Summary
The trifecta of legislative priorities – traditional infrastructure, budget reconciliation (a catchall for human infrastructure and health care items), and fiscal year (FY) 2022 appropriations – continues to take shape this week. As the group of bipartisan senators transform their framework for nearly $1 trillion for traditional infrastructure into legislation, Senate Democrats are crafting the FY 2022 budget resolution that will include instructions for budget reconciliation. Senate Majority Leader Chuck Schumer (D-NY) is pushing for Congress to pass the traditional infrastructure package and FY 2022 budget resolution before the summer recess (August 2 for the House and August 9 for the Senate). The House could then vote on these measures when they return in September.
Today, the House Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies will mark up its FY 2022 spending bill. The full committee markup is slated for Thursday, July 15. The bill provides $119.8 billion to HHS, $22.9 billion above the FY 2021 enacted level, and includes increases for the Centers for Disease Control and Prevention (CDC) and the National Institutes for Health (NIH). House Democrats dropped the Hyde Amendment, the longstanding ban on federal funding for most abortions, though it may ultimately be included in the spending bill given the tight margins in the House and Senate. The spending bill also funds the Advanced Research Projects Agency for Health (ARPA-H), the agency within the NIH envisioned by the Biden Administration to accelerate transformation innovation in health research. The bipartisan discussion draft for Cures 2.0 from Reps. Diana DeGette (D-CO) and Fred Upton (R-MI) would authorize the establishment of ARPA-H.
Regulatory Update
The proposed calendar year (CY) 2022 Medicare Physician Fee Schedule cleared review at the White House Office of Management and Budget (OMB) last Friday. Its release is now expected imminently. In addition to the annual payment updates for physician services, the proposed rule may include additional COVID-related telehealth updates as well as additional requests for information on how CMS can better address health equity issues through its payment programs.
Beyond this, a number of regulations arrived at OMB last week for review. Most notable among these is a proposed rule pending review regarding CMS’s Most Favored Nation’s (MFN) model. As a reminder, the final rule as released by the Trump Administration is currently on hold due to multiple court preliminary injunctions that cite the Administration’s failure to complete notice and comment procedures. The new rule could either withdraw the previous rule or the Biden Administration could propose its own MFN model. OMB is also reviewing a proposed rule regarding reporting requirements for air ambulances (here) as well as the fiscal year (FY) 2022 Inpatient Psychiatric Facilities Prospective Payment System final rule (here).