While it looked like the Senate was going to make an early exit from DC, there are still a few items Senate Majority Leader John Thune (R-SD) would like to hammer out before the midterms. This includes advancing nominees and a bill to address concerns about the impact of data centers on electricity rates. So, let’s get into it. Welcome to the Week Ahead!
The Administration
The use of appropriated funding has been called into question again, and once again Senate Appropriations Committee Chair Susan Collins (R-ME) is taking a leading role. In a letter sent to administration officials, Chair Collins urged that the remaining $1.3 billion appropriated for Global Health Programs (GHP) be obligated before the fiscal year ends on September 30. GHP funding is used to administer maternal and child health programs as well as counter infectious diseases like HIV/AIDS, malaria, and tuberculosis. Chair Collins recently succeeded in getting the White House to reverse a planned Executive Order that would establish a new committee at the National Institutes of Health (NIH) to oversee grant funding. It will be interesting to see how the administration responds to this request. We expect Collins to highlight this as an example of her independence from the administration in her tough re-election fight.
Meanwhile, the Centers for Medicare and Medicaid Services (CMS), has announced the removal of 760,000 people from Affordable Care Act (ACA) coverage. According to CMS Administrator Mehmet Oz, this determination was made because these enrollees never filed a claim and the agency was unable to contact them. The agency expects this to result in an estimated $2.2 billion in returned subsidies. CMS has also identified an additional 419,000 enrollees for additional verification. Along with this, the Department of Health and Human Services (HHS) published an interim final rule that pauses new broker registrations for 2027 open enrollment on the federal exchanges. Both HHS Secretary Kennedy and CMS Administrator Oz highlighted this action as being part of an effort to ensure federal dollars go to people they were intended to serve. This lines up with the administration’s broader messaging that combating fraud helps programs that are meant to make life more affordable. We expect the administration to continue making this argument in the final months leading up to the midterms.
In other CMS news, states have until September 30 to sign agreements to participate in the GENErating cost Reductions fOr US Medicaid (GENEROUS) Model. This model provides Most-Favored-Nation (MFN) pricing for certain prescription drugs from participating companies to Medicaid enrollees in participating states. According to a CMS press release, all 50 states plus DC and Puerto Rico have applied to participate and 40 states and Puerto Rico have already signed their final agreements.
The Senate
The confirmation process is moving along for HHS leadership nominees. The nomination of Chris Klomp, to be Deputy Secretary, and Ge Bai, to be Assistant Secretary for Planning and Evaluation (ASPE), have advanced out of the Senate Finance Committee. Their last hurdle will be a vote on the Senate Floor. The Senate Health, Education, Labor, and Pensions (HELP) Committee postponed its votes on Nicole Saphier, to be US Surgeon General, Timothy Westlake, to be Assistant Secretary for Mental Health and Substance Use, and Mary Lazare, to be Assistant Secretary for Aging, to September 30. Not included in the voting block is Heidi Overton, to be Food and Drug Administration (FDA) Commissioner, who testified before the HELP Committee on September 24.
Prescription drug labeling could also be getting some floor time before the end of the year, if Senate Aging Committee Chairman Rick Scott (R-FL) gets his way. During the Aging Committee hearing on September 23, Chairman Scott predicted that S. 3788, the CLEAR LABELS Act, would be voted on by the Senate before 2027. The bill would require drugs and active pharmaceutical ingredients (API) to be labeled with the name and place of business of the manufacturers. The bill could be moved through the unanimous consent process, but that could be a difficult lift as only one Senator needs to object, or it could be part of a larger legislative package.
The House
House members are back in their districts.
There You Have It
The National Hockey League (NHL) regular season kicks off tomorrow after a couple of weeks of preseason matchups. How’s your team shaping up? Are they ready to go all the way to the Stanley Cup finals? Let us know. Make it a great week!
