Delay of Trump-Era Medicaid Rule Allows Senate Infrastructure Deal to Advance

Chris Gaetano
Published Date:
Jul 23, 2021

The bipartisan group of senators wrestling with how to pass the $579 infrastructure bill has seen progress after agreeing to delay a yet-to-be-enacted rule Medicaid rule from the previous administration, which serves to free up more funding on the deal, Bloomberg reported.

The breakthrough came amid a last-minute scramble to find additional funds after Republicans successfully killed the provision enhancing IRS enforcement, which had been a major part of the project's funding. To make up for this loss, lawmakers decided to delay the effective date of a Trump-era rule that eliminates the rebates that drug companies give benefit managers in Medicare Part D and was aimed at reducing out-of-pocket costs for patients outside Medicare. 

With this agreement, senators are feeling confident that a final agreement can be hammered out very soon, possibly as early as next week. However, the process could still be derailed. Sen. Tom Carper (D-Del.) recently, has said that he will not support the bill if it does not include more funding for water and sanitation. Further, some House Democrats may further scuttle the deal, as they have been seeking a far more expansive package while some New York Democrats have threatened to do the same if a lifting of the state and local tax (SALT) deduction cap isn't included. 

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