Friday, September 20, 2024

Lame-duck leftovers

Presented by The American Hospital Association: Delivered daily by 10 a.m., Pulse examines the latest news in health care politics and policy.
Sep 20, 2024 View in browser
 
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By Ben Leonard and Chelsea Cirruzzo

Presented by The American Hospital Association

Driving the day

The Capitol building is pictured.

As the November elections approach, Congress' year-end package could address health policy issues like telehealth extensions and pharmacy benefit manager reforms. | AP

LAME-DUCK BATTLES AHEAD — Now that Congress has wrapped up most of its health care legislative work before the elections, the contours of what could be included in an end-of-year package are taking shape.

Both the House Energy and Commerce and Ways and Means committees have advanced telehealth extension bills, and several proposals to reform pharmacy benefit manager practices have surfaced. Nearly every health interest will also jockey to get their priorities into a potential package, which could be a December spending bill. Many lawmakers not seeking reelection will also aim to get their priorities across the finish line to help cement their legacies.

The scope of such a package could depend significantly on the outcome of November’s elections. Rodney Whitlock, vice president at McDermott+ Consulting, told Pulse a status quo election — the House remaining in GOP control and the Senate and White House in Democratic control — would maximize the potential scope.

“A status quo election … is the least likely outcome,” Whitlock said. “It is the dynamics caused by the shift in control that will ultimately be the limiter on lame-duck activity.”

Eli Greenspan, policy adviser at Foley Hoag, said a stopgap spending bill that runs through the middle of December instead of a shorter-term patch would indicate that lawmakers are more seriously eyeing a substantial end-of-year package.

Here are some top issues and their current status: 

Telehealth: Two key committees advancing two-year extensions of eased Medicare telehealth rules must reconcile their differences and potential differences with the Senate, which hasn’t advanced a telehealth extension. Congress is unlikely to let the rules expire at the end of the year, given their popularity and broad bipartisan support. Any additional provisions included in an extension would likely come down to their cost.

PBMs: There is bipartisan momentum for reforms to pharmacy benefit managers, which manage drug benefits for health plans. The House passed its Lower Costs, More Transparency Act overwhelmingly last year, but PBM reform didn’t hitch a ride on a spending package this spring. Competing proposals need to be hashed out.

BIOSECURE: The House passed the BIOSECURE Act, which would effectively bar Chinese biotechs from doing business in the U.S., in a 306-81 vote last week. But most of the opposition came from Democrats, who control the Senate. That suggests there could be some friction going forward to final passage, either as a standalone or in a package.

Doctor pay: A top priority for doctors groups and many lawmakers will be averting Medicare payment cuts for doctors, though major reform is unlikely.

A key issue for such end-of-year policymaking is how to pay for it. Here are some potential offsets:

PBM reform: PBM-related provisions banning so-called spread-pricing — when PBMs pay a pharmacy less for a drug than what they charged an insurer — and other changes could be potential pay-fors.

Pharmaceuticals: A slew of bills aimed at bolstering competition in the pharmaceutical marketplace could save billions, according to the Congressional Budget Office, including patent reforms and more generic-drug competition.  

Site-neutral payments: Proposals to change Medicare policy so that drugs administered in a hospital outpatient department are reimbursed at the same rate as a doctor’s office have drawn significant opposition. The CBO estimates the policies would save billions.

WELCOME TO FRIDAY PULSE. Moo Deng is upset about your misspelling of HIPAA. 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

This file photo shows the seal affixed to the front of the Department of Veterans Affairs building in Washington.

A $3 billion measure to sustain veterans' benefits cleared the Senate on Thursday. | Charles Dharapak/AP

VA CASH GOES TO BIDEN — The Senate passed a $3 billion supplemental spending bill Thursday by voice vote to keep veterans’ benefits flowing, sending the bill to President Joe Biden’s desk.

