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Health Policy Report

The Week in Review

Health care continued to be at the forefront of discussions in Washington last week as Senate Republicans made further progress on the Better Care Reconciliation Act (BCRA) – their plan to repeal and replace the Affordable Care Act (ACA). Senate Majority Leader Mitch McConnell (R-KY) released an updated version of the legislation on Thursday, with a series of policy changes aimed at attracting Republican holdouts on both the moderate and conservative side of the spectrum. However, despite the changes, the future of the bill is still uncertain with two Republicans — Sens. Susan Collins (R-ME) and Rand Paul (R-KY) — already announcing their intent to vote against the motion to proceed to the bill on the Senate floor. A full breakdown of the major policy changes and where senators stand on the bill is included in our roundup below.

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This Week on the Hill: NDAA in the House and Nominations in the Senate as Congress Prepares Final Blitz Before August

Lawmakers return to Washington this week facing a critical three-week period before the August recess. Without any major legislative achievements so far this year, Republicans will be focused on the tense Senate negotiations on legislation to repeal and replace the Affordable Care Act (ACA). An agreement has yet to be reached on the legislative text that will reach the Senate floor, as Republican leadership deliberate on how to create a package that will placate both conservative skeptics — most notably Sens. Ted Cruz (R-TX) and Mike Lee (R-UT) — and moderates, led by Sens. Dean Heller (R-NV) and Susan Collins (R-ME). The initial proposal in the Senate, known as the Better Care Reconciliation Act (BCRA), was opposed by at least 10 Republicans on both sides of the ideological spectrum. A vote is not expected this week as the Congressional Budget Office is currently scoring some of the proposed changes, but the impending August recess is expected to be the final deadline for the Senate to move a package. Majority Leader Mitch McConnell (R-KY) has suggested that a failure to do so will necessitate lawmakers working on a smaller package with Democrats that would shore up the ACA’s insurance markets.

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Health Policy Report

The Week in Review

Washington was quiet last week as lawmakers celebrated July 4 in their home districts and President Trump travelled to Europe for the G-20 summit of the world’s leading economies. Both groups were met by some protests; lawmakers who held in-district events faced raucous crowds over the ongoing debate on the Republican effort to repeal and replace the Affordable Care Act (ACA), and the President (along with other world leaders) faced a hostile reception from protestors in Hamburg, Germany. The officials should thus be happy to return to Washington this week, where three weeks remain before the depart again for Congress’s traditional month-long August recess.   

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Financial Services Report

Our Take

While it would be too easy to write that Members of Congress fled town this week like rats off a sinking ship, the reality is that the dysfunction and gridlock of Washington only continues to grow and it is highly likely that all 535 members of Congress and the Senate were incredibly grateful to head out of our Nation’s capital.  Democrats may enjoy the schadenfreude of watching their Republican colleagues suffer as they try grapple within their own caucus and the President on how to move a health care reform package, and Republicans must be frustrated by their inability to move the agenda they campaigned on – and which gave them control of all three branches of government. 

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Today on the Hill: Congress Reaches July 4 Recess With Daunting Schedule Ahead

Congress has left for the July 4 recess, and will return to Washington the week of July 10. Awaiting lawmakers is a daunting agenda of major policy initiatives and must-pass items, with a limited calendar in which to pass them. Of course, chief among those items is the stalled effort to repeal and replace the Affordable Care Act (ACA) as Republican leaders in the Senate work feverishly to craft a package that will be able to pass the upper chamber before the August recess. President Trump again weighed in on the effort in a statement on Twitter this morning, saying that if the current package fails, Congress should “immediately REPEAL and then REPLACE at a later date!” While Republicans had originally considered that option in February when their health care initiative first started, it is unlikely that moderates will go along with a new plan to repeal that would strip coverage and place a great deal of uncertainty in insurance markets. It remains far more probable that Senate Majority Leader Mitch McConnell (R-KY) will return from the July 4 recess with a package that includes a number of the legislative tweaks and make a last-ditch effort to pass the existing legislation.

