Wednesday, September 18, 2024

Harris’ AG past hints at tough pharma stance

Presented by The American Hospital Association: Delivered daily by 10 a.m., Pulse examines the latest news in health care politics and policy.
Sep 18, 2024 View in browser
 
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By Ben Leonard and Chelsea Cirruzzo

Presented by The American Hospital Association

With Lauren Gardner and Daniel Payne

Driving the Day

Kamala Harris delivers remarks in front of a medical debt relief sign

A look at Vice President Kamala Harris' past dealings with drugmakers could indicate the direction she'll take if she's elected president. | Stefani Reynolds/AFP via Getty Images

READING THE PHARMA TEA LEAVES — Democratic presidential candidate Kamala Harris is launching several health care events with providers, advocates and lawmakers in swing states this week, signaling the issue will continue to be a major part of her campaign.

As California attorney general, Harris focused on health care — including challenging drug patent holders and unfair practices in marketing treatments for off-label use.

She’s now leaning into speeding up government drug pricing negotiations to reduce costs to Medicare beneficiaries and has previously supported “march-in” rights, when the government can lower prices by awarding a patent for research it funded to another company. Such measures signal an aggressive stance on drug pricing if Harris wins the election.

“From her track record, it would be a reasonable assumption that she would continue to be aggressive, particularly in the pharmaceutical area and drug prices. I suspect that would be her number one priority,” Richard Scheffler, a distinguished professor of health economics and public policy at the University of California, Berkeley, said.

Pharma’s take: Her aggressiveness might not go over well with pharmaceutical companies and others in the industry. Catherine Hill, a spokesperson for brand name drug lobby PhRMA, said that U.S. pharmaceutical innovation hinges on “robust [intellectual property] protections” and blamed drug costs on pharmacy benefit managers, the middlemen that negotiate drug prices on behalf of insurers and employers. She said the group is “ready to work with policymakers” on reforms that maintain incentives for innovation.

Joel White, president of the Council for Affordable Health Coverage, whose members include health plans, providers, patients and employers, said he would expect aggressive action at the U.S. Patent and Trademark Office and the FDA.

“This is probably the most anti-innovation environment and administration that I’ve seen in decades,” White, a former House Ways and Means Committee GOP staffer, told Pulse. “There’s only so much weight that can be borne."

A Harris spokesperson said she’d support innovation.

“Vice President Harris has spent her career taking on and beating predatory corporate interests,” Harris campaign spokesperson James Singer said in a statement to Pulse. “She’s taken on big Pharma and won. As president, she will work to lower costs for consumers and ensure America continues to lead the world in innovation.”

Karoline Leavitt, national press secretary for the Trump campaign, didn’t directly address Harris’ record on pharmaceuticals in a statement but said Trump would “make healthcare affordable again” by bolstering transparency and access to new prescription drug options.

Here are some of the vice president’s actions on pharmaceutical issues, which could signal what to expect during a Harris administration:

Patents: Harris’ attorney-general litigation on drug patents suggests the USPTO and the FTC could try to prevent pharmaceutical companies from what her administration would consider as stifling competition.

Harris joined a lawsuit filed by other state attorneys general in 2016 that challenged two pharmaceutical industry companies, Indivior and MonoSol Rx, for allegedly inflating the price of the opioid addiction treatment Suboxone, which resulted in a major settlement.

In 2011, Harris and other state attorneys general filed an amicus brief urging the Supreme Court to review so-called “pay for delay” schemes, in which patent holders pay potential generic competitors to delay marketing.

Consumer protection: Harris took on some drugmakers over what she said were unfair and deceptive practices in marketing treatments for off-label uses. That suggests a Harris administration could leverage the FTC and the FDA on consumer protection.

A range of cases resulted in billions of dollars of settlements, including a $2.2 billion settlement with Johnson & Johnson over marketing to patients for whom the drugs weren’t approved and making “false and misleading statements” about their efficacy. J&J didn’t admit wrongdoing.

WELCOME TO WEDNESDAY PULSE. The Congressional Football Game is today, and Reps. Mike Bost (R-Ill.) and Greg Murphy (R-N.C.) are playing. Send your tips, scoops and feedback to bleonard@politico.com and ccirruzzo@politico.com and follow along @_BenLeonard_ and @ChelseaCirruzzo.

 

A message from The American Hospital Association:

Hospitals care for patients and keep communities healthy. But access to care is at risk. Tell Congress to protect patient access to care and services. Learn more: https://www.aha.org/advocacy/action-center

 
In Congress

Sens. Lisa Murkowski, left, and Susan Collins

Sens. Lisa Murkowski (left) and Susan Collins were once again the lone GOP senators who voted to pass a bill that would protect access to in vitro fertilization. | Alex Wong/Getty Images

GOP BLOCKS IVF VOTE — Senate Republicans blocked passage Tuesday of a Democratic bill that would federally protect access to in vitro fertilization and require public and private insurance to cover IVF and other fertility treatments, Ben and POLITICO’s Alice Miranda Ollstein report.

Just as they did when they voted down the same bill earlier in June, Republicans argued the measure was unnecessary and problematically broad and dismissed it as a political stunt they felt no pressure to endorse.

“It’s a messaging opportunity,” said Sen. Mitt Romney (R-Utah), adding that the bill has unspecified “poison pills that Republicans find unacceptable.”