Biden is expected to sign the bill to avert payment delays for the benefits veterans expect by the first of the month, POLITICO’s Jennifer Scholtes reports. Despite bipartisan support in both chambers, Republicans have hit the Biden administration for what they see as budget mismanagement. Democrats have criticized the GOP for not including more funding to fill the shortfall.

More to come: The VA expects a $12 billion funding gap over the next year as the agency serves more veterans than ever after the PACT Act, which expanded benefits for veterans exposed to toxins, was passed two years ago.

The additional funding could be a source of controversy in negotiations to avert a government shutdown before the end of the month.

GOVERNMENT FUNDING LATEST — Lawmakers expect House Speaker Mike Johnson to put a stopgap spending bill with Democratic support running through December on the floor next week, POLITICO’s Congress team reports.

The news comes after a GOP plan that included a requirement of proof of citizenship to register to vote failed Wednesday on the House floor. Appropriators in both chambers have suggested Dec. 13 as a potential end date for the bipartisan funding patch, but no final decisions have been made.

In the upper chamber, Senate Majority Leader Chuck Schumer is readying a legislative vehicle that would allow lawmakers to avoid a shutdown.

Abortion

UPDATE ON BALLOT INITIATIVES — New York Gov. Kathy Hochul and Florida Gov. Ron DeSantis are wading into their state’s ballot initiatives.

In New York, Hochul is moving more than $1 million toward an effort to safeguard abortion rights in the state constitution — a move that could buoy Democrats’ chances in House races.

The money is intended to bail out a flailing campaign for the amendment amid Democratic fears that a well-organized opposition has gained traction with voters, POLITICO’s Nick Reisman reports. Opponents have warned the amendment would lead to a host of unintended consequences, such as trans people participating in women’s sports or a weakening of statutory rape laws.

In Florida, DeSantis and other GOP leaders have tapped into taxpayer-funded resources to fight a November ballot initiative that would overturn the state's six-week abortion ban, POLITICO’s Arek Sarkissian reports.

Their repeated efforts — from a state-run website attacking the amendment to election police questioning signers of the petition to get the measure on the ballot — have drawn them into a protracted legal fight with the campaign behind the initiative. Supporters of the amendment say it’s government overreach.

 

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DIGITAL HEALTH

DIGITAL THERAPY PROPOSAL GETS MIXED REVIEWS — The digital therapeutics industry and its allies support a CMS proposal that would back payment for digital treatments, but it faces some skepticism.

In its proposed 2025 physician fee schedule, the agency suggested adding several codes that would cover digital therapeutics — software-based treatments — for mental health. They’ve often been used to treat substance use disorder and mental health issues, but a lack of reimbursement from Medicare has been a significant hurdle for the industry.

CMS’ period for public comment on the proposal closed last week.

The response: The Digital Therapeutics Alliance said the proposal is a “groundbreaking first step” and called for the agency to look into differentiating between digital therapeutic products that have different costs, hardware and clinical applications.

A slew of mental health groups, including the National Alliance on Mental Illness and American Psychological Association Services, also supported the proposal, saying it would help alleviate workforce issues and expand access to treatment.

The American Psychiatric Association has expressed significant skepticism about the technology. The group said the evidence to determine their efficacy is insufficient, and “digital therapeutics” has no clear definition that includes any “rigorous standard of evidence of safety and effectiveness.” Still, the group supported the proposal, saying a payment structure needs to be developed.

Insurer lobby AHIP raised similar concerns about the lack of robust evidence but said it supported the agency’s intent to limit payment to FDA-cleared devices and keep an eye on fraud and abuse.

What’s next: CMS is set to finalize its fee schedule later in the year.

Names in the News

Katie Ghougasian has joined Sirona Strategies as a health policy fellow. She was previously at the National Association of County and City Health Officials.

WHAT WE'RE READING

Fierce Healthcare reports on Oak Street Health settling kickback allegations for $60 million.

Dr. Marty Makary suggests in The Wall Street Journal that pediatricians created the peanut allergy 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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