Rand roadblock: Biotech bill’s uncertain future

Presented by the Coalition to Strengthen America’s Healthcare: Delivered daily by 10 a.m., Pulse examines the latest news in health care politics and policy.
Nov 22, 2024 View in browser
 
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By Ben Leonard and Chelsea Cirruzzo

Presented by the Coalition to Strengthen America’s Healthcare

Driving The Day

Sen. Rand Paul walks in the Capitol.

Sen. Rand Paul is a key obstacle to the BIOSECURE Act's passage, despite its broad bipartisan support. | Francis Chung/POLITICO

BIOSECURE CHECK-IN — Legislation that would curtail Chinese biotechnology companies’ ability to do business in the U.S. has significant bipartisan backing, but division among key GOP members is complicating its path forward.

A major reason for questions about its future is Sen. Rand Paul (R-Ky.), the incoming chair of the Homeland Security Committee, who has steadfastly opposed the legislation. Lawmakers — including House Speaker Mike Johnson and retiring Rep. Brad Wenstrup (R-Ohio) — are preparing a last-ditch effort to get the BIOSECURE Act signed into law with weeks left in this Congress.

The bill, which passed the House overwhelmingly in September, would halt federal contracts for companies partnering with named Chinese biotech companies. Wenstrup and other supporters warn that Beijing could use some named firms in the bill to obtain sensitive information like Americans’ genomic data due to China’s intelligence laws regarding private business.

Although the legislation has strong support, congressional tradition typically requires approval from the chairs and ranking members of the relevant committees to get provisions attached to a must-pass bill. Paul was the only member of the Homeland Security Committee, currently chaired by Sen. Gary Peters (D-Mich.), to vote against the bill earlier this year.

“There’s no love lost for some of these companies,” Paul said earlier this year. “I do worry, though, that … by banning certain companies, we’re advantaging certain other companies.”

He’s seemingly pointing to genomics firm Illumina, which could stand to benefit from the bill given its significant market share. A company spokesperson said the firm backs policies that “advance the use of genomics to improve human health globally while maintaining the privacy and security of genomic data.”

His intransigence frustrates members of his own party, who say the legislation is necessary to protect American national security interests.

“I just don’t know that he understands this, and I don't know why he thinks it behooves the American taxpayer for us to give grant money to a Chinese biologic company,” Wenstrup recently told POLITICO.

The companies have pushed back, saying they’ve been falsely accused of security risks and that the legislation could hurt U.S. biotech innovation.

The fissures extend beyond Paul and the GOP. More than a third of House Democrats voted against the bill after Rep. Jim McGovern (D-Mass.) panned the legislation, saying there isn’t sufficient due process for the named companies.

Wenstrup dismissed McGovern’s opposition as tied to his district, which McGovern denies. WuXi Biologics announced plans in January to build a manufacturing facility in Worcester, a city in McGovern’s district, but those plans are now on hold.

One of the most likely paths forward for the legislation is attaching it to the National Defense Authorization Act, the annual must-pass defense policy legislation. It’s part of a broader raft of more than 70 China and artificial intelligence-related bills in the mix.

“NDAA is an appropriate vehicle to get this over the finish line, and Chairman Peters supports adding it as an amendment to this year’s NDAA,” an aide to Peters said.

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DIGITAL HEALTH

Mehmet Oz is seen.

Dr. Mehmet Oz has a history of supporting telehealth expansion and digital health investments. | Matt Rourke/AP

OZ’S HEALTH TECH INTEREST — It’s well-known that President-elect Donald Trump’s pick to run CMS, Dr. Mehmet Oz, is a major supporter of Medicare Advantage and has endorsed questionable diet supplements, but his support for health tech has flown more under the radar and could impact CMS policymaking.

Oz co-founded a digital health company, Sharecare, and in a 2020 Washington Examiner op-ed, called for making eased telehealth rules permanent.

“We’ve now seen the potential for telemedicine to help far more patients than before. It’s time to move forward and make these reforms permanent,” Oz wrote, though adding the “main barriers” to telehealth taking off aren’t at the federal level. “Medicaid and commercial reimbursement, as well as credentialing, are controlled by the states and only 20% require payment parity between telemedicine and in-person services.”

