Democrats at a crossroads over Biden’s spending package — First in PULSE: Tri-Caucus backs expanding Medicaid coverage in holdout states — The promise and peril of at-home STD testing

From: POLITICO Pulse - Thursday Jun 17,2021 02:55 pm
Presented by PhRMA: Delivered daily by 10 a.m., Pulse examines the latest news in health care politics and policy.
Jun 17, 2021 View in browser
 
POLITICO's Pulse newsletter logo

By Adam Cancryn and Sarah Owermohle

Presented by

PhRMA

With Rachel Roubein and Alice Miranda Ollstein

PROGRAMMING NOTE: Morning PULSE will not publish on Friday June 18. We'll be back on our normal schedule on Monday June 21. Please continue to follow Pro Health Care.

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.

Quick Fix

— Democrats are at an impasse over how to advance President Joe Biden's spending package and what health provisions it should include.

— Three powerful congressional caucuses want the federal government to expand Medicaid coverage in holdout states.

— At-home testing for sexually transmitted diseases is likely to outlast the coronavirus pandemic.

WELCOME TO THURSDAY PULSE — and a happy early (and soon-to-be federally recognized) Juneteenth. Tips and feedback to acancryn@politico.com and sowermohle@politico.com.

 

A message from PhRMA:

The way insurance covers your medicine is too complicated. See how we can make the system work for patients. Not the other way around.

 
Driving the Day

DEMOCRATS AT A CROSSROADS OVER SPENDING PACKAGE Democrats on Capitol Hill are weighing pairing a bipartisan infrastructure proposal with a more progressive spending bill that would need to be passed along party lines. But there’s no consensus on what that partisan package should look like, as both centrist and liberal Democrats pile on demands, POLITICO’s Burgess Everett and Sarah Ferris report.

The possibility of melding everything together into a single bill that Democrats would pass under rules requiring only 51 votes also remains, though it’s doubtful that’d be any easier for them.

To wit: House progressives are calling for ambitious measures that include lowering Medicare’s eligibility age. That’s something Biden promised during his campaign, but it would amount to a major change in the health program’s structure. They’ve also vowed not to back any bipartisan deal unless Democratic leaders commit to a separate partisan process that would deliver on more of their priorities.

On the Senate side, Budget Chair Bernie Sanders (I-Vt.) is writing a budget resolution that would allow Medicare to negotiate drug prices and expand it to include dental, hearing and vision benefits, POLITICO’s Alice Miranda Ollsten reports.

But there’s little expectation that the entire party would agree to those provisions. Democratic aides emphasized that Sanders’ bill language isn’t binding. And House Budget Chair John Yarmuth (D-Ky.) declined to say whether he’d include drug pricing language in his separate resolution, arguing that Democrats will soon have to coalesce around a single path forward.

“There’s zero margin,” he said. “Everybody’s in [a] position to sabotage whatever we’re doing.”

Where the White House stands: Biden officials have privately reassured anxious Democrats they support eventually passing a partisan bill that includes money for eldercare, child care and other priorities Republicans won’t sign off on, POLITICO’s Laura Barrón López writes.

 

DON'T MISS THE MILKEN INSTITUTE FUTURE OF HEALTH SUMMIT: POLITICO will feature a special edition of our Future Pulse newsletter at the 2021 Milken Institute Future of Health Summit. The newsletter takes readers inside one of the most influential gatherings of global health industry leaders and innovators who are turning lessons learned from the past year into a healthier, more resilient and more equitable future. Covid-19 threatened our health and well-being, while simultaneously leading to extraordinary coordination to improve pandemic preparedness, disease prevention, diversity in clinical trials, mental health resources, food access and more. SUBSCRIBE TODAY to receive exclusive coverage from June 22-24.

