Biden lays out a post-pandemic, pre-2024 health agenda

From: POLITICO Pulse - Wednesday Feb 08,2023 03:03 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 Krista Mahr and Daniel Payne

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Driving The Day

President Joe Biden waving from the dais on the House floor, flanked by an applauding Vice President Kamala Harris and House Speaker Kevin McCarthy.

Biden delivered his State of the Union speech on Tuesday night. | Francis Chung/POLITICO

FROM COVID-19 TO 2024 — President Joe Biden’s State of the Union speech on Tuesday night made one thing clear as we inch closer to election season: The time for lingering on the messy details of the pandemic is over, and the time for talking about the health care problems that occupy voters’ minds — like reducing health care costs — has arrived.

In the first moments of his speech, Biden noted that “Covid no longer controls our lives," a line that served to both underscore his administration’s getting the country to this point and pave the way for the long list of other health care priorities he went on to talk about.

Here are the other health care issues he lingered on — and left out — in the State of the Union.

Drug pricing: As expected, Biden called for a universal $35 insulin price cap for all Americans. He highlighted the Inflation Reduction Act provision that caps out-of-pocket drug costs for Medicare beneficiaries at $2,000 a year, which he said will take effect in 2025, and said drug price negotiations will cut the federal deficit by hundreds of billions of dollars.

Medicaid expansion: Biden reiterated calls to fill the Medicaid coverage gap for the roughly 2 million people living in the 11 states that haven’t expanded Medicaid under Obamacare. Filling in the coverage gap would allow about 2 million uninsured people who earn too much to qualify for Medicaid but too little to receive subsidies through their state’s health insurance exchange to get health insurance.

Medicare: The president pledged that neither Medicare nor Social Security would be cut and he would veto attempts to slash them. He also said he planned to extend the Medicare Trust Fund by at least two decades.

Abortion: Biden didn’t linger long on the issue of abortion, considering this was the first SOTU since the Supreme Court overturned Roe v. Wade last summer. He called on Congress to restore the right taken away in the Roe v. Wade decision and said he would veto a national abortion ban if Congress passed one.

Crackdown on fentanyl: It wasn’t a surprise to see fentanyl come up a few times in Biden’s speech: Ramping up law enforcement on fentanyl trafficking was a major plank of his National Drug Control Strategy released last spring, and Republican lawmakers have been vocal in the new Congress about the Biden administration’s failure to stop the deadly synthetic opioid from entering the U.S. drug supply.

Biden said he wanted to “launch a major surge to stop fentanyl production, sale and trafficking with more drug-detection machines to inspect cargo and stop pills and powder at the border” and introduce stronger penalties for fentanyl trafficking. Rahul Gupta, head of the Office of National Drug Control Policy, offered more details on that plan earlier Tuesday.

Mental health: There was surprisingly little mention of mental health given the administration’s heavy investment last year in expanding access. The president broadly called for “more” mental health professionals and first responders to address growing addiction rates and other mental health issues, but the only specific request he made was for bipartisan legislation to stop big tech companies from collecting online data about kids and using it to target them with ads — a practice some say is having deleterious effects on their mental health. In a call with reporters earlier Tuesday, the White House offered additional details on the administration’s plans to tackle the crisis.

Cancer moonshot: Biden highlighted his cancer moonshot program, which aims to cut the cancer death rate by at least 50 percent over the next 25 years. He called for bipartisan support for the effort to repeat the success of the U.S. President's Emergency Plan for AIDS Relief, or PEPFAR, which changed the trajectory of the global fight against HIV/Aids.

Veterans’ health: Biden noted that the country loses 17 veterans a day to suicide and said the VA “is doing everything it can, including expanding mental health screenings and a proven program that recruits veterans to help other veterans understand what they're going through and get them the help they need.”

BONUS FACT CHECK — Biden said the Inflation Reduction Act, which caps what most Medicare recipients pay for insulin at $35 a month, would go after pharma’s record profits.

It won’t. The law caps what people pay and forces insurers to pick up the difference.

Biden also said Covid deaths are down 90 percent. Covid deaths peaked at about 3,300 a day just before his inauguration. They now stand around 500 a day. That’s roughly 85 percent, but it’s worth noting that, according to the CDC, more than 15,000 people have died from Covid in the last month, the highest four-week total in 10 months.

WELCOME TO WEDNESDAY PULSE — A chiropractor known as “Dr. Pat” has been sentenced to 30 months in prison for defrauding the NBA’s health care plan by generating dozens of fake invoices. Send your news and tips to kmahr@politico.com and dpayne@politico.com.

TODAY ON OUR PULSE CHECK PODCAST, Ben Leonard talks with Blake Jones about California lawmakers’ push to require schools to keep Narcan on hand amid the influx of fentanyl into their state and a rise in teen overdose deaths.

 

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Costly out-of-pocket expenses tied to deductible and coinsurance requirements are a leading concern for patients with commercial insurance. These harmful practices put in place by insurers and pharmacy benefit managers (PBMs) are even causing patients to abandon their medicines. New IQVIA data break down how insurers and their PBMs are impacting how patients access and afford their medicines.

 
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In Congress

Rep. Cathy McMorris Rodgers

Cathy McMorris Rodgers (R-Wash.), chair of the House E&C Committee, and other committee members will probe the federal response to Covid-19 in a hearing today. | Zach Gibson/Getty Images

COMING UP IN TODAY'S E&C HEARING — Here’s what a GOP spokesperson for the House Energy and Commerce Committee told Alice to expect in today’s hearing on the federal response to Covid-19. Scheduled to testify are the heads of the FDA, the CDC and the Administration for Strategic Preparedness and Response and the acting head of the NIH.

