Docs brace for shave

From: POLITICO Pulse - Friday Nov 03,2023 02:02 pm
Presented by Optum Rx: Delivered daily by 10 a.m., Pulse examines the latest news in health care politics and policy.
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By Ben Leonard and Chelsea Cirruzzo

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With help from David Lim and Robert King 

Driving the Day

Dr. Janice Bacon inspects the ear of Jeremiah Young, 11, as she gives him a back-to-school physical.

The final Physician Fee Schedule rule comes as Congress takes its first steps to reform how Medicare pays doctors. | Rogelio V. Solis/AP

A CUT TO PHYSICIAN FEES — CMS finalized a 3.4 percent cut to physician Medicare payments for next year, the second consecutive year of declining reimbursement rates, Robert reports.

The cuts were included Thursday in the final Physician Fee Schedule, which outlines policy and reimbursement rates for the coming year. The latest round of cuts is expected to ignite further lobbying by doctor groups to get Congress to pass a short-term fix.

Doctor groups started calling for Congress to step up moments after the rule dropped Thursday.

“Congress must pass legislation to stop this downward spiral in the Medicare program,” Anders Gilberg, senior vice president of government affairs from the Medical Group Management Association, said in a statement.

CMS proposed a conversion factor of $32.74, a decrease of $1.15 compared with the current rate. The conversion factor is the calculation of a doctor’s expenses for providing services covered under Medicare.

Congress appears poised to help doctors at least blunt some impact of the cuts. The Senate Finance Committee included a 1.25 percent boost to doctor payments in a discussion draft released Thursday. If the additional boost is signed into law, doctors would only face a 2.15 percent cut.

Lawmakers also helped doctors last year when they faced a 4 percent cut to their payments. A provision tucked into an end-of-year spending package spread out the cuts to 2 percent this year and 1.25 percent for 2024.

Meanwhile, the House Energy and Commerce Committee is debating legislation that would introduce more wholesale reforms to how doctor payments are calculated. The goal is to ensure payments better account for increases in costs, such as higher inflation, for running a practice.

A subcommittee held a hearing on that legislation, and others, last month, but it remains unclear whether there will be enough bipartisan appeal to make it through Congress.

Rep. Frank Pallone (D-N.J.), the committee’s top Democrat, said that many of the drafts considered at the hearing remain “half-baked.”

WELCOME TO FRIDAY PULSE. It turns out bears in Florida also enjoy trick-or-treating. Reach us at bleonard@politico.com or ccirruzzo@politico.com. Follow along @_BenLeonard_ and @ChelseaCirruzzo.

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TODAY ON OUR PULSE CHECK PODCAST, your host Ben talks with POLITICO health care reporter David Lim, who explains why patient advocates and the pharma industry have concerns about potential conflicts of interest from some speakers at CMS’ ongoing public listening sessions on Medicare drug price negotiations.

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GO INSIDE THE MILKEN INSTITUTE FUTURE OF HEALTH SUMMIT: POLITICO is proud to partner with the Milken Institute to feature a special edition of our Future Pulse newsletter at the 2023 Milken Institute Future of Health Summit from November 6-8. The newsletter takes readers inside one of the most influential gatherings of global health industry leaders and innovators solving the biggest public health issues to ensure a healthier, more resilient future for all. SUBSCRIBE TODAY TO RECEIVE EXCLUSIVE COVERAGE.

 
 
In Congress

Ron Wyden and Mike Crapo walk together at the Capitol.

Sens. Ron Wyden (left) and Mike Crapo have released a discussion draft that focuses on expanding the mental health care workforce. | Francis Chung/POLITICO

LET’S TALK ABOUT IT — The top Democrat and Republican senators on the Finance Committee released a discussion draft aimed at reining in pharmacy benefit managers and boosting mental health access.

The discussion draft from chair Ron Wyden (D-Ore.) and Mike Crapo (R-Idaho) includes provisions that would boost the mental health workforce and reduce drug prices.

It comes after Wyden and Crapo put forward several PBM proposals, and the panel nearly unanimously advanced legislation in July aimed at boosting transparency for PBMs. The discussion draft adds to that legislation. The House has also advanced a measure that would strengthen transparency in the PBM sector.

