New spending bill, same old problems for Democrats

From: POLITICO Pulse - Thursday Nov 04,2021 02:01 pm
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Quick Fix

— The newest version of Democrats' social spending bill includes a drug price overhaul and paid leave provision but no clear path to passage.

— Democrats are already weighing what to do with the savings generated by their just-salvaged drug pricing overhaul.

— The Biden administration is rushing children's vaccine doses across the country in an effort to ramp up inoculations of kids aged 5 to 11.

WELCOME TO THURSDAY PULSE — where it turns out “immunized” meant something totally different to Green Bay Packers quarterback/brother of Jordan from the Bachelorette/one-time Jeopardy! host hopeful Aaron Rodgers than it did for pretty much everyone else in the U.S.

Send tips to acancryn@politico.com and sowermohle@politico.com.

 

A message from PhRMA:

From out-of-pocket costs, to deductibles, to hospital bills – the most vulnerable patients face challenges. 3 in 10 Americans who have insurance still face a financial barrier to care. We need to make the cost of medicine more predictable and affordable. Learn more.

 
Driving the Day

NEW SPENDING BILL, SAME OLD PROBLEMSThe latest version of Democrats’ $1.75 trillion social spending package revives a series of big proposals, including drug price negotiation and a paid leave plan. Yet for all the last-minute changes, Democrats still haven’t solved their biggest and most stubborn problem: How to get all this to Biden’s desk.

What’s new: The House package unveiled Wednesday includes the compromise drug pricing plan that Democrats hammered out in recent days, which most notably would allow Medicare to directly negotiate the prices of some of its costliest drugs.

The negotiation power would phase in, starting in 2025 with the 10 most expensive medicines and increasing to the top 20 by 2028. The bill also envisions penalizing drug makers for hiking prices faster than inflation and capping out-of-pocket spending on insulin for Medicare beneficiaries and private insurance enrollees.

Importantly, centrist Sens. Kyrsten Sinema (D-Ariz.) and Bob Menendez (D-N.J.) signed off on the deal. But while progressives will also back the proposal, it’s a far cry from the sweeping negotiation provision that they’d hoped would apply to hundreds of drugs — and that House Democrats passed just a couple years ago.

Democrats’ paid leave provision is also back from exile, albeit in scaled-down form. The plan would grant four weeks of leave, marking a small victory for Speaker Nancy Pelosi and other advocates who had pushed for adding the proposal back in.

What’s old: Joe Manchin (D-Va.) is still a staunch opponent of paid leave, meaning it’s likely dead on arrival in the Senate. And even if that’s removed, it remains unclear whether there are 50 Democratic votes for the bill — and when the vote might happen.

On Wednesday, fresh off Democrats’ brutal electoral loss in Virginia, Manchin argued the political setback meant Democrats should hold off on advancing the bill. Others, like Sen. Richard Blumenthal (D-Conn.), saw it as evidence of a need to move faster.

As for the official House schedule, it offered this verdict on whether a vote was imminent: "???"

DEMS’ NEW DRUG DILEMMA: WHAT TO DO WITH THE SAVINGS — Now that Democrats have their long-sought drug price overhaul, some are already plotting how to spend the savings the new provisions will create, POLITICO’s Alice Miranda Ollstein reports.

While the Congressional Budget Office has yet to weigh in on the drug pricing plan, Democrats involved in crafting the proposal are confident it will end up saving the government in the range of hundreds of billions of dollars.

That’s sparked a push from outside advocates to plow that sum right back into other health care ideas initially dropped from the bill — in particular, the addition of dental benefits for traditional Medicare beneficiaries.

But top Democrats are already shutting that idea down. House Budget Chair John Yarmuth (D-Ky.) and Ways and Means Chair Richard Neal (D-Mass.) both cast doubt on the possibility, and Energy and Commerce Committee Chair Frank Pallone (D-N.J.) told the Rules Committee Wednesday that the savings weren’t tied to paying for any specific program.

The extra money could still prove useful, though. Neal said lawmakers are discussing putting it toward funding Democrats’ revived paid family and medical leave plan, though no final decisions have been made yet.

 

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Vaccines

BIDEN: VACCINATE YOUR KIDS — The president made a public plea Wednesday for parents to get their kids vaccinated, a day after pediatric doses began rolling out nationwide.

Calling it a “day of relief and celebration,” Biden laid out plans to make appointments available on nights and weekends and across more than 6,000 school clinics, POLITICO’s Lauren Gardner reports.

