10 March 2025

This Week in Health Policy for March 10

This Week (March 10 - 14)

This week, the House and Senate will be in session and lawmakers will continue to negotiate a final budget resolution and work toward a new CR for FY 2025 funding, which is set to expire on March 14. The Senate also will continue consideration of Trump nominees, including key health nominees, with certain House committees also holding health-related hearings.

House Ways and Means Health Subcommittee will hold a hearing on After the Hospital: Ensuring Access to Quality Post-Acute Care

  • Date: Tuesday, March 11 at 2pm ET
  • More information available here.

House Oversight Committee will hold a hearing on Shifting Gears: Moving from Recovery to Prevention of Improper Payments and Fraud

  • Date: Tuesday, March 11 at 10am ET
  • More information available here.

Senate Special Committee on Aging will hold a hearing on Breaking the Cycle of Senior Loneliness: Strengthening Family and Community Support

  • Date: Wednesday, March 12 at 3:30pm ET
  • More information available here.

Senate Health, Education, Labor & Pensions Committee will vote on the nominations of Jayanta Bhattacharya to serve as NIH Director and Martin Makary to serve as FDA Commissioner

  • Date: Thursday, March 13 at 9:30am ET
  • More information available here.

Senate Health, Education, Labor & Pensions Committee will hold a hearing on the Nomination of David Weldon to Serve as Director of the Centers for Disease Control and Prevention

  • Date: Thursday, March 13 at 10am ET
  • More information available here.

Senate Finance Committee will hold a hearing to Consider the Nomination of Mehmet Oz, of Pennsylvania, to be Administrator of the Centers for Medicare and Medicaid Services

  • Date: Friday, March 14 at 10am ET
  • More information available here.

Last Week (March 3 - 7)

Congressional Highlights

Reconciliation update. Congressional efforts to craft a unified House-Senate FY2025 budget resolution, to unlock the budget reconciliation process Republicans want to use to extend Tax Cuts & Jobs Act (TCJA) provisions expiring at the end of 2025, focused this week on timing and process. Politico reported that House Ways & Means Committee Republicans "are tentatively scheduled on March 10 and 12 to start drafting the GOP's party-line bill enacting President Donald Trump's tax agenda," while Senate efforts to address issues related to the two chambers adopting the same budget resolution along the lines of what the House approved February 25 have not measurably progressed. Majority Leader John Thune (R-SD) said that any Senate vote related to the House budget wouldn't occur until after a congressional recess the week of March 17. The House budget resolution includes instructions for the House Energy & Commerce Committee to cut up to $880 billion from programs under its jurisdiction, which includes Medicaid and Medicare. President Trump and House Speaker Mike Johnson (R-LA) have indicated any cuts to those programs would focus on waste, fraud, and abuse, but lawmakers will likely need to look at other policies to reach the proposed topline figure.

Government funding. With the expiration of government funding looming on March 14, lawmakers late this week shifted to reaching a deal on a "clean" continuing resolution (CR) that funds the federal government through the end of the fiscal year, September 30, 2025. Democrats are opposed to a yearlong CR due to concerns about the inability to address programs that may require additional funding like military and disaster spending, the Administration's scrutiny of spending and the federal workforce, and disregard for current congressionally mandated appropriations meaning House Republicans will need near unanimous support to pass. While some conservatives traditionally oppose CRs, House Freedom Caucus members met with the President at the White House this week and some said they would support the plan. In the Senate, at least eight Democrats will need to vote for the measure to overcome the 60-vote filibuster threshold in the 53-47 Senate. Senator Rand Paul (R-KY) and Rep. Thomas Massie (R-KY) are expected to oppose on the Republican side. A draft CR is expected to be released today or over the weekend for a House vote on Tuesday.

The most recent CR passed in December 2024 temporarily extended several health programs along with Medicare telehealth flexibilities, delayed cuts to Medicaid disproportionate share hospital payments, and funded community health centers; many of those programs are now set to expire at the end of the month and will need to be addressed. Other health care programs were allowed to expire at the end of 2024 and cuts to Medicare physician payments took effect January 1.

Senators hotline December health package. On Thursday (March 6), Senate Finance Committee Ranking Member Wyden (D-OR) and Senate Health, Education, Labor, and Pensions (HELP) Committee Ranking Member Sanders (I-VT) introduced the Bipartisan Health Care Act (S. 891), and hotlined the bill, a process that enables the bill to move via unanimous consent unless there is an objection. The bill includes a bipartisan package of policies, including those from the Lower Costs More Transparency Act, that failed to pass Congress last year.

