THIS WEEK’S DOSE


CONGRESS


House Committees Begin Reconciliation Markups. Multiple committees in the House – although none in the healthcare space – advanced their “committee prints” this week, which include the provisions within their jurisdiction for the House’s budget reconciliation package. This process will continue into the week of May 12, when the House Energy and Commerce Committee is tentatively scheduled to hold its markup to finalize the $880 billion in savings across Medicaid, the Children’s Health Insurance Program, and Medicare. The Ways and Means Committee is also signaling that it may be ready to move a tax package forward the same week.

Several Republicans representing competitive seats have been discussing with committee and House Republican leadership their concerns about policies that they perceive as cutting Medicaid. Rep. Bacon (R-NE) has publicly stated that he will not support more than $500 billion in Medicaid savings. The components most widely expected to be included in the Energy and Commerce Medicaid package include work requirements, more stringent and frequent eligibility verifications, and repeal of Biden-era Medicaid eligibility regulations. In recent days, focus also has been on Medicaid provider tax changes and potentially converting the Medicaid expansion population to a per capita cap. The challenge facing Energy and Commerce is the need to get to $880 billion in savings across its jurisdiction. While the committee is expected to get some savings out of energy policy changes and spectrum auction, Medicaid is its largest target. Meanwhile, Energy and Commerce Democrats released a report showing how many individuals would lose coverage if national work requirements were implemented.

Once all House committees have passed their packages, the House Budget Committee will combine the legislative texts and vote on the entire package, followed by a vote on the House floor. (Note that the Budget Committee’s package does not need to directly resemble the packages passed out of each committee.) Then, it will be the Senate’s turn to act. Speaker Johnson’s (R-LA) goal is for the House to pass the package before Memorial Day, and to have it signed into law by July 4, 2025, although that timeline is not guaranteed. The biggest factor that would enforce a real deadline is if the US Department of the Treasury were to announce an earlier date than anticipated for the United States hitting the debt ceiling. That pronouncement was expected this week but appears to have slipped. There is no indication that the date will be earlier than late summer or early fall. This is directly relevant to reconciliation because Republicans hope to address the debt limit increase as part of that process.

House Energy and Commerce Committee Advances Health Bills. This week’s markup considered six pieces of healthcare legislation largely related to public health. All passed with broad bipartisan support, although two had some Democratic pushback:

For more information about the bills, view the markup memo.

Senate Appropriations Committee Examines Biomedical Research. During the hearing, members from both parties voiced their support for biomedical research. Democrats expressed concern over the implications of federal cuts and mass firings on future research, and Republicans acknowledged the importance of federal funding for lifesaving research.

House Oversight and Government Reform Subcommittee on Cybersecurity, IT, and Government Innovation Holds Hearing on IT Modernization. During the hearing, Democrats emphasized the essential role of a qualified modern IT workforce for the security, efficiency, and effectiveness of federal systems, and highlighted the negative impacts of replacing federal workers with artificial intelligence. Republicans focused on identifying the biggest barriers to change, such as procurement requirements, hiring processes, budget limitations, and bureaucratic hurdles. They stressed the importance of modernizing federal IT to improve overall government efficiency.

ADMINISTRATION


Administration Releases FY 2026 “Skinny” President’s Budget. The abbreviated budget request only includes discretionary items and, ultimately, is a document that sets forth the administration’s policy priorities. While the budget request is expected to provide guidance to Congress as it begins the FY 2026 appropriations process, the priorities and funding levels included in the document will not necessarily be the final levels that are approved by Congress. The budget requests a 22% cut to domestic spending overall, including large cuts to the US Department of Health and Human Services (HHS). Health-related highlights include:

The administration also released other facts sheets and supporting documents here.

Administration Publishes Report on Gender-Affirming Care. The report provides updates on actions taken by the administration to implement executive order (EO) 14187, “Protecting Children from Chemical and Surgical Mutilation.” Cited actions include:

COURTS


SCOTUS Rules Against DSH Hospitals. The 7 – 2 ruling sided with HHS in a case about how DSH payments are calculated. CMS only counts Medicare enrollees who received supplemental security income (SSI) cash payments during the same month they received hospital care as low-income patients for the purposes of DSH payment. The plaintiff hospitals argued that CMS should include all patients in the SSI system at the time of their hospitalization. SCOTUS found that CMS’s formula was adequate, meaning that DSH hospitals will receive lower payments than they believe they are entitled to.

QUICK HITS


NEXT WEEK’S DIAGNOSIS


Both chambers will be in session next week, with healthcare activity expected at the committee level, including:

The House Energy and Commerce Committee will tentatively hold a markup of their reconciliation package the week of May 12.

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