Friday, January 26, 2024

Health care’s rising helium fears

Presented by the Coalition to Protect America's Health Care: Delivered daily by 10 a.m., Pulse examines the latest news in health care politics and policy.
Jan 26, 2024 View in browser
 
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By Ben Leonard and Chelsea Cirruzzo

Presented by the Coalition to Protect America's Health Care

Driving The Day

House Natural Resources Chairman Rob Bishop (R-Utah) and Arizona Rep. Raúl  Grijalva, the ranking Democrat, want federal regulators to outline how they'll ensure "uninterrupted access to helium" in the coming years.

The Biden administration opened bids for its Federal Helium Reserve on Thursday. | Bureau of Land Management

NOT SPEAKING HIGHLY OF A SALE — As the Biden administration moves to sell its Federal Helium Reserve in Texas under Congress’ decades-old directive, the health care and gas industries are calling for the impending sale to be delayed.

Health care and helium industry groups argue that several outstanding issues remain that would pause production if the reserve is sold now. They say it would derail the supply chain, which would harm patients and raise costs.

Helium cools magnets in MRIs so the machines can function, and hospitals use the gas with ventilators. The gas is also key to developing semiconductors — used for medical devices — to prevent chemical reactions.

“They’re creating an unforced error,” said Rich Gottwald, CEO of the Compressed Gas Association, who wants to delay the administration’s efforts for at least 18 months. “The system’s going to have to shut down because of these issues.”

Others aren’t as concerned.

“If the assets are sold to a competent operator, not much of anything happens. It will keep going the way it’s been going,” said Phil Kornbluth, president of Kornbluth Helium Consulting. “There’s a pretty lengthy period of time to vet the winning bidder.”

The Biden response: A spokesperson for the Department of the Interior, which operates the reserve, said privatization isn’t expected to “meaningfully change” helium availability. A spokesperson for the General Services Administration, which is overseeing the sale, said it’s a “congressionally mandated, competitive sale.”

The administration opened bids for the reserve on Thursday.

Why the sale? In 1996, Congress directed the privatization of the Federal Helium Reserve — originally intended to boost military readiness via blimps — but it hasn’t happened yet.

The reserve had accrued $1.3 billion in debt, but Congress’ initial law to privatize the reserve didn’t work as intended. It used a pricing formula that used general inflation, which didn’t track with market prices. As a 2013 closing date approached, Congress delayed the sale until 2021 and directed it to be sold via auction.

In August 2022, the Biden administration pushed back the date again after Gottwald’s group raised concerns about disruptions to supply, he said. An administration official granted anonymity to discuss the situation said the delay was issued to further examine the situation.

WELCOME TO FRIDAY PULSE. As a 49ers and Ravens fan, I will be a nervous wreck for the next three days. We hope you enjoy your NFL championship Sunday. Reach us at bleonard@politico.com or ccirruzzo@politico.com. Follow along @_BenLeonard_ and @ChelseaCirruzzo.


How Fast Can We Solve Alzheimer’s?

On Wednesday, Jan. 31, starting at 5:30 p.m. ET, join POLITICO for our health care event, How Fast Can We Solve Alzheimer’s?, where lawmakers, officials and experts will discuss the breakthrough drugs and treatments for diseases like Alzheimer’s and ALS — and the path forward for better collaboration among health systems and industry.

 

A message from the Coalition to Protect America's Health Care:

Medicare Cuts Threaten The Hospital Care Patients Rely On. https://actnow.protecthealthcare.org/a/no-cuts-to-care

 
In Congress

Sen, Bernie Sanders arrives at Capitol Hill for a press conference.

Sen. Bernie Sanders arrives on Capitol Hill Thursday for a press conference about drug pricing. | Francis Chung/POLITICO

BERNIE’S PHARMA CEO QUEST — A HELP Committee Republican is considering a subpoena to pharmaceutical CEOs to appear before the panel.

Sen. Mike Braun (R-Ind.) left the door open to voting in favor.

“You’re getting called on the carpet because you’re in an industry that does not embrace free enterprise, competition and transparency,” Braun said.

Committee Chair Sen. Bernie Sanders (I-Vt.) said Thursday he thinks he has the votes to do so.

POLITICO’s Lauren Gardner and I tracked down committee members and found that Sanders also has support from many left-leaning colleagues. Some, like Sens. Tina Smith (D-Minn.) and Tammy Baldwin (D-Wis.), said they would prefer them to appear voluntarily but would vote to subpoena if necessary.

The background: Sanders has scheduled a Health, Education, Labor and Pensions Committee hearing Wednesday to vote to subpoena Johnson & Johnson CEO Joaquin Duato and Merck CEO Robert Davis to testify on drug pricing. Bristol Myers Squibb CEO Chris Boerner has agreed to testify before the panel alongside at least one other unnamed CEO, the committee said.

Pharma’s response: Merck and J&J doubled down.

“There’s no reason for a subpoena as Johnson & Johnson has cooperated with the Committee and offered to make one of its executives with expertise in the noticed topic available to testify at a hearing,” said Brian Smith, counsel to the company and partner at Covington & Burling.

Merck said it had made available a senior official responsible for pricing that Sanders declined.

At the end of the day, the CEOs make the decisions, and they have got to be held accountable,” Sanders said.

