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December 23, 2005

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In this Issue


Congress Close to Finishing Work for the Year


Contentious Labor-H Bill Sent to President


Budget Measure Continues to Progress


New Bills

 

Congress Close to Finishing Work for the Year

After a series of continuing resolutions and wrangling over health and defense spending, the budget and the USA Patriot Act, to name a few, Congress appears to be finally winding down.

With the continuing resolutions for both the Labor, Health & Human Services and Defense bills set to expire Dec. 31, the Senate completed work on these bills late Wednesday night, with the House agreeing on Thursday evening.

The Senate removed language from the Defense Appropriations bill which would have allowed for oil drilling in the Artic National Wildlife Refuge. They proceeded to a voice vote on the controversial Labor-H Appropriations bill, conditioning passage on the House agreeing to the Defense bill changes.

The President is expected to sign both measures.

The Senate is scheduled to begin the second session of the 109th Congress Jan. 18, with the House returning Jan. 31 in time for the President’s State of the Union Address.

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Contentious Labor-H Bill Sent to President

The House and Senate have sent the $602 billion FY2006 Labor, Health & Human Services bill, which cuts $1.4 billion from last year's spending, to the President for signing into law.

The current conference report provides the National Institutes of Health (NIH) with $28.6 billion, a slight increase of $253 million from FY2005, which does not cover cost of living increases. In addition, the program will suffer additional cuts of one percent because of a nearly government-wide across-the-board spending cut contained in the Department of Defense FY2006 appropriations bill.

Included in the cuts is $31.5 million in funding for geriatric education programs that was in last year's budget, after the Senate proposed funding it at $29.5 million and the House at zero. Geriatric centers train healthcare providers, social workers and others about the special mental and health needs of seniors. Fifty centers across the United States will feel the brunt of the proposed cuts, and some likely will be forced to shut down their operations if they cannot find alternative funding sources by June 30, when current funding expires.

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Budget Measure Continues to Progress

On Wednesday, the Senate passed a budget measure that would cut spending by $39.7 billion over five years, including reductions to Medicare and Medicaid. This bill only cleared the Senate after Vice President Dick Cheney, the president of the Senate, broke a 50-50 deadlock. Due to Senate changes in the conference report, Budget Reconciliation is going to be held over until the Member’s return.

Relevant provisions of the bill include:

Medicare
Saves a net $6.4 billion from the health care program for the elderly. Saves $6.5 billion by increasing Medicare payments to insurers that cover sicker patients and lowering payments to those covering healthier patients. Increases Medicare beneficiaries' premiums for coverage of doctor visits by about $2.30 a month in 2007. Saves $2.8 billion by reducing payments for imaging services, and saves $2 billion by freezing payments to home health care providers.

Medicaid
Saves $4.8 billion by reducing payments for prescription drugs, tightening asset-transfer rules for nursing home eligibility, permitting states to reduce benefits and increasing co-payments paid by beneficiaries.

Agriculture
Achieves $2.7 billion in savings from agriculture conservation programs and delaying advance subsidy payments to farmers. Extends for two years a $1 billion payment program for dairy farmers if milk prices drop.

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New Bills

A number of new bills have been introduced. Click here to send a request for a copy of the text or more information about the bill.

H.R.4640
Rep. Jim Gerlach (R-PA) introduced a bill that seeks to reduce the Nation's oil dependence and enhance the Nation's ability to produce alternative fuels.

H.R.4641
Rep. Phil Gingrey (R-GA) offered legislation that would increase the IRS deduction under section 179 for the purchase of qualified health care information technology by medical care providers and allow a credit against tax for applicable telecommunications charges paid or incurred by such providers.

H.R.4642
Rep. Darrell Issa (R-CA) proposed language that would enhance the adoption of a nationwide interoperable health information technology system and improve the quality and reduce the costs of health care in the United States.

H.R.4645
A bill offered by Rep. Allyson Schwartz (D-PA) would provide broader and more informed protection to Medicare eligible individuals from abusive marketing practices of Medicare prescription drug plans and MA-PD plans to permit enrollees under Medicare prescription drug plans that have been sanctioned to elect to enroll under other plans.

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