THIS WEEK’S DOSE


CONGRESS


119th Congress Begins. The 119th Congress began on January 3, 2025. Lawmakers reelected Speaker Johnson in the first round of votes and adopted the House rules package. The first full week in session was slow-moving due to a winter storm in Washington, DC; funeral proceedings for President Jimmy Carter; and the certification of electoral college votes. Committees are still getting organized, and additions to key health committees include:

Congress has a busy year ahead. The continuing resolution (CR) enacted in December 2024 included several short-term extensions of health provisions (and excluded many others that had been included in an earlier proposed bipartisan health package), and these extensions will expire on March 14, 2025. Congress will need to complete action on fiscal year (FY) 2025 appropriations by this date, whether by passing another CR through the end of the FY, or by passing a full FY 2025 appropriations package. The short-term health extenders included in the December CR could be further extended in the next appropriations bill, and Congress also has the opportunity to revisit the bipartisan, bicameral healthcare package that was unveiled in December but ultimately left out of the CR because of pushback from Republicans about the overall bill’s size.

The 119th Congress will also be focused in the coming weeks on advancing key priorities – including immigration reform, energy policy, extending the 2017 tax cuts, and raising the debt limit – through the budget reconciliation process. This procedural maneuver allows the Senate to advance legislation with a simple majority, rather than the 60 votes needed to overcome the threat of a filibuster. Discussions are underway about the scope of this package and the logistics (will there be one reconciliation bill or two?), and we expect to learn more in the days and weeks ahead. It is possible that healthcare provisions could become a part of such a reconciliation package.

Cures 2.1 White Paper Published. Rep. Diana DeGette (D-CO) and former Rep. Larry Bucshon (R-IN) released a white paper on December 24, 2024, outlining potential provisions of the 21st Century Cures 2.1 legislative proposal expected to be introduced later this year. This white paper and the anticipated legislation are informed by responses to a 2024 request for information. The white paper is broad, discussing potential Medicare reforms relating to gene therapy access, coverage determinations, and fostering innovation. With Rep. Bucshon’s retirement, all eyes are focused on who will be the Republican lead on this effort.

Senate Budget Committee Members Release Report on Private Equity. The report contains findings from an investigation into private equity’s role in healthcare led by the leaders of the committee in the 118th Congress, then-Chair Whitehouse (D-RI) and then-Ranking Member Grassley (R-IA). The report includes two case studies and states that private equity firms have become increasingly involved in US hospitals. They write that this trend impacts quality of care, patient safety, and financial stability at hospitals across the United States, and the report calls for greater oversight, transparency, and reforms of private equity’s role in healthcare. A press release that includes more documents related to the case studies can be found here.

ADMINISTRATION


HHS OCR Proposes Significant Updates to HIPAA Security Rule. HHS OCR released a proposed rule, HIPAA Security Rule to Strengthen the Cybersecurity of Electronic Protected Health Information (ePHI). HHS OCR proposes minimum cybersecurity standards that would apply to health plans, healthcare clearinghouses, most healthcare providers (including hospitals), and their business associates. Key proposals include:

The HHS OCR fact sheet is available here. Comments are due on March 7, 2025. Because this is a proposed rule, the incoming Administration will determine the content and next steps for the final rule.

HHS Releases AI Strategic Plan. In response to President Biden’s Executive Order on AI, HHS unveiled its AI strategic plan. The plan is organized into five primary domains:

Within each of these chapters, HHS discusses in-depth the context of AI, stakeholders engaged in the domain’s AI value chain, opportunities for the application of AI in the domain, trends in AI for the domain, potential use-cases and risks, and an action plan.

The report also highlights efforts related to cybersecurity and internal operations. Lastly, the plan outlines responsibility for AI efforts within HHS’s Office of the Chief Artificial Intelligence Officer.

CFPB Removes Medical Debt from Consumer Credit Reports. The final rule removes $49 billion in unpaid medical bills from the credit reports of 15 million Americans, building on the Biden-Harris Administration’s work with states and localities. The White House fact sheet can be found here. Whether the incoming Administration will intervene in this rulemaking remains an open question.

President Biden Signs Several Public Health Bills into Law. These bills from the 118th Congress include:

QUICK HITS


NEXT WEEK’S DIAGNOSIS


The House and Senate are in session next week and will continue to organize for the 119th Congress. Confirmation hearings are expected to begin in the Senate for President-elect Trump’s nominees, although none in the healthcare space have been announced yet. On the regulatory front, CMS will publish the Medicare Advantage rate notice.

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