What Becerra’s senior team says about HHS’ priorities — Climate change’s billion-dollar health toll —Teachers union pressures CDC over mask guidance

From: POLITICO Pulse - Friday May 21,2021 02:06 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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With Susannah Luthi

Quick Fix

— HHS Secretary Xavier Becerra is surrounding himself with top policy experts and Obama administration alums.

— Climate change is costing the U.S. hundreds of billions of dollars in health-related expenses each year, according to a new report from a group of nonprofits.

— The CDC under pressure from a powerful teachers union to update its school mask guidance.

WELCOME TO FRIDAY PULSE — where in addition to advising on the pandemic response, Anthony Fauci is now an adviser on healthy living.

Sleeping, eating well and avoiding stress may sound simple, but for PULSE (and, we suspect, Fauci too) that's been a bit hard to come by the past 14 months. Tips and other pandemic living practices to acancryn@politico.com and sowermohle@politico.com.

 

A message from PhRMA:

Americans don’t need another barrier to their medicines. We have to lower what patients pay for their medicines. We also have to make sure they are getting the medicines they need. H.R.3 forces a choice between one or the other, but there’s a way to do both. Get the facts at phrma.org/betterway.

 
Driving the Day

WHAT BECERRA’s SENIOR TEAM SAYS ABOUT HHS’ PRIORITIES The health secretary has added at least three new counselors to his front office in recent weeks, a build-out that reflects the range of challenges facing HHS and the concerted effort to find experienced staffers to tackle them.

The additions include Mary Wakefield, who spent the entire Obama era at HHS — first as head of the Health Resources and Services Administration, and later as deputy secretary. She’s returned temporarily to help the department manage caring for a record number of unaccompanied immigrant kids, four sources told PULSE.

Josie Villanueva , a longtime Hill staffer, is also advising Becerra on the migrant child effort, in addition to working on other human services and economic stability initiatives. And Steven Lopez, who previously directed health policy for UnidosUS, is now HHS’ counselor on equity issues and will advise on other public health and health access programs.

That means Becerra now has at least eight counselors advising him on policy. It makes for a crowded front office, but it’ll also immerse Becerra — who lacks administration experience and deep health policy knowledge — with experts in both areas.

Several of these new staffers spent years embedded in the policymaking process, and at least three — Wakefield, Covid counselor Dawn O’Connell and FDA-focused counselor Stephen Cha — did lengthy stints in the Obama administration.

Those appointments are critical to managing HHS’ current priorities, namely the Covid response, a border emergency that shows few signs of letting up and an emphasis on equity central to the administration’s broader agenda.

They also point to a department preparing to be deeply involved in a pandemic recovery where its chief role will be directing billions of dollars in aid passed as part of President Joe Biden’s spending packages — and whose sure-to-be-scrutinized decisions on where and how to distribute that money will be crucial to the effectiveness of the administration’s Covid strategy.

CLIMATE CHANGE’s BILLION-DOLLAR HEALTH TOLL The cost of health complications tied to the use of fossil fuels and their effects on climate change now exceeds more than $820 billion a year in the U.S., the Medical Society Consortium on Climate and Health, the National Resources Defense Council and Wisconsin Health Professionals for Climate Action find in a new analysis.

That total includes a range of expenses tied to illness and hospitalization, including lost wages and prescription medications, POLITICO’s Annie Snider reports. The groups still believe $820 billion “underestimates” the true cost, due largely to poor data tracking at both the federal and state health agency levels.

And regardless, the report concluded, this cost has fallen disproportionately on communities of color, children and the elderly — populations more likely to get their health care through Medicare and Medicaid.

The political angle: The analysis offers ammo for the Biden administration’s broad climate change agenda, including creating an Office of Climate Change and Health Equity at HHS. The White House’s initial budget proposal this year also sought an additional $100 million for a CDC program focused on climate and health.

TEACHERS UNION PRESSURES CDC OVER MASK GUIDANCE The American Federation of Teachers is urging the CDC to spell out clearer guidance on wearing masks in schools, for fear classrooms will end up the center of a partisan tug-of-war, POLITICO’s Juan Perez Jr. reports.

The union, in a letter to CDC chief Rochelle Walensky and Education Secretary Miguel Cardona, noted some red states have rushed to scrap all their mask mandates since the CDC said vaccinated people did not have to wear them — even though there aren’t any Covid vaccines authorized for children under 12.

“For those entrusted with the welfare of children … any change or ambiguity in guidance triggers a significant impact on planning and classroom management,” AFT President Randi Weingarten wrote.

Weingarten has called for schools to fully reopen later this year. The CDC last week acknowledged that its broader mask guidance for vaccinated people “has raised questions for schools about how to proceed,” and vowed to provide an update sometime in the coming weeks.

