‘Negotiating the details’ of a transparency deal

Presented by Novavax: Delivered daily by 10 a.m., Pulse examines the latest news in health care politics and policy.
Jan 12, 2024 View in browser
 
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By Chelsea Cirruzzo and Ben Leonard

Presented by Novavax

With Megan Messerly

Programming note: We’ll be off this Monday for Martin Luther King Jr. Day but will be back in your inboxes on Tuesday.

Driving The Day

Rep. Cathy McMorris Rodgers (R-Wash.) speaks with a colleague on the House floor.

Rep. Cathy McMorris Rodgers hopes to reach a deal with Senate leaders to get her bill, the Lower Costs, More Transparency Act, across the finish line. | Francis Chung/POLITICO

A DEAL IN SIGHT? Key Congressional leaders are signaling they’re closer to securing a bipartisan deal on transparency requirements in health care, Ben reports.

Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-Wash.) told Pulse that negotiations between the House and the Senate are largely based on ‘technical differences.” The talks are occurring at the staff level and between lawmakers themselves, Rodgers said.

“We’re negotiating with the Senate,” Rodgers told Ben. “One opportunity for it to get onto the president’s desk would be for it to be attached to one of the spending bills. We’ve been negotiating the details.”

The House last month overwhelmingly passed the Lower Costs, More Transparency Act, negotiated by the House Ways and Means, Education and the Workforce, and Energy and Commerce committees. Hospitals and pharmacy benefit managers have railed against the bill.

The legislation would strengthen reporting requirements for insurers, hospitals and PBMs and change Medicare payment policy so drugs administered in a hospital outpatient department are reimbursed at the same rate as a doctor’s office, a policy known as site-neutral payments. Rodgers said negotiators are still working through site-neutral policy with the Senate.

Senate HELP Chair Bernie Sanders (I-Vt.) has introduced legislation alongside Sen. Mike Braun (R-Ind.) with similar provisions, and Senate Finance Chair Ron Wyden (D-Ore.) has pushed his own legislation aiming to rein in PBMs. Wyden told Pulse Tuesday that he’s focused on PBMs and hadn’t discussed site-neutral policies with the House.

On Thursday, Wyden concurred with Rodgers and told Pulse that negotiators have made “a lot of progress.”

In other news: In her interview with POLITICO Thursday, Rodgers spoke about the future of artificial intelligence regulation.

“The first step is a data privacy and security bill. It’s really data driving this AI and massive amounts of data. Right now, there are no protections in place,” Rodgers said.

She also discussed a potential ban on quality-adjusted life years, or QALYs, a metric that gauges a drug's impact on outcomes and quality of life. Proponents argue QALYs discriminate against people with disabilities by undervaluing how much treatments help them.

Read what else Rodgers spoke about with Ben.

WELCOME TO FRIDAY PULSE. I’m headed into the mountains to ski for the first time this weekend. Please wish me luck! Send your tips, scoops and feedback to ccirruzzo@politico.com and bleonard@politico.com and follow along @ChelseaCirruzzo and @_BenLeonard_.

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VETERANS' HEALTH

Rep. Mike Bost

The Veterans' Affairs Committee, chaired by Rep. Mike Bost, voted to subpoena the VA for additional documents related to a sexual harassment investigation. | Seth Perlman/AP | AP Photo

BIPARTISAN VA SUBPOENA — The House committee investigating claims of sexual harassment in the VA voted, with overwhelming bipartisan support, to subpoena the agency to turn over more documents, Ben reports.

The Veterans’ Affairs Committee’s investigation came after a whistleblower in September alleged senior officials in the VA’s Office of Resolution Management, Diversity and Inclusion engaged in sexual harassment. Additional whistleblowers approached the committee, including some who said top officials ignored sexual harassment claims.

“I do not take the step of issuing a subpoena today lightly,” committee Chair Mike Bost (R-Ill.) said. “However, the horrific nature of the alleged misconduct and the department’s failure to act properly and quickly has led us to this point.” It’s the first time the committee has issued a subpoena since 2016, he said.

Bost said Thursday that some allegations were brought to the VA in July 2022, but the agency didn’t act until November 2023. He said the VA has refused to cooperate with the investigation “until it became publicly embarrassing.”

The VA response: Spokesperson Terrence Hayes said the agency has “aggressively” investigated the allegations and treated them with “the utmost seriousness.” Hayes says the VA has given the committee documents and information since November and has handed over nearly 1,200 pages of documents and provided 27 transcribed interviews.

