During a Feb. 25 House Committee on Energy and Commerce markup for the 119th Congress’ Authorization and Oversight Plan, Rep. Kathy Castor (D-Fla.) cited an excerpt from America’s Essential Hospitals’ letter to the committee in defense of Medicaid. Rep. Castor successfully requested that the full letter be entered into the congressional record, further amplifying the association’s message.
The plan, which was approved along party line votes, saw 120 amendments offered, including the addition of notable health care provisions that targeted ensuring Medicaid access, Medicare Advantage, Medicaid provider cut impacts, telehealth, and more.
Reconciliation
The House narrowly passed its reconciliation framework Feb. 25, reflecting President Trump’s domestic policy priorities, including tax cuts. However, the plan offsets these initiatives through significant reductions elsewhere, including a $880 billion funding decrease under the House Committee on Energy and Commerce, which oversees Medicaid. The Senate has passed its own version, reserving tax cuts for a later package. The chambers now will attempt to reconcile the two versions to produce a unified bill or bills.
Drug Pricing Reform and PBM Oversight
The House Committee on Energy and Commerce Subcommittee on Health on Feb. 26 held a hearing regarding pharmacy benefit managers (PBMs) and lowering drug costs for patients. Both parties expressed strong support for PBM reform.
- Republicans emphasized concerns over PBM consolidation, arguing that vertical integration and consolidation are raising prices and harming independent pharmacies. They supported PBM transparency legislation, delinking PBM compensation from drug prices, and banning spread pricing to foster competition. Some highlighted how rebate-driven formularies distort pricing, while others pushed for passing rebates directly to consumers.
- Democrats focused on protecting Medicaid funding and criticized Republicans for failing to pass PBM reform in December because of interference from Elon Musk. They argued that Medicaid cuts would harm vulnerable populations, increase uninsurance rates, and force states to reduce spending or raise taxes. They supported greater transparency in PBM practices, stronger oversight, and protections for Medicaid expansion while accusing Republicans of prioritizing tax breaks over health care access.
Government Funding
Government funding expires on March 14, and Speaker Mike Johnson (R-La.) currently wants a clean continuing resolution through Sept. 30, maintaining funding at current levels without codifying recent cuts made by the Department of Government Efficiency (DOGE). Democratic votes will be necessary to pass funding, and many are calling for language ensuring that Trump spends funds however Congress appropriates it.
Committee Activity This Week
The House and Senate are in session Monday through Thursday, with the latter also convening on Friday.
The House Committee on Energy & Commerce will hold a full committee markup on March 4, at 2 pm ET. While the committee is not expected to consider any notable health care issues, the legislative affairs team will monitor the markup in case tangential issues become central, given the committee’s recent activity.
The Senate continues to hold key nomination hearings. The Committee on Health, Education, Labor, and Pensions will hold a hearing for Jayanta Bhattacharya to serve as Director of the National Institutes of Health on March 5, at 10 am ET, and another for Martin Makary to serve as Commissioner of Food and Drugs, on March 6, at 10 am ET.
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