Budget day for Biden — Democrats plan spending rule workarounds — Overdoses spike as White House drug office sits empty

From: POLITICO Pulse - Friday May 28,2021 02:03 pm
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Quick Fix

— President Joe Biden is likely to call for big boosts to health spending as part of his budget request, set to be released today.

— Congressional Democrats are getting creative to boost funding to abortion providers and gun violence researchers.

— Biden is facing growing impatience over his delay in naming a permanent U.S. “drug czar.”

WELCOME TO FRIDAY PULSE where for everybody except CNN's Manu Raju, here is your moment of zen. Have a great Memorial Day weekend and send tips 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

IT’S BIDEN’S BUDGET DAY The White House’s budget ask, expected to top $6 trillion overall, would pour billions of dollars into agencies like the CDC and NIH that have been at the center of the pandemic response.

It’ll be a sharp reversal from the Trump era, when officials repeatedly sought spending cuts, and an expression of Biden’s embrace of big-government programs as central to solving the nation’s most entrenched health challenges, from Covid-19 to gun violence and the opioid epidemic.

But the president is limiting his ambitions in one notable way. His budget request is unlikely to propose new health policy overhauls of the sort that Biden campaigned on. That means no money for implementing a public option, for expanding Medicare benefits and eligibility — or even, much to some Democrats’ dismay, for allowing the government to negotiate drug prices.

The White House instead will express support for eventually accomplishing those goals, but won’t offer any specifics for how Congress should get them done or pay for them, The New York Times and Washington Post reported. It’s an additional blow to Democrats who have pressed Biden for weeks to include their health priorities in his plans for spending packages this year, for fear they’ll slip to 2022 or beyond.

Obligatory annual reminder here that the president’s budget is just a wish list. Congress will almost assuredly ignore large parts of it. But among the specific initiatives to keep an eye out for:

The creation of a new health research agency. NIH Director Francis Collins this week previewed the $6.5 billion Biden will likely ask for to create a health care version of the Advanced Research Projects Agency, or ARPA-H — essentially a research accelerator that would focus on treatments for cancer and other diseases. The concept has already won bipartisan buy-in, though it’s still unclear how it would be incorporated within NIH.

New spending on public health preparedness. The White House’s “skinny budget” in April sought $8.7 billion for the CDC, representing the infectious disease agency’s biggest budget boost in years. Biden could also seek funding elsewhere to build out the U.S.’s scientific workforce and improve state and local public health operations.

Renewed emphasis on the opioid and gun violence epidemics. Biden is likely to call for renewed investment in gun violence research within HHS, as well as billions more to curb a record rise in drug overdoses.

More funding for smaller health offices, such as the Indian Health Service and Office of Refugee Resettlement. The latter agency has had to siphon money from elsewhere in HHS to manage care for its large migrant child population.

DEMOCRATS’ PLAN B ON THE BUDGET For all the fanfare around Biden’s budget, congressional Democrats are already eyeing what comes next — and devising workarounds to longstanding bans on funding for abortion and gun violence research, POLITICO’s Caitlin Emma reports.

Despite White House support for abandoning the two riders (called the Hyde and Dickey amendments, respectively), there’s little expectation Congress will vote to do so. So Democrats instead are trying to fund those priorities indirectly, targeting big increases for reproductive health services and grant programs that fund clinics like Planned Parenthood.

Democrats are also rushing to take advantage of a recent weakening in the restrictions around gun violence research by distributing billions of dollars to various federal agencies to bolster research, prevention initiatives and background check systems.

 

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Building the Biden Administration

BIDEN FACES HEAT OVER DRUG CZAR DELAY The delay in naming a permanent head of the White House drug office has left former U.S. drug czars and nearly 40 anti-addiction groups “very concerned,” they wrote in a letter to Biden urging him to make a decision soon.

The group on Thursday pointed to a record-breaking surge of drug overdose deaths over the last year, arguing the swelling numbers “requir[e] a fully functioning” Office of National Drug Control Policy.

Nearly 89,000 people died of overdoses during the 12-month period ending in October, with experts projecting a continued acceleration driven by both the stressors of the pandemic and the availability of increasingly potent illegal drugs.

Biden is considering two top candidates to run ONDCP, POLITICO’s Rachel Roubein and Dan Goldberg report: Regina LaBelle, who has run the office on an acting basis since January, or former West Virginia public health commissioner Rahul Gupta, an ally of that state’s Democratic senator, Joe Manchin.

Gupta’s candidacy has faced resistance in recent months over the closure of a syringe exchange during his time as a state official. But public health advocates say they’re growing increasingly antsy over the time it’s taking Biden to make a selection.

“It really looks like this isn’t a priority,” said Kevin Sabet, a former senior adviser at ONDCP during the Obama administration.

BIDEN’s CMS CHIEF IS ON THE JOB Chiquita Brooks-LaSure was sworn in Thursday by HHS Secretary Xavier Becerra, officially beginning her tenure as the first Black woman to lead the Medicare and Medicaid agency, POLITICO's Rachel Roubein reports.

The trillion-dollar agency will be critical to enacting Biden’s health agenda — including expanding the Affordable Care Act, which Brooks-LaSure herself helped craft and implement as a Hill staffer and Obama-era health official. Becerra, in a statement, noted that he’d “worked closely” with her during his time as a member of the House.

 

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Coronavirus

KAISER: ‘EAGER’ AMERICANS HAVE GOTTEN THEIR SHOTS Reaching Biden’s goal of a 70 percent vaccination rate by July 4 will depend largely on convincing on-the-fence adults to get their coronavirus shots, according to a new Kaiser Family Foundation survey.

The organization found that nearly all those who were eager to get vaccinated have already done so, with just 4 percent of adults still saying they want to be immunized “as soon as possible.”

That leaves an additional 12 percent who say they’re waiting to see how well the vaccines work — a cohort that could still be convinced. More than one-third of that group, in fact, said they’ve already scheduled a vaccination appointment or plan to do so within the next three months.

But the CDC’s changing guidance has done little to help, with four in 10 respondents saying the agency’s advice has been confusing and hard to follow. Among those who are unvaccinated, 85 percent said the CDC’s declaration that fully vaccinated people don’t need to wear masks or physically distance had no effect on their own enthusiasm for getting a shot.

Public Health

VA REVIEWING MEDICAL RECORD PROJECT’s COSTS The Department of Veterans Affairs is reviewing a host of technology cost estimates tied to its long-running digital health records overhaul, POLITICO’s Darius Tahir reports.

The fresh scrutiny comes two days after an inspector general report revealed the VA had understated its cost estimates by billions of dollars. The VA is now reassessing the estimates, a department official told the House Veterans’ Affairs Committee on Thursday. The project — which uses software from developer Cerner — was originally started by former Trump White House adviser Jared Kushner.

 

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Names in the News

Victor Sloan is now associate director for health services at the Peace Corps. He previously was CEO of Sheng Consulting and holds a faculty appointment as Clinical Professor of Medicine at the Rutgers Robert Wood Johnson Medical School, where he sees patients as a volunteer.

 

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.

 
What We're Reading

The U.S. possesses a raft of yet-to-be-examined intelligence related to the origins of the coronavirus, The New York Times' Julian Barnes and David Sanger report.

A World Health Organization-led team investigating Covid-19's origins is warning that time is running out to examine blood samples and other clues, The Wall Street Journal's Jeremy Page and Drew Hinshaw report.

Several research teams are trying to develop microneedle patches that could deliver vaccines painlessly, NPR's Joe Palca reports.

 

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