Health Care Checkup

January 17, 2025

THE BIG PICTURE: KEY CONGRESSIONAL & EXECUTIVE BRANCH DEVELOPMENTS


On Tuesday, House Energy and Commerce Committee Chair Brett Guthrie (R-KY) and Ranking Member Frank Pallone (D-NY) announced subcommittee membership for the 119th Congress. Rep. Buddy Carter (R-GA) will be chair of the Health Subcommittee, and Rep. Diana DeGette (D-CO) will be the Ranking Member.


On Friday, the Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), announced the selection of 15 additional drugs covered under Medicare Part D for price negotiations. The negotiations with participating drug companies for these 15 drugs will occur in 2025, and any negotiated prices will become effective in 2027.


On Wednesday, the Drug Enforcement Administration (DEA) announced three new rules to make permanent some temporary telemedicine flexibilities established during the COVID-19 public health emergency. The regulations would allow more flexibility for providers to prescribe controlled substances via telehealth.

What to Expect Next Week:



On Tuesday, the Senate will hold a hearing examining the nomination of Douglas Collins to be Secretary of Veteran’s Affairs. The House VA Committee will also hold a hearing on the “VA’s Violations of Veterans’ Due Process” on Thursday.

DEEP DIVE

Congressional:


Energy & Commerce Committee Adopts Rules, Committee Jurisdictions For 119th Congress

On Wednesday, the House Energy and Commerce Committee met to formally adopt the panel's rules and subcommittee jurisdictions for the 119th Congress. Chairman Brett Guthrie welcomed the GOP's new members to the panel, and the committee adopted the same rules that it did during the 118th Congress. It also kept the subcommittee jurisdictions and names largely the same. Guthrie said the only changes included a minor expansion of the subcommittee on communications and technology and shortening the names of a handful of subcommittees.


Guthrie stated that restoring trust in public health remains the Committee’s most important health focus. E&C will also focus on driving down the cost of health care, price transparency, and boosting innovation, Guthrie added. Other priorities include Medicare and Medicaid oversight, along with addressing the opioid epidemic. Read Guthrie’s opening statement here and Pallone’s opening statement here


Reps. Carter and DeGette Selected as Chair and Ranking Member of Energy & Commerce Health Subcommittee

On Tuesday, Rep. Brett Guthrie (R-KY), Chairman of the House Committee on Energy and Commerce, and Ranking Member Frank Pallone (D-NY) announced subcommittee membership for the 119th Congress. Rep. Buddy Carter (R-GA) will be chair of the Health Subcommittee, and Rep. Diana DeGette (D-CO) will be the Ranking Member. See the Democrat Health Subcommittee roster here and the Republican roster here.


House E&C Republicans Meet on Health Portions of Reconciliation Package

House Energy and Commerce Republicans met Tuesday morning to discuss options for health-related offsets for a tentative GOP-led reconciliation package. Committee leaders emphasized no decisions had been made after the initial meeting. House Energy and Commerce Chairman Brett Guthrie (R-KY) said following the meeting that members were going through the menu options outlined in a budget document circulating last week. Guthrie stated they are working through the estimates from the document to see how they might interact with one another, including across committee jurisdiction. The menu lists more than $2.3 trillion in savings from health care programs among the $5.5 trillion in total cuts.


MedPAC Advisers Back Payment Increase for Doctors, Hospitals

On Thursday, the Medicare Payment Advisory Commission voted to increase the payment rate for physicians and other health professional services by 1.3%, which represents a 2.3% projected increase based on a Medicare inflation rate. The commission also recommended that Congress cut payments to nursing homes by 3% in 2026 and cut payments to home health agencies and inpatient rehabilitation facilities by 7% in 2026. The commission’s recommendations are nonbinding. Recommendations for 2026 will be included in the commission’s March 2025 report to Congress on Medicare payment policy. See the MedPAC presentations here

 

Notable Bills Introduced:


Sens. Hickenlooper, Cotton, Welch, Collins Reintroduce Skinny Labels, Big Savings Act

On Monday, Senators John Hickenlooper (D-CO), Tom Cotton (R-AR), Peter Welch (D-VT), and Susan Collins (R-ME), reintroduced the bipartisan Skinny Labels, Big Savings Act. The bill would amend the federal patent infringement law so that generic drug manufacturers would be lawfully able to:

  1. Submit or seek approval of a skinny label for a generic or biosimilar pharmaceutical product;
  2. Labeling, promoting, or commercially marketing, consistent with the Federal Food, Drug, and Cosmetic Act regulations, a drug with skinny labeling approved by the FDA;
  3. Describe, consistent with the Federal Food, Drug, and Cosmetic Act, a drug approved via skinny label as a generic of or therapeutic equivalent to the branded drug.

