Lobbyists press to pull back Medicare ambitions — Congressional budget analysts lay out negotiation stakes — Nurses’ union bites back on staffing shortages

From: POLITICO Pulse - Friday Aug 27,2021 02:03 pm
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Quick Fix

Lobbyists are fighting Democrats’ vision for expanded Medicare, worried that seniors will abandon supplemental programs and making the cost argument.

Fewer new drugs could come to market under Medicare negotiation but existing drugs could be more accessible, CBO said in an updated analysis.

Nurses are firing back at recent reports of widespread staff shortages, arguing that hospitals created the crisis.

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Driving the Day

INDUSTRY LOBBYING COMPLICATES DEMOCRATS’ MEDICARE AMBITIONS — Congressional Democrats’ effort to add dental, vision and hearing coverage to Medicare is running into a cash crush and resistance from powerful health industry lobbies — an early sign of the battles facing lawmakers when they return next month to debate a $3.5 trillion social spending package, Alice Miranda Ollstein reports.

To make the math work, House and Senate committees now assembling the package are weighing options like a longer phase-in of benefits, skimpier coverage with more cost-sharing, an end date that banks on reauthorization by a future Congress or even means-testing that would restrict new benefits to only the poorest beneficiaries.

At stake: The changes could ensure key coverage for millions of Americans and help progressives deliver on a key campaign pledge to expand Medicare. But the provision could cost roughly $350 billion over a decade, eclipsing other health priorities under discussion like an extension of Obamacare subsidies or an expansion of in-home care.

Groups like the American Dental Association, worried their members will be paid less in traditional Medicare than in private Medicare plans, are also pushing to limit the new benefits to the poorest Americans. And the insurance industry is warning Congress that mandating the new benefits will hike premiums and diminish other benefits for millions of seniors.

Lobbying in the dark: Congress' deliberations are “freaking out” companies who worry that seniors will drop their private plans en masse and migrate to traditional Medicare once the new benefits are in place, one insurance industry source said. But industry is also mindful of the optics of publicly opposing coverage of eyeglasses, dental care and hearing aids, and is largely pushing the message behind the scenes, they said.

CBO REPORT LAYS OUT DRUG NEGOTIATION STAKES — Fewer early-stage drugs are expected to come to market if Speaker Nancy Pelosi’s negotiation bill, H.R. 3, goes into effect — but it’s not as bad as people might think, the Congressional Budget Office found in a Thursday report.

CBO had already estimated that H.R. 3, which would allow negotiation on a category of drugs, would lead to roughly eight fewer new medicines in the following decade and 30 fewer drugs over the subsequent 10 years. In an updated assessment, the budget analysts say early-stage drugs are most affected but “CBO … now expects more new drugs to be introduced over the next decade under current law.”

Why it matters: Critics of the negotiation approach are likely to highlight this analysis as the latest evidence that new, potentially life-saving medicines won’t reach Americans because drug companies can’t reap the revenues from costly development.

While nine out of 10 Americans said in a recent Kaiser Family Foundation poll that they support drug price negotiation, opposition to the approach soared to 65 percent when respondents were told negotiation could limit access to new drugs.

What CBO says: It isn’t clear what kind of medicines could be affected — after all, if a product is assured a big market because of patients’ needs, pharmaceutical companies are unlikely to abandon its development. Plus “the policy may lead to lower prices and increased usage for drugs already on the market.”

NURSE UNION BLAMES HOSPITALS FOR STAFF SHORTAGES — The hospital industry is responsible for some states’ shortages of registered nurses, National Nurses United said Thursday after reports of a building workforce crisis.

“The United States is not experiencing a nursing shortage, only a shortage of nurses willing to risk their licenses or the safety of their patients by working under the unsafe conditions the hospital industry has created,” the union, the largest for registered nurses nationwide, clapped back in a statement. “The hospital industry is crying false tears over the lack of nurses willing to stay in direct care when these untenable working conditions are entirely of their own making.”

