The attack on Iran by U.S. and Israeli forces has brought foreign affairs back to the forefront of Washington’s attention. However, concerns about affordability continue to dominate domestic headlines, as Republicans and Democrats begin to refine their messaging for the November midterm elections. Health care is a critical part of that messaging, and both sides are trying to shape the narrative. How will they do it? Let’s get into it. Welcome to the Week Ahead!
The Administration
In response to the Supreme Court decision striking down most of his 2025 tariffs, President Trump imposed a new 10% tariff for the next 150 days. While there were carve-outs for some products, such as pharmaceuticals and pharmaceutical ingredients, there are still implications for the wider health sector. The impacts are still to be felt, but concerns have been raised by groups such as the Healthcare Financial Management Association about supply chain delays impacting the availability of personal protective equipment (PPE) and other medical equipment and supplies.
Meanwhile, March marks the start of much of the annual payment rules season, so the Office of Management and Budget (OMB) is busy. OMB has already received the Inpatient Psychiatric Facilities and Hospice Prospective Payment System proposed rules, and more are on their way, including IPPS and OPPS for FY 2027. We expect these proposed rules in March or April.
The Senate
There were fireworks during the Senate HELP Committee hearing to consider the nomination of Dr. Casey Means to be the next United States Surgeon General. Chairman Bill Cassidy (R-LA) and Sen. Lisa Murkowski (R-AK), along with many Democrats, expressed concerns about Dr. Means’ views on vaccines. While these concerns are not the same as voting against the nomination, they could make Dr. Means’ road to the office a bit bumpier. At the time of publication, Sens. Murkowski and Susan Collins (R-ME) were still undecided on the nomination. Dr. Means can only afford one Republican defection in order to avoid being rejected by the Committee.
Will HHS Sec. Robert F. Kennedy, Jr. be heading to the Hill any time soon? During an executive session on February 26, Sen. Christopher Murphy (D-CT) urged the Committee to hold future hearings on the impact of last summer’s Reconciliation bill on health care. While Chairman Cassidy did not comment on that request, he did express support for bringing Kennedy, Jr. to testify before the committee again, where the department’s changes to the Childhood Vaccination Schedule and the Advisory Committee on Immunization Practices are likely to be a hot topic.
Health Care Hearings This Week
- March 5: Senate HELP Committee hearing on transforming health care with data and improving patient outcomes
The House
Whispers of Reconciliation 2.0 are making the rounds, and Rep. Richard Hudson, Chair of the National Republican Congressional Committee, told an audience at a BGov event that his members have begun discussing what could potentially be included. According to Rep. Hudson, any potential 2nd reconciliation package would be smaller in scope and would need alignment from all Republicans, likely making it more difficult to get off the ground.
The House Appropriations Committee is getting started on FY 2027 funding, holding a Member Day hearing for Labor-HHS on March 5. The deadline for programmatic language has been moved up several weeks (now March 20). The Labor-HHS bill will allow earmarks for the first time in 3 years, specifically for the Health Resources and Services Administration’s community project funding. This would see funds allocated to rural clinics, hospitals, and Federally Qualified Health Centers. March 20 is also the deadline for members to get these community project funding requests submitted.
Other Health Care Hearings This Week
- March 4: House Oversight Committee hearing on fraud and misuse of federal funds in Minnesota
- March 4: House Veterans’ Affairs Oversight Subcommittee hearing on oversight of Veterans’ health care and benefits legislation
- March 5: House Veterans’ Affairs Health Subcommittee hearing on supporting Veterans with traumatic brain injury
There You Have It
The newly renamed Actor Awards were last night, with many worthy nominations. Were you surprised by the winners? Let us know. Make it a great week!