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Financial Services Report

Looking Ahead

Near Term

  • All eyes will be on the Senate this week, as Leader McConnell attempts to thread the needle on Healthcare reform.   With only two votes to spare, there could be a lot of sausage to make before the end of the week.  
  • The House will take up two bills endorsed by the President.  The first, (H.R. 3003) — dubbed Kate’s Law in honor of a victim of a crime perpetrated by an illegal immigrant — would enhance the punishment for immigrants that try to re-enter the United States after being deported.  The other, (H.R. 3004) would prohibit Homeland Security and Justice Department grants from so-called sanctuary cities.  
  • The House Financial Services Committee will hold two subcommittee hearings, one on market structure and one on money laundering.  While the Senate Banking Committee will dip its toe into the start of its Housing Reform efforts.  
  • Labor Secretary Acosta will be before the Senate Appropriations Subcommittee and is likely to be asked additional questions about timing of matters related to the fiduciary rule.

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This Week on the Hill: McConnell Aims for Health Care Vote This Week; CBO, Parliamentarian, Opposition Hurdles Remain

This week has the potential to be the most important of the year in healthcare, as the Senate could vote as early as Thursday evening on their version of a bill to repeal and replace major provisions of the Affordable Care Act (ACA). Majority Leader Mitch McConnell (R-KY) will likely bring the bill to the floor soon after the release of the Congressional Budget Office’s (CBO) score, which is expected early this week. Before any votes can be cast, the legislation will also need to undergo a review from the Senate parliamentarian to decide which provisions, if any, violate the chamber’s budget reconciliation rules. One of the key unknowns still remaining is whether a process for states to waive essential health benefits and other market reforms will survive the Senate parliamentarian’s analysis. The waiver process was added to the House’s version of the bill as an amendment from Rep. Tom Macarthur (R-NJ) and was essential to the American Health Care Act’s (AHCA) approval in the lower chamber.

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Health Policy Report

The Week in Review

The Senate’s version of a health care overhaul was released with a great deal of fanfare last week as supporters and detractors quickly tried to establish their positions on the bill. Four conservative Republican senators — Sens. Rand Paul (R-KY), Ron Johnson (R-WI), Ted Cruz (R-TX), and Mike Lee (R-UT) — announced that they are opposed to the bill in its current form; although they were sure to add the caveat that they are “open to negotiation and obtaining more information before it is brought to the floor.” Moderates have yet to commit to either supporting or opposing the bill, but several said they had concerns with the discussion draft, primarily related to its cuts to Medicaid. Sen. Dean Heller (R-NV) was the first moderate Republican last week to say he would not vote for the bill in its current form. A full roundup of the health care debate is included below.

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TRP’s Shea McCarthy Comments on the Republican Study Committee’s Role in Healthcare Reform Talks for Inside Health Policy

In an Inside Health Policy article published yesterday, Thorn Run Partner’s Senior Vice President Shea McCarthy offered his take on the role of conservatives in the House — namely the Republican Study Committee (RSC) and the House Freedom Caucus — in looming negotiations between the two chambers as lawmakers continue to digest the Senate’s healthcare reform bill. McCarthy noted that while it was expected that the Senate’s version was always expected to be more centrist than the House’s American Health Care Act (AHCA), key questions remain as to whether or not Senate conservatives — such as Senators Ted Cruz (R-TX) and Mike Lee (R-UT) — will support a more moderate package. “Cruz in particular still carries a lot of weight with the RSC and the Freedom Caucus,” said McCarthy in the interview prior to the Senators’ opposition of the current bill. “Assuming Cruz and Lee ultimately sign off on the Senate’s version, signaling that the bill goes ‘far enough,’ it’s hard to envision enough conservative House members casting votes to sink the package.”

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Financial Services Report

Our Take

The horrific events of last week drew poignant remarks from leaders on both sides of the aisle, who along with others, not only condemned the violence but urged participants on all sides to tone down the vitriol of the current state of political discourse.   Unfortunately, like all too many parents know, when petulant siblings are seen screaming that it was “the other one’s fault” and “they started it,” it is often impossible to adequately resolve the issue in the eyes of either aggrieved child.   Perhaps, instead of contributing the “weighing and measuring” aspect of modern political analysis, Members of Congress and the Senate can become the profiles in courage that will lead the way to the political compromises that used to make this country great.  Or…

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