February 18, 2025

Worried About House Vote, Senate Takes Different Path on Budget Reconciliation

On a 50-47 vote, the Senate GOP officially started the process of passing a budget reconciliation bill in a bid to enact a portion of President Trump’s agenda. 

The Senate is taking a two-bill approach to meet President Trump’s objectives, while the House is moving on one big bill. The Senate fears House Speaker Mike Johnson will not have enough votes on his plan because conservatives are demanding deep cuts and others want more moderate ones.

The Senate’s first bill would spend $325 billion to bolster border operations and allow Trump’s deportation plans to be executed as well as boost defense spending and greenlight Trump’s energy plans. The Senate Republicans are planning to use a second reconciliation bill to extend Trump’s 2017 tax cuts. The second bill would include offsetting spending cuts.

#budgetreconciliation #trump #congress #healthcare

https://thehill.com/homenews/senate/5152221-senate-gop-budget-resolution/?tbref=hp

Strange Bedfellows Against Medicaid Spending Cuts

A strange group of bedfellows has emerged in the war over Medicaid cuts. The likes of hospitals and other providers, conservative pundit Steve Bannon, and lawmakers from swing districts are turning up the heat on conservative GOP members who want deep cuts overall, especially in healthcare. Providers argue the coverage cuts will mean people lose coverage and destabilize providers. Bannon is arguing that the cuts threaten Trump’s standing in Trump-friendly areas. Lawmakers from swing districts see major impacts on their constituents.

Trump and GOP lawmakers say they will focus on work requirements as well as fraud, waste, and abuse (FWA). But House conservatives have set an $880 billion target for healthcare cuts, which could lead to Medicaid spending contraction, including changes in state reimbursement. States are weighing in on the budget risk to them.

(Article may require a subscription.)

#medicaid #congress #budgetreconciliation

https://www.modernhealthcare.com/politics-policy/steve-bannon-hospitals-gop-medicaid-cuts

Humana CMO Says 2026 MA Rate Inadequate

Echoing what other health plans have said, Humana Chief Medical Officer Kate Goodrich, MD, says the Medicare Advantage rate increase for 2026 does not fully account for rising medical costs. MA would receive a 2.23% increase after two years of cuts. The health plan lobby, AHIP, says medical costs for MA enrollees will rise approximately 9% next year. We will be in store for a third year of major contraction in MA benefits and footprints as well as premium hikes.

#medicareadvantage #rates #healthplans

https://www.beckerspayer.com/payer/humana-cmo-medicare-advantage-rate-increase-does-not-fully-account-for-rising-costs.html

KFF Publishes Briefers On Medicare Work Requirements and Medicaid Facts

As Medicaid cut debates heat up, the Kaiser Family Foundation (KFF) has issued two briefs, one on Medicaid work requirements and another on Medicaid facts.

On work requirements, KFF finds:

  • Most recipients already work or are exempt.
  • Work requirements have not increased employment.
  • Medicaid spending goes down and coverage drops.
  • The programs are costly.

On Medicaid facts, KFF finds:

  • About 20% of Americans have Medicaid and is key for certain populations.
  • Medicaid is also about 20% of all healthcare spending as well as 50% of long-term care spending.
  • Three-quarters receive coverage through Medicaid managed care.
  • A majority of Americans have favorable views of Medicaid.

Additional article: https://www.kff.org/medicaid/issue-brief/5-key-facts-about-medicaid-work-requirements/

#medicaid #healthcare #coverage

https://www.kff.org/medicaid/issue-brief/10-things-to-know-about-medicaid/

Pre-Merger Rule Leads To Major Submissions

Companies flooded the Federal Trade Commission (FTC) with premerger notification filings. The FTC received nearly 400 filings for about 200 transactions. This is an estimated fourfold increase from historical weekly averages.

The rule seeks to further curb mergers by requiring early notification of proposed unions.

The Trump administration is slated to take a more moderate approach to mergers but still continue some enhanced oversight. Congress is notably looking at healthcare mergers.

(Article may require a subscription.)

#antitrust #ftc #mergers #consolidations #manda

https://www.modernhealthcare.com/mergers-acquisitions/ftc-premerger-notification-filing-form

— Marc S. Ryan

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