Week in Washington 02/06/25

Congress

Congress continued to debate next steps on legislation. House leaders appear focused on advancing one bill that tackles all issues tax cuts, spending cuts, and immigration. The Washington Post reported that the majority of the spending cuts would be created through imposition of nationwide work requirements on the Medicaid program. Senate Republicans prefer to tackle immigration issues in a bill and wait until later in the year to tackle spending/tax issues. Discussions are ongoing as to which approach will ultimately win out.

RFK Advances, Oz on Deck

A key committee voted in favor of Robert F Kennedy Jr.’s nomination for HHS Secretary. A final vote by the entire Senate is expected soon, with confirmation highly likely. No vote has yet been scheduled for Memet Oz’s nomination as CMS Administrator.

CMS Watch

Several outlets reported that DOGE personnel arrived at CMS late this week and gained access to CMS payment systems and CMS personnel. DOGE has been tasked at reducing federal spending. It is unclear exactly how this could affect things. 

Tariffs

President Trump instituted a 10% tariff on all goods from China and has threatened 25% tariffs on Canada and Mexico.  If fully implemented these tariffs have the potential for increasing medical costs especially durable medical equipment and pharmaceutical costs. The America Hospital Association has asked for an exemption for medical related products from the tariffs. Given contracts, it may take some time for these costs to be fully realized although a recent survey.

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