on the revised conference report on Thursday, December 15, 2005 but Majority Leader Bill Frist (R-TN) delayed the vote due to an apparent lack of support for the legislation. On Friday, December 16, 2005, Senate Labor-HHS Appropriations Subcommittee Chairman, Arlen Specter (R-PA) announced that the Labor-HHS spending bill would be attached to the Defense spending bill in order to increase the likelihood of passage. The Senate is expected to consider the L-HHS Appropriations bill this Sunday, December 18, 2005.

Of note, both chambers are expected to pass a new continuing resolution (CR) this Saturday allowing more time to address "must pass" legislation. A "CR" provides continuing funding for federal agencies and programs to avoid a government shutdown.

White House Conference on Aging Recommends Changes to the Administration

On Wednesday, December 14, 2005, the 2005 White House Conference on Aging (WHCoA) concluded its fifth conference by making recommendations to the President and Congress to help guide national aging policies for the next ten years.

The delegates announced their recommendations to send to the President, Congress, and state governors. The 1,200 delegates chose reauthorizing the Older Americans Act within the first six months of 2006 as their number one recommendation. The Older Americans Act launched many programs beneficial to senior citizens such as Meals on Wheels and elderly transportation programs, amongst others. The conferees also recommended that the Administration and Congress work toward the development of an improved long-term care strategy; strengthening and improving of Medicare and Medicaid for seniors; and making Medicare the primary health insurer for workers over 65, rather than an employee health plan.

WHCoA must submit their resolutions to all state governors within 100 days and the final report to the White House and Congress by June 2006.

Upcoming Events

Hearings

Next Week's Congressional Schedule is Currently Undetermined.

For More Information

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