Several Democratic health care priorities, including a measure to reduce the cost of prescription drugs, will likely not survive the final draft of the $3.5 trillion budget bill due to funding concerns amid a lack of consensus on prescription drug pricing reform.
The health care proposals that remain in limbo are:
- Reducing the cost of prescription drugs;
- An expansion of Medicare to cover dental, vision, and hearing care;
- Expanding Medicaid coverage to the 2.2 million low-income people in states that have not expanded their programs;
- Extending ACA subsidies; and
- Increasing Medicaid’s in-home care coverage.
Lawmakers are relying on drug pricing plans that allow Medicare to negotiate drug prices to fund their health care investments. However, the drug pricing plan is currently stalled in the Senate Finance Committee as they negotiate changes to the House-passed H.R. 3 which ties Medicare prices to an International Price Index. The method prescribed in H.R. 3 has received significant push back from moderate members, leading Sen. Finance Chair Ron Wyden (D-OR) to explore other options, including the ability to use a benchmark based on domestic drug prices.
Outlook: Progressives are pushing for the authorization period of these programs to be shortened to two to three years from eight years, rather than scraping entire health care items or making them more limited in scope. Expect additional health care legislation debates this fall as lawmakers work to fulfill campaign promises before the midterms.
