Friday, January 16, 2009 Capitol
Hill Watch
House Democrats Announce $825B Economic Stimulus
Package With $157B for Health Care
House Democrats on Thursday announced a
two-year, $825 billion economic stimulus package that includes more than
$157.5 billion for health care programs, CQ
HealthBeat reports (Carey/Attias, CQ
HealthBeat, 1/15). The package includes a provision that would
provide $87 billion to increase temporarily federal funds for state
Medicaid programs (Herszenhorn, New York Times, 1/16). In addition, the
package includes funds for a provision that would allow low-income workers
who lose jobs that did not include health insurance to apply for Medicaid
through 2010 (Wayne, CQ Today, 1/15).
The package
also includes a provision that would provide $39 billion in federal
subsidies for COBRA -- which allows recently laid-off workers to retain
their group health insurance, provided that they pay 102% of the premiums
(Hall/Lightman, McClatchy/Miami Herald, 1/16). Under the
provision, workers who lost their jobs and their health insurance after
Sept. 1, 2008, could receive subsidies to cover the cost of two-thirds of
their premiums under COBRA (Taylor, AP/Philadelphia Inquirer, 1/16). The package
also includes a provision that would extend the period of time recently
laid-off workers ages 55 or older could retain their health insurance
under COBRA (McClatchy/Miami Herald, 1/16).
The
package also includes provisions that would provide $20 billion for health
care information technology and $1.1 billion for comparative effectiveness
research conducted by the Agency for Healthcare Research and Quality.
Other Health Care Provisions
Other provisions in the
economic stimulus package related to health care spending include:
- $550 million to modernize technology at Indian Health Service
hospitals and health care facilities;
- $3.75 billion for construction of new Department of Defense
health care facilities and $455 million for renovations of such
facilities;
- $950 million for repairs and renovations of Department of Veterans Affairs
health care facilities (CQ HealthBeat, 1/15);
- $2 billion for renovations at NIH facilities and new agency
research grants and $1.5 billion for renovations at university
laboratories that conduct research sponsored by the agency;
- $3 billion to promote preventive care and
wellness programs;
- $1.5 billion for renovations and expansions of
community health centers;
- $600 million to train primary care physicians
who agree to enter the National Health Service Corps;
- $900 million for research into an experimental
pandemic flu vaccine and countermeasures for potential chemical and
biological attacks; and
- $462 million for construction and renovations
of CDC facilities
(CQ Today, 1/15).
Prospects for Passage
House Speaker Nancy Pelosi (D-Calif.)
and Senate Majority Leader Harry Reid (D-Nev.) said that they seek to
complete work on the economic stimulus package before the Presidents Day
recess. The House
Appropriations Committee and the House Ways and Means
Committee plan to hold mark ups on the package next Thursday, with the
House scheduled to vote on the package on Jan. 28. The Senate plans to
consider the package during the first week in February. According to the
Washington Post, Senate Democrats have said
that that their "stimulus wish list" could include many provisions not
included in the House version of the package and cost as much as $900
billion (Murray/Kane, Washington Post, 1/16).
Reaction
According to the New York Times, the
package announced by House Democrats "emphasized mostly Democratic
principles," such as "helping the unemployed pay health care costs," and
raised concerns from Republicans (New York Times, 1/15).
House Minority Leader John Boehner (R-Ohio) said that the package appears
to "be grounded in the flawed notion that we can simply borrow and spend
our way back to prosperity" (Bendavid et al., Wall Street Journal, 1/16). House
Appropriations Committee ranking member Jerry Lewis (R-Calif.) said, "This
legislation appears to blanket government programs in spending with little
thought toward real economic results, job creation or respect for the
taxpayer" (Dennis/Kucinich, Roll Call, 1/15).
Paul
Ginsburg of the Center for
Studying Health System Change said of the provisions in the package
related to COBRA, "That is a pretty dramatic health policy step to address
the difficulty some near-elderly have in getting health coverage" (USA Today graphic, 1/16).
Robert
Bixby, executive director for the Concord Coalition,
said, "These may be worthwhile things like health care, technology and
scientific research," but "these are all things that require some
long-term strategy." He added, "I question whether shoveling money out the
door in a stimulus bill is the way to do it" (Hook/Puzzanghera, Los Angeles Times, 1/16).