Federal Government Shutdown Looms as Deadline Nears
On January 18, the House passed a four-week continuing resolution (“CR”) that would fund the federal government through February 16. While a vote in the Senate is expected on Friday or sometime over the weekend, the bill’s chances of passing the upper chamber remain uncertain as of press time. The House-passed CR includes a six-year extension of the Children’s Health Insurance Program and delays a number of ACA-related taxes. However, the House bill does not include extensions for other health-related programs, known as Medicare extenders, or reversal of the Disproportionate Share Hospital (“DSH”) cuts that went into effect at the beginning of FY 2018. A shutdown will go into effect if the Senate does not pass some type of funding extension before midnight on Friday. Earlier in the day, the Department of Health and Human Services (“HHS”) released its FY 2018 contingency plan in the event of a shutdown, which indicates that federal health programs funded through sources other than annual appropriations from Congress would continue.
340B Legislation Introduced in the Senate
On January 17, Sen. Bill Cassidy (R-LA) introduced a bill (S. 2312) that seeks to prevent certain hospitals from entering the 340B drug discount program until certain transparency measures and reporting requirements are strengthened. The Cassidy bill is the Senate version of the recently introduced 340B Pause Act and can serve as another reason for the Senate Health Education Labor and Pensions (“HELP”) Committee to hold future 340B oversight hearings.
The measure would create a moratorium on new DSHs from entering the 340B program for at least two years or until the Health Resources and Services Administration writes regulations for the 340B program with additional transparency measures and reporting requirements for hospitals. The bill would also require hospitals to use CMS’s new 340B claims modifier on drugs purchased through the program.
Under the Cassidy bill, critical access hospitals, rural referral centers, sole community hospitals, grantees and PPS-exempt children’s or cancer hospitals would still be able to enroll in the 340B program. The bill also exempts grantees and rural and critical access hospitals from most of the bills reporting requirements.
HHS Further Delays Common Rule
On January 17, the HHS Office for Human Research Protections further delayed implementation of the “Common Rule” just two days before it was scheduled to take effect. The rule revises federal regulations intended to provide greater protections for human subjects of research and to accommodate research into genetics. HHS had released the final rule two days before President Obama left office. The latest HHS six-month delay suggests it could be further delayed in the future.
Health-Related Bills Introduced This Week
Rep. David Schweikert (R-AZ) introduced a bill (H.R. 4841) that would amend Title XVIII of the Social Security Act to provide for electronic prior authorization under Medicare part D for covered part D drugs.
Rep. Ed Perlmutter (D-CO) introduced a bill (H.R. 4808) that seeks greater transparency in health care pricing. As introduced, the bill would require providers to disclose pricing for all products and services in an open and conspicuous manner at the point of purchase.
Rep. Eliot Engle (D-NY) introduced a bill (H.R. 4788) that directs the Department of Energy to establish a pilot program to award grants and loan guarantees to hospitals during FY 2019-2020 to carry out energy conservation projects.
Next Week in Washington
The House is out of session next week and scheduled to return January 29. The Senate returns Monday for a full week of work. On January 23, the Senate HELP Committee will hold a hearing examining public health threats facing hospitals and health providers, which will be the second hearing the committee has held on the issue. The Senate is also expected to hold a confirmation vote on HHS Secretary nominee Alex Azar. Earlier this week, the Senate Finance Committee advanced Azar’s nomination making him eligible for final approval by the full Senate.
This Week in Washington in History
1980: 38 years ago this week, President Jimmy Carter calls for the 1980 Summer Olympics to be moved from Moscow if the Soviet Union failed to withdraw troops from Afghanistan within a month. The International Olympic Committee declines Carter’s request, and Carter announces the boycott two months later.
1919: 99 years ago this week, the 18th Amendment to the U.S. Constitution, prohibiting the “manufacture, sale, or transportation of intoxicating liquor for beverage purposes,” is ratified by Congress and becomes law of the land. Nine months later, Congress passed the Volstead Act over President Wilson’s veto. The Volstead Act provided for the enforcement of prohibition, including the creation of a special unit of the Treasury Department.
For more information, please contact:
- John Williams III at (202) 370-9585 or jwilliams@wp.hallrender.com;
- Andrew Coats at (202) 370-9587 or acoats@wp.hallrender.com;
- Abby Kaericher at (202) 780-2989 or akaericher@wp.hallrender.com; or
- Your regular Hall Render attorney.
