Health Care Checkup
April 9, 2021
THE BIG PICTURE
On Friday, the Office of Management and Budget (OMB) released President Biden’s discretionary funding request for Fiscal Year (FY) 2022. The $1.52 trillion funding request includes investments in health, including investments to help end the opioid epidemic, to prepare for future public health crises, to promote biomedical research, and to address health equity and racial disparities.

On Wednesday, President Biden discussed his openness to “good ideas and good-faith negotiations” on his American Jobs Plan (AJP). However, Biden said he is not open to “doing nothing” and that “inaction simply is not an option.”

On Monday, Senate Majority Leader Chuck Schumer’s (D-NY) aide announced that the Senate parliamentarian ruled that Senators could utilize the prior budget resolution to provide additional reconciliation bill opportunities, letting them avoid having to pass an additional set of reconciliation instructions. It is expected that Democrats will need to use the reconciliation process (which requires only 50 votes) to pass an infrastructure package. The ruling sets the stage for more reconciliation bills to come. 
 
On Tuesday, HHS sent letters to health officials in both Michigan and Wisconsin, formally notifying the states that HHS was withdrawing Section 1115 Medicaid waivers that allowed for work requirements in the states. The waivers were originally approved by the Trump Administration. In the letters, HHS stated that making health coverage contingent on “engagement” requirements during the COVID-19 pandemic would result in coverage losses and harm to beneficiaries.
 
On Thursday, HHS announced that all community health centers funded by the Health Resources and Services Administration (HRSA) are invited to participate in the Health Center COVID-19 Vaccine Program. Vaccines are distributed weekly to health centers that participate in the program, and allocations are separate from those given to the surrounding jurisdictions.
 
Also this week, the Congressional Budget Office (CBO) released a document that delves into the key considerations for a public option. The key considerations include questions about funding, state insurance regulations, administrative costs, and the cost of premiums. CBO’s analysis of a public option shows that it could reduce reimbursements to providers, thereby potentially reducing insurance premiums, but it would also be disruptive to the insurance market.
What to Expect Next Week: On Wednesday, the House Energy and Commerce Subcommittee on Health will hold a hearing, titled "An Epidemic within a Pandemic: Understanding Substance Use and Misuse in America.” The House Committee on Appropriations will hold a hearing on Thursday, on the Fiscal Year 2022 Budget Request for the Department of Health and Human Services, with HHS Secretary Xavier Becerra as the witness. The Senate Finance Committee will also hold a hearing on Thursday to consider the nominations of Andrea Joan Palm to be Deputy Secretary of HHS and Chiquita Brooks-LaSure to be Administrator of the Centers for Medicare and Medicaid Services.
DEEP DIVE
OMB Releases President Biden’s Discretionary Funding Request for FY 2022
 
On Friday, the Office of Management and Budget (OMB) released President Biden’s discretionary funding request for Fiscal Year (FY) 2022. The $1.52 trillion funding request includes investments in health, including investments to help end the opioid epidemic, to prepare for future public health crises, to promote biomedical research, and to address health equity and racial disparities. $131.7 billion is devoted to HHS, which is a $25 billion increase from the 2021 enacted level. The request calls for $10.7 billion to help combat the growing opioid epidemic in America. The request also includes $8.7 billion for the Centers for Disease Control and Prevention (CDC) to improve public health responses in states to better equip them for future public health emergencies. More on the request can be found here

Congressional Democrats Write Letter to HHS Secretary, Urging Marketplace Special Enrollment Period for Laid-off Americans
 
On Tuesday, House Energy and Commerce Chair Frank Pallone (D-NJ), House Ways and Means Chair Richard Neal (D-MA), House Education and Labor Chair Bobby Scott (D-VA), Senate HELP Committee Chair Patty Murray (D-WA), and Senate Finance Committee Chair Ron Wyden (D-OR) wrote a letter to the Department of Health and Human Services (HHS) Secretary Xavier Becerra urging him to make available a Special Enrollment Period (SEP) through the Affordable Care Act (ACA) Marketplace for laid-off Americans following the conclusion of the American Rescue Plan Act’s premium support program. They noted that, while the financial assistance provided by the ARPA will serve as a “lifeline” to millions of Americans, “additional steps are needed to ensure workers and their families are able to access the health coverage they need when [the] subsidy expires.” The lawmakers asked the Secretary to “identify the loss of COBRA premium assistance as a triggering event that entitles individuals to access affordable Marketplace coverage through a SEP.” The letters comes after an announcement this week that more than 500,000 consumers have already signed up for health insurance through HealthCare.gov as a result of the Biden Administration’s SEP for the COVID-19 public health emergency.

Biden Open to Compromising on Infrastructure Plan
 
On Wednesday, President Biden discussed his openness to “good ideas and good-faith negotiations” on his American Jobs Plan (AJP). However, Biden said he is not open to “doing nothing” and that “inaction simply is not an option.” Much of the President’s speech was aimed at addressing critics of the AJP and underscoring the importance of modernizing America’s aging infrastructure. The President said that, since he announced the infrastructure plan, he has heard from many Republicans who have questioned why he is not wholly focused on the nation’s traditional infrastructure, like roadways and bridges. The President remarked that, while his plan will address traditional infrastructure, it will not stop there. He said “We are America. We don’t just fix for today; we build for tomorrow.”
 
On Monday, Senate Majority Leader Chuck Schumer’s (D-NY) aide announced that the Senate parliamentarian ruled that Senators could utilize the prior budget resolution to provide additional reconciliation bill opportunities, letting them avoid having to pass an additional set of reconciliation instructions. It is expected that Democrats will need to use the reconciliation process (which requires only 50 votes) to pass an infrastructure package. The ruling sets the stage for more reconciliation bills to come. Moderate Democrat Joe Manchin of West Virginia has showed reluctance to going the “fast-track” route and has repeatedly vowed to protect the filibuster. 
 
