Health Policy Report – February 18, 2025

In Forbes Article, Dr. Curry McEvoy Highlights Challenges Facing Independent Practices

In a recent Forbes article on the need to boost Medicare physician pay, Dr. Curry McEvoy of Southern Cancer Care highlighted the pressures that independent physician practices are facing.

Dr. McEvoy highlighted how the 340B Drug Pricing Program and higher reimbursements for hospitals puts private practices at a disadvantage.

“Without access to the same benefits that hospitals receive, private practices are feeling the squeeze and are often forced to consider drastic options to stay afloat, including merging with hospitals. The loss of independent practices is bad news for patients, who wind up paying significantly more for hospital-based care, and for physicians, who report a loss of autonomy in the hospital setting,” he said.

The article emphasized that the current trajectory of Medicare physician payment is unsustainable and called for lawmakers to advance the Medicare Patient Access and Practice Stabilization Act (H.R. 879). If passed, this important bipartisan legislation would address the 2025 Medicare Physician Fee Schedule cuts and provide a 2% update to physicians.

To read the article, “Medicare Is Failing Patients: A New Bill Can Help Fix That,” CLICK HERE.

Dr. Scott Kruger Testifies Before House VA Committee’s Health Subcommittee 

On February 12, Dr. Scott Kruger of Virginia Oncology Associates (VOA) testified before the U.S. House Veterans Affairs Committee’s Subcommittee on Health to discuss the Department of Veterans Affairs’ (VA) Community Care Program. 

The VA’s Community Care Program was designed to allow veterans to receive treatment from community providers like VOA, when VA facilities are unable to meet their needs. During his testimony, Dr. Kruger acknowledged that the program has helped bridge care gaps, but that community providers face significant challenges when delivering care under the program, including authorization and referral delays, limited reimbursement, and unclear coordination between the VA and community practices. 

To enhance the effectiveness of the program, Dr. Kruger recommended that the subcommittee explore policies to expedite approvals, ensure care coordination and timely reimbursement, and expand patient education and navigation resources. 

“While the VA Community Care Program has made significant strides in expanding access to care, improvements are necessary to eliminate inefficiencies,” Dr. Kruger concluded. 

To watch the hearing and listen to Dr. Kruger’s testimony, CLICK HERE.

RMCC Holds Day at the Colorado Capitol

On February 6, physicians and staff from Rocky Mountain Cancer Centers (RMCC) visited the Colorado State Capitol to educate lawmakers on critical healthcare issues affecting the state. Throughout the day, the RMCC team met with over 30 members of the state House of Representatives, the Senate, and staff from Governor Jared Polis’ office. 

Discussions with lawmakers centered around increasing transparency in pharmacy benefit manager (PBM) practices, ensuring adequate funding for Medicaid physician reimbursement in this year’s budget, the 340B Drug Pricing Program, and physician non-compete agreements. RMCC also hosted a private lunch with Senator Kyle Mullica, Chair of the Senate Health and Human Services Committee, to discuss the challenges facing community oncology in Colorado.

The event allowed many legislators and legislative staff to gain valuable insights into the priorities of community oncology and a better understanding of the healthcare challenges facing the state. If you are interested in hosting a site visit for your state representative or state senator, please contact Angela.Storseth@usoncology.com. 

RFK Jr. Confirmed to Become the Next Secretary for HHS

On February 13, the Senate voted to confirm Robert F. Kennedy Jr. as the next Secretary of the United States Department of Health and Human Services (HHS). The 52-48 vote was split along party lines, with only one Senator, Former Majority Leader Mitch McConnell (R-KY) breaking with his party to vote against Kennedy.

As secretary, Kennedy will oversee a $1.7 trillion agency and make critical decisions about Medicare, Medicaid, vaccine recommendations, public health campaigns, and other important healthcare policies. When he was first nominated, his pathway to confirmation was not clear, as there were significant concerns from some key Senators about his widely publicized uncertainty around vaccine safety. He has also faced criticism for potential profiteering off lawsuits over drugmakers.

Shortly after Kennedy’s confirmation President Trump signed an Executive Order establishing the Make America Healthy Again Commission, which will be chaired by Secretary Kennedy. The Commission is tasked with investigating childhood chronic diseases and creating a strategy to tackle chronic illnesses. According to a fact sheet released by the White House, approximately 30 million (40.7%) American children had at least one health condition like allergies, asthma, or autoimmune diseases in 2022.

To read more on the confirmation, CLICK HERE.

To read the Executive Order fact sheet, CLICK HERE.

Key House Committee Advances Budget Resolution

On February 13, the House Budget Committee voted to advance a budget resolution to the House floor, a significant step forward after weeks of negotiations among lawmakers.

The budget resolution sets a $1.5 trillion floor for spending cuts across committees with a target of $2 trillion, a $4.5 trillion cap on the deficit impact of the Republicans’ plan to extend Trump’s 2017 tax cuts, $300 billion in additional spending for the border and defense, and a $4 trillion increase of the national debt limit. The resolution also included a House Freedom Caucus-backed amendment to include the Regulations from the Executive in Need of Scrutiny (REINS) Act in the package, which would increase congressional authority over the federal rulemaking process.

The 21-16 vote fell along party lines, with no Democrats or Republicans breaking ranks. The full House is expected to take up the resolution when it re-adjourns the week of February 24. However, the package will need to be negotiated with the Senate, which is currently considering a two-bill strategy for reconciliation.

To read more, CLICK HERE and HERE.

KFF Analyzes Future of Affordable Care Act

With marketplace subsidies set to expire at the end of 2025, analysts predict regulatory changes and legal challenges to the ACA. The Kaiser Family Foundation held a webinar on February 12 with experts from the Paragon Institute and the Center on Budget and Policy Priorities to discuss the outlook for the year ahead.

Over 24 million Americans are now enrolled in a marketplace plan— a number that has doubled over the past four years since subsidies were passed in 2021 as part of a COVID relief package. Millions of marketplace enrollees enjoy a $0 or near $0 premium, but unless these are renewed by Congress, the enhanced ACA subsidies passed under the Biden administration are set to expire on December 31.

While it is unclear if the ACA subsidies will be extended. Analysts have previously predicted that President Trump could offset tax cuts by significantly reducing the subsidies, adjust ACA regulations, or defund ACA marketing and outreach. If the subsidies are allowed to expire, the result would be higher premiums and some Americans would lose eligibility altogether.

To watch the KFF webinar, CLICK HERE.

To read more about possible changes to the ACA, CLICK HERE.

To read more on how President Trump might address the ACA, CLICK HERE.