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Learn about policy issues important to medical schools and teaching hospitals, with Executive Vice President Atul Grover, M.D., Ph.D.

Washington Highlights

Energy and Commerce Approves $114 Billion in Health Funding Cuts, Repeal of ACA Provisions

April 27, 2012—The House Energy and Commerce Committee April 24 and 25 approved three budget reconciliation measures cutting $114 billion over 10 years.  The committee far exceeded its intended target of $98.6 billion as instructed by the House-passed fiscal year (FY) 2013 budget resolution (H.Con.Res. 112) [see Washington Highlights, March 30], directing the additional savings to further deficit reduction. The cuts to discretionary health care spending included in the budget reconciliation measures passed by the committee mostly would repeal and rescind portions of the Affordable Care Act (ACA, P.L., 111-148 and P.L. 111-152) and implement medical liability reform.

The first measure, approved 30-22, would repeal and rescind unobligated funds from the Prevention and Public Health Fund (PPHF), the Consumer Operated and Oriented Plan (CO-OP), and the direct appropriation for state grants to set up exchanges.

The second measure, approved 30-20, would rebase the Disproportionate Share Hospital (DSH) allotment in FY 2022 to maintain the FY 2021 level of reductions; adjust the provider tax threshold back to 5.5 percent from 6 percent beginning FY 2013; repeal the maintenance of effort (MOE) requirements on states for Medicaid and the Children’s Health Insurance Program (CHIP); repeal the increase of federal Medicaid match rate for U.S. territories from 50 percent to 55 percent in FY 2011; and repeal the bonus payments made to states for increasing CHIP enrollment under the CHIP Reauthorization Act of 2009.

The third measure approved by the committee, 29-22, would implement medical liability reform that caps damages to $250,000, limits attorneys’ fees, and establishes a statute of limitations on filing lawsuits. The measure is the exact language from the HEALTH Act (H.R. 5), which passed in the Energy and Commerce Committee in 2011 [see Washington Highlights, May 13, 2011].

Contact:

Len Marquez
Director, Government Relations
Telephone: 202-862-6281
Email: lmarquez@aamc.org

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Washington Highlights, a weekly electronic newsletter, features brief updates on the latest legislative and regulatory activities affecting medical schools and teaching hospitals.


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Jason Kleinman
Sr. Legislative Analyst, Govt. Relations
Telephone: 202-903-0806
Email: jkleinman@aamc.org