17 March 2025

This Week in Health Policy for March 17

This Week (March 17 - 21)

This week, the House and Senate will be in recess. When they return on March 24, Republicans are likely to resume discussions on reconciliation and the Senate will continue to vote on Trump's nominees. This Week in Health Policy will not publish while Congress is in recess during the week of March 17-21.

Last Week (March 10 - 14)

Congressional Highlights

Congress passes full-year CR. On Tuesday (March 11), the House voted 217-213 to pass a continuing resolution (CR) that funds the federal government, largely at FY 2024 levels, through September 30. Rep. Jared Golden (D-ME) joined Republicans in voting yes, and Rep. Thomas Massie (R-KY) joined Democrats in voting against. The House-passed CR includes short-term extensions for Medicare telehealth flexibilities, community health center funding, low-volume and Medicare-dependent hospitals funding, the Acute Hospital Care at Home waiver, add-on payments for ambulance services, funding for quality measures, and other public health programs. It also delays until September 30, Medicaid Disproportionate Share Hospital payment cuts. While the CR largely maintains FY 2024 spending levels, it does include some cuts for National Institutes of Health, Health Resources & Services Administration, and other agencies. The Senate voted 54-46 to pass the CR, with Sens. Jeanne Shaheen (D-NH) and Angus King (I-ME) voting "yes" with Republicans and Sen. Rand Paul (R-KY) voting "no" with Democrats.

Sen. Ron Wyden (D-OR) also sought to pass the Bipartisan Health Care Act, which includes policies left out of the CR, including pharmacy benefit manager reforms, Medicare physician pay offset, extensions for telehealth below the deductible, and more, under unanimous consent. Sen. Rick Scott (R-FL) objected, blocking consideration.

Senate Republicans launch CDC working group. On Wednesday (March 12), Senate HELP Committee Chair Bill Cassidy (R-LA) and other Republicans launched a Senate Republican working group to reform the Centers for Disease Control and Prevention (CDC). The working group aims to examine legislative reforms to improve transparency and modernize the agency.

House passes COVID-fraud bill. On Tuesday (March 11), the House voted 295-127 to pass the Pandemic Unemployment Fraud Enforcement Act (H.R. 1156), which would extend by five years the statute of limitations for the Department of Justice to pursue cases of COVID-era unemployment insurance fraud.

Administrative Highlights

CMS issues proposed rule for ACA exchanges. On Monday (March 10), HHS issued the ACA Marketplace Integrity and Affordability proposed rule, which would shorten the annual open enrollment period for exchanges by one month, end the special enrollment period for those with household incomes below 150% federal poverty level, prohibit sex-trait modifications from being covered as essential health benefits, and make Deferred Action for Childhood Arrivals recipients ineligible for coverage, along with other policy changes. Click here for a fact sheet. Click here for a press release.

HHS worker buyout. On Monday (March 10), media reported on an HHS email offering workers the option to voluntarily retire early and/or receive a voluntary separation payment of $25,000. Employees have until April 19 to choose one of the options. Some employees, including reviewers at FDA's drugs and biologics centers, inspectors and cybersecurity officials, are excluded from the offer.

HHS OGC announces restructuring. On Tuesday (March 11), the HHS Office of General Counsel (OGC) announced plans to reorganize and consolidate the number of regional offices from 10 to four, which will be located in Philadelphia, Atlanta, Kansas City (MO), and Denver. As part of the reorganization, OGC created a new senior position, the Chief Counsel for Food, Research, and Drugs, which will oversee FDA Chief Counsel and OGC's NIH branch.

CMS delays Medicaid prior authorization timelines. On Tuesday (March 11), media reported that CMS sent an email to state Medicaid programs, allowing more time to comply with a Biden-era rule that required accelerated prior authorization timelines. CMS in the email did not provide a new effective date (original deadline was January 1, 2026) but asked states to email their Medicaid state lead or CHIP project officer before April 1 to request additional time.

CMS Innovation Center halts models. On Wednesday (March 12), the CMS Innovation Center announced a strategic change and realignment of its model portfolio. As part of the effort, the CMS Innovation Center said it will end early four models:

  • Maryland Total Cost of Care;
  • Primary Care First;
  • ESRD Treatment Choices;
  • Making Care Primary;

Most of the models are slated to end December 31, 2025. CMS suggested those in the Maryland Total Cost of Care Model could be transitioned to the AHEAD model. the CMS Innovation Center also said it will halt work on two drug pricing models in development: the Medicare $2 Drug List and the Accelerating Clinical Evidence. The CMS Innovation Center estimates ending the models would save taxpayers approximately $750 million.

Trump discusses biopharma and Ireland. On Wednesday (March 12), President Trump spoke about the biopharmaceutical industry and Ireland during a meeting with Ireland's Prime Minister Micheál Martin. During the meeting, President Trump said Ireland "took our pharmaceutical companies" through the Irish tax system, which he said made it "very, very good for companies to move over there." Trump added that if he had been president, he would have put a 200% tariff on items entering the US, which would have made the companies stay in the US.

CMS delays, rebrands health equity conference. On Thursday (March 13), CMS postponed its annual Health Equity Conference and renamed it the Conference for Building a Healthier America. The conference was originally set for April 23 — 24, 2025. A new date has not been announced.

