Wednesday, December 16, 2009

Mid-week update

Let's start off with some FEHBP news. This morning, the Senate Homeland Security and Governmental Affairs Committee approved S. 1102 which would extend FEHBP coverage, and other federal employee benefits, to same sex domestic partners by an 8 to 1 vote. Govexec.com reports that the Committee Chairman Sen. Joe Lieberman and the Ranking Minority Member Sen. Susan Collins advised that they will not move the bill to the Senate floor until OPM offers savings that make the measure deficit neutral. The Office of Management and Budget is considering OPM's proposals.

Speaking of government finances, the House of Representatives today passed a further extension of the continuing resolution funding the government. The Federal Times reports that the CR now will expire December 23. The last piece of the appropriations puzzle is a defense appropriations bill which the House also passed today. Included in the defense appropriations bill is an extension of the COBRA / TCC premium subsidy that is scheduled to sunset on December 31, 2009. Business Insurance reports that
Embedded in H.R. 3326, a measure appropriating funds for the Department of Defense, the nine-month, 65% premium subsidy would be extended by six months to a total of 15 months. It would apply to those who lose their jobs through Feb. 28, 2010. Under current law, employees who lose their jobs after Dec. 31 are ineligible for the subsidy.
Also embedded in H.R. 3326 is a provision that would stave off the Medicare physician reimbursement cut of 21% for two months from January 1, 2010, to March 1, 2010, according to Modern Healthcare. The Senate is expected to act on H.R. 3326 by December 23.

Business Insurance also reports that "The Senate on Tuesday rejected two proposals to allow people to buy cheaper prescription medicines from other nations, preserving a deal between the White House and the pharmaceutical industry." These decisions were made in the course of considering the mammoth health care reform legislation. For public safety reasons, I think the Senate made the right decision here.

We are still waiting for the Senate Majority Leader to release the details of the great compromise, which includes the parallel FEHBP. The Politico reports tonight that "Senate Majority Leader Harry Reid’s plan to pass the Senate health care reform bill by Christmas looked increasingly in doubt Wednesday, as Republicans launched an offensive to stall the legislation and Democrats had yet to strike a 60-vote compromise." The Democrats ultimate goal is to present the President with a bill to sign before the State of the Union address in late January or early February. Time will tell.

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