Health Care Checkup

February 14, 2025

THE BIG PICTURE: KEY CONGRESSIONAL & EXECUTIVE BRANCH DEVELOPMENTS


The Senate confirmed Robert F. Kennedy Jr. as Health and Human Services Secretary in a 52-48 vote on Thursday morning. Sen. Mitch McConnell (R-AL) was the lone Republican to vote against him.  

 

On Monday, a Massachusetts federal judge temporarily halted the implementation of a revised indirect cost rate for the National Institutes of Health (NIH) grants in more than 20 states. The order was expanded to apply to all research institutions nationwide early Tuesday morning.  

 

On Thursday, President Trump announced that he will sign an executive order to establish a “Make America Healthy Again” Commission led by Robert F. Kennedy Jr. The commission will be tasked with looking into the relationship between certain food ingredients and chronic disease, as well as examining environmental factors, medical treatments, and lifestyle choices. 

What to Expect Next Week:



On Wednesday, the Senate Health, Education, Labor, and Pensions Committee will hold a hearing on the nomination of Lori M. Chavez-DeRemer to serve as Secretary of Labor.  

 

The House will be out of session next week and will return to session on Monday, February 24.  

DEEP DIVE

Congressional:

 

House and Senate Republicans Move Forward with Budget Resolutions

Late Thursday night, the House Budget Committee voted to approve a budget resolution along party lines, 21-16. The plan includes $1.5 trillion in spending cuts, $4.5 trillion in tax cuts, and $300 billion for defense and border security. Democrats, led by House Minority Leader Hakeem Jeffries, criticized the proposal for slashing Medicaid and other social safety nets. The plan heads to the full House for a vote after recess. On Wednesday, the Senate Budget Committee advanced a budget resolution for fiscal year 2025 focusing on the military, the border, and energy by a 11-10 vote, setting the stage for potential conflicts between the two chambers with key issues like defense and tax cuts still at odds. The full Senate is expected to consider the budget resolution next week. Read the press release for the Senate’s Fiscal Year 2025 Budget Resolution here and the bill here. Read the press release for the House’s Budget here and the bill here.


Senate Confirms Robert F. Kennedy Jr. as Health and Human Services Secretary

On Thursday morning, the Senate voted to confirm Robert F. Kennedy Jr. as Health and Human Services Secretary. The 52-48 vote was largely along party lines, with Sen. Mitch McConnell (R-AL) joining the Democrats in opposing the nomination.


House Ways and Means Health Subcommittee Holds Hearing Highlighting Partisan Hurdles to Addressing Chronic Disease

On Tuesday, the House Ways and Means Health Subcommittee held a hearing titled “Modernizing American Health Care: Creating Healthy Options and Better Incentives." During the hearing, Republicans emphasized personal responsibility and education in tackling health issues, advocating for expanded use of Health Savings Accounts (HSAs) and direct primary care. Democrats highlighted expanding affordable healthcare through the advanced premium tax credit (APTC) and Medicaid program while opposing reductions to federally funded biomedical research. The Democrats used the hearing as an opportunity to criticize a recent Trump Administration initiative to reduce National Institutes of Health indirect payments to research organizations and GOP proposals to reduce Medicaid spending. Among other topics, witnesses highlighted the benefits of prevention and screening. Read a summary of the hearing prepared by Mehlman Consulting here.


Senate Democrats Raise Concerns Over Changes to NIH Indirect Research Funding

On Thursday, all 47 senators in the Democratic Caucus signed a letter sent to Health and Human Services (HHS) Secretary Robert F. Kennedy Jr., urging him to reconsider a new policy capping NIH indirect research funding at 15 percent. In the letter, they warned that this could create a “serious funding shortfall for research institutions nationwide” and “threaten to undermine progress on lifesaving scientific advancements.” Read the letter here.

 

Democratic Health Leaders Call for Inspector General Investigation into Elon Musk’s Access to Americans’ Health Care Information

Late last week, House Ways and Means Committee Ranking Member Richard E. Neal (D-MA), House Energy and Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ), and Senate Finance Committee Ranking Member Ron Wyden (D-OR) called on the Department of Health and Human Services’ (HSS) Principal Deputy Inspector General to investigate reports of access to health care records at HHS and the Centers of Medicare & Medicaid Services (CMS) by Elon Musk and affiliated personnel. The Health Committee leaders also wrote to the HHS Acting Health Secretary and the CMS Acting Administrator requesting further information. Read the press release here and the letter here.


