Washington Healthcare Update
Sep 25, 2023
Charles Kelley
22 mins
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This Week in Washington: House appropriations talks continue, Senate vote to advance mini omnibus fails; Lower Costs, More Transparency Act pulled from House consideration; House Budget Committee marks up budget resolution
Upcoming Hearings
Congress
House
- Appropriations Talks Continue As Shutdown Nears
- Lower Costs, More Transparency Act Pulled from House Consideration
- House Budget Committee Marks Up Budget Resolution for FYs 2024-2033
- House Energy and Commerce Committee Chairmen Send Letter to CDC and USDA Regarding Federal Select Agent Program
- Vote Planned for SUPPORT Act Reauthorization and Maternal Health Legislation
Senate
- Senate Vote to Move Forward “Mini Omnibus” Fails
- Senate HELP Committee Marks Up Bipartisan Primary Care and Health Workforce Act
Administration
- White House Establishes Office of Gun Violence Prevention
- White House Announces Restart of Mail Order COVID-19 Test Program
- HHS Awards $45 Million to Expand Access of Long COVID Care Services
- CDC Awards $262 Million to Support Outbreak Analytics and Disease Modeling Network
- CMS Announces Reinstatement of 500,000 Medicaid and CHIP Enrollees
- FDA Releases Guidance Regarding Use of Alternative Tools to Assess Drug Facilities
- FDA Releases Draft Guidance on PDUFA Product Meeting Management Practices
- FDA Releases Guidance on Assessing Clinical Trial Confirmatory Evidence
- FDA Releases Information Technology Strategy for FY 2024 to 2027
- FDA Releases Draft Guidance Regarding Labeling for Biosimilar Products
- FDA Releases Draft Guidance Regarding Prescription Drug Use-Related Software
Proposed Rules
- CMS Proposed Rule Increases No Surprises Act IDR Administrative Fee
- CMS Extends Comment Period for Proposed Rule Strengthening Coverage of Mental Health Insurance Benefits
- CMS Proposed Rule Establishes Minimum Staffing and Payment Reporting Standards
- FDA Proposes Rule to Broaden Prescription Drug Labeling Regulations
- OCR Proposed Rule Strengthens Protections Against Disability Discrimination
Final Rules
- CMS Final Rule Streamlines Medicare Savings Program Enrollment Process
- CMS Final Rule Mandates Medicaid and CHIP Program Core Set Measures Reporting
- CMS Final Rule Updates Inpatient and Long-Term Care Hospital PPS Rates in FY 2024
- CMS Final Rule Updates PPS Rates for Skilled Nursing Facilities in FY 2024
- CMS Final Rule Updates Hospice Wage Index and Payment Rate in FY 2024
- CMS Final Rule Updates PPS Rates for Inpatient Psychiatric Facilities in FY 2024
- CMS Final Rule Updates PPS Rates for Inpatient Rehabilitation Facilities in FY 2024
- DEA Releases Temporary Rule Extending COVID-19 Telemedicine Flexibilities
- CMS Finalizes 2024 Medicare Advantage and Part C and D Payment Policies
- FDA Issues Final Rule Regarding Mammography Quality Standards
- FDA Delays Tobacco Product Required Warning Final Rule Effective Date
Reports
- GAO Releases Report Regarding Medicaid Integrity and Audit Coordination
- GAO Releases Report Regarding COVID-19 Provider Relief Fund Payments
CBO Cost Estimates
Upcoming Hearings
September 27 Senate Senate Committee on the Budget Full Committee Hearing: “Medicare Forever: Protecting Seniors by Making the Wealthy Pay Their Fair Share” 10:00 a.m., Dirksen Senate Office Building 106 Announced witnesses are:- The Honorable Marilyn Moon, Visiting Scholar from the Center for Medicare Advocacy
- Chye-Ching Huang, Executive Director of the New York University School of Law Tax Law Center
- James C. Capretta, Senior Fellow and Milton Friedman Chair of the American Enterprise Institute
House
