Presented by Blue Cross Blue Shield Association: Delivered daily by 10 a.m., Pulse examines the latest news in health care politics and policy. | | | | By Adam Cancryn | Presented by |  | | | With Susannah Luthi, Dan Goldberg and Alice Miranda Ollstein Editor’s Note: POLITICO Pulse is a free version of POLITICO Pro Health Care's morning newsletter, which is delivered to our s each morning at 6 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day’s biggest stories. Act on the news with POLITICO Pro. | | — A sudden spike in coronavirus cases threatens to stall progress in combating the pandemic. — President Joe Biden's $2 trillion economic proposal will include a sizable expansion of support for older adults and people with disabilities. — The administration is forming a new group of health experts and community leaders to help promote Covid vaccines and combat skepticism on the ground. WELCOME TO WEDNESDAY PULSE — where vaccine envy (and guilt) are fast becoming the themes of the spring, and can even coexist in the same household. Count PULSE among the envious so far; send tips and moral support to acancryn@politico.com. | A message from Blue Cross Blue Shield Association: Reluctance about vaccines is higher in communities of color due to a long history of inequitable health treatment. Learn how we are using Blue Cross and Blue Shield data to identify social vulnerabilities and replace hesitancy with hope. | | | | BIDEN’s FIRST COVID SURGE — The Biden administration is grappling with its first upswell of coronavirus cases since Inauguration Day — a development that threatens to upend two months of steady progress and test the White House’s competence, POLITICO’s Dan Goldberg reports. New infections in the U.S. jumped 20 percent in the last week — an increase thought to be the consequence of new variants, increasing travel and loosening restrictions around the country. — That’s left Biden to balance two high-stakes priorities: accelerating the vaccine rollout and trying to convince crisis-weary states to maintain their public health restrictions. Falling short on either could jeopardize his vow that Americans will be able to return to some semblance of normal life by July 4, and create the conditions for thousands of additional hospitalizations and deaths. — But governors aren’t giving him any help. Colorado Gov. Jared Polis , a Democrat, plans to lift his state’s mask mandate in two weeks, once all residents over 16 are eligible for the vaccine. New Jersey is upping attendance limits for sports arenas and outdoor gatherings, despite leading the nation in new infections per capita. In New York, Gov. Andrew Cuomo announced Tuesday that college sports fans will be able to return to the stands as soon as this week. — The caseload rebound has complicated Biden’s Covid messaging. He needs to convince Americans who haven’t gotten vaccinated that they remain at risk, health experts said, while also promoting the longer-term promise of a better life after vaccination. | | JOIN THE CONVERSATION, SUBSCRIBE TO “THE RECAST” Power dynamics are shifting in Washington, and more people are demanding a seat at the table, insisting that all politics is personal and not all policy is equitable. “The Recast” is a new twice-weekly newsletter that breaks down how race and identity are recasting politics, policy and power in America. Get fresh insights, scoops and dispatches on this crucial intersection from across the country and hear from new voices that challenge business as usual. Don’t miss out on our latest newsletter, SUBSCRIBE NOW. Thank you to our sponsor, Intel. | | | HOW BIDEN WOULD EXPAND HOME CARE — The White House is saving its highest-profile health care decisions for the as-yet unreleased second half of its economic recovery plan. But today’s opening $2 trillion proposal still aims to improve the nation’s health system by expanding access to long-term care services. The sweeping infrastructure plan, which Biden will tout in a speech this afternoon, includes $400 billion to build out home- or community-based care under Medicaid. The administration also wants to extend the program’s Money Follows the Person demonstration, which is meant to incentivize states to help seniors and those with disabilities move from institutions to community-based care. — Biden is pitching two other health-related measures: the replacement of all lead pipes and service lines, in an effort to reduce lead exposure in schools and child care facilities; and an $18 billion upgrade of the nation’s VA hospitals. — Hill Democrats are urging the administration to think bigger. Committee leaders have pushed for mandatory spending on public health and federal paid sick leave, as well as a public health insurance option that could compete with private plans, POLITICO’s Alice Miranda Ollstein reports. A forthcoming second package could include several additional health care provisions, though Hill aides said it remains unclear how aggressive the administration wants to be in pursuing such major reforms. WHITE HOUSE TO RECRUIT