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Biden tries to breathe new life into drug price reforms

Presented by PhRMA: Delivered daily by 10 a.m., Pulse examines the latest news in health care politics and policy.
Feb 11, 2022 View in browser
 
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By Sarah Owermohle

Presented by

PhRMA

With Darius Tahir

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

— The president pressed for health care reform Thursday, but the path to change is riddled with problems.

— His FDA pick could get a vote next week, though it'll be a close call with some Democrats dissenting.

— HHS placed a bet on new Lilly antibodies after others appeared ineffective against the Omicron variant.

WELCOME TO FRIDAY PULSE — Texting this Mayo Q&A to every Southern mother and grandmother. Send questionable medical advice and tips to sowermohle@politico.com.

 

A message from PhRMA:

Washington is talking about price setting of medicines, but it won't stop insurers from shifting costs to you. And it will risk access to medicines and future cures. Instead, let's cap your out-of-pocket costs, stop middlemen from pocketing your discounts and make insurance work for you. Let's protect patients. It's the right choice. Learn more.

 
Driving the Day

BIDEN LOOKS TO REVIVE HEALTH AGENDA — President Joe Biden went to Virginia Thursday to restart a popular health priority that stalled amid pandemic challenges and congressional deadlock: drug price reform.

"The idea you can charge whatever you want is just not going to happen in the United States of America if I have anything to do with it," Biden said at a Culpeper, Virginia, event. He was joined by Health and Human Services Secretary Xavier Becerra and Rep. Abigail Spanberger (D-Va.).

Except … the pandemic and the party. Former President Donald Trump could probably cite similar reasons for his administration's failure to move drug pricing changes, some of which were remarkably similar to reforms Biden revitalized today. Both presidents struggled to rally caucus support on lynchpin details like tying payments to lower costs abroad (Trump) or allowing Medicare to negotiate drug prices and fine companies when they hike drug prices s above inflation rates (Biden).

New momentum seems tough amid Democrats' divides over the best course of action and the fading chance that pricing reform's best vehicle, the Build Back Better Act, could get passed this year.

Yet, optimism remains in the party. Nearly half of Americans surveyed in a January POLITICO-Harvard poll said they believed drug pricing provisions in the BBB Act would lower costs. But respondents largely didn't buy into the sweeping, high-cost legislation.

Meanwhile, lawmakers have historically splintered over how broad government negotiations should be, what to do with pricey new medicines and how to regulate annual cost increases. Those aren't just details — the pharmaceutical industry insists that changes in this area could kill expensive new innovations because of revenue drops.

That's a familiar argument, but the pandemic — and the subsequent worldwide dash to develop vaccines and treatments, many of which were authorized in record time — breathed new life into drugmakers' case.

Trump entered office saying that pharmaceutical companies "get away with murder." Biden can't take the same tone right now, but he's toeing the line: "This is the United States of America, for God's sake. That's just wrong," he said in Virginia after describing certain drugs' costs. "Especially since it doesn't cost the drug companies nearly, nearly, nearly, nearly as much to make the drug or the research that went into them."

DEMS TEE UP CALIFF VOTE — Senate Majority Leader Chuck Schumer (D-N.Y.) filed a motion Thursday to limit debate on Robert Califf's nomination, setting up a vote as early as Tuesday on his confirmation to lead the FDA.

The numbers: Interviews with more than 50 senators this week indicated that, while many have not yet publicly stated how they'd vote, some key Republicans haven't ruled out supporting Califf as the agency heads into its third year of managing a hefty portion of the U.S. pandemic response, POLITICO's David Lim and Lauren Gardner report.

"I think it is going to be close, but I think he's gonna make it," Senate Majority Whip Dick Durbin (D-Ill.) told David. "We have a few Republicans."

HHS ORDERS MORE ANTIBODIES — Becerra on Thursday said his agency bought 600,000 courses of a new monoclonal antibody aimed at the Omicron variant, a move to resupply stock after existing antibodies appeared ineffective against the latest wave.

Eli Lilly's new treatment isn't authorized yet, but early data suggests it could fight Omicron and a subvariant in the country. That's welcome news after HHS concluded two other monoclonal antibodies, one from Lilly and another from Regeneron, proved "highly unlikely" to work against the dominant variant.

Under the plan, HHS would receive roughly 300,000 treatment courses in February and another 300,000 in March.

"We want to make sure if an American gets sick with COVID-19, they can get a treatment that works," Becerra said in a statement.

 

A message from PhRMA:

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Around the Agencies

FIRST IN PULSE: HOSPITAL GROUP WARNS AGAINST ENDING EMERGENCY — It's imperative for the federal government to extend the public health emergency even with Omicron cases falling, the Federation of American Hospitals wrote in a letter Thursday to Becerra.

Why? Many authorities are tied to the PHE status, including emergency-authorized drugs and care support like telehealth coverage.

"Given COVID-19's sustained damage, unpredictable nature, and the threat of new variants that can quickly emerge, we urge you to continue to appropriately extend the PHE well beyond its current expiration date in April 2022," FAH's CEO Chip Kahn wrote in a letter.

The group also asked HHS to reaffirm that they would warn hospitals and health care systems of plans to end the public health emergency 60 days ahead of time. The clock is on: Feb. 15 is the 60-day mark.

In Congress

TOP REPUBLICANS ON VA PROJECT: FIX IT FIRST — The Republican leadership of the House Veterans' Affairs Committee wants the VA to fix persistent problems with its troubled medical records project before rolling it out to new sites.

In a letter sent earlier this month, Rep. Mike Bost (R-Ill.) and Rep. Matt Rosendale (R-Mont.) asked the VA to fix the medical records' persistent malfunctions with its pharmacy software, referral management and patient portals. Each of those problems has been long discussed, and the Republicans argue progress hasn't been sufficient even after the department's "strategic review" to delve into the project, figure out its flaws and fix them.

Rolling out the project to Walla Walla, Washington and Columbus, Ohio, is "tantamount to rolling the dice … in the hopes luck will avert these problems," they write. House Republican leadership has been persistent in voicing this critique with the VA's turbulent project. Last week, Rep. Cathy McMorris Rodgers (R-Wash.), who represents the area of Washington where the VA started its rollout, called for a similar pause.

Democrats, too, have been critical of the program; Ohio Sen. Sherrod Brown and Washington Sen. Patty Murray have similarly called for the VA to patch up problems before deployment.

Names in the News

Clare Krusing is joining JPMorgan Chase's Morgan Health unit. She was most recently managing director at Reservoir Communications Group and was a top spokesperson for America's Health Insurance Plans.

What We're Reading

"This stretch may be defined less by what we can't do, and more by what we safely, carefully, finally can," Katherine Wu writes in a piece for The Atlantic that explores a return to normalcy even amid risks like another variant or a stretched-thin health workforce.

Biogen is pressing Medicare to broadly pay for its Alzheimer's medicine Aduhelm after Medicare proposed to sharply limit coverage amid questions about efficacy, Reuters' Carl O'Donnell reports.

Researchers developed a model to estimate the cost of vaccinating the world and the human cost of failing — which could number more than 1 million people, The Washington Post's Adam Taylor writes.

 

A message from PhRMA:

Washington is talking about price setting of medicines, but it won't stop insurers from shifting costs to you. And it will risk access to medicines and future cures. Instead, let's cap your out-of-pocket costs, stop middlemen from pocketing your discounts and make insurance work for you. Let's protect patients. It's the right choice. Learn more.

 
 

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Rachael Levy @rachael_levy

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