Appropriations Talks Continue As Shutdown Nears Both the House and Senate return Tuesday to consider appropriations. In the Senate, they are prepping a Continuing Resolution (CR) to go to sometime in December. Both Republicans and Democrats are involved in crafting it. However, because Sen. Rand Paul (R-KY) objects to the inclusion of funding for Ukraine, the Senate cannot speed up consideration of the legislation. Thus, the Senate legislation is unlikely to be sent to the House until the end of the week or Saturday at the earliest. In the House, Speaker McCarthy has been discussing a CR only through early or mid-November. He has been told by several Republicans that if he gets a bill done with Democrats, they will trigger consideration of his removal. The House leaders have lined up 4 appropriations bills to be considered this week – Defense, Ag, State-Foreign Ops and Homeland Security. However, there is a complicated rule to allow this to happen. Leadership is now trying to determine if they have enough votes for the rule. If the rule fails, they cannot move forward. On Saturday, McCarthy floated to his caucus a 30 day CR or a 45 day CR. He may try to attach a CR to the border security bill and possibly include a debt commission, after the four appropriations bills are considered. By then the Senate may be wrapping up their CR. Lower Costs, More Transparency Act Pulled from House Consideration On Sept. 18, the House was expected to hold a floor vote on the Lower Costs, More Transparency Act but the bill was unexpectedly pulled from consideration. The bill is a large healthcare package that includes provisions to increase hospital and other provider price transparency, implement site-neutral payments for off-campus hospital outpatient departments, ban pharmacy benefit manager (PBM) spread pricing and extend funding for health programs. House Energy and Commerce Committee Chairman Cathy McMorris Rodgers (R-WA) has announced that she remains committed to getting the bill passed by year’s end. House Budget Committee Marks Up Budget Resolution for FYs 2024-2033 On Sept. 20, the House Budget Committee reported out of committee the Concurrent Resolution on the Budget for fiscal years (FYs) 2024-2033. The budget resolution outlines House Republican spending priorities over the next 10 years. It seeks to balance the budget and reduce the deficit by a projected $16.3 trillion by 2033, resulting in an estimated $130 billion budget surplus in FY 2033. It would:- Cap FY 2024 discretionary spending at $1.47 trillion and limit spending growth at 1 percent per year;
- Cut total discretionary spending by $4.6 trillion by FY 2033;
- Cut mandatory spending by $8.7 by FY 2033;
- Lower interest payments on the national debt by $3 trillion;
- Repeal Inflation Reduction Act and Green New Deal provisions; and
- Create a bipartisan commission to recommend changes and oversee the solvency of Social Security and Medicare.
Senate
Senate Vote to Move Forward “Mini Omnibus” Fails On Sept. 20, the Senate failed to move forward a package of three appropriations bills known as a “mini omnibus” that combines the Agriculture-FDA, Military Construction-VA and Transportation-HUD appropriations bills. Republican senators continue holding out on supporting the bill, notably Sen. Rand Paul (R-KY) who announced that he will not support any bill that includes military aid to Ukraine. Senate HELP Committee Marks Up Bipartisan Primary Care and Health Workforce Act On Sept. 21, the Senate Health, Education, Labor and Pensions (HELP) Committee marked up and moved out of committee the Bipartisan Primary Care and Health Workforce Act. The legislation, which was introduced by Chairman Bernie Sanders (I-VT) and Sen. Marshall (R-KS), aims to address primary care challenges and health workforce shortages and would reauthorize community health and medical education programs. It would:- Reauthorize $5.8 billion per year in funding for the Community Health Center Fund through fiscal year (FY) 2026;
- Reauthorize $1.5 billion in funding for the Teaching Health Center Graduate Medical Education Program through FY 2028;
- Reauthorize $950 million per year in funding for the National Health Service Corps through FY 2026;
- Provide $1.2 billion in grants to community colleges and universities to increase nursing program enrollment;
- Provide $300 million to primary care doctor residency programs and invest in dental training and workforce programs; and
- Implement provisions aimed at prohibiting anticompetitive practices by hospitals and insurance companies, including banning certain facility fees.
