Health Care Checkup: July 15, 2022

Health Care Checkup

July 15, 2022

THE BIG PICTURE

On Wednesday the U.S. Bureau of Labor Statistics issued a report, which found that inflation increased 9.1% from June 2021. The Bureau stated that it was the largest 12-month increase since 1981. The inflation news is having ripple effects in the Capitol and is impacting Senate negotiations on the reconciliation package. As of this writing, Senator Joe Manchin (D-WV) has indicated that he is ready to move forward on a health care-only reconciliation bill that includes policies to address prescription drug pricing and extend the American Rescue Plan (ARP) Affordable Care Act (ACA) tax subsidies for two years. Senator Manchin has indicated is willing to continue working on climate and tax policies in September. Senate Democrats are still discussing how to proceed. It is worth noting that the Senate is up against a September 30 deadline to get the package passed.

On Thursday, Senator Richard Burr (R-NC), Ranking Member of the Senate Health, Education, Labor and Pensions (HELP) Committee walked away from the bipartisan bill he negotiated with Chairwoman Patty Murray (D-WA), and instead introduced pared down FDA user fee legislation that would simply reauthorize expiring user fee agreements for five years. Burr said that he introduced the Food and Drug Administration Simple Reauthorization Act over concerns that the Senate would not be able to come to a bipartisan agreement and pass the Food and Drug Administration Safety and Landmark Advancements (FDASLA) Act before the current user fees expire. Energy and Commerce Committee Chairman Frank Pallone, Jr. (D-NJ) and Ranking Member Cathy McMorris Rodgers (R-WA) released a statement on the bicameral negotiations to reauthorize the user fee agreements, stating, "Unless the Senate acts urgently to meet its deadline, FDA will be forced to issue reduction-in-force notices and furlough thousands of workers who ensure the safety and efficacy of medical products."

Also on Thursday, the Congressional Budget Office (CBO) released its cost estimate of the Improving Needed Safeguards for Users of Lifesaving Insulin Now (INSULIN) Act. Among other provisions, the legislation would limit copays and coinsurance of insulin to no more than $35 per month. CBO estimates that the bill would raise the budget deficit by approximately $23.3 billion over a period of 10 years. Majority Leader Schumer wants to bring the bill to a vote in the Senate soon, but it is unclear whether there are enough GOP votes to pass. Senator Mike Crapo (R-ID), Ranking Member of the Senate Finance Committee, said that he would like for there to be a hearing on the bill before it is brought to the floor for a vote.

The Senate HELP Committee held a hearing on “Reproductive Care in a Post-Roe America: Barriers, Challenges, and Threats to Women's Health.” Mehlman Castagnetti’s summary of the hearing can be found here.

Looking ahead to the weekend, the U.S. will transition the 10-digit National Suicide Prevention Lifeline to a three-digit code, 988. In 2020, the National Suicide Hotline Designation Act authorized 988 as the new number for suicide and mental health crises. Leaders hope that the new, shorter code will better help individuals in time of crisis. Additional information can be found here.

What to Expect Next Week: Next Tuesday, the House Energy and Commerce Subcommittee on Oversight and Investigations will hold a hearing on the “Roe Reversal: The Impacts of Taking Away the Constitutional Right to an Abortion.” Also on Tuesday, the House Select Subcommittee on the Coronavirus Crisis will hold a hearing on “Understanding and Addressing Long COVID and Its Health and Economic Consequences.” On Wednesday, the Senate Veterans' Affairs Committee will hold a hearing on “Examining the Status of VA’s Electronic Health Record Modernization Program.”

DEEP DIVE

House Passes Legislation to Protect Access to Reproductive Health Care

On Friday, the House passed two pieces of legislation to help protect women’s access to reproductive health care. The House voted 219-210 to pass the Women’s Health Protection Act of 2022 (H.R. 8296), which would codify abortion rights. All Republicans and Democrat Henry Cuellar (TX) voted against the bill. Additionally, the House voted 223-205 to pass the Ensuring Access to Abortion Act of 2022 (H.R. 8297), which would allow women to travel across state lines to receive an abortion. Three Republicans, Adam Kinzinger (IL), Fred Upton (MI) and Brian Fitzpatrick (PA) voted with all Democrats to pass the legislation. However, due to broad GOP opposition, it is unlikely that the bills will receive enough votes to meet the 60-vote threshold to clear the Senate. Over in the Senate, Tim Kaine (D-VA) is working on a bipartisan abortion rights bill with GOP Senators Susan Collins (ME) and Lisa Murkowski (AK). Kaine said that he is working to create a bill that “establish[es] a minimum federal guarantee of reproductive freedom,” and that he expects the group can put forward a bill that would garner enough votes to pass the Senate.

