Congress
House Republicans voted this week in favor of a budget framework that would require at least $880 billion in Medicaid cuts. The bill does not specify what those cuts are nor does it change current law. It does represent a step towards large Medicaid cuts. Hospital and insurer stocks have reacted negatively to this increased likelihood ($). The next step is the Senate must decide if they agree with the framework. If they do, then House Republicans will begin writing the legislation that spells out exactly what they propose to do and then they will turn to voting on that bill. This may take some time as attention next will turn to a government funding bill as there are only a few weeks left before the current spending bill expires.
Executive Branch
- Several executive orders were signed this week calling for a large reduction in federal workforce, contracts, and general spending. Reductions in federal spending/employment have negatively affected consumer sentiment with increasing concern of economic downtown.
- HHS cancelled a meeting that would choose this fall’s flu vaccine. It’s unclear why the meeting was cancelled but the potential delays could negatively affect vaccine availability/take-up with the flu vaccine.
Industry Watch
Modern Health Care reported that more than a dozen health systems had announced layoffs in the past two months. Financial challenges due to rising costs and uncertain federal payments have been cited as the main reason for the reductions.
Odds and Ends
- The Urban Institute released its analysis on the effects that a reduction in the federal Medicaid matching rate for the expansion population would have on states. This is one of the policies currently being considered by the House. According to Urban’s modeling states would need $44.3 billion budget cuts or additional revenue to offset the reduction in federal spending.
- The Supreme Court announced that it would hear the ACA preventative services case on April 21. A ruling is expected in June.
