Rep. Pete Olson (R-TX) last night voted in support of the FY2021 Omnibus Appropriations Bill that includes many key Olson victories for Texas. Included in the bill was Olson’s DSH Cuts and Delays Act, which provides a critical delay in scheduled cuts to Medicaid Disproportionate Share Hospital (DSH) payments for three years and allows hospitals to stay open and continue caring for our most vulnerable citizens. The bill also includes two critical priorities Olson fought for on the energy and environment side. One allows the Federal Energy Regulatory Commission (FERC) to address a shortage of regulators to review pending energy infrastructure projects by paying more competitive wages. The bill also includes a hard-fought environmental win that includes a 15 year phase down of the use of hydrofluorocarbons (HFCs), coolants primarily used in air conditioning and refrigerators, in favor of more environmentally sound alternatives supported by the manufacturing industry. The package authorizes $1.4 trillion in government funding through September 2021 and provides an additional $900 billion in a second round of COVID stimulus aid for families and businesses struggling in this global pandemic. This package includes five of Olson’s bills.
“I’m relieved that congressional Democrats have finally set their partisan agenda aside to fund the government and provide critical financial relief for struggling American families and businesses. Many of the provisions I was proud to secure in this package were the result of years of hard work and will truly help folks in TX-22 and across America,” Rep. Pete Olson said. “The healthcare provisions will help ensure quality care for low-income folks across Texas and America. The phase down of HFC’s will also improve air quality in America and ensure our manufacturers stay competitive in the global economy. As I depart Congress, I’m proud of the work that my colleagues and I have accomplished in a small, but important way to ensure continued healthcare for some of our most vulnerable neighbors and work in a bipartisan manner to improve our environment and American competitiveness. I’m glad the Senate also passed this package and immediately sent it to President Trump’s desk for final passage.”
“Disproportionate share funds (DSH) serve a vital role in funding safety net hospitals such as OakBend Medical Center. Typical of most safety net hospitals, OakBend runs a deficit in more years than not. Without safety net funding such as DSH we would have to shut our doors, leaving the poor and elderly of our community without access to hospital services. We appreciate Congressman Olson’s efforts to delay cuts to the DSH program.”– Joe Freudenberger, CEO of Oak Bend Medical Center
“Congressman Olson knows well how much the nation’s safety net hospitals rely upon critical supplemental payment programs, such as the Medicaid Disproportionate Share Hospital (DSH), given that providers caring for Medicaid patients are only reimbursed at approximately one-half of the cost of care provided. Our system and providers across the country applaud the Congressman’s and his colleagues’ tenacity in gaining a three-year delay in the imposition of these cuts, particularly at a time when providers have suffered significant financial impacts responding to COVID-19.” – Freddy Warner, Chief Government Relations Officer, Memorial Hermann Health System
“Medicaid DSH payments are critical to children’s hospitals. Congress created the Medicaid DSH program to provide financial help to hospitals that treat a large number of Medicaid and uninsured patients. Unfortunately, Medicaid reimburses children’s hospitals at an average of only 80% of the cost of providing care, and Medicaid reimbursement to children’s hospitals would fall even lower without crucial DSH payments. These DSH payments help children’s hospitals sustain specialized pediatric care services and pediatric training programs that benefit all patients. Texas Children’s Hospital is grateful for Congressman Olson’s leadership to ensure a delay in cuts to a critical funding source for Texas Children’s, and all children’s hospitals – especially as we navigate challenges due to COVID-19.”– Weldon Gage, Executive Vice President and Chief Financial Officer, Texas Children’s Hospital
COVID-19 Relief Package Highlights:
• Provides over $280 billion to reopen and strengthen the PPP program.
• Nearly $20 billion for the production of vaccines and therapeutics, covering the cost for everyone who needs it.
• $8.75 billion for distribution of vaccines. This includes cold chain, advance freezers, and supporting state efforts.
• $600 stimulus checks per individual/child ($1200 per married couple).
• $10 billion in Child Care and Development Block Grant Program (CCDBG)
• Increases the PPP loan amount for Restaurants and Hotels from 2.5x payroll to 3.5x, providing
an extra month’s worth of payroll support
• $45 billion in transportation assistance.
• $13 billion in support to farmers, ranchers, and the agriculture sector
Background on The DSH Cuts Delay Act, H.R. 3054: Reps. Pete Olson and Dan Crenshaw introduced the Improving Low-Income Access to Prescription Drugs Act, which would require a delay to scheduled cuts to Medicaid Disproportionate Share Hospital (DSH) payments for two years. Medicaid DSH payments help sustain hospitals that serve a disproportionate number of low-income and uninsured patients. In doing so, these hospitals incur tremendous uncompensated costs. Medicaid DSH payments help make up for those losses and, in turn, allow hospitals to keep their doors open and continue caring for our most vulnerable citizens. This bill provides more time for Congress to develop a more sustainable, permanent solution to enable these hospitals to continue operating. Congressman Olson was able to secure a temporary delay in the CERTS Act of 2020 for the 2020 fiscal year. If these cuts go into effect, 186 Texas hospitals will be affected and will lose an estimated $450 million in state and federal funding. Rep. Olson and Rep. Eliot Engel (D-NY) sent a letter, signed by 300 Members of Congress, to Congressional leaders requesting a delay to Medicaid cuts.
Additional Olson Bills Included in the 2021 Omnibus Spending Bill:
The AIM Act, H.R. 5544: Reps. Paul Tonko and Pete Olson introduced the American Innovation and Manufacturing Leadership Act, a bipartisan bill that would phase down the use of hydrofluorocarbons (HFCs), coolants primarily used in air conditioning and refrigerators, in favor of more environmentally sound alternatives supported by the manufacturing industry. The bill will provide a responsible phase down of HFC’s and will stimulate additional economic benefits by creating an additional 33,000 manufacturing jobs, improving the U.S. trade balance in equipment and chemicals by $12.5 billion annually and increasing exports by $5 billion. Studies forecast the overall contribution to the HVACR industry will be 2.5 million jobs and $621 billion in economic output by 2027.
The Timely Review of Infrastructure Act, H.R. 1426: Reps. Pete Olson and Mike Doyle introduced the Timely Review of Infrastructure Act, which allows the Federal Energy Regulatory Commission (FERC) to address a shortage of regulators to review pending energy infrastructure projects like the LNG export terminals in Texas and Louisiana. Salary is a critical component in deciding where to work and the private sector can pay significantly higher salaries, leaving a shortage of regulators to review the viability of projects creating a backlog. This bill allows FERC to pay competitive salaries to ensure the oversight and review process can continue in a timely manner.
The Shop RX Act of 2019, HR 3408: Reps. Pete Olson and Jodey Arrington introduced the Shop RX Act, which requires prescription drug plans to offer real-time benefit information to Medicare beneficiaries. Real-time benefits allow providers to see the cost of a drug and its alternatives before they prescribe it to their patients. By incorporating price transparency tools, both patients and their providers can have more informed, productive conversations about their health care options.
Improving Low-Income Access to Prescription Drugs Act, HR 3029: Reps. Pete Olson, Nanette Diaz Barragan, Kenny Marchant, and John Lewis introduced the Improving Low Income Access to Prescription Drugs Act, which would permanently authorize the Limited Income Newly Eligible Transition (LI NET) Program. This Program provides temporary prescription drug coverage for low-income beneficiaries, eliminating gaps in coverage while they apply for Medicare Part D drug coverage. In 2018, the LI NET Program helped almost 800,000 Americans, including 41,350 Texans.
Read the full text of the omnibus spending bill here.
