Odds slip for health package revival

axios.com

February 20, 2025 1:22 pm

With a little more than three weeks to go, chances are dimming to revive the health care package that fell out of the year-end funding deal and add it to the next spending package.

Why it matters: Long-delayed measures that would overhaul PBM business practices, target drug company “patent thickets” and start to address Medicare hospital spending will probably remain in limbo.

Driving the news: There is disarray around the broader government funding talks ahead of the March 14 deadline, with Democrats looking to ensure President Trump doesn’t impound appropriated funds and a possible shutdown looming. Adding a health care package to the mix could further complicate things.

  • Trump and Elon Musk blew up a spending deal with the health package in December, and adding hundreds of pages of health provisions again in March could invite more outbursts on the GOP side.
  • Democrats say they are eager to revive the health package but have not seen much interest from Republicans.
  • “No vehicle, none, should be something that you pass up,” Senate Finance Committee Ranking Member Ron Wyden told Peter.
  • “This is a chance to help seniors and taxpayers and talk about health care in a real way, not a concept way, a real way that helps people,” he added.
  • A spokesman for Finance Committee Republicans said there is no update to share on the package.

Between the lines: Democrats do not want to reopen the deal and pick and choose which parts to advance.

  • “I don’t see a clamor to change it,” Wyden said.
  • Beyond the big policy changes, Congress faces deadlines at the end of March for renewing expiring provisions like community health center funding and telehealth flexibilities that were temporarily extended as part of the year-end deal.
  • Without the full health package, lawmakers will likely have to assemble a smaller, must-pass extenders package.

Yes, but: Some influential industry groups are still eager to see a more robust health package and could try to revive it.

  • Doctors are pushing for relief from Medicare payment cuts that took effect Jan. 1, and drugmakers have long made a major push for PBM changes.

But much of the GOP focus remains on the party-line reconciliation process, which could include major Medicaid or other health care changes.

  • House Republicans could, in theory, try to move the health package as a stand-alone measure if it doesn’t get wrapped into the March funding package. But it would be difficult for the Senate to find floor time for that stand-alone legislation.