Summary
The House faces a busy week, with plans to vote on a reauthorization of Section 702 of the Foreign Intelligence Surveillance Act (set to expire on April 30), the Senate-passed FY 2026 budget resolution and DHS funding (with the exact sequencing still to be determined), as well as the farm bill. All of these bills must first go through the House Rules Committee.
In an effort to appease conservatives seeking to expand the scope of budget reconciliation, House Speaker Johnson plans to release an outline for Reconciliation 3.0, which may include measures addressing fraud, waste, and abuse, as well as an extension of the ban of Medicaid funding to Planned Parenthood (set to expire on July 4). Last week, House Budget Committee Chairman Jodey Arrington (R-TX) and House Committee on Oversight and Government Reform James Comer (R-KY) introduced a pair of bills aimed at preventing fraud in federal programs.
- Stopping Fraudulent Payments Act (H.R. 8464): Requires federal agencies to pause making payments when an elevated risk of fraud has been identified. Its scope is broad and could apply to Medicaid, Medicare, and ACA premium tax credits.
- Pre-Payment Fraud Prevention and Treasury Data Access Act (H.R. 8463): Requires the Treasury Department to work with agencies to verify payment and payee information before funds are released. Similarly, this could apply to health care programs.
The Senate-passed resolution includes instructions only for the House and Senate Committees on Judiciary and Homeland Security to provide $70 billion to fund Immigration and Customs Enforcement and Border Patrol for 3.5 years. Committee recommendations are due May 15, with the goal of sending a bill to President Trump by June 1.
Tomorrow, the House Ways and Means Committee will hold a hearing with health system CEOs as well as the president of Protect Our Care. This is the second in a series of hearings on health care affordability, with the first hearing in January focused on the role of health insurance companies.
We anticipate Republicans will focus on consolidation and competition, like they did during the first hearing. They may also highlight recommendations in Paragon Health Institute’s latest report that calls for site-neutral payment reform in Medicare, overhauling the Physician Fee Schedule, and changes to the 340B program, among other reforms. Democrats will likely focus on the effects of Medicaid cuts in H.R. 1.
Regulatory Update
The Office of Management and Budget completed reviewing:
- Head Start. Proposed Rule: Restoring Flexibility to Support Head Start Program Access
OMB is reviewing the following rules:
- Coverage and Payment:
- Medicaid:
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- State Directed Payments. Proposed Rule: Medicaid Managed Care State Directed Payments and Medicaid Fee-For-Service Targeted Medicaid Practitioner Payments
- Medicaid Tax Waivers. Proposed Rule: Amending the Indirect Hold Harmless Threshold of Health Care-Related Taxes
- Work Requirements. Interim Final Rule: Establishing State Community Engagement Requirements for Certain Individuals Under Section 1902(xx) of the Social Security Act
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- Medicare. Proposed Rules: CY 2027 policy changes and payment rates for hospital outpatient departments, physicians, and ESRD facilities
- Final Rule: 2027 Notice of Benefit and Payment Parameters
- Proposed Rule: Exchange Pre-Enrollment Eligibility Verification
- No Surprises Act. Final Rule: Independent Dispute Resolution Operations
- Organ Transplant. Final Rule: Alternative Payment Model Updates and the Increasing Organ Transplant Access
- Medicare. Proposed Rules: CY 2027 policy changes and payment rates for hospital outpatient departments, physicians, and ESRD facilities
- Drug Price Negotiation. Proposed Rule: Medicare Drug Price Negotiation Program
- Accrediting Organizations. Final Rule: Strengthening Oversight of Accrediting Organizations (AO), Burden Reduction, and Related Provisions
- Nutrition
- Work Requirements. Proposed Rule: Supplemental Nutrition Assistance Program: Modification to Work Requirements for Able-Bodied Adults
- Categorical Eligibility. Proposed Rule: Supplemental Nutrition Assistance Program: Reforming Categorical Eligibility
- Cost Sharing. Proposed Rule: Supplemental Nutrition Assistance Program: Changes in Federal-State Administrative Cost Sharing
- Interim Final Rule: Unaccompanied Children Program Foundational Rule; Update to Include Proof of Identity and Income Verification Standards
- Medication-Assisted Treatment. Final Rule: Implementation of the SUPPORT Act: Dispensing and Administering Controlled Substances for Medication-Assisted Treatment
- Final Rule: HIPAA Privacy Rule: Changes to Support Coordinated Care and Individual Engagement and Reduce Regulatory Burdens
- Excepted Benefits. Proposed Rule: Amendments to Excepted Benefits
- Interim Final Rule: Nondiscrimination on the Basis of Disability by Recipients of Department of Health and Human Services Financial Assistance
- Final Rule: Rescinding Portions of Department of Health and Human Services Title VI Regulations to Conform More Closely with the Statutory Text and to Implement Executive Order 14281