House Energy and Commerce Chairman Guthrie and Vice Chairman Joyce Announce Creation of Privacy Working Group

On Wednesday, Rep. Brett Guthrie (R-KY), Chairman of the House Committee on Energy and Commerce, and Rep. John Joyce, (R-PA), Vice Chairman of the House Committee on Energy and Commerce, announced the establishment of a comprehensive data privacy working group that aims to bring members and stakeholders together to establish a national data privacy standard. Read the press release here.


Notable Bills Introduced:


Chairs Cassidy, Grassley Introduce Legislation to Ensure Full Implementation of Organ Transplant Reforms

On Wednesday, Sen. Bill Cassidy (R-LA), Chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, and Sen. Chuck Grassley (R-IA), Chair of the Senate Judiciary Committee, introduced legislation to enable the Health Resources and Services Administration (HRSA)’s continued implementation of the senators’ reforms to the U.S. organ transplant system. The OPTN Fee Collection Authority Act would authorize HRSA to collect registration fees from Organ Procurement and Transplantation Network (OPTN) member institutions, ensuring HRSA’s ability to maintain the updated organ transplant system. Read the press release here and the bill here.


Sens. Grassley, Cantwell Reintroduce Bills to Lower Prescription Drug Prices, Increase PBM Transparency

On Wednesday, Sen. Chuck Grassley (R-IA), Chairman of the Senate Judiciary Committee and former Chairman of the Senate Finance Committee, and Sen. Maria Cantwell (D-WA), Ranking Member of the Senate Commerce Committee, reintroduced two bipartisan bills to combat the high cost of prescription drugs and provide greater transparency of pharmacy benefit managers (PBMs). The Prescription Pricing for the People Act would direct the Federal Trade Commission (FTC) to complete a 6(b) study on how pharmacy benefit manager (PBM) consolidation affects drug pricing and identify potentially abusive practices. The Pharmacy Benefit Manager (PBM) Transparency Act would ban “deceptive pricing schemes,” prevent “arbitrary claw backs of payments made to pharmacies,” and require PBMs to report to the FTC on revenue from spread pricing and pharmacy fees. Read the press release here, the Prescription Pricing for the People Act here, and the Pharmacy Benefit Manager (PBM) Transparency Act here.

 

Reps. Panetta and Colleagues Reintroduce Bipartisan Legislation to Combat Xylazine

On Wednesday, Rep. Jimmy Panetta (D-CA) reintroduced the bipartisan Combating Illicit Xylazine Act, co-led by Reps. August Pfluger (R-TX), Chris Pappas (D-NH), Gus Bilirakis (R-FL), Deborah Ross (D-NC), and Scott Fitzgerald (R-WI). This legislation would classify xylazine as a Schedule III illicit substance, ensure legal use by veterinarians and farmers through a clear definition of "ultimate user," allow the DEA to track its manufacturing, and require a report on its prevalence, risks, and recommendations. Sens. Catherine Cortez Masto (D-NV) and Chuck Grassley (R-IA) reintroduced companion legislation in the Senate. Read the press release here and the bill here.


Sens. Budd, Markey Introduce Bipartisan Bill to Prepare for AI Public Health Threats

On Tuesday, Sens. Ted Budd (R-NC) and Edward Markey (D-MA) introduced the Strategy for Public Health Preparedness and Response to Artificial Intelligence Threats Act. The bill would require the Secretary of Health and Human Services to develop a strategy for public health preparedness and response to address the risks of misuse of artificial intelligence (AI), particularly regarding the development of biological or chemical weapons. Read the press release here and the bill here.


Sen. Fischer Reintroduces Legislation to Support Rural Hospitals

On Tuesday, Sen. Deb Fischer (R-NE) reintroduced the Supporting Access to Rural Community Hospitals Act of 2025, which would grant hospitals in the Rural Community Hospital Demonstration (RCHD) program a one-time option to designate themselves as Critical Access Hospitals (CAH), provided they meet eligibility requirements. This flexibility would allow rural hospitals to choose the reimbursement model that best supports their financial sustainability and ability to serve their communities. Reps. Mike Flood (R-NE) and Adrian Smith (R-NE) introduced identical companion legislation in the House. Read the press release here and the bill here. 


Sens. Durbin, Lankford Introduce Bipartisan Bill to Support Rural Hospitals

On Monday, Sens. Democratic Whip Dick Durbin (D-IL) and James Lankford (R-OK) introduced the bipartisan Rural Hospital Closure Relief Act, which would allow states to certify hospitals as “necessary providers” for Critical Access Hospital (CAH) designation. This authority ended in 2006, but the bill would reinstate it to help rural hospitals operate in health professional shortage areas and have faced financial losses, allowing several more rural hospitals to qualify for increased Medicare payments. Read the press release here and the bill here.