House passes bill to help manage chronic conditions. On Tuesday (March 4), the House voted under suspension of the rules to pass the Chronic Disease Flexible Coverage Act (HR 919), which would codify changes allowing high-deductible health plans (HDHPs) with health savings accounts (HSAs) to cover the costs of 14 medications and other chronic care management services before the enrollee's deductible. The bill now goes to the Senate.

JCT clarifies impact of tax scoring proposals on ACA enhanced subsidies. On Tuesday (March 4), the Joint Committee on Taxation (JCT) sent a letter to Senate Democrats answering questions on Republican discussions to use a "current policy baseline" for scoring tax cuts in reconciliation. In the letter, JCT stated that if Congress adopted this approach to bring the cost of extending the TCJA tax cuts down to $0, then it also would eliminate the cost of extending the Affordable Care Act's enhanced premium tax credits

Administrative Highlights

President Trump's SOTU. On Tuesday (March 4), President Trump delivered his address to Congress, during which he discussed the Make America Healthy Again (MAHA) movement, trade, and social policies. Trump highlighted his action to remove the US from the World Health Organization and discussed how MAHA efforts led by Department of Health and Human Services (HHS) Secretary Robert F. Kennedy would help combat childhood cancer. On tariffs, President Trump spoke broadly, saying, "Reciprocal tariffs kick in and whatever they tariff us, other countries, we will tariff them. Tariffs are about making America rich again and making America great again. And it's happening. And it will happen rather quickly. There will be a little disturbance. But we're okay with that. It won't be much." Trump also spoke about his policies on DEI and gender, calling on Congress to "pass a bill permanently banning and criminalizing sex changes on children."

NIH centralizes peer review of grant applications. On Thursday (March 6), the National Institutes of Health (NIH) announced plans to eliminate NIH Institutes and Centers (IC)-based study sections and consolidate peer review for all applications for grants, cooperative agreements, and research and development contracts within the NIH's Center for Scientific Review (CSR). NIH said Advisory councils for NIH ICs will continue to do second-level reviews of applications. NIH said the IC-based study sections currently review about 22% of NIH grants and they expect the change would save more than $65 million annually.

FTC sues to block merger of medical device coating companies. On Thursday (March 6), the Federal Trade Commission (FTC) sued to block private equity firm GTCR BC Holdings' acquisition of Surmodics, alleging the merger is anticompetitive and would create a combined company controlling more than 50% of the market for outsourced hydrophilic coatings, which are often used in medical devices.

CMS issues alert on childhood gender-confirming care. On Wednesday (March 5), the Centers for Medicare and Medicaid Services' (CMS) Center for Clinical Standards and Quality sent providers a quality and safety special alert memo, reminding them of their "obligation to protect American children from often irreversible chemical and surgical mutilation, including interventions that cause sterilization." CMS said it may begin to take steps to align CMS-regulated provider requirements and agreements with medical evidence against these practices. On Thursday (March 6), the Health Resources and Services Administration (HRSA) sent a similar memo to hospital administrators and grant recipients, notifying them of the Center for Clinical Standards and Quality alert.

Trump admin drops challenge to Idaho abortion law. On Wednesday (March 5), the Department of Justice filed a motion to drop a case challenging Idaho's abortion law, that prohibits hospitals from providing abortion services unless a woman is actively dying, alleging it violated the Emergency Medical Treatment and Active Labor Act (EMTALA).

CMS rescinds Medicaid coverage guidance. On Tuesday March 4, CMS rescinded guidance that aimed to expand the types of services Medicaid and CHIP covered to include health-related social needs (HRSN). The recission does not impact current approvals and CMS said that going forward it would consider states' applications for coverage of those services on a case-by-case basis.

HRSA collecting applications for OPTN Board of Directors. On Monday (March 3), HRSA launched the application portal for new members to join the Organ Procurement and Transplantation Network (OPTN) Board of Directors. Applications must be submitted by April 4.

Kennedy comments on measles outbreak. On Sunday (March 2), HHS Secretary Robert F. Kennedy Jr. published an op-ed in Fox News in response to the ongoing measles outbreak in the US that is related to two deaths. In the op-ed, Mr. Kennedy writes, "Vaccines not only protect individual children from measles, but also contribute to community immunity." He also mentions recently updated CDC recommendations that support vitamin A as a treatment for measles and has given TV interviews in which he recommends cod liver oil, which is high in vitamin A. In response to the outbreak, the American Medical Association issued a statement in favor of MMR vaccination.

