Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.
In the President’s State of the Union Address, he did not lay out a path to passing health care reform and as the days pass, Democratic Leadership has yet to determine the best way, or even whether to, move comprehensive reform. Despite House Speaker Nancy’s Pelosi’s earlier declaration that she does not have the votes to pass the Senate reform bill, Senate Majority Leader Reid has signaled that the option remains alive. Specifically, the House could pass the Senate bill along with changes to the legislation in a reconciliation bill that would only require 51 votes in the Senate for passage. We expect the trajectory of health care reform legislation to become more apparent prior to the week-long President’s Day recess.
Last week, the Senate passed a resolution to increase the debt ceiling, which creates a path for potential consideration of a five-year Medicare physician payment fix that would be exempt from the pay-go rules. Congressional action is necessary to prevent a 21 percent Medicare physician payment cut from going into effect on March 1, 2010.
The Centers for Medicare and Medicaid Services released an interim final rule, which implements the Wellstone-Domenici Act, requiring that any group health plan that offers both mental health and substance abuse benefits along with standard medical coverage must treat them equally – same out-of-pocket costs, benefit limits and practices. The regulation is effective for plan years beginning on or after July 1, 2010.
Today, President Obama will release his Fiscal Year 2011 budget. In his State of the Union Address, the President announced that discretionary government spending will be frozen for three years. In June 2009, the Office of Management and Budget Director Peter Orzsag provided directed agencies to freeze FY 2011 discretionary funding at FY 2010 levels or reduce spending by 5 percent. According to the OMB memorandum, the President’s budget goals are to “encourage economic growth, invest in the future, and responsibly govern the Nation.” Executive Departments and their agencies are hosting budget briefings early in the week and a number of Cabinet officials are scheduled to testify before Congress at budget hearings.
