Blog Viewer

October 15, 2018 - Washington Report

By Leah Wavrunek posted 10-15-2018 03:26 PM

  

This Week on the Hill

The House and Senate are both in recess until after the elections, returning on November 13.

 

Senate Sends Water Resources Reauthorization to the President

On Wednesday the Senate voted 99-1 on a bill (S. 3021) to authorize $6.1 billion for construction of 12 new Army Corps of Engineers projects, reauthorize the Water Infrastructure Finance and Innovation Act (WIFIA) program and streamline permitting for hydropower facilities. The bill also authorizes more than $4.4 billion over three years to the state drinking water revolving loan fund program and allows states to increase the amount of these loans made to economically disadvantaged communities and provides for an additional ten years for repayment of such loans to the state. A summary of the bill can be found here and a section-by-section analysis here. As the House passed the same bill last month, the legislation now goes to the President. 

 

OMB A-87 Waiver Set to Expire for Human Services Eligibility Systems

The Centers for Medicare & Medicaid Services (CMS) issued guidance in the form of frequently asked questions about the Office of Management and Budget (OMB) Circular A-87 exception set to expire at the end of this calendar year. The guidance indicates that CMS is currently making plans for the OMB A-87 exception to end as scheduled and it is not seeking an extension. States will need to incur costs for goods and services furnished no later than December 31, 2018 to make use of this exception according to the CMS guidance. The purpose of this waiver was to provide states additional resources and cost allocation flexibility when developing integrated technology systems to help streamline enrollment in human services programs.

 

Administration Proposes Year-Round Ethanol Sales

Last Thursday President Trump directed the Environmental Protection Agency (EPA) to initiate rulemaking to consider expanding waivers for fuel blends containing gasoline and up to 15 percent ethanol. Under the proposed expansion, E15 would be allowed to be sold year-round rather than the current eight months of the year; the EPA currently bars the sale of E15 between June 1 and September 15 due to concerns over summer smog. According to news articles, the administration aims to finalize the plan before the 2019 summer driving season. More information on E15 waivers can be found here.

 

CMS Issues Letter to States about Provisions in CHIP Extension Legislation

The Centers for Medicare and Medicaid Services (CMS) issued a letter to state health officials describing some key provisions of the HEALTHY KIDS and ACCESS Acts that are related to the extension of the Children’s Health Insurance Program (CHIP) through fiscal 2027. Topics include the phase-out of the CHIP enhanced match, the extension of the child enrollment contingency fund, availability of unused allotments for 2018 distribution, extension of the outreach and enrollment program, and maintenance of effort provisions. The guidance describes how the enhanced FMAP plus 23 percentage points remains in effect for fiscal 2018 and 2019 and the enhanced FMAP plus 11.5 percentage points is in effect for fiscal 2020. Beginning in fiscal 2021, the enhanced FMAP reverts to the standard match rate.

 

Health Care Exchange Premiums Dip for Silver Plans

On Thursday the Centers for Medicare and Medicaid Services (CMS) announced that the average premium for second lowest cost silver plans for the 2019 coverage year will drop by 1.5 percent in the 39 states that use HealthCare.gov, the first time average premiums have dropped since the implementation of the federally-facilitated exchange in 2014. Additionally, there are 23 more medical qualified health plan (QHP) issuers for 2019 than were participating in 2018, and 29 current medical QHP issuers are expanding their service area into more counties. The number of counties with only one insurer has dropped from 56 percent in 2018 to 39 percent in 2019, and just five states will have only one insurer, compared to ten in 2018. The table of average premiums by state can be found here.

 

Social Security Benefits to Rise 2.8 Percent in 2019

The Social Security Administration announced last week that Social Security and Supplemental Security Income (SSI) benefits will increase 2.8 percent in 2019, affecting 67 million Americans. According to the press release, the cost-of-living adjustment (COLA) will begin with benefits payable to Social Security beneficiaries in January 2019, and increased payments to SSI beneficiaries will begin on December 31, 2018. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics. A fact sheet on the changes can be found here.

 

Senate Fails to Halt Short-Term Limited-Duration Health Plans

On Wednesday Senate Democrats forced a vote on a resolution (S.J. Res. 63) that would nullify the administration’s August final rule to expand the length of time consumers can maintain a short-term health insurance plan. The vote failed by a vote of 50-50, with Senator Susan Collins (R-ME) joining all Democrats to vote in favor of the resolution, which failed to earn the majority needed to overturn the rule. Under the new rule, a short-term plan can last for just under 12 months and a consumer can renew the plan for up to three years, and these plans are not required to comply with Affordable Care Act market rules that apply to individual market plans, including protection for pre-existing conditions. States are still able to apply state law requirements and a report from the Commonwealth Fund examined state regulation of coverage options.

 

Recently Released Reports

Budget Processes and the Great Recession

Tax Policy Center

Students With Disabilities: Additional Information from Education Could Help States Provide Pre-Employment Transition Services

U.S. Government Accountability Office

Employee Contributions to Public Pension Plans

National Association of State Retirement Administrators

Opening Doors for Young Parents

Annie E. Casey Foundation

Probation and Parole Systems Marked by High Stakes, Missed Opportunities

The Pew Charitable Trusts

 

Economic News

 

Consumer Price Index Increased in September as Real Earnings Also Increased

The U.S. Bureau of Labor Statistics released new data on the Consumer Price Index for All Urban Consumers (CPI-U) for September, showing the CPI-U increased 0.1 percent on a seasonally adjusted basis after rising 0.2 percent in August. Over the last twelve months, the all items index increased 2.3 percent before seasonal adjustment. The shelter index continued to rise and accounted for over half of the seasonally adjusted monthly increase in the all items index. The index for all items less food and energy rose 0.1 percent in September, while the energy index declined 0.5 percent and the food index was unchanged. Over the past twelve months, the energy index rose 4.8 percent, the food index increased 1.4 percent and the index for all items less food and energy rose 2.2 percent. Meanwhile, real average hourly earnings for all employees increased 0.3 percent from August to September, seasonally adjusted. This result stems from a 0.3 percent increase in average hourly earnings combined with a 0.1 percent increase in the CPI-U.