 

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Vaccines

OHIO’s VAX SWEEPSTAKES SCHEME IS SPREADING A week after Ohio vowed to give away millions of dollars to residents who choose to get vaccinated, New York and Maryland are offering Covid vaccine lotteries of their own.

New Yorkers who get their shots over a five-day period next week will get the chance to win up to $5 million, Gov. Andrew Cuomo announced Thursday. And Maryland will select a new vaccinated winner of $40,000 every single day through July 3. On Independence Day, one Marylander will get a $400,000 grand prize.

Vaccination rates have slowed nationwide, forcing states to try to reach younger Americans and others who may not otherwise go out of their way to get vaccinated. In the days since Ohio announced its lottery, officials say the pace of vaccinations accelerated by more than 28 percent among those over 16 years old.

 

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In the courts

ELI LILLY CHALLENGES BIDEN’s 340B ORDER The insurer is suing over HHS’ recent decision to restore drug discounts to contract pharmacies that work with hospitals in the federal program known as 340B, POLITICO’s Susannah Luthi reports.

The suit comes in response to an administration notice Monday that drug companies including Lilly needed to reverse 340B cutbacks by June 1, or else face fines. In its complaint Lilly accused the government of sending the notices “out of the blue” and undercutting litigation over the 340B program — a move it alleged was politically driven.

That legal battle has centered on drug companies’ decisions last year to cut the discounts given to contract pharmacies; drugmakers say these pharmacies shouldn’t benefit since they weren’t originally part of the 340B program.

Eye on Insurers

HEALTH REIMBURSEMENT RULE GETS A NEW DEFENSE Insurers, brokers, consultants and health reimbursement plan administrators are banding together to defend a Trump-era policy that allowed companies move their workers onto the Obamacare markets, Susannah reports.

The group, called the HRA Council, is being aided by former Trump White House official Brian Blase, who helped write the policy. Members include insurance startups, like Stride Health and Oscar, that have bet heavily on the Obamacare markets, as well as more established insurers like Centene and Blue Cross Blue Shield Minnesota.

Keep US Covered , an advocacy group that opposes “federal rules that incentivize weaker health benefits for workers and promote junk health coverage,” is pressing the Biden administration to rescind the policy.

On the Hill

DEMOCRATS PROD BIDEN FOR AID TO DEFRAY INSURANCE COSTS A group of Senate Democrats wants the White House to devote more federal aid to lowering Americans’ insurance deductibles and out-of-pocket health expenses, arguing the high costs are a deterrent to getting more people covered.

In a letter to Biden led by Sen. Jeanne Shaheen (D-N.H.), the 18 lawmakers pointed to the need to help more Americans pay premiums, as well as a fresh effort to close coverage gaps for low-income people in states that have yet to expand Medicaid. Shaheen has previously proposed legislation aimed at lowering deductibles and out-of-pocket expenses tied to Obamacare plans.

“To make historic progress toward covering the uninsured, and to ensure that having coverage truly delivers affordable access to health care and improved financial security, additional federal assistance to reduce cost-sharing expenses is critical,” the senators wrote.

MANCHIN, ROMNEY PITCH FUND FOR SUBSTANCE USE TREATMENT Ten senators are backing bipartisan legislation set to be reintroduced today that would impose fees on opioid pain pills to fund the expansion of substance use treatment programs.

The bill — which Sen. Mitt Romney (R-Utah) is co-sponsoring for the first time, alongside Joe Manchin (D-W.Va.) and eight other Democrats — would create a 1-cent tax on each milligram of active opioid ingredient in a prescription pain pill. The money raised would be poured into the government’s existing Substance Abuse Prevention and Treatment Block Grant, which funds a range of efforts expanding the access and availability of treatment.

 

A message from PhRMA:

Americans don’t need yet another barrier to their medicines. Especially now. Now is the time for us to rethink how we get the medicines we need. But there are right ways and wrong ways. While it may sound good on paper, H.R.3 would threaten patients’ access to treatments, put nearly a million American jobs at risk and jeopardize current and future medical innovation – all while failing to address the broader challenges facing America’s health care system.

We have to lower what patients pay for their medicines. We also have to make sure patients are getting the medicines they need. There’s a way to do both, but H.R.3 isn’t it. Get the facts at phrma.org/betterway.

 
Names in the News

Courtney Veatch is the new associate director of federal affairs for the Alzheimer’s Association. She was previously a counsel at the Department of Homeland Security.

What We're Reading

Black Americans’ vaccination rates trail those of white citizens in nearly every state, Kaiser Health News’ Hannah Recht, Rachana Pradhan and Lauren Weber report.

The Medicare program has spent $16.6 billion on Covid-19 hospitalizations during the pandemic — an average of about $24,000 per patient, Bloomberg Law’s Tony Pugh reports.

Vaccinations among active-duty military members have jumped by 55 percent over the last month, CNN's Oren Liebermann reports.

 

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