Health Policy Report

The Week in Review

It was a quiet week in Washington as lawmakers and their staff trickled out of town ahead of the holidays. One event of note was a meeting of the Medicaid and Children’s Health Insurance Program (CHIP) Payment and Access Commission (MACPAC), who approved their recommendations on the reauthorization of the CHIP program. CHIP is currently slated to expire at the end of the 2017 fiscal year – September 30, 2017 – and a full summary of the Commission’s decision is included in our roundup below.

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Financial Services Report

Our Take
As the 114th Congress winds to a close, the attention of the pundits and prognosticators drift toward next year and the start of a new Congress and the transition to a new Administration.   Although the conventional wisdom was a bit “off” for 2016, it hopes to rebound in 2017, as many believe that the will be a break in the legislative log jam that has plagued this city, and our country, for the last decade.  While the genesis and continuation of that gridlock will undoubtedly keep numerous political scientists and poli sci professors employed for years to come, one contributing factor has been the belief that by holding out for the next election only serves to improve one’s position for making a deal today (sort of the opposite of Wimpy’s policy on hamburger payments).

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Health Policy Report

The Week in Review

The 114th Congress closed a week early after both chambers were able to clear a stopgap spending bill (H.R. 2028) and water resources measure (S. 612) that were keeping lawmakers from leaving Washington for the holidays. In the House, the continuing resolution (CR) – which funds the government through April 28 at a $1.07 trillion annualized rate – passed rather smoothly in a 326-96 vote on Thursday. The Senate struggled to do the same on Friday as a group of coal state Democrats led by Sen. Joe Manchin (D-WV) threatened to derail the process due to a provision addressing expiring health benefits for coal miners that they deemed inadequate. The power of jet fumes and a bipartisan majority in the House proved to overpower their concerns, however, and the spending bill passed 63-36 after the Democrats’ hold was lifted late Friday evening. The water infrastructure bill – which includes funds for Flint, Michigan to clean up its water supply – was passed soon thereafter.

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What We Know About ACA Repeal & Replace

After six years of campaigning to repeal the Affordable Care Act (ACA) and over 50 votes held to undercut the law, Republicans in Congress will be ‘shooting with real bullets’ in the 115th Congress – thanks in part to the election of Donald Trump – and will finally be positioned to deliver on their long-held position that President Obama’s healthcare law should be repealed as expeditiously as possible. But without a concrete replacement plan in place, Republicans remain at a crossroads over what set of policies should encompass their ACA alternative, and face the politically challenging prospect of deciding how – and how quickly – they will be able to achieve consensus.

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Financial Services Report

Our Take
As the 114th Congress draws to a close, historians may look back to deem it the least productive Congress ever, as it will conclude having been in session for only about 115 days this year.   More frustratingly, despite having a few major legislative victories, it appears that Congress has decide to punt many of its most critical obligations into next year.   However, this may be an example of “being darkest before dawn” as the calendars for next year look very different.   While there isn’t necessarily a correlation between Congress being in session and being productive, the gears are clearly being set in motion for the potential for a very productive (or perhaps depending your politics, a very busy) 2017.   Congressional Republicans, emboldened by their legislative majorities and their hold on the Administration for the first time in eight years are angling for sweeping reforms in health care, tax and financial services regulation.  How these agenda items are being prioritized appears to still be a work in progress.  But with a Leader for the Democrats in the Senate – one who is equally comfortable making a deal or blocking it – the order in which these items come up could be almost as important as their individual substance.

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Today on the Hill: CR Text Expected Today; Dem Senators Block Unanimous Consent Bills Over Expiring Coal Miner Health Benefits

The legislative text for a continuing resolution (CR) is expected to be released today as Congressional leaders stay on track to break for the year by the end of the week. The stopgap is likely to extend into mid-April in order to provide lawmakers with enough time to consider and approve President-elect Donald Trump’s Cabinet nominees early next year. Looking ahead to that process, Republican leaders are considering adding a rider that would make it easier to exempt Defense Secretary nominee Gen. James Mattis from a provision preventing retired military personnel from serving as the head of Pentagon for seven years. However, Democrats have objected to that provision, with Sen. Chris Murphy (D-CT) saying that it could endanger passage of the CR. The released text today should clarify whether Republicans are up for one more spending fight before the new year.

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This Week on the Hill: The 114th Congress Hopes to Adjourn Early After Stopgap, Cures, Water Projects

Government funding expires on Friday and lawmakers will spend the week deciding exactly what will be included in a stopgap spending bill that is expected to fund the government through the first few months of Donald Trump’s presidency. According to incoming Appropriations Committee Chairman Rodney Frelinghuysen (R-NJ), the continuing resolution (CR) is likely to have a mid-April end date, slightly longer than the Mar. 31 date originally outlined by House leadership. Among the provisions still being considered: funds to prevent thousands of unionized coal miners and their families from losing health benefits, a supplemental defense request of $11.6 billion to fight terrorism and the Islamic State organization, and a provision to remove a quorum requirement from the Export-Import Bank’s board to approve loans worth more than $10 million.

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Health Policy Report

The Week in Review

Despite last-second concerns from some senators, the House easily passed the legislative vehicle (H.R. 34) for the 21st Century Cures medical research package on a 392-26 vote last Wednesday. Passage in the lower chamber sets up consideration in the Senate this week, where the bill is expected to pass and be signed by President Obama before the winter holidays. The House also passed a bill last week (H.R. 6392) 254-161 that would alter the threshold for bank holding companies to be automatically designated “systemically important” and subject to additional regulatory scrutiny from the Federal Reserve. The measure passed over a veto threat from the White House and may offer a glimpse into the intentions of congressional Republicans once President-elect Trump takes office next year.

The House also advanced legislation (H.R. 6393) to reauthorize U.S. intelligence agencies, including the addition of new initiatives designed to counter the influence of Russian propaganda. In the Senate, lawmakers advanced a non-controversial Iran sanctions bill (H.R. 6297) and a measure (S. 2873) that would require the Department of Health and Human Services to study the use of distance-education technologies to provide health care, particularly in rural and underserved areas.

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