As CMS administrator, Oz would have latitude to change telehealth policy, though he’d likely need Congress to make the key eased rules permanent. His support for permanence could put him at odds with influential conservative health care groups like the Paragon Health Institute, which recently said Congress should wait to make the rules permanent until more is known about cost and quality of care.

He’s also invested in digital health companies, including a firm making a heart-monitoring smartwatch. An Oz spokesperson didn’t respond to a request for comment.

 

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In Congress

RFK JR. HILL VISIT IN THE WORKS? GOP senators expect that Robert F. Kennedy Jr., President-elect Donald Trump’s pick to lead HHS, will soon be visiting members on Capitol Hill as he seeks their votes, POLITICO’s Ursula Perano and Meredith Lee Hill report.

To be confirmed as HHS Secretary, Kennedy must get through the Senate Finance Committee and a floor vote.

Sen. Tommy Tuberville (R-Ala.) said Thursday that Kennedy would likely journey to the Hill in the coming days, suggesting he’d meet with GOP senators after the Thanksgiving break.

Sen. Bill Cassidy (R-La.), the top Republican on the Health, Education, Labor and Pensions Committee, confirmed that “some preliminary reach out” to organize the meetings has been made. Cassidy is also a member of the Finance Committee. Kennedy will likely have to assuage concerns within the GOP over his positions on abortion, agricultural issues and vaccines.

Sen. Lisa Murkowski (R-Alaska) suggested to reporters this week that she has concerns over his vaccine skepticism.

“Childhood vaccines are something really important as a parent. I want to protect my kids from measles or mumps or rubella,” Murkowski said. “We’re pretty amazing in terms of what we have developed to keep people healthy, and I want to make sure that we have that ability and have access and continue positive developments."

Also in RFK world: Katie Miller, previously communications director for former Vice President Mike Pence, will be Kennedy’s HHS media representative during the transition.

Miller, who is married to incoming deputy chief of staff for policy Stephen Miller, is a veteran of the first Trump administration. She was first deputy press secretary for the U.S. Department of Homeland Security and then press secretary for Pence.

In an email Thursday, she told POLITICO she doesn’t plan to stay with the administration beyond transition work.

 

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IN THE STATES

NEW YORK’S ‘SITE-NEUTRAL’ PUSH — As lawmakers on Capitol Hill make a late push to get site-neutral payment reform signed into law, New York lawmakers are pitching their own version.

Site-neutral payments generally equalize payments for services in hospital outpatient departments with those at independent practices. The hospital industry has vehemently opposed legislation that would do so, saying it would decrease access to care.

On the Hill: Sens. Bill Cassidy (R-La.) and Maggie Hassan (D-N.H.) released a plan earlier this month to cut Medicare payments to hospitals’ outpatient departments to the level paid to independent practices. However, it’s not clear what the path forward is for the legislation this Congress is unclear, with Senate Finance Committee Chair Ron Wyden (D-Ore.) raising concerns about impacts on rural hospitals and low expectations for a lame-duck package.

In New York: New legislation sponsored by state Sen. Liz Krueger and Assemblymember Chantel Jackson is designed to eliminate significant price discrepancies between hospital-owned facilities and doctors’ offices for the same services.

If passed, the Fair Pricing Act would prevent most types of health care facilities from charging more than 150 percent of the Medicare rate for a specified set of services, such as vaccinations, MRIs, chemotherapy infusions and IV hydration. Public, safety-net and rural hospitals and federally qualified health centers would be exempt.

 

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Names in the News

Zachary Dembner is leaving HHS’ Administration for Strategic Preparedness and Response to join BerlinRosen’s public affairs practice, focusing on health and advocacy. He was also previously press secretary for the Covid-19 response at HHS.

The Catholic Health Association is joining the Keep Americans Covered coalition.

Gregg Pratt is joining MindMed as chief regulatory and quality assurance officer. He was previously at Karuna Therapeutics.

Jason S. Carter is joining Vera Therapeutics as chief legal officer. He was previously at Kite Pharma.

WHAT WE'RE READING

Healthcare Dive reports that CMS is allowing some states to adopt multiyear continuous Medicaid eligibility for kids.

Reuters reports on Elon Musk's Neuralink getting approval for a brain chip clinical trial in Canada.

 

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