In a letter dated January 17, 2007, Ways-Means Chairman Charles B. Rangel (D-NY) outlined his vision to conduct oversight of Medicare in the 110^th Congress.  The nine-page letter set out a scope of the work to be done by the committee and its subcommittees, which includes the health subcommittee.  

In his letter, Chairman Rangel asked the Health Subcommittee to examine what he describes as a  plethora of issues dealing with Medicare’s prescription drug benefit, including treatment of dual eligibility, formularies for covered drugs and appeals, creating a Medicare-sponsored drug benefit option, and negotiated price mechanisms.

Even as Chairman Rangel’s vision solidifies, the House of Representatives started to push through its health care agenda. Last week, the House passed H.R. 4, which is legislation to require the Department of Health and Human Services to negotiate with drug companies to lower their prices on prescription drugs for Medicare. Questions have arisen from the Senate regarding the legislation in areas of direct concern to Nevadans relating to the availability of drugs in small pharmacies and rural areas, as well as the potential impacts on small employers. 

This week, the House passed H.R. 13, a bill that expands government funding of embryonic stem cell research. 

Both bills have been sent over to the Senate for consideration. 

HOUSE PASSES MINIMUM WAGE INCREASE; SENATE TO CONSIDER THIS WEEK

The current federal minimum wage of $5.15 an hour may be track for an increase with the House passage of H.R. 2, passed the House by a vote of 315-116.  The bill, dubbed the Fair and Minimum Wage Act of 2007, amends the Fair Labor Standards Act of 1938, initially increasing the federal minimum wage from $5.15 to $5.85/hour.  The initial increase, set to take effect sixty days from enactment, is followed by an increase one year later to $6.55 an hour, and a final increase, two years from enactment, to $7.25.

Today, 29 states and the District of Columbia have higher minimum wages than the federal government mandates.  Nine of those states – one of which includes Nevada – authorized increases with ballot initiatives during the November 2006 elections.  Nevada’s successful ballot initiative (Question 6) sets the state minimum wage at one dollar above the federal minimum wage.  Under the provisions of H.R. 2, Nevada’s minimum wage would ultimately increase to $8.25/hour, two years after enactment of the legislation.

The Senate is expected to take up the legislation this week, with an $8.3 billion package of small business tax incentives (offset over ten years), approved by the Senate Finance Committee last week, expected to be attached to the measure.

In addition, an agreement was reached to consider an amendment to grant the President enhanced line-item rescission authority rather than debate it as part of the lobbying/ethics reform bill that passed last week. Consideration of the measure is expected to last throughout the week.