The doses are also being distributed to pediatricians and other vaccination sites, as the administration tries to allay concerns about the vaccines. New Kaiser Family Foundation polling found that just over 25 percent of parents plans to get their 5- to 11-year-olds immunized “right away.” About one-third plan to hold off at least initially.

Biden was less definitive about the consequences of his stalled domestic agenda. Democrats should have passed his infrastructure and social spending packages by now, Biden said following the speech, but he demurred on whether it would have affected the party’s misfortunes in Virginia.

“I’m not sure that I would be able to have changed the number of very conservative folks who turned out in the red districts who were Trump voters,” Biden said. “But maybe. Maybe.”

 

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Coronavirus

TODAY: WALENSKY, FAUCI ON THE HILL — Four top health officials are testifying today in front of the Senate HELP Committee, in the latest of a series of hearings on the Biden administration’s Covid-19 response.

It’s a session that comes as cases and deaths have dropped significantly since the height of the Delta surge, and as booster shots and vaccines for kids roll out across the nation. In portions of her opening remarks shared by a committee aide, HELP Chair Patty Murray (D-Wash.) is expected to highlight the improving situation — yet also push for more resources to guard against a resurgence.

“We must learn the lessons of this pandemic not only so we can prepare for the winter ahead, but so we can finally bring an end to this pandemic and be better prepared for the next public health crisis,” Murray plans to say.

Yet Republicans are likely to home in on at least one favored subject: the origins of Covid-19. Sen. Rand Paul (R-Ky.) and others have hammered Biden’s chief medical adviser, Anthony Fauci, in prior hearings over a grant given to EcoHealth Alliance to conduct research at the Wuhan Institute of Virology.

Fauci and NIH Director Francis Collins have remained adamant that EcoHealth’s research has no connection to the emergence of Covid-19. But in late October, the NIH demanded that EcoHealth turn over unpublished data from an experiment it didn’t initially report as required by the grant.

In addition to Fauci and CDC Director Rochelle Walensky, acting FDA Commissioner Janet Woodcock and HHS Assistant Secretary for Preparedness and Response Dawn O’Connell are slated to testify.

HOW COVID UNLOCKED A ‘MAGIC RECIPE’ FOR REDUCING HOMELESSNESSThe scramble to shield California’s homeless from Covid-19 early in the pandemic seeded the start of a broader effort to combat homelessness by converting vacant hotel rooms into housing, POLITICO’s Katy O’Donnell reports as part of the Recovery Lab series.

The concept emerged as state officials brainstormed ideas in March 2020 for getting people out of crowded shelters — a strategy that became known as “Project Homekey” and would eventually provide temporary shelter to more than 48,000 people.

California poured hundreds of millions of Covid-19 aid dollars into the effort over the next several months, securing more than 6,000 housing units at a cost far below what the state would typically shell out to develop new affordable housing.

“I’ve been doing housing and homeless work since 1989, and it’s the first strategy I’ve seen that has promise to scale up in a way that makes a difference,” David Grunwald of the community building nonprofit National Community Renaissance said.

 

BECOME A GLOBAL INSIDER: The world is more connected than ever. It has never been more essential to identify, unpack and analyze important news, trends and decisions shaping our future — and we’ve got you covered! Every Monday, Wednesday and Friday, Global Insider author Ryan Heath navigates the global news maze and connects you to power players and events changing our world. Don’t miss out on this influential global community. Subscribe now.

 
 


What We're Reading

Fearful of the rising number of overdoses tied to fentanyl, drug users are pushing for the return of “old-school” heroin, Vice’s Manisha Krishnan reports.

An evolutionary genetics expert and self-described “Forrest Gump of Covid” has won Australia’s Prime Minister’s Prize for Science, after he was the first person to make Covid-19’s genomic sequence public.

Seventy percent of adults in the U.S. are fully vaccinated, but even now scientists aren’t sure exactly what tactics are best for overcoming vaccine hesitancy, STAT’s Theresa Gaffney writes.

 

A message from PhRMA:

The most vulnerable patients face challenges.

3 in 10 Americans who have insurance still face a financial barrier to care.

We need to make the cost of medicine more predictable and affordable. That means covering more medicines from day one, making out-of-pocket costs more predictable, and sharing negotiated savings with patients at the pharmacy counter.

Learn more.

 
 

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