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Government Shutdown Could Occur

Senate Democrats came out today and said they do not plan to vote for the House GOP-passed continuing resolution (CR) to fund the rest of this federal fiscal year (through September), instead demanding a 30-day CR to allow for additional negotiations. But there is some buzz that many Democratic senators could change their minds if the Senate GOP majority calls for a cloture vote later this week. The GOP is very unlikely to opt for a 30-day option.

One GOP senator, Rand Paul of Kentucky, is against any CR. That means eight Democrats would be needed to invoke cloture to end debate and pass the bill. Several senators have commented they are worried about the political fallout if they vote no. Others feel a government shutdown further empowers Elon Musk and his cost-cutting commission and efforts. A CR must be passed by Friday or there would be a government shutdown.

Additional article: https://thehill.com/homenews/senate/5189724-senate-democrats-government-funding-shutdown/?tbref=hp

#governmentshutdown #cr #congress #trump

https://thehill.com/homenews/senate/5191508-senate-democrats-vote-government-funding-30-day-cr

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House Passes the FFY 2025 CR

The House passed the FFY 2025 continuing resolution (CR) today by a vote of 217 to 213. One Republican voted no and one Democrat voted yes. The bill’s passage came together when House Speaker Mike Johnson, R-LA, and Senate Majority Leader Jon Thune, R-SD, committed that a Medicare physician rate fix would be in the budget reconciliation bill slated for May. The commitment was made to Rep. Greg Murphy, M.D., R-N.C., co-chair of the House Doctors Caucus. He and others threatened to vote no, which might have sunk the bill. Murphy says how far-reaching the fix is – overturning this year’s reduction, adding to it for this year, or a permanent fix – is unspecified at this time.

The bill next goes to the Senate. Democrats want to vote en masse against the bill, which would deprive the CR of 60 votes and sink it. But they also are weary of the political fallout of voting against the bill. The Senate Democrats would clearly be blamed for any shutdown now. The most worried are Democrats from seven swing states. They also argue a government shutdown could make the Department of Government Efficiency (DOGE) commission initiatives even more far-reaching.

We will see what happens before Friday.

Additional article: https://www.fiercehealthcare.com/regulatory/speaker-johnson-releases-funding-patch-six-month-telehealth-extension-no-doc-pay-fix and https://insidehealthpolicy.com/daily-news/murphy-gets-promise-doc-fix-will-go-reconciliation and https://thehill.com/homenews/senate/5186882-government-funding-shutdown-senate-democrats/

(Some articles may require a subscription.)

#budgetreconciliation #governmentshutdown #cr #healthcare #trump #congress #physicians #medicare

https://thehill.com/homenews/house/5189141-house-republicans-pass-government-funding-bill

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House CR Unveiled With No Doc Fix

House Speaker Mike Johnson, R-LA, unveiled the FFY 2025 continuing resolution (CR) through the end of the fiscal year in September. If the bill passes the House, it goes to the Senate. At least one House GOP member has announced opposition, but the lack of a Medicare physician rate fix could mean others drop off. Passage in the Senate is unknown because 60 votes are needed and Democrats appear to be lining up against it. But moderate Democrats could have a change of heart. The bill also extends some critical healthcare programs that would expire on March 31. The House may vote on the bill Tuesday.

In other news, a bipartisan proposal to further extend telehealth, reform pharmacy benefits managers (PBMs), reverse Medicare physician pay cuts, and address the opioid crisis has failed to be called up in the Senate.

Additional articles: https://insidehealthpolicy.com/daily-news/providers-furious-house-continuing-resolution-omits-doc-pay-fix and https://www.modernhealthcare.com/politics-policy/spending-bill-medicare-doctor-pay and https://thehill.com/homenews/house/5184753-scott-perry-medicaid-coverage/ and https://www.fiercehealthcare.com/telehealth/senate-dems-push-long-shot-bill-pbm-reform-telehealth-extensions-and-35-doc-pay-fix

(Some articles may require a subscription.)

#governmentshutdown #trump #congress #ffy2025 #medicare #physicians #cr

https://www.fiercehealthcare.com/regulatory/speaker-johnson-releases-funding-patch-six-month-telehealth-extension-no-doc-pay-fix

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Trump May Support Changes To Medicare Drug Negotiations

Big Pharma says that President Donald Trump and Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. are sympathetic to the drug lobby’s concerns regarding the Inflation Reduction Act’s (IRA) “pill penalty” provision within the Medicare drug price negotiations.

Drug makers say the law discourages research into small molecule drugs. Small-molecule drugs are exempt from Medicare drug price setting for nine years after FDA approval, while biologics are exempt for 13 years. Big Pharma has been lobbying to extend the small-molecule drug exclusivity period to 13 years.

Some congressional bills would extend the period before price negotiation can begin for small molecule drugs to match biologics.

(Article may require a subscription.)

#ira #drugpricing #branddrugmakers

https://insidehealthpolicy.com/daily-news/pfizer-ceo-trump-kennedy-sympathetic-pill-penalty-concerns

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Paragon Says Improper Medicaid Payments Could Be Over $1 Trillion

The Paragon Health Institute is an extremely powerful think tank with the ear of the Trump administration and some in Congress. Its newest report, in conjunction with the Economic Policy Innovation Center, says that improper payments under Medicaid could be as much as $1.1 trillion over ten years. The Centers for Medicare and Medicaid Services (CMS) estimated improper payments at $543 billion over ten years, but Paragon says that does not include eligibility check errors.

The report urges Congress to cut funding to states found with greater than 3% erroneous payments based on eligibility errors. Many of the errors are tied to the suspension of eligibility checks during the COVID pandemic. The ineligible population includes people over income limits and illegal immigrants.

