WASHINGTON WIRE

November 17, 2006
Issue 115

In this issue, you'll find:

Democrats Elect Leaders; Set Committees
Democrats to Face Opposition to Allowing Medicare Drug Negotiations
Medicaid Commission Finalizes Recommendations to HHS
Congress will be in Recess from November 20 - December 4

Top Story

Democrats Elect Leaders; Set Committees

The makeup of the 110th Congress became clearer this week as Democrats and Republicans chose their respective leaders and Democrats appointed new members to key health care committees.

In the House, Speaker-elect Nancy Pelosi (D-CA) was elected unanimously by the Democratic Caucus and Majority Leader-elect Steny Hoyer (D-MD) fended off a challenge from Congressman John Murtha (D-PA). Current House Majority Leader John Boehner (R-OH) defended his leadership of House Republicans from a challenge from Congressman Mike Pence (R-IN). Majority Whip Roy Blunt (R-MO) defeated Congressman John Shadegg (R-AZ) for Minority Whip.

In the Senate, Democrats will be led by Senator Harry Reid (D-NV) and Senator Dick Durbin (D-IL) who will be the Majority Leader and Majority Whip respectively. Senator Mitch McConnell (R-KY) will serve as Senate Minority Leader. Senator Trent Lott (R-MS) secured a one-vote win to become the Minority Whip-elect. His victory marks a big political comeback for Lott, who was forced to resign his leadership slot in 2002 for comments made during a birthday party for now-deceased Senator Strom Thurmond (R-SC).

Committee assignments are not yet finalized in the House, but the picture is becoming clearer in the Senate as the health care agenda in the 110th Congress shapes up. The Finance Committee, with jurisdiction over Medicare and Medicaid, will have 11 Democrat and 10 Republicans. Democrats Debbie Stabenow (MI), Maria Cantwell (WA) and Ken Salazar (CO) won seats on the powerful Committee, replacing retiring Senator James M. Jeffords (I-VT) and filling two additional slots. For the Republicans on the Committee, Senator Bill Frist (R-TN) will retire at the end of this Congress and Senator Rick Santorum (R-PA) was defeated in the recent elections, therefore, the Republicans will have one seat to fill on the Committee.

Senator Edward Kennedy (D-MA) will chair the Health, Education, Labor, and Pensions Committee and new Members of the Committee include Senators Sherrod Brown (D-OH), Bernard Sanders (I-VT), Barack Obama (D-IL).

In the House, Congressman Charles Rangell (D-NY) will become the new Chair of the Ways and Means Committee, which has jurisdiction over some Medicare, taxes and Social Security. Congressman John Dingell (D-MI) will become Chairman of the House Energy and Commerce Committee, the committee with jurisdiction over Medicaid and some Medicare.

Health Care News

Democrats to Face Opposition to Allowing Medicare Drug Negotiations

Many Democrats made drug price negotiating under Medicare a cornerstone of their campaigns and incoming House Speaker Nancy Pelosi (D-CA) has put it at the top of her legislative agenda; but enacting legislation may not be as easily achieved in the 110th Congress as some have predicted.

Early this week, Health and Human Services (HHS) Secretary Michael Leavitt expressed the Administration's opposition to legislation permitting Medicare to negotiate drug prices. The Secretary stated at a briefing that Democrats' plan might have the undesirable effect of limiting access to pharmaceuticals if companies become unwilling to participate due to low reimbursement levels.

Democratic supporters could also face opposition in their own party. Incoming Finance Committee Chairman Max Baucus (D-MT) has historically not endorsed such proposals and the incoming Chair, along with Senator Nelson (D-NE), voted against an amendment offered to the Deficit Reduction Act of 2005 (DRA) that would have permitted such Medicare negotiations. (The amendment was offered by Senator Olympia Snowe (R-ME).)

However, Democratic Leaders maintain that using the buying power of Medicare to negotiate for lower drug prices could save beneficiaries and the government billions of dollars and help ease the impact of the Medicare drug program's "donut hole." This issue has traditionally gathered support across the aisle and with the Democrats controlling both the House and Senate, passage of this potential legislation remains a possibility in the 110th Congress.

Medicaid Commission Finalizes Recommendations to HHS

Fifteen months after its inception, the Medicaid Commission approved its final set of recommendations to HHS on potential reforms to the Medicaid program.

In preparation for this final meeting, the Committee's Chairmen, former Governors Sundquist (R-TN) and King (I-ME), offered a "Chairman's Mark" containing 14 recommendations to Commissioners late last week. The Commissioners then quickly offered amendments to the mark and those amendments were debated and voted on over the last two days.

The final recommendations focus on five Medicaid categories: long-term care, benefit design, eligibility, health information technology, and quality and care coordination. The recommendations include promotion of individual responsibility and personal choice in one's long-term care, increased state-flexibility, investments in health information technology, and purchasing quality health care outcomes.

Commissioner Gwen Gillenwater, with the American Association of People with Disabilities (AAPD), offered several amendments to the chairman's mark and a significant amount of the debate over the last two days focused on Medicaid policies impacting recipients with disabilities. PPSV Principal John D. Kemp was a non-voting member of the Commission and worked closely with fellow voting Commissioners to develop recommendations and amendments that focused on access to care and technology for recipients with disabilities.

The Commission concluded its charter by approving an amended chairmen's mark, with one Commissioner voting against the mark and one Commissioner abstaining. The final recommendations will be sent to the HHS Secretary by the end of the year, however, it remains to be seen what impact these recommendations will have on Medicaid policies.

Upcoming Events

Congress will be in Recess from November 20 - December 4

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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