“Our members will focus on why these agencies have lost public trust — and how they can begin to restore it. Among many issues, they will press for information related to how the government response harmed children, COVID-19 spending, data to support vaccine mandates, and the transition to governing after the public health emergency.”

Public Health

Vials of single doses of the Jynneos vaccine for mpox.

Public health officials are worried about mpox cases in Mexico, which has decided against any vaccination campaign. | Jeenah Moon/AP Photo

ACROSS THE BORDER, MPOX ISN’T OVER — As the Biden administration moves past the mpox emergency, the disease is still simmering to the south in Mexico and Latin America, POLITICO’s Carmen Paun reports.

In those countries, most governments have decided against the vaccination campaign that worked so well here this summer, sparking concerns that it could prove another example of how victories over disease can be ephemeral when countries go it alone.

Though the CDC reports only a couple of cases a day on average in the U.S., global cases started to rise again at the end of last month, according to the World Health Organization. Of the 13 countries that saw an increase, Mexico reported the highest weekly hike, reaching 72 cases.

The success of the vaccination campaign in the U.S. also isn’t helping Africa, where mpox, formerly known as monkeypox, has long been endemic and where the current outbreak originated. The African Union, which represents all 55 countries on the continent, hasn’t requested shots, despite the virus being deadlier there.

The WHO will decide Thursday if the outbreak still constitutes an international emergency.

TITLE 42 TO END WITH PHE — The Biden administration said on Tuesday that the May 11 end of the Covid-19 pandemic public health emergency would terminate Title 42 orders used to expel migrants at the southern border, Myah Ward reports.

“Absent other relevant developments, the end of the public health emergency will (among other consequences) terminate the Title 42 orders and moot this case,” Justice Department lawyers wrote in a brief to the Supreme Court. “The government has also recently announced its intent to adopt new Title 8 policies to address the situation at the border once the Title 42 orders end.”

 

JOIN POLITICO ON 2/9 TO HEAR FROM AMERICA’S GOVERNORS: In a divided Congress, more legislative and policy enforcement will shift to the states, meaning governors will take a leading role in setting the agenda for the nation. Join POLITICO on Thursday, Feb. 9 at World Wide Technology's D.C. Innovation Center for The Fifty: America's Governors, where we will examine where innovations are taking shape and new regulatory red lines, the future of reproductive health, and how climate change is being addressed across a series of one-on-one interviews. REGISTER HERE.

 
 
Pharma Report

JUDGE RULES AGAINST PHARMA IN DRUG IMPORT CASE — On Tuesday, a federal judge dismissed a bid by the pharmaceutical industry to block a Trump-era regulation that aims to allow states to import prescription drugs from Canada — if HHS determines there’s no health risk to the public and consumers will save money, POLITICO’s David Lim reports.

The Pharmaceutical Research and Manufacturers of America and two other groups sued HHS in November 2020, arguing that the effort endangers the safety of the drug supply chain, is unlikely to reduce costs and places “burdens” on the companies.

The judge disagreed. “No organization, nor any of their members, faces a concrete risk of harm from the inchoate importation program, as is required when suing,” he wrote.

What’s next: It’s unclear whether or when the FDA will take action on the state drug importation proposals. HHS did not immediately respond to requests for comment.

At the Agencies

ORACLE DEFENDS VA ROLLOUT — An Oracle lobbyist defended the company’s rollout of a new electronic health records system for the Veterans Health Administration on Tuesday after a series of glitches and delays, Ben reports.

Oracle Executive Vice President Ken Glueck said the company opposed legislation by House Veterans’ Affairs Chair Mike Bost (R-Ill.) that would prevent the VA from adding the system at new sites unless it demonstrates “significant improvements” and adds new requirements to certify its safety.

A spokesperson for the House Veterans’ Affairs Committee previously told POLITICO that Bost would consider legislation to end the project if he determines it can’t be fixed.

Oracle also opposes a bill by House Veterans’ Affairs Technology Modernization Subcommittee Chair Matt Rosendale (R-Mont.) that would terminate the program within six months.

Why it matters: The sprawling effort to replace the VA’s current electronic health records system, VistA, aims to improve care for 9 million veterans at 171 medical centers. But as of now, the new system from Cerner, which Oracle recently purchased, is only operational at a small portion of them.

 

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Names in the News

Iya Khalil has been appointed Merck’s new vice president and head of data, AI and genome sciences. She was previously the global head of the AI innovation laboratory at Novartis.

 

JOIN TUESDAY TO HEAR FROM MAYORS AROUND AMERICA: 2022 brought in a new class of mayors leading “majority minority” cities, reshaping who is at the nation’s power tables and what their priorities are. Join POLITICO to hear from local leaders on how they’re responding to being tested by unequal Covid-19 outcomes, upticks in hate crimes, homelessness, lack of affordable housing, inflation and a potential recession. REGISTER HERE.

 
 
What We're Reading

The Washington Post answers all your questions about the bird flu outbreak.

The New York Times explores what happens when patients go off ozempic, the diabetes drug increasingly being used for weight loss.

A women’s online pharmacy agreed to pay $18.3 million to California authorities over claims it defrauded the state Medicaid program, KHN reports.

 

A message from PhRMA:

Every day, patients at the pharmacy counter discover their commercial insurance coverage does not provide the level of access and affordability they need. New data from a study by IQVIA reveal the harmful practices of insurers and their pharmacy benefit managers (PBMs) can lead to significantly higher out-of-pocket costs for medicines — causing some patients to abandon their medicines completely. Learn more.

 
 

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