Administration
White House Establishes Office of Gun Violence Prevention On Sept. 21, the White House announced that it would establish the Office of Gun Violence Prevention. The office will work toward developing executive actions and legislation to reduce gun violence. For more information, click here. White House Announces Restart of Mail Order COVID-19 Test Program On Sept. 20, the White House announced that it will restart the federal mail order COVID-19 test program. Households will be able to order a maximum of four COVID-19 tests through the mail starting Sept. 25. In addition, the Department of Health and Human Services (HHS) Administration for Strategic Preparedness and Response (ASPR) announced that it had awarded $600 million to 12 domestic COVID-19 test manufacturers to increase the availability of rapid test kits. For more information, click here. HHS Awards $45 Million to Expand Access of Long COVID Care Services On Sept. 20, the Department of Health and Human Services (HHS) Agency for Healthcare Research and Quality (AHRQ) announced that it had awarded $45 million in grants to expand access to healthcare services for individuals with Long COVID. The funding will help strengthen access to care, person-centered care coordination, multi-disciplinary behavioral healthcare networks and social support services. For more information, click here. CDC Awards $262 Million to Support Outbreak Analytics and Disease Modeling Network On Sept. 19, the Centers for Disease Control and Prevention (CDC) announced that it had awarded $262 million in grants to support the establishment of the Outbreak Analytics and Disease Modeling Network (OADMN). The OADMN will support state and local stakeholders in developing and implementing tools to detect, respond to and mitigate public health emergencies. CMS Announces Reinstatement of 500,000 Medicaid and CHIP Enrollees On Sept. 21, the Centers for Medicare and Medicaid Services (CMS) announced that nearly 500,000 children and individuals had regained their Medicaid and Children’s Health Insurance Program (CHIP) coverage following a technical glitch known as “ex parte” in state enrollment systems that had automatically disenrolled enrollees who were still eligible for coverage. CMS had notified states of the technical glitch in a call to action issued on Aug. 30. For more information, click here. FDA Releases Guidance Regarding Use of Alternative Tools to Assess Drug Facilities On Sept. 21, the Food and Drug Administration (FDA) released guidance regarding the use of alternative tools to assess drug manufacturing facilities identified in drug applications using new drug applications (NDA), abbreviated new drug applications (ANDA) or biologics license applications (BLA). The guidance seeks to encourage facilities to incorporate best practices. For more information, click here. FDA Releases Draft Guidance on PDUFA Product Meeting Management Practices On Sept. 21, the Food and Drug Administration (FDA) released a draft guidance outlining good meeting practices and procedures for Prescription Drug User Fee Act (PDUFA) meetings held between the FDA and sponsors and applicants of drug and biological products. The draft guidance aims to promote consistent and well-managed meetings. For more information, click here. FDA Releases Guidance on Assessing Clinical Trial Confirmatory Evidence On Sept. 19, the Food and Drug Administration (FDA) released guidance regarding the assessment of clinical trial factors used to confirm substantial evidence of a drug’s effectiveness. The guidance outlines factors that should be used to assess whether a single adequate and well-controlled clinical investigation demonstrates evidence of effectiveness. It also provides examples of data sources that could be considered confirmatory evidence. For more information, click here. FDA Releases Information Technology Strategy for FY 2024 to 2027 On Sept. 18, the Food and Drug Administration (FDA) released its information technology (IT) strategy for fiscal years (FYs) 2024 to 2027. The strategy revolves around six IT goals and objectives that include:- Creating a shared OneFDA Ecosystem;
- Strengthening IT Infrastructure;
- Modernizing Enterprise Services and Capabilities;
- Sharing Data for Mission Outcomes;
- Adopting AI and Mission-Driven Innovations; and
- Cultivating Talent and Leadership.
Proposed Rules
CMS Proposed Rule Increases No Surprises Act IDR Administrative Fee On Sept. 21, the Centers for Medicare and Medicaid Services (CMS) released a proposed rule that would increase the administrative fee for disputes initiated within the No Surprises Act independent dispute resolution (IDR) process. The proposed rule would:- Increase the IDR administrative fee from $50 to $150 per party per dispute;
- Increase the fee range for certified IDR entities by 20 percent for single determinations; and
- Increase the fee range for certified IDR entities by 25 percent for batched determinations.
