WASHINGTON WIRE
May 18, 2007
Issue 133
In this issue, you'll find:
House, Senate Approve Final Budget Resolution
Stark Considers All Medicare Benefits for Possible Savings
House Committee Passes Legislation to Improve Veteran's Care
Top Story
House, Senate Approve Final Budget Resolution
On Thursday, the House and Senate approved a $2.9 billion budget resolution that sets fiscal year (FY) 2008 discretionary spending at $954.1 billion. This is $21 billion more than requested in the President's FY 2008 budget.
While a budget resolution is non-binding, it establishes the discretionary spending caps for each of Congress' annual appropriations bills.
The FY 2008 budget establishes a pay-as-you-go (PAYGO) rule in the Senate which requires that all new mandatory spending or tax cuts be offset. The Senate's PAYGO rule can be waived with 60 votes. (The House implemented a PAYGO rule earlier this year.)
The budget also authorizes up to $50 billion for reauthorization of the State Children's Health Insurance Program (SCHIP) via a currently unfunded reserve fund. A number of other Medicare and Medicaid issues are addressed in the same way.
Democrats tag the budget resolution as a fiscally responsible plan that would balance the budget by 2012 while funding domestic priorities such as national defense, veterans' health care, children's health care, and education. However, Republicans have blasted the budget for increasing taxes and promoting irresponsible spending. The Administration continues to state that the President will veto any spending bills that exceed his budget's recommended cap.
Health Care News
Stark Considers All Medicare Benefits for Possible Saving
The House Ways and Means Subcommittee on Health held a hearing this week to examine payments to acute and post-acute Medicare providers and consider possible areas for savings under the program.
Subcommittee Chairman Pete Stark (D-CA) likely faces the enormous task of finding over $100 billion in savings to offset costly, must-pass health-care priorities such as a physician payment fix. There appears to be little doubt following this week's hearing that much, if not all, of those needed savings will come out of other areas within the Medicare program.
Stakeholders attending the hearing left knowing that everything was on the table including Medicare managed care plans, durable medical equipment (DME) payments, home health, hospice, skilled nursing facilities, and imaging services.
Meanwhile, Senate Finance Committee Chairman, Max Baucus (D-MT) is focusing primarily on moving legislation to reauthorize the State Children's Health Insurance Program (SCHIP) at a cost of $50 billion. Although it is unclear exactly where the Chairman expects to find the offsets but it appears that Medicare manage care cuts are under consideration. The Finance Committee is expected to mark-up legislation immediately following the Memorial Day recess.
House Committee Passes Legislation to Improve Veteran's Care
The House Veterans' Affairs Committee passed a series of veterans' health care measures this week, sending the bills to the House floor for consideration.
One of the Committee-passed bills would extend the eligibility for free health care for returning soldiers from two years to five years for those who have served in or after the Gulf War. An adopted amendment would allow this legislation to be implemented retroactively.
The Committee also easily approved H.R. 1470, legislation to provide chiropractic care at VA medical centers.
In addition, the Committee approved legislation that would increase research on traumatic brain injury (TBI), one of the most common injuries associated with the Iraq War. The legislation also attempts to address the needs of veterans with TBI by establishing long-term TBI programs at VA polytrauma centers.
The legislation would implement a pilot program for mobile veterans' centers to assist veterans with the disability claims process.
These bills are expected to be passed by the House prior to the upcoming Memorial Day recess.
Upcoming Events
Hearings
Tuesday, May 22, 2007
Drug-Endangered Children; Prison AIDS Prevention Bills
House Judiciary - Subcommittee on Crime, Terrorism and Homeland Security
12 pm, 2226 Rayburn
Health Care Issues
House Education and Labor - Subcommittee on Health, Employment, Labor, and Pensions
2 pm, 2175 Rayburn
Medicare Advantage Private Fee-For-Service Plans
House Ways and Means - Subcommittee on Health
2 pm, 1100 Longworth
Wednesday, May 23, 2007
Veterans Health
Senate Veterans' Affairs Committee
9:30 am, 562 Dirksen
For More Information
For further information on any topics discussed or publications listed, or to get copies of anything mentioned in this alert, please call 202.466.6550 and ask for the Legislative Practice Group.
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