Scoop: Bipartisan health package likely moving forward
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Congressional negotiators are expected to release a bipartisan health care package as soon as today that revives major parts of a deal that was torpedoed in late 2024 by Elon Musk and then President-elect Trump.
Why it matters: The agreement would include long-stalled priorities like an overhaul of the business practices of pharmacy benefit managers — the "middlemen" between drug manufacturers and insurers — and new controls on how hospitals bill for outpatient services, according to sources familiar.
- The package does not include an extension of enhanced Affordable Care Act subsidies, which Democrats want but has hit resistance from GOP leadership.
- A bipartisan group of senators still is proceeding on a separate track to find a compromise on the subsidies, which expired at the end of 2025, though it appears there isn't enough Republican support to pass.
What's inside: The emerging outline — which still could fall apart — includes multiyear renewals of expiring health care programs covering community health center funding and Medicare flexibilities to pay for telehealth.
- It is expected to include language aimed at lowering drug prices that would no longer base PBMs' compensation on the price of a drug in Medicare Part D, which critics have said discourages the use of cheaper treatments when available.
- Another provision would take a preliminary step to addressing Medicare hospital spending, by requiring hospital outpatient departments to have unique identifier numbers in an effort to prevent overbilling.
The bottom line: If talks don't collapse, the deal would be brought up for a vote along with the next government spending package later this month.
