Weekly Washington Healthcare Update: December 23, 2013

This Week: Senate approves Ryan-Murray budget deal... New National Coordinator for Health Information Technology named... Additional flexibility given to individuals with canceled health insurance plans.

***Programming Note: There will be no Weekly Washington Healthcare Update on Dec. 30 or Jan. 6***

1. CONGRESS

   House

   District Work Period -- No Legislative Activity

   Senate

   Senate Approves Two-Year Budget Deal with Short-Term "Doc Fix" Extension

   The Senate passed a two-year budget agreement (H.J. Res. 59) on Dec. 18 by a vote of 64-36. The House had previously passed the legislation on Dec. 12 by a vote of 332-94. The two-year deal sets spending for the Pentagon and other federal agencies at $1.012 trillion for fiscal 2014, midway between the $1.058 trillion sought by Democrats and the $967 billion sought by Republicans. This deal will prevent another government shutdown, but it does not address the debt ceiling, which Congress must resolve by next spring. The budget agreement includes a three-month "doc fix" along with several other health "extenders." McGuireWoods Consulting produced a comprehensive analysis of the budget deal, which you can access here.

2. ADMINISTRATION

   DeSalvo Named National Coordinator for Health Information Technology

   Last week, HHS Secretary Kathleen Sebelius announced that Dr. Karen DeSalvo, who currently serves as the City of New Orleans Health Commissioner and Senior Health Policy Advisor to Mayor Mitch Landrieu, will be the next National Coordinator for Health Information Technology at HHS. Following Hurricane Katrina, DeSalvo led projects to increase access to care by augmenting the city's neighborhood-based medical homes for low-income, uninsured and other vulnerable populations in the New Orleans area. DeSalvo will succeed Farzad Mostashari, M.D., who stepped down in October. Acting National Coordinator Jacob Reider, M.D., will serve as chief medical officer in the National Coordinator's office.

   Guidance Allows Flexibility for Individuals with Cancelled Health Plans

   On Dec. 19, CMS issued guidance clarifying for consumers in the individual market the options already available to them as a result of the president's recently announced transition policy allowing for the renewal of cancelled plans and policies between Jan. 1 and Oct. 1, 2014. In addition, the guidance describes a new process that will be available to individuals who have had their health plan cancelled as a result of requirements under the ACA. According to the guidance, such individuals will be allowed to file a hardship waiver relieving the individual from the penalty they would otherwise face for failing to possess qualified health insurance, as required by the ACA's individual coverage mandate. These individuals will also be eligible to enroll in catastrophic coverage. Specifically, the document states: "If you have been notified that your individual market policy will not be renewed, you will be eligible for a hardship exemption and will be able to enroll in catastrophic...