Summary
The primary priorities for Congress remain the SAVE Act, the war in Iran, and continued lapsed funding for the Department of Homeland Security (DHS). The President has indicated that he will not sign any other legislation until the SAVE Act is passed, forcing Senate Majority Leader Thune (R-SD) to undergo the lengthy vote process this week, and possibly next. Beyond this effort, Republican leadership and the White House are also preparing a supplemental funding bill for the Iran war, which could possibly take shape as a reconciliation package to ensure passage. With this being one of the last must-pass vehicles, Republican may attempt to attach additional policy priorities, such as health care, with the goal of offsetting the package.
To this end, this week, the House Energy & Commerce (E&C) Subcommittee on Oversight and Investigations will hold a hearing on fraud in Medicare and Medicaid, in which Centers for Medicare and Medicaid Services (CMS) official will testify before the Subcommittee, and the E&C Health Subcommittee will also hold its third hearing on health care affordability, with a panel of hospital, physician, and health care practitioner witnesses.
Housing Legislation
The Senate approved the 21st Century ROAD to Housing Act on Thursday in an 89–10 vote, advancing a bipartisan housing package aimed at increasing housing supply and lowering costs through regulatory streamlining, financing reforms, and new construction incentives (Impact Health summary). The White House issued a Statement of Administration Policy strongly endorsing the Senate amendment to Housing for the 21st Century Act, highlighting provisions that restrict large institutional investors from purchasing single-family homes and temporarily prohibit the Federal Reserve from developing a Central Bank Digital Currency. The House of Representatives previously passed its own bipartisan housing bill in February by a 390–9 vote, but significant differences remain. House Republicans, including members of the House Freedom Caucus, have indicated the chamber is unlikely to pass the Senate bill as written, citing concerns with the CBDC provision and restrictions on institutional homeownership. While the administration backs the Senate package, President Trump has recently focused public attention on the SAVE America Act, leaving uncertainty about whether he will actively push House Republicans to accept the Senate compromise.
Regulatory Update
The Office of Management and Budget completed its review of the following:
- Immigration Status. A Department of Labor proposed rule titled, “Improving Wage Protections for H-1B and PERM Employment in the United States.”
OMB is also reviewing:
- Coverage and Payment:
- Medicaid:
- State Directed Payments. A proposed rule titled, “Medicaid Managed Care State Directed Payments and Medicaid Fee-For-Service Targeted Medicaid Practitioner Payments.” The proposed rule appears intended to advance a presidential memorandum released on June 6, which directs HHS to “eliminate waste, fraud, and abuse in Medicaid, including by ensuring Medicaid payments rates are not higher than Medicare, to the extent permitted by applicable law.” On February 27, the title of the proposed rule was revised to include Medicaid FFS targeted Medicaid practitioner payments.
- Medicaid Tax Waivers. A proposed rule titled, “Amending the Indirect Hold Harmless Threshold of Health Care-Related Taxes.”
- FY 2027 payment proposed rules for hospitals and long-term care hospitals, inpatient psychiatric facilities, hospice facilities, and skilled nursing facilities.
- Medicare Advantage. The Contract Year 2027 Policy and Technical Changes to Medicare Advantage, Medicare Prescription Drug Benefit, Medicare Cost Plan, and Programs of All-Inclusive Care for the Elderly Programs final rule.
- No Surprises Act. A final rule titled, “Independent Dispute Resolution Operations.” Thing long-awaited rule was proposed in November 2023 by the Biden Administration.
- Prescription Drugs
- Prior Authorization. A proposed rule on interoperability standards and prior authorization for drugs.
- Price Negotiation. A proposed rule titled, “Medicare Drug Price Negotiation Program.”
- Oversight and Integrity
- Fraud and Abuse. A proposed rule titled, “Comprehensive Regulations to Uncover Suspicious Healthcare (CRUSH).”
- Accrediting Organizations. A final rule titled, “Strengthening Oversight of Accrediting Organizations (AO), Burden Reduction, and Related Provisions.”
- Other Topics:
- Health Technology. A final rule titled, “Administrative Simplification: Adoption of Standards for Health Care Attachment Transactions and Electronic Signatures.”
- An interim final rule titled, “Unaccompanied Children Program Foundational Rule; Update to Include Proof of Identity and Income Verification Standards.”
- Nutrition Assistance. A proposed rule titled, “Supplemental Nutrition Assistance Program: Reforming Categorical Eligibility.”
- Medication-Assisted Treatment. A final rule titled, “Implementation of the SUPPORT Act: Dispensing and Administering Controlled Substances for Medication-Assisted Treatment.”