DOL signals plans to roll back COVID-era OSHA reporting requirements. On Friday (March 14), the Department of Labor published a notice indicating plans to roll back COVID-19 employer reporting requirements under OSHA. OSHA in February announced it would not enforce the requirements.

Updates on Executive Actions

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

  • Federal probationary workers. On Thursday (March 13), U.S. District Judge James Bredar ordered the reinstatement of probationary employees at 18 agencies, including the Department of Health and Human Services, who were fired under President Trump. The ruling came in response to a lawsuit brought by Democratic state attorneys general. On Wednesday (March 12), a separate judge, Judge William Alsup ordered the rehiring of probationary workers at six Departments, including the VA, in response to a lawsuit brought by federal employees' unions. The Department of Justice is expected to appeal these rulings, with cases ultimately going to the Supreme Court. Exactly how many HHS workers have been fired isn't clear, HHS has provided inconsistent numbers in response to congressional requests.
  • Birthright citizenship. On Thursday (March 13), the Department of Justice issued an emergency appeal to the Supreme Court asking the justices to limit nationwide injunctions blocking his policy to end birthright citizenship to districts involved in the suit — a precedent that if granted could have widespread repercussions for lower court rulings.
  • DOGE. On Wednesday (March 12), U.S. District Judge Tanya Chutkan ordered Elon Musk and the Department of Government Efficiency to submit to the court a wide array of records and answer questions about its plans to downsize federal agencies, including employee layoffs and federal contract disruptions.

Hearings, Markups, and Other Committee Activity

House Ways and Means Health Subcommittee held a hearing on After the Hospital: Ensuring Access to Quality Post-Acute Care. On Tuesday (March 11), the House Ways and Means Health Subcommittee held a hearing during which the Subcommittee heard from a panel of witnesses representing hospitals, home health, rehabilitation, long-term care, and economists. Both Republicans and Democrats spoke of the critical role post-acute care facilities play in the US health care system and offered different perspectives on factors driving and solutions to a post-acute care crisis in which patients face delays in appropriate care. Discussion topics during the hearing included post-acute workforce shortages, Medicare payment reforms, and ways to ease regulatory barriers to care.

  • More information available here.

House Oversight and Government Reform Government Operations Subcommittee held a hearing on Shifting Gears: Moving from Recovery to Prevention of Improper Payments and Fraud. On Tuesday (March 11), the Subcommittee heard testimony from a panel of witnesses representing the Government Accountability Office, the Pandemic Response Accountability Committee, and the Center on Budget and Policy Priorities. During the hearing, members from both parties expressed a commitment to addressing waste, fraud, and abuse, with Democrats discussing the important role of Medicaid and Republicans speaking favorably of the DOGE's efforts.

  • More information available here.

Senate Special Committee on Aging held a hearing on Breaking the Cycle of Senior Loneliness: Strengthening Family and Community Support. On Wednesday (March 12), the Special Committee on Aging held a hearing from a panel of witnesses representing senior living communities, county senior services, and advocacy groups.

  • More information available here.

Senate Health, Education, Labor & Pensions Committee advanced the nominations of Jayanta Bhattacharya to serve as NIH Director and Martin Makary to serve as FDA Commissioner. On Thursday (March 13), the Committee voted 14-9 to advance Martin Makary's nomination to serve as FDA Commissioner, with Sens. Maggie Hassan (D-NH) and John Hickenlooper (D-CO) joining Republicans. The Committee also voted 12-11, along party lines, to advance Jayanta Bhattacharya's nomination to serve as NIH Director.

  • More information available here.

Senate Health, Education, Labor & Pensions Committee cancelled a hearing on the Nomination of David Weldon to Serve as Director of the Centers for Disease Control and Prevention. On Thursday (March 13), the Committee cancelled the hearing after President Trump withdrew his nomination of David Weldon after it became clear Weldon did not have the Senate Republican support to advance.

  • 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. On Friday (March 14), the Committee held a hearing on President Trump's nomination of Mehmet Oz for administrator of the Centers for Medicare and Medicaid Services (CMS). During the hearing, there was much discussion on the current state of the US health system as being too expensive and not providing quality care for all Americans. The nominee suggested reforms to CMS, such as use of artificial intelligence (AI) and greater emphasis on lifestyle-based interventions, could help reduce costs and bring transparency to Medicare and Medicaid. Oz also spoke in favor of addressing practices of "upcoding" in Medicare Advantage (MA) and affirmed his commitment to the drug price negotiation program.

  • More information available here.

Reports, Studies, and Journals

MedPAC: March 2025 Report to the Congress: Medicare Payment Policy. The report provides recommendations to Congress on Medicare policy, including physician payment, hospital inpatient and outpatient services, post-acute care services, Medicare Advantage plans, and more.

MACPAC: March 2025 Report to Congress on Medicaid and CHIP. The report provides recommendations to Congress on Medicaid policy, including improving the external quality review process for Medicaid managed care, improving access to home- and community-based care, and more.

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Contact Information

For additional information concerning this Alert, please contact:

Washington Council Ernst & Young

Document ID: 2025-0699