Read the press release here and the bill here.


Reps. Carter, Buchanan Introduce Bill Reinstating Trump-Era Policy that Increases STLDI Plans

On Wednesday, Reps. Buddy Carter (R-GA), Vern Buchanan (R-FL), Dan Crenshaw (R-TX), Lloyd Smucker (R-PA), Rick Allen (R-GA), Mike Kelly (R-PA), and Julia Letlow (R-LA) introduced the Healthcare Freedom and Choice Act. The bill would reinstate individuals’ access to short-term, limited-duration insurance (STLDI) plans for up to 36 months, an increase from the Biden Administration’s rule limiting access to 4 months. Read the press release here and the bill here.


Sens. Kelly, Blackburn Introduce Bill to Address National Nursing Shortage

On Thursday, Sens. Mark Kelly (D-AZ) and Marsha Blackburn (R-TN) introduced the Providing Real-World Education and Clinical Experience by Precepting Tomorrow’s (PRECEPT) Nurses Act, bipartisan legislation that would address the national nursing shortage by incentivizing experienced nurses to serve as clinical preceptors to nursing students and new hires. This legislation establishes a seven-year pilot program offering a $2,000 tax credit to nurses who precept nursing students, advanced practice nurse candidates, or new nurses within six months of hire in Health Professional Shortage Areas (HPSAs). Read the press release here and the bill here.


Reps. Steube and Larson, & Sens. Cramer and Blumenthal Introduce the Chiropractic Medicare Coverage Modernization Act

On Thursday, Reps. Greg Steube (R-FL) and John Larson (D-CT) introduced legislation to provide Medicare coverage for all physicians’ services furnished by Doctor of Chiropractic Care. Sens. Kevin Cramer (R-ND) and Richard Blumenthal (D-CT) introduced companion legislation today in the Senate. The Chiropractic Medicare Coverage Modernization Act would ensure Medicare patients have access to chiropractic care as a non-drug alternative for pain management. Read the press release here and the bill here.


Reps. Smith, Sewell Reintroduce Critical Access Hospital Relief Act

On Thursday, Reps. Adrian Smith (R-NE) and Terri Sewell (D-AL) reintroduced bipartisan legislation to repeal the Centers for Medicare and Medicaid Services (CMS) 96-hour rule for Critical Access Hospitals. The Critical Access Hospital Relief Act would repeal the 96-hour rule, which requires physicians at Critical Access Hospitals to certify at the time of admission a patient on Medicare will be discharged or transferred within 96 hours. Providers who fail to comply would risk non-reimbursement. Read the press release here and the bill here.


Reps. Dingell, Fitzpatrick Reintroduce Bill Expanding Medicare Hearing Aid Coverage

On Thursday, Reps. Debbie Dingell (D-MI) and Brian Fitzpatrick (R-PA) today reintroduced the bipartisan Medicare Hearing Aid Coverage Act to expand Medicare to cover hearing aids for beneficiaries. The bill would improve access to hearing aids and related examinations by removing part of the Social Security Act that prevents Medicare from covering hearing aids. Read the press release here and the bill here


Executive Branch:



HHS Announces 15 Additional Drugs Selected for Medicare Drug Price Negotiations in Continued Effort to Lower Prescription Drug Costs for Seniors

On Friday, the Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), announced the selection of 15 additional drugs covered under Medicare Part D for price negotiations. In accordance with the Inflation Reduction Act, the negotiations with participating drug companies for these 15 drugs will occur in 2025, and any negotiated prices will become effective in 2027. The selected drug list for the second cycle of negotiations is:

  • Ozempic; Rybelsus; Wegovy
  • Trelegy Ellipta
  • Xtandi
  • Pomalyst
  • Ibrance
  •  Ofev
  • Linzess
  • Calquence
  • Austedo; Austedo XR
  • Breo Ellipta
  • Tradjenta
  • Xifaxan
  • Vraylar
  • Janumet; Janumet XR
  • Otezla

Read the press release here.

 

DEA Announces Three New Telemedicine Rules for Opioid Use Treatments

On Wednesday, the Drug Enforcement Administration (DEA) announced three new rules to make permanent some temporary telemedicine flexibilities established during the COVID-19 public health emergency. 