 

JOIN 1/31 FOR A TALK ON THE RACE TO SOLVE ALZHEIMER’S: Breakthrough drugs and treatments are giving new hope for slowing neurodegenerative diseases like Alzheimer’s disease and ALS. But if that progress slows, the societal and economic cost to the U.S. could be high. Join POLITICO, alongside lawmakers, official and experts, on Jan. 31 to discuss a path forward for better collaboration among health systems, industry and government. REGISTER HERE.

 
 
VETERANS' HEALTH

VA TRANSGENDER CARE LAWSUIT — The Transgender American Veterans Association said Thursday it’s filing a lawsuit against the Department of Veterans Affairs for not offering gender-affirming surgeries.

The group says the VA has failed to act on a petition to include such surgeries in its benefits package.

“Three years ago today, President Biden repealed the military’s ban on transgender service members,” Rebekka Eshler, president of TAVA, said in a release. “Yet when we return from service, we do not receive the same level of healthcare from the VA that other veterans do.”

The agency said it doesn’t comment on pending litigation.

What the VA has done: The VA says it offers “all needed gender-affirming care” sans surgeries, including hormone therapy and gender-affirming prosthetics.

VA Secretary Denis McDonough said in 2021 that the department would cover gender-affirming surgeries, and in November, he said the department is “working on a gender-affirming surgery regulatory action.”

Terrence Hayes, VA press secretary, said the rule is moving through the rulemaking process “carefully and thoroughly, with full understanding of its importance and urgency.”

No matter how the lawsuit plays out, it forces the Biden administration in an election year to address another controversial issue in gender-affirming care that Republicans have criticized.

VA AI ROUNDTABLE — The Senate Veterans’ Affairs Committee held a closed-door roundtable on artificial intelligence with tech experts and VA officials this week to help members understand AI’s potential at the VA, a committee staffer told Pulse.

Lawmakers discussed AI’s use in diagnostics, how to protect veterans’ data and how the technology would “support, not replace” workers offering care and benefits. VA officials also said how the agency is working to comply with a sweeping AI executive order, the staffer said.

The bigger picture: The roundtable comes as lawmakers seek to learn more about the technology as they eye potential regulation.

Antitrust

FTC WADES INTO HOSPITAL MERGER — In another attempt to block a hospital merger, the Federal Trade Commission is challenging Novant Health’s $320 million deal to purchase two North Carolina hospitals.

On Thursday, the FTC sued to block the deal with Community Health Systems, saying it would drive up prices and hinder incentives for quality care.

“Hospital consolidations often lead to worse outcomes for nurses and doctors, result in higher prices, and can have life and death consequences for patients,” Henry Liu, director of the FTC’s Bureau of Competition, said in a release.

The response: A Novant spokesperson told Pulse that the company will “pursue available legal responses to the FTC’s flawed position” and it’s committed to offering the “highest-quality” care. 

A CHS spokesperson said the company appreciates “the professionalism of the medical staff, nurses and caregiving team as they continue to deliver quality care for their patients throughout the regulatory process.”

The bigger picture: The FTC has honed in on consolidation in the health care sector as a threat to competition and consumers’ pocketbooks. Last month, the FTC dropped its challenge of a California hospital merger because the companies terminated the deal.

 

A message from the Coalition to Protect America's Health Care:

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DIGITAL HEALTH

NEW DIGITAL HEALTH CAUCUS — The Consumer Technology Association will host a briefing with Reps. Troy Balderson (R-Ohio) and Robin Kelly (D-Ill.) next week to launch the Congressional Digital Health Caucus.

The caucus will aim to ensure that “all Americans benefit from the transformative power of digital health tools.” The Feb. 1 event will have a panel on artificial intelligence in health care with speakers from Google, Microsoft, Amazon Web Services and Hippocratic AI.

The big picture: The caucus’ launch comes amid a surge in interest in health technology like AI, telehealth, wearable technology and remote patient monitoring to address issues in health care.

 

Enter the “room where it happens”, where global power players shape policy and politics, with Power Play. POLITICO’s brand-new podcast will host conversations with the leaders and power players shaping the biggest ideas and driving the global conversations, moderated by award-winning journalist Anne McElvoy. Sign up today to be notified of new episodes – click here.

 
 
Names in the News

Mario Moreno Zepeda will be chief of staff for the office of the provost at the University of Chicago. He was chief of staff for the White House’s Office of National Drug Control Policy.

Kirk Williamson will be executive director of the New Hampshire Prescription Drug Affordability Board. He was health care manager of the drug pricing and clinical trials portfolio at Arnold Ventures.

WHAT WE'RE READING

POLITICO's Doug Palmer writes that a bipartisan group of senators is urging President Joe Biden to oppose a World Trade Organization proposal that would weaken intellectual property rights on Covid-19 products.

Faegre Drinker has its latest look at the federal health policy landscape.

POLITICO’s Kelly Hooper reports on Humana’s losses.

 

A message from the Coalition to Protect America's Health Care:

Hospitals provide critical services for patients who are sicker, face complicated diseases or who require 24/7 care — regardless of their ability to pay.

While hospitals work to provide care round-the-clock, corporate insurance companies are pushing Congress to enact huge cuts to hospital care. These hospital cuts would hurt rural communities, underserved patients, and seniors on Medicare.

Our hospitals deserve better. Patients deserve better. Seniors deserve better. Get the facts: https://actnow.protecthealthcare.org/a/no-cuts-to-care

 
 

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