He said it will offer the committee more information, including a final report on its internal investigation and “several hundred thousand documents” by the end of the month.

The vote: Although some committee chairs have unilateral subpoena power, the committee’s rules require a majority vote.

Some Democrats were reluctant to issue a subpoena, but most voted to do so. Rep. Julia Brownley (D-Calif.), ranking member of the committee’s health panel, said the VA is committed to cooperating with the investigation.

And, some Democrats argued it could take away focus from the committee’s work to serve veterans. Rep. Mariannette Miller-Meeks (R-Iowa), health subcommittee chair, said she found those suggestions “highly offensive.”

“We can walk and chew gum,” Miller-Meeks said.

Full committee member Rep. Mark Takano (D-Calif.) was the lone lawmaker to vote against the subpoena, saying he has “deep concerns” about how the investigation has been handled. He added that the scope of documents requested has shifted.

 

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IN THE STATES

COLORADO ADVANCES DRUG IMPORT Democratic Colorado Gov. Jared Polis, in his State of the State address Thursday, urged the FDA to grant approval for the state to import prescription drugs from Canada, a proposal it submitted to federal health officials more than a year ago, Megan reports.

Last week, the FDA granted Florida first-in-the-nation approval to move forward with its drug-importation plan.

“The simple truth is that Coloradans, and people across the United States, are tired of being ripped off for the prices of necessary medications that cost a fraction of the amount in other wealthy nations,” Polis said. “That’s why we continue urging the FDA to approve our application to allow for more lower-cost prescription drugs by importing prescription drugs from Canada.”

State health officials are also asking for further FDA guidance on how to obtain prescription drugs from Canada as some drug companies have contracts with Canadian wholesalers prohibiting them from importing drugs to the U.S.

 

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Public Health

HEALTH SERVICES FOR DOMESTIC VIOLENCE VICTIMS — A new report asks HHS to classify 15 health services related to intimate partner violence — including dental care, ad mental health care and screening for STIs — as essential health care services.

Nearly half of all U.S. women experience a form of violence by their partner in their lifetime, according to researchers from the National Academies of Sciences, Engineering, and Medicine. And instances of violence have increased in prevalence and severity during public health emergencies, such as the Covid-19 pandemic and Hurricane Katrina.

Why it matters: Reclassifying those services means they’re more accessible to patients during emergencies, such as a pandemic or a natural disaster.

The report, funded by the Health Resources and Services Administration’s Office of Women’s Health, recommends a phased-in approach for health systems that includes focusing first on life-saving measures during an emergency and then expanding services.

HRSA referred Pulse to NASEM when asked for comment on the recommendations.

NO SUICIDE LINK WITH WEIGHT-LOSS DRUGS — The FDA said Thursday its preliminary investigation into popular drugs used to lose weight or treat type 2 diabetes, like Ozempic, Mounjaro and Rybelsus, has found no evidence that those drugs cause suicidal ideation.

Background: The agency began probing reports of suicidal thoughts and actions reported through the FDA’s adverse event system several months ago. It also reviewed clinical trials using a large data network.

In both cases, the agency said it couldn’t determine a clear relationship between the use of the drugs and suicidal thoughts — but can’t rule out the risk entirely, so it will continue to investigate.

Obamacare

FIRST IN PULSE: THUMBS-UP FROM NEHLS Rep. Troy Nehls (R-Texas) would support former President Donald Trump in repealing Obamacare if Trump gets elected and pushes a repeal again, according to a new video obtained by POLITICO’s Daniel Lippman. Asked on Wednesday outside the Capitol if he would “join Trump in repealing Obamacare,” Nehls, seen with a cigar in his left hand, told the person: “Yeah, we need to do something. Our health system is in disarray. It’s too expensive, prescriptions — uh, I think President Trump has a great plan, and I would support whatever he — whatever that plan is.”

In 2023, an estimated 83,000 people in Nehls’ suburban Houston district had enrolled in the health insurance marketplace from the Affordable Care Act, according to data compiled by the Regional Leadership Council, which Reps. Steny Hoyer (D-Md.) and Hakeem Jeffries (D-N.Y) founded. On Wednesday, the Biden administration announced that a record 20 million people have officially enrolled in coverage through the law.

A spokesperson for Nehls declined to comment.

 

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WHAT WE'RE READING

The Washington Post reports on the 10,000 Covid deaths in December, according to WHO.

STAT reports on how generative AI can help with organizing patients’ social needs in medical records.

 

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