  1.  Expansion of Buprenorphine Treatment via Telemedicine Encounter, Final Rule: allows providers who have not had an in-person visit with a patient to prescribe six months' worth of buprenorphine through telehealth, including through audio-only visits. Afterward, to continue prescribing buprenorphine through telehealth, providers can conduct an in-person medical evaluation or continue treating the patient "via another form of telemedicine."
  2. Special Registrations for Telemedicine and Limited State Telemedicine Registrations, Proposed Rule: would establish special registrations that will permit a patient to receive prescribed medications through telemedicine visits without ever having an in-person medical evaluation from a medical provider. The special registration is available to medical providers who treat patients for whom they will prescribe Schedule III-V controlled substances.
  3. Continuity of Care via Telemedicine for Veterans Affairs Patients, Proposed Rule: in consultation with the U.S. Department of Veterans Affairs (VA), the proposed rule exempts VA practitioners from Special Registrations requirements. Once a patient has received an in-person medical examination from a VA medical practitioner, the provider-patient relationship is extended to all VA practitioners engaging in telemedicine with the patient.

Read the press release here.

 

FDA Proposes Requiring At-a-Glance Nutrition Information on the Front of Packaged Foods

On Tuesday, the Food and Drug Administration (FDA) proposed a rule to require a front-of-package (FOP) nutrition label for most packaged foods. If finalized, the proposal would give consumers readily visible information about a food’s saturated fat, sodium, and added sugar content. The proposed FOP nutrition label also referred to as the “Nutrition Info box,” provides information on saturated fat, sodium, and added sugar content in a simple format showing whether the food has “Low,” “Med,” or “High” levels of these nutrients. The proposed rule, if finalized, would require food manufacturers to add a Nutrition Info box to most packaged food products three years after the final rule’s effective date for businesses with $10 million or more in annual food sales and four years after the final rule’s effective date for businesses with less than $10 million in annual food sales. Comments on the proposed rule are due by May 16, 2025. Read the press release here.

 

FTC Releases Report on PBMs and Specialty Generic Drugs

On Tuesday, the Federal Trade Commission (FTC) released a report on pharmacy benefit managers (PBMs) titled “Specialty Generic Drugs: A Growing Profit Center for Vertically Integrated Pharmacy Benefit Managers.” The report concluded that PBMs generated substantial revenue from the spread pricing of specialty generic drugs. The report also found that the PBMs are disproportionately dispensing specialty generics at their affiliated pharmacies. FTC Chair Lina Khan said in a statement on the report, "The FTC should keep using its tools to investigate practices that may inflate drug costs, squeeze independent pharmacies, and deprive Americans of affordable, accessible healthcare -- and should act swiftly to stop any illegal conduct." Read the report here.


CMS Releases Proposed 2026 Payment Policy Updates for Medicare Advantage and Part D Programs

Late last week, on Friday, the Centers for Medicare & Medicaid Services (CMS) released the Calendar Year (CY) 2026 Advance Notice of Methodological Changes for Medicare Advantage (MA) Capitation Rates and Part C and Part D Payment Policies (the CY 2026 Advance Notice). Payments from the government to MA plans are expected to increase on average by 4.33%, or over $21 billion, from 2025 to 2026, as proposed. CMS will accept comments on the CY 2026 Advance Notice through 11:59 PM Eastern Time on February 10, 2025, before publishing the final Rate Announcement on or before April 7, 2025. Read the press release here and the fact sheet here.


Legal & Other:  


Court Denies Preliminary Injunction in Challenge to Nursing Home Staffing Rule

On Thursday, Judge Leonard T. Strand of the US District Court for the Northern District of Iowa ruled in favor of the Justice Department, denying a request by 20 state attorneys general (AG) for a nationwide preliminary injunction to block the implementation of a Department of Human Services (HHS) final rule requiring most US nursing homes to increase their direct-care staffing levels. The state AGs, along with two nursing homes and multiple state LeadingAge organizations, filed the lawsuit in October, claiming the final rule is illegal, arbitrary, and capricious and causes irreparable financial harm. The case is State of Kansas v. Becerra, 1:24-cv-00110 (N.D. Iowa). Read the decision here

CONGRESSIONAL HEARINGS & EVENTS

House:


House Committee on Veterans' Affairs, Subcommittee on Disability Assistance and Memorial Affairs – Hearing

“Correcting VA’s Violations of Veterans’ Due Process and Second Amendment Rights”

Thursday, January 23, at 1:15 PM

 

Senate:

 

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

“Organizational business meeting to consider committee rules for the 119th Congress, and other pending calendar business.”

Tuesday, January 21, at 10:00 AM

 

Senate Veterans' Affairs Committee – Hearing

“The nomination of Douglas A. Collins, to be Secretary of Veterans Affairs.”

Tuesday, January 21, at 10:00 AM 

ADMINISTRATION ANNOUNCEMENTS

Centers for Medicare & Medicaid Services

Food and Drug Administration

National Institutes of Health

1341 G Street NW
Washington, DC 20005
202-585-0258