Shutdown Watch
Nearly all activity on Capitol Hill this week focused on the looming shutdown that will occur if no budget bill is passed by the end of the month. The House is scheduled to vote on a Republican version of a budget bill that would keep the government open until late November. It would include extending Medicare telehealth flexibility but would not include extending ACA enhanced tax credits. Both House and Senate Democrats have stated they would only vote for a budget bill if it includes a one year extension of the ACA enhanced tax credits.
New EPTC Analysis
The Urban Institute released new analysis on the impact of the expiration of ePTCs on health coverage. The new analysis includes the effects of the reconciliation bill as well as the current status of the Program Integrity rule (parts of the regulation are currently blocked from going into effect due to an injunction). Overall, the Urban Institute expects ePTCs to end in 2026 to increase the number of uninsured by 4.8 million. It also estimates that the individual market is expected to decrease from 25.1 million in a world with ePTC to 17.4 million in a world without ePTC.
Vaccine Watch
RFK Jr.’s ACIP panel is expected to weigh in on changing or eliminating recommendations for routine childhood vaccines today. Changes to the vaccine schedule could include changes to Covid, Hepatitis B, measles (MMR), and potentially others. ACIP/CDC recommendations have a direct impact on issuers as their recommendations influence which vaccines are required to be covered at no cost versus the issuers having flexibility on deeming which vaccines have no cost. The changes are expected to reduce vaccine take-up.
Economy
The Federal Reserve voted to reduce interest rates by a quarter of a point. The reduction is yet another sign of economic slowdown and concerns about the labor market. Further rate cuts are expected.
