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Another Government Shutdown Could Come Friday. What Would it Mean for Healthcare?

News  |  By Jack O'Brien  
   February 06, 2018

Last month’s continuing resolution runs out February 8, which could trigger a second government shutdown of the year, with repercussions for the healthcare industry. 

Congress is faced with a crucial funding deadline Thursday night ahead of a potential second federal government shutdown in as many months, one which could impact several aspects of the healthcare world.

Similar to last month’s funding debate, several healthcare programs and proposals are in the mix as lawmakers decide whether to pass another continuing resolution (CR) to keep the government funded for the next month. This would be the fifth CR passed by Congress since federal funding lapsed last October.

Related: How a Government Shutdown Would Affect HHS

The House is expected to vote Tuesday on a proposal to fund the government through March 22. Though both Republican and Democratic leadership in the lower chamber have indicated another shutdown is unlikely, it remains to be seen whether the Senate can muster the bipartisan support needed to pass the measure..

Community health center funding at stake

Perhaps the most prominent healthcare-related question ahead of another CR vote is whether Congress will provide long-term funding for community health centers (CHCs), which cater to medically underserved communities.

There are currently 1,367 CHCs operating at more than 10,400 sites across the country, providing care to 26 million patients, according to the Health Resources and Services Administration.

Though CHCs enjoy widespread bipartisan support, their two-year funding extension from 2015 lapsed in October. Temporary spending measures have kept CHCs operating since then, though the current funding will keep them operating only until the end of March.

CHC proponents are seeking a two-year funding extension, including $3.6 billion to fund the facilities for the rest of the year.

Related: Deadline Week for Community Health Center Funding: ‘Lip Service Really Isn’t Enough’

If CHCs do not receive a funding extension by Thursday, an estimated 9 million people would lose access to nearby care options due to staff layoffs and site closures.

Will the stopgap include Obamacare stabilization?

Two bipartisan bills aimed at stabilizing the federal insurance exchanges created by the Affordable Care Act are lingering on Capitol Hill with little indication as to whether they will be included in the next CR proposal.

The two legislative fixes, Collins-Nelson and Alexander-Murray, have been the subject of policy discussions among lawmakers since last fall, though neither has received a floor vote. Both aim to lower premiums and keep enrollees covered for the remainder of the year.

The Collins-Nelson proposal focuses on instituting a federal reinsurance program, while Alexander-Murray would the restore cost-sharing reduction (CSR) payments discontinued by the Trump administration in September.

Related: After Individual Mandate Repeal, Who’ll Pay For Rise in Uncompensated Care?

After the three-day government shutdown ended last month, Collins told The Hill she was “optimistic” her reinsurance bill would pass. Collins said she was promised by Senate Majority Leader Mitch McConnell, R-Ky., that her bill would receive a vote in exchange for her support on the tax reform bill in December.

However, both Collins and Lamar Alexander, R-Tenn., said the inclusion of both bills would likely be part of an omnibus package rather than another CR.  

Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.


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