 
 


FIRST IN PULSE: TRI-CAUCUS BACKS FEDERALIZING MEDICAID EXPANSIONThe effort to extend health insurance to millions of low-income Americans is getting a powerful boost from the Congressional Black Caucus, Congressional Hispanic Caucus and the Congressional Asian Pacific American Caucus, POLITICO’s Rachel Roubein reports.

In letters to congressional leaders, Biden and Vice President Kamala Harris, the group of more than 60 Democrats advocated using the next spending package to close the Medicaid coverage gap in states where it’s persisted. Doing so would be “one of the single most important steps” toward reducing the nation’s health inequities, they wrote.

Biden’s coronavirus relief package included new incentives for holdout states to expand Medicaid, but none have budged. That sparked a Democratic campaign for a federal program guaranteeing coverage for low-income adults shut out of Medicaid expansion. But lawmakers must still figure out how to craft the policy so it doesn’t inadvertently reward the states that have blocked expansion for years.

A group of Democrats will pitch one legislative option for accomplishing that today. The new bill would let local governments expand Medicaid on their own, in what would amount to an end-run around Republican governors and state legislatures that have refused to do so voluntarily. the program.

The bill, led by Rep. Lloyd Doggett (D-Texas), is supported by the vast majority of House Democrats who hail from the roughly dozen states that have yet to expand Medicaid. They've already sent a letter to the Congressional Budget Office asking for an expedited assessment of its cost. The House Energy and Commerce Committee submitted an initial request in May at Doggett's urging, though a committee spokesperson emphasized it still hopes to find a way to provide blanket coverage to everyone who falls into the coverage gap.

How it would work: Local governments would get the same support originally provided to states, with the federal government picking up the entire tab for newly eligible Medicaid enrollees for three years. That aid would gradually phase down to 90 percent by the seventh year, leaving it up to local officials to decide how to pay for their share.

FIRST IN PULSE: DEMOCRATS SEEK TO CODIFY POSTPARTUM COVERAGE — More than 160 lawmakers, led by Reps. Lauren Underwood (D-Ill.), Alma Adams, Robin Kelly and Sen. Cory Booker have signed on to a letter to Democratic leaders endorsing a permanent expansion of yearlong postpartum Medicaid coverage as part of the next spending bill. The letter also urges them to include a suite of policies aimed at driving down the maternal mortality rate for Black women.

THE PROMISE AND PERIL OF AT-HOME STD TESTINGOverwhelmed by Covid-19 and reluctant to make patients come in for routine screenings, health departments in the last year began distributing free STD test kids that could be used at home and mailed into a lab for results. But what started as a pandemic necessity could become a permanent way to tamp down gonorrhea, syphilis, chlamydia and HIV, POLITICO’s Alice Miranda Ollstein reports.

The good: The privacy and convenience of the tests could encourage more people to get tested, circumventing traditional barriers to access and cutting down on the stigma. In cities like Los Angeles and Washington, D.C., public health officials said they’re already seeing at-home tests help catch infections earlier.

The bad: None of the available at-home STD tests are FDA-approved, meaning they’re less reliable and more expensive, with only the private labs that developed them able to process the results. Groups like the National Coalition of STD Directors have pushed for greater federal regulation, but the FDA has not said whether it will intervene.

The ugly: The online market for STD tests has turned into a Wild West, with startups making unsubstantiated claims and marketing their products directly to patients.

Obamacare

BECERRA: SCOTUS WILL ‘DO THE RIGHT THING’ IN ACA CASE — HHS Secretary Xavier Becerra told lawmakers on Wednesday that if the Supreme Court wants to “protect the Constitution and its values,” its highly anticipated ruling on the Affordable Care Act will keep the health law intact.

“I have a great deal of confidence that the Supreme Court — those justices — will find their way to do the right thing for America," he said before the House Education and Labor Committee.

The Supreme Court could rule as early as today on a bid by GOP-led states to invalidate Obamacare in its entirety. Though experts on both sides of the aisle have derided the lawsuit and justices appeared skeptical during last year’s oral arguments, there is still a chance the court’s conservative majority could throw out some or all of the law.