- Clarify that the MHPAEA ensures an individual’s right to access mental health and substance use disorder benefits in parity with medical/surgical benefits;
- Provide examples that make clear that plans and issuers may not use restrictive prior authorization and other medical management techniques or standards related to network composition for mental health and substance use disorder benefits;
- Clarify that certain factors may not be used to determine out-of-network reimbursement rates for mental health and substance use disorder providers;
- Require plans and issuers to gather and analyze outcomes data and take action to resolve material differences in access to mental health and substance use disorder benefits and medical/surgical benefits;
- Codify a requirement that directs plans and issuers to conduct meaningful comparative analyses to measure the impact of nonquantitative treatment limitation (NQTL); and
- Implement a sunset provision adopted in the Consolidated Appropriations Act of 2023, that allows self-funded, non-federal government plan elections to opt out of compliance with MHPAEA.
- Require nursing facilities participating in Medicare and Medicaid to provide at a minimum, 0.55 hours of care from a registered nurse (RN) per resident per day and 2.45 hours of care from a nurse aide per resident per day;
- Require nursing facilities to maintain at least one nurse on-site at all times;
- Implement new nursing facility assessment requirements; and
- Require states to publicly report on the percentage of Medicaid payments for home and community-based services that are spent on compensation for direct care workers.
- Clarify the application of Section 504 and ensure its consistency with the Americans with Disabilities Act, the Rehabilitation Act and case law;
- Clarify obligations for mobile, web and kiosk accessibility;
- Establish standards for accessible medical equipment;
- Prohibit the use of value assessment methods that negatively assess individuals with disabilities and limit their access to aids, benefits and services; and
- Clarify obligations to provide services to disabled persons in integrated and appropriate settings.
Final Rules
CMS Final Rule Streamlines Medicare Savings Program Enrollment Process On Sept. 19, the Centers of Medicare and Medicaid Services (CMS) released a final rule that would streamline enrollment into the Medicare Savings Program (MSP) and align it with other public program requirements and processes. It would:- Automatically enroll the majority of Supplemental Security Income (SSI) recipients into the Qualified Medicare Beneficiary eligibility group;
- Require states to use Medicare Part D low-income subsidy (LIS) program data when making QMP eligibility determinations; and
- Eliminate duplicative paperwork; and
- Reduce the cost of prescription drugs.
- Core set of Children’s Health Care Quality measures under Medicaid and the Children’s Health Insurance Program (CHIP);
- Behavioral health measures on the Core Set of Adult Health Care Quality Measures for Medicaid; and
- Core Sets of Health Home Quality Measures for Medicaid.
- Increase Medicare inpatient PPS rates by 3.1 percent. This is based on a 3.3 percent market basket increase and a decrease in productivity of 0.2 percent;
- Finalize changes to graduate medical education (GME) payments for Rural Emergency Hospitals;
- Extend the low wage index hospital policy that considers rural reclassified hospitals as geographically rural when calculating the wage index;
- End the New COVID-19 Treatments Add-on Payment (NCTAP) policy;
- Revise physician self-referral data and information and reinstate program integrity restrictions on certain physician-owned hospitals;
- Add one new measure to the Hospital VBP;
- Add three new measures to the Inpatient QRP; and
- Finalize a CMS proposal relating to the calculation of Medicaid 1115 demonstration days used in the Medicare disproportionate share hospital (DSH) adjustment.
- Increase SNF PPS payments by a net 4.0 percent;
- Codify changes to the Patient Driven Payment Model (PDPM) International Classification of Diseases, 10th revision, Clinical Modification codes;
- Finalize a requirement that would exclude marriage and family therapy and mental health counseling services from SNF Consolidated Billing;
- Add two new measures to the SNF QRP;
- Add four new measures to the SNF VBP Program; and
- Streamline CMS administrative procedures to strengthen its enforcement of nursing home quality compliance.
- Codify hospice data submission thresholds for the HQRP;
- Implement updates to the CMS Hospice Special Focus Program (SFP);
- Update health equity and future quality reporting measures;
- Update the Hospice Outcomes and Patient Evaluation tool; and
- Require hospice certifying physicians to be Medicare-enrolled or to validly opt out.
