Burwell to Replace Sebelius as the Next HHS Secretary
On April 10, Kathleen Sebelius announced she is resigning as Secretary of the Department of Health and Human Services (“HHS”). President Obama will nominate Sylvia Mathews Burwell, the current director of the Office of Management and Budget (“OMB”), as her replacement. The White House will now begin Burwell’s confirmation process. A year ago, the Senate confirmed her as OMB director 96-0. Although Burwell does not have an extensive background in health care policy, according to reports she is known for her management skills and has experience in issues of poverty and global health issues from her time at the Bill and Melinda Gates Foundation.
White House officials said Thursday night that Sebelius has not set a departure date but that her plan is to remain until Burwell is confirmed. Sebelius was confirmed in April, 2009. Her tenure, 1,808 days as of Thursday, is about 500 days longer than the average for HHS secretaries.
CMS Releases Medicare Advantage Final Rates
On April 7, CMS announced its final Medicare Advantage (“MA”) payment rates for CY 2015. In the final notice, CMS estimated the cumulative impact of its policies would result in a 0.4% increase from the CY 2014 benchmarks. The increase comes after CMS had announced in February a 1.9% reduction for private Medicare plans. The rate shift is similar to last year when CMS moved from a proposed MA cut to an increase following outreach from both parties on Capitol Hill urging CMS to not make cuts to MA plans’ payment rates.
HHS Releases Physician Data
On April 8, HHS announced the release of new data on services and procedures furnished to Medicare by physicians and other health care professionals. The data has information for over 880,000 health care providers who received $77 billion in Medicare payments in 2012 under the Medicare Part B Fee-For-Service program.
House Passes Ryan Budget
On April 10, the House voted 219-205 to approve a budget resolution for FY 2015 offered by House Budget Chairman Paul Ryan (R-WI). The non-binding resolution would cut government spending by $5.1 trillion over 10 years. A large portion of the savings from the House budget comes from reducing health care coverage and subsidies under the ACA. The budget also recommends means testing for Medicare Parts B and D, repealing the Independent Payment Advisory Board and reforming the medical malpractice system.
Senate Budget Chairwoman Patty Murray (D-WA) has indicated the Senate will not pass a budget this year, and the Senate is not expected to take up the House legislation.
Bills Introduced This Week
Congressman Doug Collins (R-GA) introduced a bill that would amend Title XVIII of the Social Security Act to provide for pharmacy benefits manager standards under the Medicare prescription drug program. The bill (H.R. 4437) attempts to increase the transparency of the Maximum Allowable Cost (“MAC”) lists. MAC lists set forth the maximum amount a pharmacy benefits manager will reimburse a pharmacy for any generic drug.
Next Week in Washington
Lawmakers will be home for recess for the next two weeks. This Week in Washington will be in recess as well but will return on Friday, May 2.
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