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Manchin pitches health reforms into uncertainty

Delivered daily by 10 a.m., Pulse examines the latest news in health care politics and policy.
Dec 20, 2021 View in browser
 
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By Sarah Owermohle and Adam Cancryn

With Adriel Bettelheim

PROGRAMMING NOTE: Morning Pulse won't publish from Friday, Dec. 24-Friday, Dec. 31. We'll be back on our normal schedule on Monday, Jan. 3.

Editor's Note: POLITICO Pulse is a free version of POLITICO Pro Health Care's morning newsletter, which is delivered to our subscribers each morning at 6 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day's biggest stories. Act on the news with POLITICO Pro.

Quick Fix

— Sen. Joe Manchin's opposition to the 'Build Back Better' bill unleashed a firestorm Sunday.

— A bleak Omicron-tinted winter accelerates questions about what it means to be fully vaccinated and when the conversation shifts.

— Surprise billing spending hasn't slowed, especially as the law approaches and industry spars over fair costs.

WELCOME TO MONDAY PULSE, where your authors increasingly feel like extras in Osmosis Jones. Send tips to sowermohle@politico.com and acancryn@politico.com.

Driving the Day

WHAT MANCHIN'S 'NO' DOES ON HEALTH — West Virginia Sen. Joe Manchin 's declaration Sunday that he can't support the current Build Back Better bill set off a firestorm of criticism from fellow lawmakers to the White House. It also leaves a pile of health care reforms and funding measures without a certain fate.

"I cannot vote to continue with this piece of legislation," Manchin said on "Fox News Sunday" as he discussed the president's more than $2 trillion social spending package. "I can't get there."

The timeline was already delayed — senators left town Sunday morning without voting on the bill — but now measures affecting health, childcare, climate, education and more are entirely in question. And Democrats are fuming.

How it hits health care:

— Medicare expansion. The House BBB version would expand Medicare benefits to include hearing, phasing in coverage over the next decade after vision and dental coverage got dropped in earlier tussling.

Manchin objected to adding new benefits, warning the entitlement program is headed toward insolvency in its present form, Adriel writes. He eventually agreed to the pared-down hearing plan but then said that even just those benefits may be a problem, citing concerns about the program's cash flow.

— Medicaid expansion. The current bill would set up a system to cover a swathe of low-income people not covered in states that opted out of expansion under Obamacare, without cost to those states. But the West Virginia senator argued this expansion would reward "holdout" states at the expense of those that expanded their programs and picked up costs — like West Virginia.

— Prescription drug price negotiations. The House proposal to let Medicare directly negotiate certain drug prices and fine drugmakers who hiked prices past inflation was always divisive. But the measure also promises big savings to cover other ambitions, including expanded coverage, and other drug pricing proposals — like capping patients' out-of-pocket costs — remain popular across the aisle.

"Panic and disbelief." The senator dispatched an aide to tell the White House and congressional leaders his stance Sunday morning, less than a half-hour before his Fox appearance, POLITICO Playbook's Ryan Lizza reports.

"We tried to head him off," a senior White House official told Playbook, but Manchin "refused to take a call from White House staff."

White House Press Secretary Jen Psaki issued a pointed statement within hours, noting Manchin had brought a compromise bill, similar in size and scope, to President Joe Biden.

"If his comments on FOX and written statement indicate an end to that effort, they represent a sudden and inexplicable reversal in his position, and a breach of his commitments to the president and the senator's colleagues in the House and Senate," Psaki said.

What's next: Manchin said, "This is a no on this legislation," offering a shard of hope to Democrats hoping to salvage sweeping proposals and push a jump-started bill in 2022. But with Manchin's reticence on Medicare and Medicaid proposals, Democrats could lose their chance for massive reforms before the midterms.

WHAT'S 'FULLY VACCINATED' IN THE OMICRON ERA? — With two competing strains and a burst of new cases, officials are rethinking what it means to be fully vaccinated — and how to steel the public for the possibility they'll need fourth shots (or even more).

It's not just semantics. Changing the criteria and messaging could influence how quickly workplaces and public events reopen and how much a crisis-weary, and in some cases confused, population responds to pleas to get booster shots.

There's "no doubt in anyone's mind" that the original regimen plus a booster is ideal, especially with Omicron looming, said one health official familiar with the discussions. But "[Biden officials are] not going to change that anytime soon, because there's too many legal aspects hanging on this issue of what is fully vaccinated."

The winter was already going to be bad. Biden officials anticipated a bad winter well before Omicron as breakthrough cases with the Delta variant rose and booster rates moved sluggishly along — while new vaccination rates virtually stalled.

That's already shifted the conversation about the benefits of vaccination from protecting you against most Covid-19 infections (spurring relaxed mask measures) to the message Biden pushed Thursday night: Vaccination protects you against severe disease and death.

"With boosters, they're hoping to get us through this winter surge" even as a broader discussion plays out about what a complete vaccine regimen looks like, said a person familiar with the discussions within the Biden administration. "I don't think this is a long-term solution at all," the person added. "You cannot be getting boosters every four to six months."