The report gives hope that the GOP Congress can reduce Medicaid spending and perhaps certain Medicare spending without fundamentally impacting coverage. This is a promise made by the president and congressional leaders in the House.

(Article may require a subscription.)

#medicaid #fwa #improperpayments

https://insidehealthpolicy.com/daily-news/paragon-epic-eligibility-errors-medicaid-improper-payments-top-11-trillion

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Budget Reconciliation And DOGE Updates

Two key developments on the spending reduction front. Republican senators met with Elon Musk on his Department of Government Efficiency (DOGE) commission reductions. Many senators, rightists and moderates, told him that Congress must sign off on the reductions. On one hand, the senators were asserting their branch’s constitutional authority. On the other, they said it insulates the DOGE cuts from court attacks. Musk was open to Senate approval but indicated he did not think some of the reductions had to come back to Congress.

He also was surprised that a rescission package can be passed by just a majority vote. Rescission is authorized by the Impoundment Act of 1974. Some House Republicans want to repeal the rescission process to allow the president to exercise what they see as the president’s inherent impoundment authority. It is ironic that the same act could be used to validate DOGE reductions.

GOP senators have expressed frustration with the lack of consultation and Musk’s operating style.

In a second development, the Congressional Budget Office (CBO) said that the House Energy and Commerce Committee cannot reach its $880 billion reduction goal without cutting Medicaid, Medicare, and children’s insurance. GOP leaders say they want to reduce fraud, waste, and abuse (FWA) vs. making major reductions to the Medicaid program.

Additional article: https://thehill.com/homenews/house/5178944-republicans-medicaid-trump-tax-cuts-cbo-finds/?tbref=hp

#doge #budgetreconciliation #congress #trump #spending

https://thehill.com/homenews/senate/5178899-musk-chaired-meeting-restricts-government

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Tariff Costs Likely Passed Through On Drugs And Medical Devices

Drug and device makers abroad will be levied a tariff if their imported product origin is Mexico, Canada or China and the costs are likely to be passed through to consumers. This means various providers, including hospitals and physicians, will see cost increases. The costs, too, would be passed through in the drug channel, ultimately hitting employer groups, government programs, and consumers. Consumers could see higher premiums as well as cost-sharing hikes. Canada and Mexico will have 25% tariffs under the Trump administration’s announcement this week. China has total tariffs since September of 20% or more as well.

(Article may require a subscription.)

#healthcare #drugpricing #tariffs #hospitals #physicians

https://www.modernhealthcare.com/digital-health/tariffs-mexico-canada-cardinal-intuitive

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House Dems Run Spending Cut Ads In Swing Districts

A House Democratic campaign organization officially kicked off the 2026 elections by running a television advertising blitz hitting House Republicans over the prospect of Medicaid cuts in budget reconciliation. The ads are running in 23 swing districts in 13 states.

(Article may require a subscription.)

#medicaid #election2026 #budgetreconciliation

https://www.modernhealthcare.com/politics-policy/medicaid-cuts-tv-ads-gop

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More 2024 Insurance Financial Results

A number of additional health plans announced financial results for 2025.

Clover Health’s stock dipped Feb. 28 after the company announced an earnings per share loss and a 2% miss on quarterly revenue. But the company reported a full-year 2024 adjusted EBITDA of $70 million, a huge year-over-year increase of $112 million.

Alignment Healthcare achieved its first year of positive adjusted EBITDA as a company. It also reported a huge surge in enrollment.

Blue Cross Blue Shield of Massachusetts reported a $400 million operating loss in 2024, driven by spending on GLP-1 medications and other rising medical costs. The company posted a -4.3% operating margin in 2024, compared to a 0.4% margin in 2023. 

In other news, Becker’s reports on Blues’ MA enrollment as well as insurers who gained and lost membership for 2025 in MA.

Additional articles: https://www.fiercehealthcare.com/payers/clover-health-nets-70-million-adjusted-ebitda-misses-revenue-goals and https://www.fiercehealthcare.com/payers/alignment-healthcare-posts-701-million-quarterly-revenue-beats-expectations and https://www.beckerspayer.com/payer/bcbs-massachusetts-reports-400m-loss-driven-by-glp-1-spending.html and https://www.beckerspayer.com/payer/bcbs-plans-ranked-by-medicare-advantage-members-2025.html

#healthplans #medicareadvantage #employercoverage

https://www.beckerspayer.com/payer/which-medicare-advantage-insurers-gained-lost-members-for-2025.html

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Another Study Shows Impact Of Medicaid Reimbursement Cuts To States

A second study finds the major impact of reducing federal dollars for Medicaid to states. States that expanded Medicaid coverage could have to find $44.3 billion annually in state budget cuts or increased revenue to maintain what they have. The Urban Institute and Robert Wood Johnson Foundation (RWJF) say state spending would be hiked by about 25.6% on average if that occurred. Twelve states have trigger laws that would drop the expansion if the enhanced reimbursement is halted.

I told you yesterday about a Kaiser Family Foundation (KFF) analysis of the spending reductions related to a Medicaid per capita cap program. KFF finds that capping per enrollee spending could reduce federal Medicaid expenditures by $532 billion to nearly $1 trillion over 10 years depending on how states respond. KFF also finds that eliminating the Medicaid expansion matching rate as well could push the federal Medicaid spending savings to as much as $2.1 trillion.

#medicaid #budgetreconciliation #coverage

https://www.healthcaredive.com/news/federal-medicaid-cuts-shift-costs-expansion-states/740966

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