PRO-VACCINE INFLUENCERS — The Covid-19 Community Corps, the latest federal initiative aimed at targeting specific populations, will be charged with leading on-the-ground efforts to combat skepticism and misinformation, your host reports. — Who the administration is recruiting: The program, which rolls out Thursday, will coordinate messaging with various doctors, nurses, faith leaders and others who are well-known and trusted within their own communities, according to documents obtained by POLITICO. Those messengers are likely to focus in particular on reaching groups that polls show are still resistant to getting vaccinated, such as African Americans, Latinos and rural white conservatives. — The Corps members will distribute the Biden administration’s messages, including on social media, and will participate in events promoting the vaccines, potentially even leading vaccination drives of their own. | | | | | | BRETT GIROIR JOINS HEALTH CONSULTING FIRM — The Trump administration’s Covid testing czar will be a distinguished visiting executive at Leavitt Partners, the consultancy founded by former George W. Bush-era HHS Secretary Michael Leavitt. Giroir, who also spent three years as the Trump HHS’ assistant secretary for health, will focus his work on Covid-related policies, as well as value-based care initiatives and care accessibility and affordability. In addition to Leavitt Partners, Giroir has also been serving as chief medical adviser to Gauss Surgical, which is seeking FDA authorization for a rapid at-home Covid test. FTC OBJECTS TO PLANNED ILLUMINA ACQUISITION — The Federal Trade Commission is challenging Illumina’s $7.1 billion deal for cancer detection test developer Grail over worries the merger would dampen innovation in the U.S., POLITICO’s David Lim reports. The agency is raising concerns because Illumina is the principal supplier of next-generation sequencing instruments and supplies. The gene-sequencing company first announced plans in September to buy Grail, which it originally founded in 2016 before spinning it off as a standalone entity. Illumina’s chief medical officer told David that the company plans to challenge the FTC complaint in court, and that the Grail deal would accelerate the development of early cancer detection tests. HOSPITAL RATES, DRUG COSTS TOP EMPLOYERS’ HEALTH PRIORITIES — Major employers overwhelmingly support initiatives to rein in drug prices and regulate hospital rates as a way to lower health costs overall, according to the latest annual health benefits survey from the National Alliance of Healthcare Purchaser Coalitions. Some 87 percent of the survey’s 151 respondents took a favorable view of drug price regulation, while 75 percent supported regulation of hospital prices. Support for a Medicare public option, meanwhile, stood at just 44 percent of employers – though only 15 percent indicated the idea could be “somewhat” or “very” harmful. — Employers are shying away from vaccine mandates. Just 8 percent say they’ll require workers to get shots, according to the survey. Still, more than 8 in 10 of the largest employers expect to offer onsite shots before the end of the year. — Meanwhile, polling finds small businesses see health costs as a growing burden. According to a separate poll of small businesses conducted for the left-leaning advocacy group Families USA and the Small Business Majority, one in three small business owners struggled to provide health coverage for themselves and their workers. About 36 percent lowered their employer contribution to workers’ premiums with over half switching to a plan with lower premiums. And nearly one in five of those surveyed say they’ll need to make changes or reduce health coverage in the coming months. | A message from Blue Cross Blue Shield Association: The United States has the highest maternal death rate of any developed country, with 60% of deaths being preventable. See how Blue Cross and Blue Shield companies are supporting healthier pregnancies and making childbirth safer. | | | | Republicans, including Florida Gov. Ron DeSantis, have seized on the concept of vaccine passports as the next front in its pandemic culture wars, The Washington Post’s Annie Linskey, Dan Diamond and Tyler Pager report. The U.S. will need to vaccinate children — who account for a quarter of the population — against Covid if it wants to reach herd immunity, Scientific American’s Melinda Wenner Moyer writes. One of New York City’s oldest and best hospitals repeatedly billed patients more than $3,000 for Covid tests, The New York Times’ Sarah Kliff reports. | | TUNE IN TO GLOBAL TRANSLATIONS: Our Global Translations podcast, presented by Citi, examines the long-term costs of the short-term thinking that drives many political and business decisions. The world has long been beset by big problems that defy political boundaries, and these issues have exploded over the past year amid a global pandemic. This podcast helps to identify and understand the impediments to smart policymaking. 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