Inflation News Affects Budget Reconciliation Negotiations

On Wednesday the U.S. Bureau of Labor Statistics issued a report, which found that inflation increased 9.1% from June 2021. The Bureau stated that it was the largest 12-month increase since 1981. The inflation news is having ripple effects in the Capitol and is impacting Senate negotiations on the reconciliation package. As of this writing, Senator Manchin has indicated that he is ready to move forward on a health care-only reconciliation bill that includes policies to address prescription drug pricing and extend the American Rescue Plan (ARP) Affordable Care Act (ACA) tax subsidies for two years. Senator Manchin has indicated is willing to continue working on climate and tax policies in September. Senate Democrats are still discussing how to proceed. It is worth noting that the Senate is up against a September 30 deadline to get the package passed.

CBO Releases Estimated Budgetary Effects of Senators Jeanne Shaheen (D-NH) and Susan Collins’ (R-ME) INSULIN Act

On Thursday, the Congressional Budget Office (CBO) released its cost estimate of the Improving Needed Safeguards for Users of Lifesaving Insulin Now (INSULIN) Act. Among other provisions, the legislation would limit copays and coinsurance of insulin to no more than $35 per month. CBO estimates that the bill would raise the budget deficit by approximately $23.3 billion over a period of 10 years. Majority Leader Schumer wants to bring the bill to a vote in the Senate soon, but it does not currently have enough GOP support to pass. Senator Mike Crapo (R-ID), Ranking Member of the Senate Finance Committee, said that he would like for there to be a hearing on the bill before it is brought to the floor for a vote.

CMS Releases CY 2023 Medicare Physician Fee Schedule Proposed Rule

Last Thursday, the Centers for Medicare and Medicaid Services (CMS) released the calendar year (CY) 2023 Medicare Physician Fee Schedule Proposed Rule. The proposal includes a $1.53 decrease in the PFS conversion factor of $34.61. CMS attributes the decrease to the required statutory update to the conversion factor, and the expiration of the 3% increase in PFS payments for CY 2022. The proposal also aims to expand behavioral health coverage, increase access to Accountable Care Organizations, and increase access to cancer screenings and treatments. The press release can be found here, and the fact sheet can be found here.

HHS Issues Guidance to Clarify Abortion-related Medical Care Following President Biden’s Executive Order on Protecting Access to Reproductive Health Care

After last week’s Executive Order on Protecting Access to Reproductive Healthcare Services, the Department of Health and Human Services issued guidance for providers regarding emergency abortion services and for retail pharmacies. On Monday, HHS released updated guidance on the Emergency Medical Treatment and Active Labor Act (EMTALA), reaffirming that it protects providers when offering “legally-mandated, life- or health-saving abortion services” in emergencies. Additionally, on Wednesday, HHS issued guidance to remind retail pharmacies of their obligation to supply patients with prescribed medications and to not discriminate on the basis of race, color, national origin, sex, age, and disability.

Biden Administration Secures 3.2 million Doses of Novavax COVID-19 Vaccine Amid the Spread of the Highly Contagious Omicron Subvariant BA.5

The Biden Administration secured 3.2 million doses of Novavax’s COVID-19 vaccine, which is the first protein-based COVID vaccine in the U.S. Novavax’s vaccine will serve as an alternative option for individuals who may be allergic to mRNA vaccines or who prefer receiving a vaccine that is not mRNA-based. The news comes as the Omicron subvariant BA.5 is driving up COVID cases and hospitalizations across the country. This week, the Biden Administration outlined a strategy for overcoming BA.5, which includes promoting booster awareness and increasing access to free COVID-19 tests.

GOP Healthy Future Task Force Releases Proposals to Make Health Care More Affordable

On Thursday, the Healthy Future Task Force’s Affordability Subcommittee released “solutions to make health care more accessible and affordable.” These proposals include improving workers’ ability to afford health coverage, improving small business owners’ ability to provide health insurance that is of low cost and high value for employees, promoting innovation and transparency to provide more affordable options, and lowering costs and increasing choices by enhancing competition. The Affordability Subcommittee is one of five subcommittees that are a part of the Healthy Future Task Force, which also includes the Treatment Subcommittee, Security Subcommittee, Modernization Subcommittee, and Doctor-Patient Relationship Subcommittee. The fact sheet can be found here, and the press release can be found here.

President Biden Appoints Members to Cancer Panel

This week, President Joe Biden announced that he intends to appoint Dr. Mitchel Berger, Dr. Carol Brown, and Dr. Elizabeth Jaffee to his Cancer Panel. The Cancer Panel is a volunteer panel of experts who advise the President on “how to use the resources of the federal government, particularly through the cancer research program, to make progress for people facing a cancer diagnosis and to reduce the burden of cancer on the American population.” Dr. Jaffee is an expert in cancer immunology and pancreatic cancer, Dr. Berger is a neurological surgeon, and Dr. Brown is a gynecologic oncologist. Additional information can be found here.