Healthcare Policy News from the Week of November 25, 2019

Surprise Billing and Drug Pricing Update: No progress.

As we all know, Congress’ main healthcare objectives during the fall session were to curb surprise billing and make progress on decreasing drug price inflation.

As the impeachment proceedings suck up legislative time, it’s unlikely these issued get resolved in 2020. Bipartisan deals are probably a bit hard to come by right now.

Congress once again delays DSH cuts.

As a part of the broader budget deal, the House pushed back Medicaid DSH cuts (i.e., the program that pays back hospitals who see a lot of charity care patients) until December. Remember that the ACA initially wanted to phase out these payments by 2025.

In its final rule this year, CMS already laid out a roadmap to reduce DSH payments as compelled by the ACA, but Congress keeps intervening and delaying the cuts. I would look for potential reform to the disproportionate share hospital program in 2020.

Right now, DSH is paying out around $18.1 billion to over 3,000 hospitals.

Hospitals sue HHS over alleged underpayments.

Over 600 hospitals just sued HHS over an a few billion dollars in underpayments.

They claim that HHS illegally reduced inpatient hospital reimbursements starting in 2017 and continuing into 2018 and 2019

FDA nominee testifies.

Stephen Hahn, the current FDA nominee, testified (WSJ paywall) in front of a Senate panel this week.

The panel focused in on whether he’d be willing to combat vaping as well as fight drug prices. He’ll most likely be confirmed by the end of 2019.

That’s it for this week. Be sure to subscribe to the weekly newsletter.