Republicans Reportedly Send a Year-End Health Care Package Offer: As Politico and several K Street firms reported, Republicans sent a health care proposal Tuesday to Democrats to attach to a continuing resolution. According to sources, the health care proposal includes three-year telehealth waiver and Hospital at Home extensions, as well as a 2.5 percent bump to doctor Medicare payments for 2025. Importantly, the bill could also include provisions “delinking” the payments PBMs get from the list price of drugs. The Republican proposal would use a repeal of the nursing home staffing standards rule as the primary pay-for.  

HHS Proposes Rule to Increase Medicare Advantage Oversight: On Tuesday, the Biden administration proposed a rule to tighten requirements on Medicare Advantage insurers in a last-minute attempt to crack down on the industry before President-elect Donald Trump’s nomination. The rule would specifically prohibit insurers from including administrative costs as part of their medical loss ratios, which CMS estimates would lead to $101 million in program cost savings. The rule would also propose guardrails for the use of AI in healthcare decisions.  

Trump’s DEA Nominee Withdraws from Consideration: On Tuesday, President-elect Donald Trump’s pick to lead the Drug Enforcement Administration, Chad Chronister withdrew his name from consideration. Chronister said he wanted to continue in his current role as a sheriff in Florida. Chronister had already drawn criticism from some conservatives, including Rep. Thomas Massie (R-KY), over his actions during the Covid-19 pandemic.  

Biden Administration Proposes Expanded Coverage of Popular GLP-1 Drugs: Last Tuesday, the Biden administration proposed to require Medicare and state Medicaid programs to cover GLP-1 obesity drugs, a move that would dramatically expand access to the popular treatments. With less than two months remaining in the Biden administration, there will not be sufficient time to finalize the rule through the traditional process. However, there are extremely high costs if the rules are implemented.  

Senators Unveil Bipartisan Bill to Allow Direct Primary Care Arrangements: On Thursday, Sens. Marsha Blackburn (R-TN) and Mark Kelly (D-AZ) introduced a bill that would clarify states can implement direct primary care arrangements for their Medicaid beneficiaries. The direct primary care model is meant to make costs predictable, improve access to preventative care, and eliminate third-party billing for most primary care services.

Senate HELP Committee Holds Hearing on Child Obesity: On Thursday, the Senate HELP Committee held a hearing, headlined by FDA Commissioner Robert Califf, on child obesity rates across the country. Califf criticized Congress, saying that legislative barriers block the agency’s efforts to improve public health. Committee Chair Bernie Sanders (I-VT) called on FDA for more urgency in addressing America's childhood obesity crisis, accusing the agency of failing to stand up to the powerful food and beverage industry.

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