Most healthcare provisions stripped from government-shutdown deal

U.S. Senate leaders have agreed a on deal acceptable to the White House to end the government shutdown and temporarily raise the nation's debt ceiling, with almost all healthcare provisions stripped out. The deal would fund the government at current levels through Jan. 15, continuing the budget sequestration, and extend federal borrowing authority through Feb. 7.

Senate and House negotiators would have to reach agreement by Dec. 13 on a framework for tax and spending policies over the next decade.

The Democratic-led Senate reportedly may vote on the measure later Wednesday and then send it to the Republican-controlled House, where House Speaker John Boehner (R-Ohio) said he will put it to a vote, which likely will take place Wednesday night. If passed, the measure would end the government shutdown that began Oct. 1.

Conservative Republican senators including Ted Cruz of Texas have said they will not block the budget bill from moving quickly through the Senate. The Treasury Department said it will exhaust its borrowing authority by Thursday.

The only specific healthcare provision in the Senate deal would set new procedures for HHS to verify the incomes of people seeking federal premium subsidies to buy coverage on the insurance exchanges. All other healthcare-related proposals, including a repeal or delay of the medical device tax and a repeal or delay of the reinsurance tax, were removed. The Republican drive to use the shutdown to delay or defund the entire healthcare reform law failed at an earlier point in the budget standoff.

The broader concern for healthcare industry groups is that the measure would perpetuate the sequester cuts and continue the financial squeeze on providers and payers.

“The continued sequester is not good news,” said Chip Kahn, president of the Federation of American Hospitals. “We think hospitals since health reform have had enough cuts. On the other hand we need the government to go forward and I'm just glad this finally got done.

He added that healthcare providers now face a challenge in what could come out of the House-Senate negotiations on a long-term fiscal policy blueprint that would be required by the Senate deal. “One would anticipate that Congressman Paul Ryan and leaders like him will take big role,” Kahn said. “He clearly has entitlement reform on his mind. We have to be concerned that could take the wrong path in terms of coming back to providers.”