Reps. Harshbarger, Schrier, Bacon Reintroduce Bipartisan Bill to Attract Doctors to Rural Areas

On Monday, Rep. Diana Harshbarger reintroduced the bipartisan Rural Physician Workforce Production Act alongside Reps. Kim Schrier (D-WA) and Don Bacon (R-NE) to bring more doctors to rural areas. This bill aims to address physician shortages in rural areas by removing caps on Medicare graduate medical education (GME) reimbursements to rural hospitals, enabling urban hospitals to receive reimbursements for sending residents to rural facilities, and creating a payment initiative to help rural hospitals take on more residents. Read the press release here and the bill here.

 

Reps. Miller-Meeks, Colleagues Introduce Diagnostic Testing Preparedness Plan Bill

On Monday, Reps. Mariannette Miller-Meeks (R-IA), Kim Schrier (D-WA), Dan Crenshaw (R-TX), and Andre Carson (D-IN) introduced the Diagnostic Testing Preparedness Plan Act. This legislation would require Health and Human Services (HHS) to develop a diagnostic testing preparedness plan to be used during declared public health emergencies. Read the press release here and the bill here.

 

Reps. Crenshaw, Schrier, Smucker, Pettersen Introduce Bipartisan Bill to Expand Access to Direct Primary Care Through Medicaid

On Monday, Reps. Dan Crenshaw (R-TX), Kim Schrier (D-WA), Lloyd Smucker (R-PA), and Brittany Pettersen (D-CO) introduced the Medicaid Primary Care Improvement Act, bipartisan legislation that would clarify state Medicaid programs’ authority to expand healthcare access through direct primary care (DPC). This model would allow Medicaid beneficiaries to access primary care services at a flat, monthly fee. Read the press release here and the bill here.


Executive Branch:



President Trump Establishes the Make America Healthy Again Commission

On Thursday, President Trump announced that he will sign an executive order to establish a “Make America Healthy Again” Commission led by Robert F. Kennedy Jr. The commission will include representatives from other agencies, including the Department of Agriculture and the Education Department. The commission would also be tasked with looking into the relationship between certain food ingredients and chronic disease, as well as examining environmental factors, medical treatments, and lifestyle choices. It will assess childhood chronic disease trends, investigate potential causes, and recommend strategies to improve health outcomes, with an initial report due in 100 days. Read the executive order here and the fact sheet here.


President Trump Nominates Three Health and Human Services Officials

On Tuesday, The White House sent three nominations for the Department of Health and Human Services to the Senate. President Trump nominated Gustav Chiarello and Gary Andres to be assistant secretaries of HHS, along with Michael Stuart to be general counsel of the department. Read the HHS press release here.

 

Massachusetts Judge Temporarily Halts NIH Indirect Cost Cuts

On Monday, a federal judge temporarily halted the implementation of a revised indirect cost rate for National Institutes of Health (NIH) grants in more than 20 states. The order, issued by Judge Angel Kelley of the U.S. District Court for the District of Massachusetts, granted a temporary restraining order against a February 7th NIH guidance that reduced indirect cost rates to 15%, which was set to take effect Monday. NIH stated that the policy aligns with rates used by private foundations, aiming to direct more funding toward scientific research rather than administrative overhead. The policy change faced pushback from research institutions that argued it could strain operational support. Early Tuesday morning, the judge expanded the order to apply to all research institutions nationwide.


Judge Orders Trump Administration to Restore Online Public Health Data

On Tuesday, a federal judge issued a temporary order preventing three federal agencies from modifying or removing data from their websites and directing them to restore previously deleted public health pages. The order applies to the Department of Health and Human Services, the Centers for Disease Control and Prevention, and the Food and Drug Administration, requiring them to reinstate relevant webpages by 11:59 p.m. Tuesday. The order will remain in effect while litigation continues.

CONGRESSIONAL HEARINGS & EVENTS

House:


The House will be in recess next week and return to session on Monday, February 24.

 

Senate:

 

Senate Committee on Health, Education, Labor, and Pensions – Hearing 

“Nomination of Lori M. Chavez-DeRemer to serve as Secretary of Labor”

Wednesday, Feb 19, at 10:00 AM

ADMINISTRATION ANNOUNCEMENTS

Centers for Medicare & Medicaid Services

Food and Drug Administration

National Institutes of Health

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