Looking Ahead
Near Term:
Last week, Congress turned its attention to a series of lingering legislative issues. Republican Whip Sen. John Cornyn (R-TX) and Sen. Patty Murray (D-WA) reached a compromise regarding abortion language in a long-stalled human trafficking bill (S. 178), leading to its passage by a vote of 99-0. The legislation now moves to the House. The passage of the human trafficking bill set the stage for confirmation of Attorney General nominee Loretta Lynch. She was confirmed by the Senate by a vote of 56-43, with 8 Republicans joining Democrats to reach the 51 vote threshold required for cabinet level confirmations. Meanwhile, the House considered a pair of bills that would encourage the sharing of information between the private sector and government (H.R. 1560/H.R. 1731), which passed by a vote of 307-116, and 355-63 respectively. Despite a White House veto threat, the House also passed legislation (H.R. 1195) to create three advisory boards within the Consumer Financial Protection Bureau (CFPB) by a vote of 235-183.
The Book of Job tells us that the “Lord Giveth and the Lord Taketh away.” While far be it from us to compare the current occupant of the White House with Almighty, this past week offered a classic example of how the White House, and therefore to some extent the Democratic party, is trying to balance the politics of its relationship with the far left. On Tuesday the White House gave its left wing a huge victory with a far reaching Fiduciary Standard proposal from the Department of Labor that appears like it will be anathema to many in the retirement and broker-dealer industries. Then on Thursday leaders of the Senate Finance and House Ways and Means Committee announced that they had reached a deal to move Trade Promotion Authority (TPA) forward. Although the announcement came from Congress, no agreement could have been reached without the White House’s blessing and so only two days after giving its allies in Labor and the far left a huge win, the White House took out those same allies on one of their most important issues.
After a two-week break, Congress returned to confront an expired deadline on Medicare payments to doctors and other unfinished business. On Wednesday, the Senate passed a bill (H.R. 2) to prevent a 21 percent cut in Medicare payments set to begin on April 1 and extended the Children’s Health Insurance Program (CHIP) through 2017. The legislation, which passed by a vote of 92-2, was signed by President Obama last Thursday. Elsewhere, Senators provided the framework for a budget conference committee on Wednesday, using procedural votes to highlight various policy priorities. In the House, members considered several bills to mark the April 15 tax-return filing deadline, including legislation that would repeal the federal estate tax (H.R. 1105) and a bill to make permanent the state and local sales tax deduction (H.R. 622). Members approved the tax measures last Thursday, by a vote of 240-179 and 272-152 respectively. The chamber also passed a bill to amend the qualified mortgage definition (H.R. 685) by a vote of 286-140, as well as legislation designed to assist consumers seeking loans to buy manufactured homes (H.R. 650) by a vote of 263-162.
After seventeen years (eight months, 9 days…), over a dozen acts of Congress and enumerable reams of debate and conjecture about its fate, it’s time to say goodbye to the Medicare Sustainable Growth Rate (SGR) formula. As a proper wake, let’s take a moment to reflect on this enigma of health care economic theory. And then let’s not ever do it again.
Continue reading “May The Era Of Medicare’s Doc Fix (1997-2015) Rest In Peace. Now What?”
Like all good things, this two week recess has come to an end. Congress returns and with tax day cometh, the House is set to take up a series of financial services and tax bills. In order to help you plan your week, we wanted to share a few of the key items on tap for next week.
After a two-week recess, Congress returns today to confront an expired deadline on Medicare payments to doctors and other unfinished business. The Senate is under pressure to act on a House-passed bill (H.R. 2) to stop a 21 percent cut in Medicare payments that kicked in April 1. Lawmakers have acted 17 times since 2003 to cancel such reductions with so-called “doc fix” legislation. Majority Leader Mitch McConnell (R-KY) has said he expects the Senate to move quickly on the bill upon returning this week. Still unclear is whether Republican fiscal hawks will introduce an amendment insisting that the entire $210 billion cost of the bill be paid for, or whether Democrats seek to amend the legislation to further extend the Children’s Health Insurance Program (CHIP) or to improve beneficiary protections in the bill. Aside from the “doc fix,” McConnell also is in the midst of an impasse over legislation (S. 178) to help victims of sex trafficking. Last month, Senators failed to advance the measure to a floor vote after abortion-related language scuttled action on the bill. Before the recess, the Kentucky Republican said action on the trafficking measure had to be completed before the Senate took a confirmation vote on Loretta Lynch to be attorney general.
The House and Senate are in recess until April 13. When lawmakers return, the Senate is expected to vote on a Medicare deal (H.R.2) that passed the House on March 26. Additionally, both chambers are likely to begin the Fiscal 2016 annual appropriations process and try to beat a May 31 deadline to renew federal infrastructure spending. Legislators in both parties have expressed a desire to avoid a transportation-funding shutdown, but there is no consensus on how to pay for extending the highway trust fund. The House and Senate may also hold votes on legislation that would force President Obama to submit any nuclear agreement with Iran for Congressional approval. Senators may also hold a confirmation vote on attorney general nominee Loretta Lynch and resume debate on a stalled human trafficking bill. Congress has a number of other high priority issues in the coming weeks, including raising the debt ceiling and renewing the Export-Import Bank.
In today’s edition of Politico – Washington’s leading source for political news – TRP’s Jason Rosenstock comments on the current economic climate and its impact on the upcoming debt limit debate. Politico reflects back on previous debt limit debates, noting that "big fights over lifting the debt limit in 2011, the 'fiscal cliff' in 2012 and the government shutdown in 2013 all helped derail previous periods of faster economic growth," with Rosenstock adding that “there will have to be an extraction of concessions of some sort from the president to Republicans to get the debt limit raised.”
Continue reading “Rosenstock to Politico: GOP Will Seek Leverage in Debt Limit Fight”