- Update the IPF PPS payment rate by 3.3 percent;
- Adopt a 2021-based IPF market basket;
- Adopt four new QRP measures;
- Allow IPFs to open new units and be paid under the IPF PPS at any time during the cost reporting period;
- Remove two QRP measures beginning in FY 2025; and
- Adopt a data validation pilot program beginning in FY 2025.
- Increase IRF PPS payment rates by an estimated 4 percent, approximately $355 million more relative to FY 2023. This is based off a market basket update of 3.6 percent, minus a 0.2 percentage point for productivity and a 0.6 percentage point increase in the outlier threshold;
- Allow hospitals to open a new IRF and receive payment under the IRF PPS at any time during the cost reporting period;
- Adopt a 2021-based IRF market basket and implement updated market basket cost weights, price proxies and labor-related share;
- Adopt two new QRP measures, modify one measure and remove three measures; and
- Finalize proposals that require the public reporting of four QRP measures.
- Extends through Nov. 11, 2023, the COVID-19 PHE controlled substance prescribing flexibilities that allow practitioners to prescribe controlled substances via telemedicine without having to evaluate patients in person.
- Implements a one-year grace period through Nov. 11, 2024, for practitioners and patients who have or who develop a telemedicine relationship on or before Nov. 11, 2023. A “telemedicine relationship” is considered to exist if a practitioner has already issued a prescription for a controlled substance to a patient.
- Finalize technical changes and updates made to the MA risk adjustment model, which include transitioning the model to reflect International Classification of Diseases 10 (ICD-10) condition categories and updating the model with recent Medicare data years. CMS intends on phasing in the updated model over the next three years.
- Finalize changes to the Medicare Part C and D Star Ratings. CMS will provide a list of the eligible disasters for the extreme and uncontrollable circumstances adjustment and of non-substantive updates made to several measure specifications.
- Improve the delivery of mammography services;
- Strengthen communication of healthcare information;
- Require mammography facilities to provide patients with additional health information;
- Ensure the availability of qualified mammography personnel;
- Bolster medical outcome audits;
- Modernize technological aspects of mammography services; and
- Implement enforcement tools to deal with noncompliant facilities.
Reports
GAO Releases Report Regarding Medicaid Integrity and Audit Coordination On Sept. 21, the Government Accountability Office (GAO) released a report regarding the integrity of the Medicaid program and the state of coordination between the Centers for Medicare and Medicaid Services (CMS) and state Medicaid auditors. The GAO analyzed Medicaid single audit data and interviewed CMS officials and state auditors from seven selected states. The GAO found that some state auditors face challenges when conducting Medicaid audits, including a lack of resources and training. Additionally, the GAO found that CMS had not yet used its analysis of audit trends to inform its oversight over state auditors. The GAO conducted this study because it was asked to examine CMS and state auditor coordination. For more information, click here. GAO Releases Report Regarding COVID-19 Provider Relief Fund Payments On Sept. 21, the Government Accountability Office (GAO) released a report regarding the COVID-19 Provider Relief Fund (PRF). The report analyzes how effective the Health Resources and Services Administration (HRSA) has been at recovering PRF payments that were made inappropriately. The GAO analyzed data on PRF payments, interviewed agency officials and reviewed information and documentation on payment integrity activities. The GAO found that as of May 2023, HRSA had successfully recovered half of the $2.6 billion in PRF payments that were identified for recovery. The GAO also discovered that HRSA has established clear time frames to recover most of the remaining payments. The GAO conducted this study because a provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act required it to monitor and report on the federal response to the COVID-19 pandemic. For more information, click here.CBO Cost Estimates
CBO Releases Presentation Explaining the Federal Budget Process and the Role of CBO On Sept. 19, the Congressional Budget Office (CBO) released a presentation that explains the federal budget process and the role of the CBO. The presentation outlines how the CBO conducts analysis of budgetary and economic issues, analyzes healthcare legislation and prepares budget estimates. For more information, click here.
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