Those conditions, the union argues, are historic under-staffing and unsustainable scheduling practices to maximize profits, low pay, and little cross-training to ensure that nurses can move to other units when needed — like in a pandemic.

NNU also contends that “Except for a handful of states, there are sufficient numbers of registered nurses to meet the needs of the country’s patients,” according to a 2017 HHS report that identified an inequitable distribution of nurses across the country, but not a shortage.

CHILDREN’S HOSPITALS WARNS OF RISING NEEDS AMID COVID — Pediatric providers need more support as the pandemic continues, mental health needs increase and flu season looms, Children’s Hospital Association CEO Mark Wietecha wrote in a letter to President Joe Biden on Thursday.

“With pediatric volumes at or near capacity and the upcoming school season expected to increase demand, there may not be sufficient bed capacity or expert staff to care for children and families in need,” Wietecha said, noting that between school and typical viral seasons like flu, the nation could be heading for “the perfect storm” threatening pediatric hospital capacity.

Wietecha pressed for federal support but added “We strongly support and advocate for stronger masking and vaccination guidance.” While it’s still less likely for children to require hospitalization from the virus, Covid-19 cases are increasing among children, he said.

 

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Around the Nation

FLORIDA JUDGE ‘WRESTLING’ WITH SCHOOL MASK MANDATE — A Florida judge is expected to rule today in a lawsuit that could overturn the DeSantis administration’s efforts to block local school mask mandates. But the case appears far from finished, writes Politico Florida’s Andrew Atterbury.

“I’m still wrestling with pretty much all the issues,” Leon County Circuit Judge John Cooper said.

As both sides delivered closing arguments Thursday, Gov. Ron DeSantis said that he would “obviously” appeal if the ruling goes against the state, an indication that the weekslong battle over masks in schools could continue into next week. The group of parents who sued DeSantis over his executive order against mask mandates contend the Republican governor is making schools unsafe as the coronavirus continues to strike campuses while the state’s legal team argued that face coverings should be a parental choice.

Cooper could decide to overturn DeSantis’ order, thereby invalidating it across the state. So far, 10 school districts have bucked the state’s rules and are mandating masks for all students and staff without an opt-out policy for parents. The Biden administration has sided with school districts that defy DeSantis, saying it will financially support school districts or staff that lose funds over the mask fight.

Cases for children younger than 12 increased by more than 21 percent over the last week, according to the latest Florida health department data. For the 12–16-year-old age range, coronavirus cases rose by 15 percent over the same timeframe.

 

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In Congress

HOUSE DEMOCRATS PRESS FOR PERMANENT OBAMACARE SUBSIDYThree dozen lawmakers wrote to congressional leaders this week pushing for an Affordable Care Act tax credit that boosted enrollment to be set in stone. The credits were first implemented in the American Rescue Plan and are expected to be roped into the budget package.

“Thanks to the expanded advance premium tax credits in the American Rescue Plan, Americans across the country are already seeing their health care costs decrease substantially,” lawmakers led by Rep. Lauren Underwood (D-Ill.) wrote. They added that more than 2.5 million people signed up for new health insurance coverage through Obamacare in the recent window that ended mid-August.

 

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Names in the News

Former Obama HHS Secretary Kathleen Sebelius is the new chair of the board of directors of biotechnology company Humacyte.

What We're Reading

Theranos’ pitch never panned out, but the current era of at-home testing indicates what could have been: companies selling patient-driven diagnostics have raised at least half of the fallen company’s $1 billion funding at its height, Stat News’ Katie Palmer writes.

The Washington Post’s David Willman and Madison Muller do a deep dive on the history of gain-of-function research and the navigation between understanding virus’ origins and preventing dangerous evolutions.

Fewer than one in four pregnant people have gotten the Covid-19 vaccine as many struggle with misinformation and a lack of clear answers from medical sources, Shefali Luthra reports for the 19th News.

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