The mental health provisions include: 

— Expanding eligibility for workforce shortage area incentives to clinicians providing mental health and substance use treatment

— Allowing licensed clinical social workers to do more work under Medicare

— Mandating that Medicare Advantage plans have accurate provider directories

The PBM provisions include: 

 Requiring that sponsors of prescription drug plans with preferred pharmacy networks have a minimum share of in-network pharmacies in underserved areas not tied to a PBM or sponsor

 Mandating that HHS collect monthly data on drug-acquisition costs to boost PBM transparency

 Requiring plans to include certain discount-eligible drugs in formularies and tie cost-sharing to the net price for them

The pay for: The measure intends to use the Medicare and Medicaid improvement funds. A Senate aide said the PBM plans will “pay for themselves,” and the non-PBM parts are “fully offset.”

The path forward: The committee will host a markup on the discussion draft Wednesday morning.

JOHNSON FLOATS NEW FUNDING PLAN — New House Speaker Mike Johnson (R-La.) has a fresh concept for avoiding a government shutdown — seemingly creating a series of rolling funding threats, a move that could draw opposition from across the political spectrum, POLITICO’s Katherine Tully-McManus and Caitlin Emma report.

During a press conference Thursday, Johnson suggested a “laddered CR” for funding the government ahead of the Nov. 17 deadline, describing a continuing resolution that “extends individual pieces of the appropriations process, individual bills.”

While it’s unclear how that would work, Johnson seemed to be referring to different lengths of stopgap funding for each of the 12 appropriations bills, triggering ongoing shutdown threats for different parts of the government.

Democrats and the White House wouldn’t back such an approach. Johnson has also suggested a stopgap measure to keep the government open until Jan. 15.

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Around the Agencies

340B HOSPITALS TO GET $9B TO OFFSET CUTS — CMS finalized a plan to dole out $9 billion to hospitals participating in the 340B drug discount program to make up for years of cuts, Robert reports.

The agency issued a final rule that contains how it will distribute the money to approximately 1,700 facilities. However, to remedy this, CMS is slightly cutting other nondrug items and services to ensure the payout remains budget-neutral.

CMS installed cuts to hospitals participating in the program — which mandates drugmakers offer discounts to so-called safety-net hospitals and health centers in exchange for participation in Medicare and Medicaid — from 2018 through 2022. The Supreme Court ruled in June 2022 that the cuts were unlawful, and the agency has been ruminating on how to make the affected hospitals whole.

The American Hospital Association has supported giving hospitals one lump sum but didn’t want the federal government to make cuts elsewhere to get around budget neutrality.

 

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Data Privacy

AHA SUES OVER DATA RULE — The American Hospital Association and Texas-based hospital groups are challenging HHS’ rule preventing health care organizations from using tracking technologies that result in “impermissible disclosures” of protected health information, POLITICO’s Ruth Reader reports.

The background: HHS’ Office for Civil Rights last year issued a bulletin expanding its definition of such information and limiting the use of some tracking technology. The office warned that entities covered by HIPAA aren’t allowed to disclose HIPAA-protected data to vendors or use tracking technology that would cause “impermissible” disclosures.

The hospital groups, though, argued the rule goes beyond HHS’ authority and is counterproductive, saying it has hampered hospitals and health systems’ ability to share health information with the public and analyze their sites to ensure they’re accessible. The groups claim that HHS uses third-party analytics systems on its websites.

An HHS spokesperson declined to comment on the litigation.

The new rules, along with a new Federal Trade Commission enforcement push, have upended long-standing business practices and sent the health care industry scrambling. The suit represents perhaps the most significant industry pushback so far.

 

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VETERANS' HEALTH

HVAC TAKES ON WOMEN VET HEALTH — A bipartisan House Veterans’ Affairs Committee task force raised concerns about staffing shortages at the Department of Veterans Affairs and called for new training to improve the processing of women’s claims.

In a report from Republican and Democratic staff, the group called on the VA to offer gender-specific training to staff giving disability exams and provide training for workers to make sure they can “process women veterans claims that may present themselves differently than male veterans.”

The task force also called on the VA to improve care coordination for women undergoing cancer treatment and weigh updating screening guidelines plus release more data on women veterans annually.

Women are the fastest-growing group of veterans — projected to be 18 percent of all veterans by 2040. VA spokesperson Terrence Hayes said the agency looks forward to “reviewing and implementing” the task force’s recommendations.

Names in the News

H.R. McMaster has joined Biobot’s board of advisers to help direct the company’s international expansion and new national security unit. McMaster was formerly U.S. national security adviser in the Trump administration.

California Attorney General Rob Bonta led a group of 25 attorneys general writing to the FDA to institute warning labels for pulse oximeters about inaccurate readings for patients of color.

CQ reports on the House GOP adding new policy riders to the Labor-HHS-Education appropriations bill, including barring the Biden administration from setting minimum staffing levels in nursing homes.

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