The 51-44 vote fell far short of the 60-vote threshold Democrats needed to overcome a filibuster. Only Sens. Lisa Murkowski (R-Alaska) and Susan Collins (R-Maine) broke with the rest of the GOP to support the bill, the same as in June.

The bigger picture: The vote comes on the heels of former President Donald Trump pitching himself as “a leader on fertilization, IVF” in his debate with Vice President Kamala Harris and pledging to make IVF free for all Americans, whether through direct taxpayer funding or a requirement that insurance companies cover procedures.

Democrats have focused on IVF in the runup to the November election, arguing that an ongoing threat stems from the fall of Roe v. Wade, which Republicans take credit for. Senate Majority Leader Chuck Schumer suggested the vote was intended to highlight divisions in the GOP on the issue.

HOUSE PASSES HEALTH BILLS — The House passed a slew of health care bills Tuesday night, teeing them up for potential inclusion in an end-of-year package. Many are backed by members who aren’t seeking reelection.

That includes legislation that would allow health savings accounts tied to high-deductible health plans to cover chronic care services before patients hit their deductibles, from Reps. Brad Wenstrup (R-Ohio) and Earl Blumenauer (D-Ore.). That bill was passed by voice vote, a positive sign for a bill that had some Democrats opposed in committee.

The House also passed a $3 billion supplemental spending package for the VA by voice vote.

GUTHRIE ON MEDICARE ADVANTAGE — Rep. Brett Guthrie (R-Ky.), chair of the House Energy and Commerce Health Subcommittee, said Tuesday that prior authorization in Medicare Advantage will be on the agenda in the next Congress and hopes the industry “solves it amongst yourselves.”

At an event hosted by the Better Medicare Alliance, a research and advocacy group supporting Medicare Advantage, in Washington, Guthrie said that prior authorization is necessary, but it “has to work.” He said that doctors see it as “bureaucracy.”

“Medicare Advantage is going to continue to grow. It’s going to be strongly supported,” said Guthrie, who is vying to become chair of the full committee in the next Congress. “But you do need to look at what issues there are and work together … and sometimes we have to step in.”

Zooming out: Medicare Advantage plans have come under bipartisan scrutiny over care denials through prior authorization. Insurers have said it’s needed to curb wasteful spending and unneeded care.

The Better Medicare Alliance has supported legislation that would reform prior authorization in MA.

“Prior authorization helps keep health care costs low and helps ensure seniors are getting the best care, but it should be easier,” said Rebecca Buck, a BMA spokesperson.

Chris Bond, a spokesperson for insurer lobby AHIP, said MA plans are “always working to further simplify and improve” prior authorization.

CHCs MAKE THEIR CASE — Community health centers are looking to Congress to offer them more — and more reliable — federal funding in the coming years, Daniel reports.

More than 550 groups — community health centers and their allies — will send a letter to House and Senate leadership asking for $5.8 billion in annual funding for three years — similar to a proposal from Sens. Bernie Sanders (I-Vt.) and Roger Marshall (R-Kan.).

Tick tock: CHC funding expires at the end of the year.

DOC POISED FOR FREEDOM — Rep. Andy Harris (R-Md.) has been elected the next chair of the ultraconservative House Freedom Caucus after Rep. Andy Biggs (R-Ariz.) dropped out of the running, POLITICO’s Olivia Beavers and Jordain Carney report.

Harris, an anesthesiologist who chairs the House Appropriations Committee’s panel on the FDA, would succeed Rep. Bob Good (R-Va.), who lost a primary earlier this year.

 

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PHARMA WATCH

SANDERS TEES UP NOVO HEARING — The CEOs of “major” generic drug companies have told Senate HELP Chair Bernie Sanders that they could manufacture and sell copycat versions of Novo Nordisk’s diabetes drug Ozempic for less than $100 a month and still profit, the Vermont independent said Tuesday, Lauren reports.

Sanders’ statement comes a week before Novo CEO Lars Jørgensen testifies before the Health, Education, Labor and Pensions Committee about his company’s prices for the class of products known as GLP-1s in the U.S. compared with other countries. Sanders has taken credit for pushing pharma executives to cut consumer costs for commonly used items like inhalers and insulin since he took the gavel, and he’s trained his focus on the Danish drugmaker as demand for the diabetes and weight-loss medicines remains high.

A Novo spokesperson said both products’ net prices have declined since they launched — Ozempic’s list price is $969, and net price data is unreliable given different discounts pharmacy benefit managers can extract from manufacturers. They also noted that most commercial plans cover Ozempic, and more than 80 percent of insured Americans pay $25 or less a month.

“Unfortunately, even when we lower our prices, too often patients in the United States don’t receive the savings — this is a problem,” the spokesperson said.

Sanders spokesperson Anna Bahr said his office couldn’t disclose the generic manufacturers in question due to active litigation over the sale of Ozempic.

WHAT WE'RE READING

Fierce Healthcare reports on what consulting firm McKinsey thinks could keep doctors from leaving the profession.

The Wall Street Journal reports on the potential of artificial intelligence companies to aid in the loneliness epidemic.

 

A message from The American Hospital Association:

Hospitals care for patients and keep communities healthy. But access to care is at risk. Tell Congress to protect patient access to care and services.

Learn more: https://www.aha.org/advocacy/action-center

 
 

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