CQ’s Carey Discusses Economic Stimulus Bill, Senate Efforts To Draft Health Care Legislation, Rep. Waxman’s Victory in House Panel Race, Daschle as HHS Secretary

Mary Agnes Carey, associate editor of CQ HealthBeat, examines Congress' failure to pass a second economic stimulus package that would have provided additional Medicaid funding for states, senators' efforts to develop comprehensive health care reform legislation, Rep. Henry Waxman's (D-Calif.) taking over as chair of the House Energy and Commerce Committee and President-elect Barack Obama's reportedly naming former Senate Majority Leader Tom Daschle (D-S.D.) to the position of HHS secretary in this week's "Health on the Hill from kaisernetwork.org and CQ."

Carey writes that a proposed economic stimulus package that included $37.8 billion in additional Medicaid funding for states and $1 billion in funding for NIH did not receive enough support in the Senate to move forward. Democratic leaders plan to start work immediately on a broader package to push when the 111th Congress begins in January 2009, Carey adds.

Carey also says that Senate Finance Committee Chair Max Baucus (D-Mont.) has announced a "sweeping health insurance proposal" that would require all U.S. residents to obtain health coverage and create a "health insurance exchange," while Senate Health, Education, Labor and Pensions Committee Chair Edward Kennedy (D-Mass.) has named committee members to lead working groups that focus on individual elements of an overhaul bill. Baucus and Kennedy, who met with other lawmakers last week to discuss the proposals, said they want to move bipartisan legislation next year. However, according to Carey, Republicans, such as Finance Committee ranking member Chuck Grassley (R-Iowa), have raised concerns that such plans would violate pay-go rules. According to Carey, Baucus and others have said that "it may be critical to make some investment now that will reap savings in the future."

Overhaul legislation could be included in the economic stimulus package planned to be the first order of business for the new Congress but also could be added to a bill expanding SCHIP or as part of a bill addressing the Medicaid physician payment rate, Carey says.

Carey also reports on Waxman's election as Energy and Commerce Committee chair, noting that both Waxman and current Chair John Dingell (D-Mich.) "have had a strong interest in health care issues, which are a key focus for the panel." In addition, Daschle "is expected to be Obama's main contact with Congress" on health issues, and his experience with the issue "will help the Obama administration as it works ... to pass health care reform," Carey says. She also notes that in a recent book, Daschle supported an independent body, similar to the Federal Reserve Board, to oversee the nation's health care system (Carey, "Health on the Hill From Kaisernetwork.org and CQ," 11/21).

The complete audio version of "Health on the Hill," transcript and resources for further research are available online at kaisernetwork.org.