Thursday, November 7, 2024

Trump’s HHS vision includes RFK Jr.

Delivered daily by 10 a.m., Pulse examines the latest news in health care politics and policy.
Nov 07, 2024 View in browser
 
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By Chelsea Cirruzzo and Ben Leonard

Driving The Day

Former U.S. President Donald Trump welcomes Robert F. Kennedy Jr. to the stage

President-elect Donald Trump's selection of Robert F. Kennedy, Jr, right, for HHS signals potential shifts in healthcare policy. | Anna Moneymaker/Getty Images

AN HHS ROADMAP — Robert F. Kennedy Jr. will likely be a part of a second Trump administration’s HHS, where he could play a major role in shaping policy as the department grapples with cybersecurity and legal challenges to the Affordable Care Act and its Medicare drug negotiation policy.

In his victory speech early Wednesday morning, President-elect Donald Trump praised Kennedy.

“He’s going to help make America healthy again. … He wants to do some things, and we’re going to let him get to it,” Trump said. “Go have a good time, Bobby.”

The sprawling agency’s budget for the next fiscal year has to be decided by Congress, creating uncertainty about how much leeway the department will have to execute policy or ensure whether some offices will remain open, including those focused on gun violence and climate change.

“A lot of transition ends up being an assessment of where the department is now and what the agencies have and what they need,” Lauren Aronson, a partner at Mehlman Consulting who worked at HHS during the Obama administration, said.

Here’s what Trump’s HHS faces:

Medicare drug negotiation: Under the Inflation Reduction Act , CMS must publish its rationale for the negotiated prices of the first 10 drugs next year. The new prices take effect in 2026.

However, drugmakers and industry groups are fighting the law in court, and congressional Republicans — who are projected to control both chambers — oppose it.

Immigration: HHS is responsible for the care of migrant children, and the new administration would come under pressure to address the surge of migrants arriving through the Southern border. In fiscal 2023, HHS’ Office of Refugee Resettlement received referrals for more than 118,000 unaccompanied minors who needed sponsor placement.

During the first Trump administration, the controversial family separation policy tasked the department with reuniting children taken from their parents. However, the administration’s refusal to share information with Congress after parents claimed they didn’t know their children’s location hampered the efforts.

Health technology, privacy and AI: The next HHS secretary will face surging cybersecurity attacks in the health care sector, especially ransomware.

And HHS will also have the challenge of regulating artificial intelligence as it booms in health care.

At the FDA, officials have been slowly expanding AI guidance for medical devices, with that work expected to continue in drug development.

Opioids: Talk on how to handle the opioid crisis has toughened across the aisle, with Republicans and Democrats touting how they cracked down, or plan to, on fentanyl traffickers, as POLITICO has reported.

And HHS’ work will continue: A 2024 funding law requires state Medicaid plans to cover medication-assisted treatment for substance use disorder. It also created a permanent state Medicaid option allowing treatment of substance use disorder at institutions that treat mental illness to help expand access to care.

WELCOME TO THURSDAY PULSE. Are you working on the president-elect’s transition team? We want to hear from you. Ask us for our Signal numbers or send your tips, scoops and feedback to ccirruzzo@politico.com and bleonard@politico.com and follow along @ChelseaCirruzzo and @_BenLeonard_.

In Congress

The U.S. Capitol building at night with police officers standing and on motorcycles in front of it.

A shifting political landscape could reshape American health care policy. | Francis Chung/POLITICO

THE INCUMBENTS HOLD OUT — Some key members of Congress who could impact health policy are hanging onto their seats, latest projections show.

The bigger picture: Republicans have taken control of the Senate and are poised to take control of the House.

GOP control of both chambers means they can pass bills with a simple majority vote, making it easier for Republican-backed health policy proposals to move through. Those to watch include proposals to reorganize the NIH and shrink the CDC, cuts to Medicaid and subsidies for ACA plan premiums set to expire next year.

Speaker Mike Johnson has also promised “massive” changes to the ACA in the event of a second Trump administration, though details are still unknown.