Congressional Progressive Caucus Releases Priorities for the American Jobs Plan
 
The Congressional Progressive Caucus (CPC) released a set of priorities for infrastructure spending. The priorities include strengthening childcare benefits, investing in affordable housing, lowering the cost of prescription drugs, investing in resources to tackle climate change, and creating a roadmap for immigrants to obtain citizenship. The key health provisions include capping prescription drug prices at the average price paid in other Organization for Economic Co-operation and Development (OECD) countries, expanding the types of drugs eligible for inflation caps, lowering the Medicare eligibility age, and expanding Medicare benefits to include dental, vision, and hearing.
 
HHS Withdraws Michigan and Wisconsin’s Medicaid Work Requirement Waivers
 
On April 6, HHS sent letters to health officials in both Michigan and Wisconsin, formally notifying the states that HHS was withdrawing Section 1115 Medicaid waivers that allowed for work requirements in the states. The waivers were originally approved by the Trump Administration. In the letters, HHS stated that making health coverage contingent on “engagement” requirements during the COVID-19 pandemic would result in coverage losses and harm to beneficiaries. Engagement requirements include requiring beneficiaries to either work, volunteer, or attend school to obtain health coverage. The agency sent similar letters to Arkansas and New Hampshire last month. HHS’s letter to Michigan can be found here, and the letter to Wisconsin can be found here.
 
COVID-19 Vaccine Updates
 
On Thursday, HHS announced that all community health centers funded by the Health Resources and Services Administration (HRSA) are invited to participate in the Health Center COVID-19 Vaccine Program. Vaccines are distributed weekly to health centers that participate in the program, and allocations are separate from those given to the surrounding jurisdictions. The voluntary program was launched in February to ensure that underserved communities and those disproportionately affected by COVID-19 are equitably vaccinated against the virus. Thursday’s announcement will increase the number of community health centers invited to join the program from 950 to 1,470. More information can be found here.
 
This week, President Biden announced that he wants all adult Americans (ages 18 and older) to be eligible for a coronavirus vaccine by April 19. So far, every state, except Hawaii and Oregon, is on track to meet Biden’s goal.
 
It is expected that only 1.5 million doses of Johnson & Johnson’s (J&J) COVID-19 vaccine will be distributed next week, which is 9.5 million less than this week. Shipments for J&J’s vaccine will remain sporadic for the next several weeks, as 15 million doses were reportedly ruined by a plant in Baltimore that had been tasked with manufacturing the vaccine. The manufacturer, Emergent BioSolutions, had been producing both J&J’s and AstraZeneca’s vaccines and mixed up ingredients from the two. On Saturday, HHS directed J&J to take over and run the plant, and for the plant to stop manufacturing AstraZeneca’s vaccine.
 
Congressional Budget Office Releases Document Outlining Key Considerations for Public Option
 
On Wednesday, the Congressional Budget Office (CBO) released a document that delves into the key considerations for a public option. The key considerations include questions about funding, state insurance regulations, administrative costs, and the cost of premiums. CBO’s analysis of a public option shows that it could reduce reimbursements to providers, thereby potentially reducing insurance premiums, but it would also be disruptive to the insurance market. A summary can be found here.
SENATE HEARINGS AND EXECUTIVE SESSIONS
Senate Commerce, Science and Transportation - Hearing
Hearing: "The State of Travel and Tourism During COVID."
Tuesday, April 13 Time TBA

Senate Indian Affairs Committee - Hearing
Oversight Hearing “Examining the COVID-19 Response in Native Communities: Native Health Systems One Year Later”
Wednesday, April 14 at 2:30 PM ET

Joint Economic Committee - Hearing
Full committee hearing: "Hearing: Vaccinations and the Economic Recovery."
Wednesday, April 14 at 2:30 PM ET

Senate Finance Committee - Hearing
Full Committee Hearing to Consider the Nominations of Andrea Joan Palm to be Deputy Secretary of Health and Human Services and Chiquita Brooks-LaSure to be Administrator of the Centers for Medicare and Medicaid Services
Thursday, April 15 at 9:30 AM ET
HOUSE HEARINGS AND EXECUTIVE SESSIONS
House Committee on Energy and Commerce - Hearing
Subcommittee on Health Hearing: "An Epidemic within a Pandemic: Understanding Substance Use and Misuse in America"
Wednesday, April 14 at 11:00 AM ET

House Committee on Veterans' Affairs - Hearing
Subcommittee on Technology Modernization Hearing: "Strategic Review: Evaluating Concerns About the Ongoing Implementation of the Electronic Health Record Modernization Program"
Wednesday, April 14 at 2:00 PM ET

House Committee on Appropriations - Hearing
Subcommittee on the Departments of Labor, Health and Human Services, Education, and Related Agencies Hearing: FY 2022 Budget Request for the Department of Health and Human Services
Thursday, April 15 at 10:00 AM ET
 
House Committee on Education and Labor – Hearing
Subcommittee on Health, Employment, Labor, and Pensions Hearing: Meeting the Moment: Improving Access to Behavioral and Mental Health Care
Thursday, April 15 at 10:15 AM ET
ADMINISTRATION ANNOUNCEMENTS
Centers for Medicare & Medicaid Services
 
Food and Drug Administration
 
Guidance Documents from the Centers for Disease Control and Prevention

National Institutes of Health
QUICK LINKS
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