The campaign to host ARPA-H has begun

From: POLITICO Pulse - Thursday Jun 23,2022 02:01 pm
Presented by PhRMA: Delivered daily by 10 a.m., Pulse examines the latest news in health care politics and policy.
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By Sarah Owermohle and Krista Mahr

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QUICK FIX

— States are vying to house the newest multibillion-dollar agency.

HHS is distributing more monkeypox tests, building capacity across labs.

The White House is urging action to ease telehealth care for opioid use disorder.

WELCOME TO THURSDAY PULSE —  Pro s: Join the two of us, Ben and our California colleague Victoria Colliver at an 11 a.m. Pro briefing on Covid-19 funding and legislation. Send news, tips and briefing feedback to sowermohle@politico.com and kmahr@politico.com.

 

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Did you know that only three insurance company PBMs control 80 percent of the prescription drug market? They use their market power to get tens of billions in rebates and discounts that should be going to you. Tell Congress those savings belong to patients .

 
Driving the Day

Anna Eshoo

Rep. Anna Eshoo's bill to make ARPA-H an independent agency advanced through the House. | Andrew Harnik/AP Photo

WHERE SHOULD ARPA-H LIVE? No, this isn’t the usual discussion about whether President Joe Biden’s vision for a Pentagon-like approach to health challenges, the Advanced Research Projects Agency for Health, should be housed inside the National Institutes of Health.

The House handily passed Rep. Anna Eshoo’s (D-Calif.) bill to establish ARPA-H as an independent health agency 336-85 on Tuesday night. The bill, H.R. 5585 , would put ARPA-H under the Health and Human Services Department but place it outside of NIH, which lawmakers have said doesn’t have the right model for making agile research decisions and bringing products to market. The bill won bipartisan buy-in with language limiting the number of offices and capping administrative costs at 15 percent.

Congress already allotted $1 billion to get the agency up and running in the 2022 fiscal year budget.

Now, the race to host ARPA-H has begun. Lawmakers from Georgia and Texas have already made it clear they want the multibillion-dollar agency to be headquartered in their home states.

The Coalition for Health Advancement and Research in Texas looks forward to “making the case to locate ARPA-H in Texas because of our resources, infrastructure, and diversity,” CHART President Thomas Graham said in a statement pointing out that the state has the largest medical center in the world, the largest military medical complex in the nation and the only biosafety level 4 lab co-located with a national primate center.

Meanwhile, Georgia lawmakers, led by Democratic Sen. Raphael Warnock and Republican Rep. Buddy Carter , sent a letter to HHS this week pointing to the state’s top-ranked universities, medical schools and research institutions (also located there: The Centers for Disease Control and Prevention). “Boasting a highly diverse talent pool and robust pipeline that include its Historically Black Colleges and Universities (HBCUs), Georgia seeks to solve challenges often overlooked,” they wrote in the letter.

People familiar with internal discussions tell Pulse that Massachusetts and California groups have also thrown their names into the ring, among others.

What’s next: It’s unclear how soon the Senate could vote on Eshoo’s legislation, though there’s bipartisan appetite to move the bill. For the White House, next on the to-do list is no easy task: finding ARPA-H’s first director.

Also before recess: The House passed broad mental health care legislation, H.R. 7666, in a 402-20 vote Tuesday night. The bill would reauthorize and expand federal mental health programs through 2027 and expand access to opioid use disorder treatment, partly by eliminating a wait period to seek care.

Today, themuch-awaited burn pit bill, H.R. 3967 , is expected to hit the House floor again, where it sailed through votes in March. Finally, House lawmakers are expected to vote before the week is out on gun control legislation passed by the Senate that includes a provision to fund expanded telehealth services.

COMMERCIAL LABS PREP MONKEYPOX TESTINGThe federal health department and the CDC are distributing an FDA-cleared orthopoxvirus test made by the CDC to five commercial laboratories in an effort to expand monkeypox screening capacity, David reports.

Testing efforts to date have largely been conducted by the public health Laboratory Response Network, which currently can run more than 8,000 tests a week. As of Tuesday, 142 monkeypox cases had been reported across 24 states and Washington, D.C.

“All Americans should be concerned about monkeypox cases,” HHS Secretary Xavier Becerra said. “By dramatically expanding the number of testing locations throughout the country, we are making it possible for anyone who needs to be tested to do so.”

A lab industry source told POLITICO that less than 5 percent of the network capacity was being used in recent days. But over time, certain geographic locations might see greater demand, according to Association of Public Health Laboratories CEO Scott Becker.

"Those locations, that's where the commercial labs capacity that will come online will be helpful," Becker said.

The new commercial testing being stood up at Aegis Science, Labcorp, Mayo Clinic Laboratories, Quest Diagnostics and Sonic Healthcare can start being used by health care providers in early July and will be ramped up throughout the month, according to HHS. The Washington Post first reported the testing expansion.

 

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WHITE HOUSE WEIGHS IN ON VIRTUAL OPIOID USE TREATMENT — The White House’s Office of National Drug Control Policy on Wednesday called on the Drug Enforcement Administration to consider permanently easing pandemic rules that allow online prescribing of buprenorphine, a drug used to treat opioid use disorder, Ben reports.