Updates on Executive Actions

Latest Trump executive actions. In the past two weeks, President Trump signed several executive orders (EO) and other actions with implications for health care:

  • Federal personnel: On Tuesday (March 4), the Office of Personnel Management issued revised guidance on probationary periods and administrative leave. The guidance clarifies that the memo should not be viewed as a directive to "take any specific performance-based actions regarding probationary employees. Agencies have ultimate decision-making authority over, and responsibility for, such personnel actions." The original guidance from January 20 had instructed agencies to submit lists of all workers in probationary periods. The latest guidance followed a court ruling on February 27 that concluded OPM broke the law when it directed federal agencies to terminate probationary workers. In recent weeks, media reports indicate several agencies, including the Food and Drug Administration (FDA), Centers for Disease Control and Prevention (CDC), and Indian Health Service, have hired back some workers impacted by the layoffs.
  • Federal properties: On Tuesday (March 4), the General Services Administration published and then removed a list of hundreds of federal buildings to offload, which included several FDA sites. The list was removed by Wednesday morning and in its place is a notice saying, "non-core property list (coming soon)."

Updates on legal challenges to previous Trump executive actions. This week, dozens of court cases challenging Trump administration actions continue to progress.

  • NIH indirect costs. On Wednesday (March 5) a US district court judge in Massachusetts issued a preliminary nationwide injunction blocking the NIH from implementing a February 7 supplemental guidance to cap indirect cost rates for NIH grant recipients at 15%. The preliminary injunction prevents NIH from implementing the flat 15% indirect cost rate across all NIH grants until the judge issues further rulings.
  • Federal probationary workers. On Wednesday (March 5), the Merit Systems Protection Board (MSPB) granted a stay in US Department of Agriculture probationary worker firings requested by the Office of Special Counsel and ordered impacted workers, which included those working on the avian flu outbreak, to return to their jobs for 45 days while the Office of Special Counsel (OSC) investigates the firings. Other layoff challenges, including those at HHS, are before the MSPB. In a separate case, Hampton Dellinger, who led OSC and was fired by President Trump, announced he would drop his lawsuit challenging the dismissal after an appeals court panel allowed the termination to remain in place while the case proceeds.
  • Federal funding freeze. On Thursday (March 6), a US district court judge in Rhode Island issued a ruling that blocks the Trump administration from freezing federal funding as it realigns federal grants and other financial assistance with Trump EOs related to DEI, gender-affirming care, and foreign aid.

Hearings, Markups, and Other Committee Activity

Senate Health, Education, Labor & Pensions Committee held a hearing to Nomination of Jayanta Bhattacharya to serve as Director of the National Institutes of Health. On Wednesday (March 5), the Senate HELP Committee held a hearing on President Trump's nomination of Jayanta Bhattacharya for director of the NIH. During the hearing, members from both sides of the aisle raised concerns about the Trump Administration's recent proposal to cap funding for indirect research costs at 15%. While Republicans voiced confidence in Dr. Bhattacharya and his Senate confirmation, Chairman Bill Cassidy (R-LA) also strongly emphasized his concern over the opportunity cost of continuing to research the link between autism and vaccines. Many Democrats questioned Dr. Bhattacharya on whether he agreed with the funding and personnel cuts already put in motion by the Trump Administration. Dr. Bhattacharya confirmed his commitment to supporting researchers and improving the health of all Americans. Several Republicans also noted the missteps taken during the COVID-19 pandemic by the previous NIH director and asked for Dr. Bhattacharya to note how he would approach the role differently.

  • More information available here.

Senate Health, Education, Labor & Pensions Committee held a hearing to consider the Nomination of Martin Makary to serve as Commissioner of Food and Drugs. On Thursday (March 6), the Senate HELP Committee held a hearing on President Trump's nomination of Marty Makary for commissioner of the FDA. Topics during the hearing focused on the MAHA movement, food safety and nutrition, increasing transparency in health care, FDA layoffs, and federal rules regarding mifepristone. A few senators asked about post-approval drug processes and accelerated approval pathways and rare disease drugs. Notably absent was discussion around GLP-1 drug shortages, compounding, and the FDA's oversight of lab-developed tests. Ranking Member Bernie Sanders (D-VT) was absent from the hearing and did not deliver an opening statement.

  • More information available here.

Reports, Studies, and Journals

Congressional Budget Office: Mandatory Spending Under the Jurisdiction of the House Committee on Energy and Commerce. The report, written in response to a request from Reps. Brendan Boyle (D-PA) and Frank Pallone (D-NJ), details mandatory funding within the jurisdiction of the House Energy and Commerce Committee, including Medicaid, CHIP, risk adjustment, and others.

HHS Office of Inspector General: Medicare Part D Spending for 10 Selected Diabetes Drugs Totaled $35.8 Billion in 2023, an Increase of 364 Percent From 2019. The report provides an overview of Medicaid enrollment for children who age-out of the foster care system, finding 112,000 individuals were enrolled in this group in 2023.

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Contact Information

For additional information concerning this Alert, please contact:

Washington Council Ernst & Young

Document ID: 2025-0634