On the House side, four members, including those who sit on health committees, poised to stay in Congress are:

Arizona Republican and telehealth advocate David Schweikert, who chairs the Ways and Means Oversight Subcommittee

North Carolina Democrat Donald Davis, who joined Republican efforts to water down the Inflation Reduction Act’s Medicare negotiation power

California Republican Michelle Steel, who sits on the Ways and Means and Education and the Workforce’s Health Subcommittees

Iowa Republican Mariannette Miller-Meeks, a member of the GOP Doctors Caucus and chair of the House Veterans’ Affairs Health Subcommittee

On the Senate side, Republicans took control by flipping seats in Montana, Ohio and West Virginia. That includes Senate Veterans’ Affairs Chair Jon Tester (D-Mont.), who lost to businessman and former Navy SEAL Tim Sheehy.

However, Vermont independent Bernie Sanders, who chairs the Senate Health, Education, Labor and Pensions Committee, won reelection, as did Wisconsin Democrat Tammy Baldwin, who also serves on HELP and leads the appropriations subcommittee for HHS.

Sen. Bob Casey (D-Pa.), who sits on both the Finance and the HELP Committees and chairs the Aging Committee, is still in a tight race with former hedge CEO Dave McCormick.

AROUND THE AGENCIES

‘A HUGE WIN’ — The nursing home industry sees President-elect Donald Trump’s victory as a reason to be optimistic, at least when it comes to the Biden administration’s health staffing rule that’s been roiling the industry for months, POLITICO’s Daniel Payne and Robert King report.

Trump could rescind the regulation, finalized earlier this year, that would for the first time set staffing minimums for nursing homes. Unless overturned, the rule would require nearly 80 percent of long-term care facilities to add staff.

Advocates for elderly people have argued the rule would improve care in the wake of the industry’s pandemic failures. But the industry says the additional hiring costs would likely to cause cash-strapped nursing homes to close.

Some industry groups have reached out to the Trump team to discuss the rule’s future, seeing it as an urgent priority for the new year.

But they aren’t relying on just the incoming administration. Long-term care providers are challenging the rule in court and continue to ask Congress to intervene.

THE CMS CHANGES WE’RE WATCHING — A second Trump administration will likely make an imprint on CMS, an agency with the power to reshape how U.S. health care is, Robert reports.

Here’s what we’ll be keeping our eyes on:

— Reforms to value-based care: The Center for Medicare and Medicaid Innovation was created as part of the ACA to test alternative payments and care delivery under Medicare. If a model generates a certain amount of savings, it becomes a permanent part of Medicare.

A Trump CMS could make changes to the types of models that CMMI pursues. A payment model is also an easy avenue for the administration to impose its policies without Congress.

Republican lawmakers seem unimpressed by the alleged savings, noting during a June hearing that the Congressional Budget Office found the center has increased Medicare spending by roughly $5.5 billion since its inception.

— Medicare Advantage changes: Privately run Medicare Advantage plans have gained popularity since Trump left office in 2021. The plans make up more than 32 million enrollees and encompass over half of all Medicare enrollment. That’s up from 24.2 million in 2020.

However, the Biden administration has locked horns with insurers over changes to the program. They include what insurers call a slight pay cut to MA rates and an overhaul to how plans are audited.

Trump’s CMS could be more amenable to MA plans’ requests, mirroring what happened during his first term when CMS hiked payment rates.

However, there have been bipartisan concerns about some parts of the program, such as the use of prior authorization that requires providers to obtain insurer approval before a procedure or a prescription.

— Medicaid waivers: Trump could turn to Medicaid waivers to avoid congressional approval for program reforms, as he did in his first term.

Chief among among those are work-requirement programs that CMS encouraged during Trump’s term.

CMS approved 13 waivers for states to implement work requirements for the population eligible for coverage under Obamacare’s Medicaid expansion. However, federal judges struck down some programs.

Some states could try again in a second Trump administration, like Arkansas, one of the few states to implement a work-requirements program before it was struck down.
STAT reports on what a second Trump presidency means for Medicaid.

The New York Times reports that upcoming dietary guidance may punt on making a recommendation on ultra-processed foods.

 

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