THE SURPRISE BILL SPENDING RUSH — A year after Congress passed a fix for surprise medical bills — and less than two weeks before the law takes effect — health insurers, hospitals and doctors are still spending millions to tailor the fine print in their favor.

The incoming law is supposed to protect patients from receiving expensive bills for unexpected out-of-network care, but doctors, hospitals and insurers are still at odds over which factors an independent arbitrator should rely on to decide who picks up the tab, POLITICO's Megan Wilson reports.

And each group is aggressively campaigning to see their interpretation of the law play out.

Battle lines: Hospitals and doctors allege the Biden administration's decision to emphasize the median in-network rate, a figure the insurance companies calculate, gives large insurers a huge advantage when negotiating how much a service should cost.

Trade groups representing providers say the law lists several other factors that should be equally weighted when calculating service costs, such as the doctor's experience and the procedure's complexity.

"This is probably one of the most significant overhauls in the health system since the [Affordable Care Act] ACA," said a spokesperson for the Coalition Against Surprise Medical Billing, which represents insurers, employer and union groups, and works with patient groups.

A senior health department official, who asked to be anonymous to talk about the issue, told POLITICO the agency isn't surprised by the level of advocacy given the stakes.

"These rules are fixing this broken" system, the official said, "and there's a lot of money on the table."

 

STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president's ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.

 
 
Coronavirus

VAX MANDATE GETS REPRIEVE — A federal appeals court Friday reinstated the Biden administration's vaccine-or-test mandate for large businesses, lifting the Fifth Circuit court's stay on the requirement, POLITICO's Myah Ward reports.

The three-judge panel of the Sixth Circuit court of appeals accepted the administration's request to lift the stay on the Occupational Safety and Health Administration's rule, published on Nov. 5. The Cincinnati-based federal court took over the case after winning a multicircuit lottery.

Judge Julia Gibbons, a George W. Bush appointee, and Jane Stranch, an Obama appointee, were in favor of granting the administration's request. Joan Larsen, a Trump appointee, dissented.

The latest ruling is likely to be appealed to the Supreme Court.

Around the Nation

NY: WE NEED HELP NOW — New York City Mayor Bill de Blasio is urging the Biden administration to send help as the Omicron variant spurs case surges throughout the city.

De Blasio said the White House should invoke the Defense Production Act to help provide a larger number of at-home tests as well as monoclonal antibody treatments. He also said the Biden administration should fast-track approval of an antiviral pill from Pfizer, POLITICO NY's Deanna Garcia reports.

The city recorded more than 5,000 new Covid-19 cases on Saturday. "We need help now … and we need a surge of support in terms of monoclonal antibody treatments," de Blasio said at a briefing Sunday. "We need more made available for New York City."

The mayor, who will leave office on New Year's Eve, said the city has launched a $10 million marketing campaign to push for more people to get vaccinated and will add new testing sites.

Mayor-elect Eric Adams, who will take office on Jan. 1, said during the briefing that his and de Blasio's teams are coordinating as a new crisis takes shape.

"My message to New Yorkers is the same: We're in this together," Adams said. "But the only way we get our city back is to find our resolve once again and face this crisis head-on."

Names in the News

Carole Johnson, the White House Covid-19 response team's testing coordinator, is moving to HHS to be director of its Health Resources & Services Administration. Senior HHS official Tom Inglesby is headed the other way, joining the White House Covid-19 response team to focus on expanding testing. He was the health department's senior adviser for the Covid response and directed the Johns Hopkins Center for Health Security before joining the administration.

It's official: Francis Collins' last day as National Institutes of Health director was Sunday. Longtime Principal Deputy Director Lawrence Tabak assumes the acting director role today.

"I'll probably take a little time to catch up on some much-needed sleep, do some reading and writing, and hopefully get out for a few more rides on my Harley with my wife Diane," Collins wrote in his final blog. "But there's plenty of work to do in my lab, where the focus is on type 2 diabetes and a rare disease of premature aging called Hutchinson-Gilford Progeria Syndrome."

 

BECOME A GLOBAL INSIDER: The world is more connected than ever. It has never been more essential to identify, unpack and analyze important news, trends and decisions shaping our future — and we've got you covered! Every Monday, Wednesday and Friday, Global Insider author Ryan Heath navigates the global news maze and connects you to power players and events changing our world. Don't miss out on this influential global community. Subscribe now.

 
 
What We're Reading

Many hospitals were already managing a bed shortage before the Omicron variant hit, swamped by Delta variant cases and other intensive care needs, The Wall Street Journal's Melanie Evans and Jon Kamp report.

Moderna, amid a deluge of criticism, paused its patent dispute with NIH scientists , saying the legal battle "could interfere with further discussions aimed at an amicable resolution," Stat News' Ed Silverman writes.

Federal aid for businesses is virtually exhausted even as Omicron challenges rear their head, The Washington Post's Tony Romm reports.

 

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Adriel Bettelheim @abettel

Sara Smith @sarasmarley

Adam Cancryn @adamcancryn

Tucker Doherty @tucker_doherty

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David Lim @davidalim

Alice Miranda Ollstein @aliceollstein

Sarah Owermohle @owermohle

Carmen Paun @carmenpaun

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Megan R. Wilson @misswilson

 

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