Becerra warned the damage would be catastrophic if Obamacare is killed, but offered few details for how the administration would seek to stabilize the nation’s health system if that happens. “If they somehow for some reason decide that it is not constitutional — well, then, you all have some really important work to do, and so do we,” he told the committee.

 

SUBSCRIBE TO WEST WING PLAYBOOK: Add West Wing Playbook to keep up with the power players, latest policy developments and intriguing whispers percolating inside the West Wing and across the highest levels of the Cabinet. For buzzy nuggets and details you won't find anywhere else, subscribe today.

 
 
Vaccines

CUREVAC’s COVID VACCINE FALLS SHORT — A large-scale trial found the German company’s vaccine is just 47 percent effective, far less than the other Covid-19 shots already in use, POLITICO’s Jillian Deutsch reports.

The result came out of a 40,000-person trial across 10 countries in Europe and Latin America, where at least 13 coronavirus variants are circulating, according to CureVac’s count. More than half of those who contracted Covid after receiving the vaccine’s second dose were infected with so-called variants of concern.

The vaccine’s efficacy rate could still improve as it heads toward a final analysis at the end of the month, and it was at least shown to be safe. Still, it’s a disappointing result compared with a portfolio of vaccines that have so been almost universally effective at preventing hospitalization and death from the virus.

 

Advertisement Image

 
Health Costs

ALTARUM: HEALTH SPENDING RECOVERY CONTINUES — National spending on health care in April was nearly one-third higher than during the same period last year, reflecting a steep pandemic-induced drop and subsequent recovery as the economy reopens, according to Altarum’s analysis of economic data.

Compared to pre-Covid January 2020 levels, net growth in health spending was 1.5 percent through April. But that recovery has been bumpy: While spending on home health care and prescription drugs is on the upswing again, there is still little demand for dental services. April spending on dental care came in 14.6 percent below January 2020’s pre-pandemic level.

What We're Reading

In The Washington Post, Christopher Rowland chronicles how Pfizer’s engineers turned it into the world’s biggest supplier of Covid-19 vaccine.

A helmet that was five years and $110 million in the making could help expand scientists’ understanding of brain aging and mental disorders, Bloomberg Businessweek’s Ashlee Vance reports.

Spinal implant hardware manufacturers have paid billions of dollars to orthopedists and neurosurgeons, raising anti-kickback concerns and questions about the benefits to devices to patients, Kaiser Health News’ Fred Schulte and Elizabeth Lucas report.

 

A message from PhRMA:

Getting to what you pay for medicines shouldn’t be a maze. Let’s make out-of-pocket costs transparent, predictable and affordable. And let’s do it without sacrificing access to medicines and innovation. See how we can make the system work for patients. Not the other way around.

 
 

Follow us on Twitter

Joanne Kenen @joannekenen

Adriel Bettelheim @abettel

Jason Millman @jasonmillman

Lauren Morello @lmorello_dc

Sara Smith @sarasmarley

Adam Cancryn @adamcancryn

Tucker Doherty @tucker_doherty

Dan Goldberg @dancgoldberg

David Lim @davidalim

Susannah Luthi @SusannahLuthi

Alice Miranda Ollstein @aliceollstein

Sarah Owermohle @owermohle

Carmen Paun @carmenpaun

Rachel Roubein @rachel_roubein

Darius Tahir @dariustahir

Erin Banco @ErinBanco

Lauren Gardner @Gardner_LM

Katherine Ellen Foley @katherineefoley

 

Follow us

Follow us on Facebook Follow us on Twitter Follow us on Instagram Listen on Apple Podcast
 

To change your alert settings, please log in at https://www.politico.com/_login?base=https%3A%2F%2Fwww.politico.com/settings

This email was sent to by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA

Please click here and follow the steps to .

More emails from POLITICO Pulse