The move came less than two days after POLITICO reported that thousands of patients turning to online help for opioid addiction could soon lose access to life-saving services expanded amid the pandemic. Patients have temporarily been able to skip the previously required in-person visit amid the Covid-19 public health emergency, which could expire as soon as October.

The DEA has missed repeated deadlines to expand virtual care access since 2009. In March, it said it was working to make the pandemic regulations permanent. Some experts think the DEA is too concerned that buprenorphine could be sold illegally.

DEA “may” weigh allowing methadone, another drug used to treat opioid use disorder, to be prescribed without an in-person visit as a way to expand access, the ONDCP said. Unlike buprenorphine, methadone isn’t currently covered under the emergency waivers.

ONDCP was also critical of a system to expand practicing licenses in other states, saying interstate licensure compacts’ saying they are “inefficient.”

“An alternative to this approach is for the federal government to consider legislative and administrative proposals that encourage reciprocity among state licensing systems,” the report said.

An array of products advertised as containing synthetically derived Delta-8 THC offered for sale at a smoke shop in Seattle.

A group of state attorney generals are urging Congress to outlaw the kid-friendly packaging of THC products. | AP Photo/Gene Johnson

STATE AGS URGE EDIBLE CRACKDOWN — More than 20 state attorneys general wrote a letter to congressional leaders on Wednesday, imploring them to take action to crack down on “copycat” THC edibles, POLITICO’s Paul Demko writes.

The attorneys general are just the latest group to warn of the dangers posed by intoxicating THC products whose packaging mimics that of popular brands like Oreos, Sour Patch Kids and Doritos. Consumer-product companies wrote a similar letter in April, and the FDA issued a warning in May.

What’s next: The attorneys general didn’t cite any specific legislation but noted trademark infringement could be a pathway for addressing the issue.

GOP SENATOR CONSIDERS LUNCH FUNDING STALL OVER TRANSGENDER POLICY — Sen. Roger Marshall (R-Kan.) is thinking about blowing up a bipartisan deal to extend school meals funding because of a Biden administration policy banning discrimination against LGBTQ students who participate in lunch programs that receive the money.

After the $3 billion deal to extend the pandemic-era program was unveiled Tuesday, Marshall said in an interview with Meredith Lee that he’s “contemplating” objecting to the measure because of the new guidance.

Democratic leaders are rushing to pass the legislation and get it on President Joe Biden’s desk before current funding runs out on June 30, triggering a hunger cliff for millions of children.

 

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Around the Nation

FIRST IN PULSE: U.S. HEALTH SPENDING STAGNATES — National health spending accounted for 18.1 percent of the gross national product in April, a 0.06 percentage drop since December that’s continued to fall in the months since, according to the latest report by nonprofit research group Altarum.

Other highlights:

Health care price increases have slowed over the past few months to a roughly 2 percent year-over-year increase.

Prices for physician services and prescription drug prices have barely moved, while dental services saw the most growth at a 2.7 percent increase this spring.

Medicare price growth has virtually flattened while Medicaid saw a 3 percent jump.

Health care employment is growing modestly — with another 28,300 jobs added in May — but it’s still below pre-pandemic levels.

 

JOIN TUESDAY FOR WOMEN RULE TALK ON THE ECONOMY: The U.S. economy is showing signs of slowing down after a period of robust growth last year. How would an economic slowdown affect women’s economic security across socioeconomic, racial, and geographic lines? Join POLITICO’s Women Rule for a conversation on what’s ahead for the U.S. economy and how it will impact women’s livelihoods and economic well-being. REGISTER HERE.

 
 
Names in the News

Biden announced he plans to nominate Anjali Chaturvedi as general counsel for the Department of Veterans Affairs and Patrice Kunesh as commissioner of the HHS Administration for Native Americans.

Sujeet Rao has left the White House, where he was senior policy adviser on the White House Covid-19 response team. Rao has not announced his next move.

Alan Gilbert is the new vice president of policy for the Purchaser Business Group on Health, a national coalition of employers and purchasers focused on health care policy. Gilbert most recently worked with Anthem as vice president of new business initiatives and social determinants of health strategy.

What We're Reading

POLITICO’s Alice Miranda Ollstein appeared on Tradeoffs to discuss Michigan’s battle over abortion rights.

The FDA is preparing to order Juul to take its popular e-cigarettes off the market as early as this week, The Wall Street Journal’s Jennifer Maloney reports.

Nearly one in five people who have had Covid-19 have experienced long Covid symptoms, according to U.S. census data, Reuters reports.

 

A message from PhRMA:

This may come as a shock, but did you know that only three insurance companies and their pharmacy benefit managers (PBMs) control 80% of patients’ medicines? They sure act like it. They use their market power to get tens of billions in rebates and discounts on medicines – rebates and discounts that should be going to patients. They decide what medicines are covered, what medicines aren’t and what you pay for them. Regardless of what your doctor prescribed. That’s too much control, and it leaves you fighting them for your medications, instead of fighting your illness. PBMs are putting their profits before your medicine. It’s time we do better than that for patients. Tell Congress those savings belong to patients.

 
 

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