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The global vaccine push needs a cash influx

Presented by PhRMA: Delivered daily by 10 a.m., Pulse examines the latest news in health care politics and policy.
Feb 17, 2022 View in browser
 
POLITICO's Pulse newsletter logo

By Sarah Owermohle

Presented by

PhRMA

With Megan R. Wilson, Leah Nylen, David Lim, Rachael Levy and Alice Miranda Ollstein

Programming Note: We'll be off this Monday for Presidents Day but will be back in your inboxes on Tuesday, Feb. 22.

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.

Driving the Day

— Biden officials want to turbocharge global vaccination, but need funds to do it.

— The White House announced temporary leadership on health and science after Eric Lander's departure.

— FTC could vote to probe pharmacy benefit managers' roles in a significant commission hearing this afternoon.

WELCOME TO THURSDAY PULSE — Something I read this week: Phelim Kline's disturbing and fascinating trip down the rabbit hole of every journalists' favorite app. Send tips, news (and app suggestions?) 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

OFFICIALS SEARCH FOR CASH IN GLOBAL VAX PUSH — The Biden administration is turbocharging its effort to boost inoculations in low- and middle-income countries to prevent new, more-transmissible variants from emerging — an effort that would also protect Americans at home, three senior administration officials working on the effort tell POLITICO's Erin Banco

There's a problem: The administration is running out of money to support the global vaccination push, and negotiations with Congress on securing new funding have stalled.

Without additional cash, the Biden administration could fall behind in its 2022 Covid-19 goal of getting shots into arms. That includes its work with COVAX, the global vaccine facility, and local governments to boost inoculations in the 30 countries with vaccination rates below 10 percent, the officials said.

The backdrop: The new, urgent approach to inoculating the world comes after the administration spent months in the spring and summer of 2021 focusing on direct donations to nations instead of distributing doses through COVAX — a move that initially confused global vaccination allocation and delayed getting shots into arms, according to two of the senior administration officials working on the federal government's effort. Those officials said senior health officials had initially urged the White House and National Security Council to donate 100 percent of its doses through COVAX.

The cash shortage could have big implications for global vaccination, considering how much COVAX relies on the U.S. for vaccines and financial support.

COLLINS IS BACK — We hardly had time to miss former National Institutes of Health Director Francis Collins, who will become President Joe Biden's science adviser, the White House said late Wednesday, while Alondra Nelson will become its acting director of the Office of Science and Technology Policy. Both will split the role left vacant by Eric Lander's resignation.

"I want all of you to know that the President will value this collaboration greatly as we work toward naming and nominating a permanent science adviser and director of OSTP who will go through the Senate confirmation process," deputy chief of staff Bruce Reed told OSTP employees on a call this evening with Nelson and Collins, as Alex Thompson reported in West Wing Playbook.

What happens next: The search is on for a permanent replacement for Lander, who abruptly resigned last week following POLITICO reports of bullying behavior in his office. But Biden needs someone to helm the sweeping proposals the former director shaped, like a revamp of the cancer moonshot and the potential creation of the Advanced Research Projects Agency for Health.

FTC POISED TO VOTE ON INVESTIGATING PBMs — The Federal Trade Commission is deciding this afternoon whether to probe the business practices of pharmaceutical middlemen known as pharmacy benefit managers, or PBMs, report Megan and Leah.

Three players — CVS Caremark, Express Scripts and OptumRx dominate nearly 80 percent of the market, prompting lawmaker and advocacy groups' calls for antitrust action.

The commission's vote would trigger a study, not law enforcement action, by the agency, but the FTC can use information obtained from its research to open investigations into specific companies.

What to expect: Matt Seiler, the general counsel of the National Community Pharmacists Association, will be one of more than 63 people who've signed up to speak at the FTC's meeting today.

"PBMs are pushing a false narrative that their practices support community pharmacies and reduce costs for patients. They do not. This study should put that myth to rest once and for all," he says in his remarks obtained by POLITICO.

Rep. Buddy Carter (R-Ga.), a pharmacist, has submitted video comments; Rep. John Rose (R-Tenn.), another PBM critic, will also be speaking.

BIDEN OFFICIALS WEIGH MEDICARE CONTRACT SHIFT — The administration is debating whether to overhaul a major Trump-era program tied to Medicare as soon as next week in the face of rising pressure from prominent progressive Democrats, Rachael and Adam Cancryn scooped.

The timing: While the administration initially planned to announce changes to the program today, a person with knowledge of the matter said it's now likely to take a few more days to finalize the revamp.

The Trump program — known as a direct contracting model — allows private companies to participate in Medicare as part of a broader health department effort to improve care while limiting the government's costs. Yet the initiative has since come under increased scrutiny from the left, setting up a clash between the administration and liberals like Sen. Elizabeth Warren(D-Mass.) and Rep. Pramila Jayapal (D-Wash.), who warn that Biden is smoothing a path to privatizing Medicare by keeping it intact.

Biden health officials are weighing a range of potential changes, from new constraints to outright termination, several people familiar with the matter told Rachael and Adam. Providers participating in the program expect a Biden administration decision as early as today.

 

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Around the Agencies

BIDEN ADMIN PREPS NEW TESTING INVESTMENTS — The federal health department Wednesday formally requested ideas from the diagnostic testing industry on how the U.S. can sustain domestic manufacturing capacity of Covid-19 tests over the next year, David writes.

"We know that as Omicron cases decline, demand for tests will wane as well," Tom Inglesby, the senior adviser to the White House Covid response told reporters.

"We know that there is bipartisan support" for building testing capacity, a White House official told David.

In Congress

LAWMAKERS TALK UNIVERSAL COVERAGE — The House Education and Labor  subcommittee on Health, Employment, Labor and Pensions convenes this afternoon for a hearing on the possibility of universal health coverage, a long-held but lofty Democratic goal.

Who's there: University of California, Berkeley, professor and former Secretary of Labor Robert Reich; American Public Health Association executive director Georges Benjamin; and Georgetown Law health policy professor Katie Keith will testify.

What they'll say: Reich will testify that "if you're a typical American, you're paying far more for health insurance than people in any other advanced country," according to opening remarks shared first with PULSE. "And you're not getting your money's worth."

Keith will advocate for a public option, saying that "policymakers should extend the American Rescue Plan Act's enhanced subsidies, protect consumers from non-comprehensive insurance products, and lower health care costs with an emphasis on protecting those in job-based coverage."

WARNOCK UNVEILS INSULIN BILL AS BBB REMAINS ON ICE — Sen. Raphael Warnock (D-GA) is introducing a standalone bill today to advance one of the most popular provisions of Democrats' now-sidelined social spending bill: a $35 a month cap on out-of-pocket costs for insulin products.

Warnock says he's introducing the measure outside of the bigger package Democrats are still hoping to salvage "because it's urgent and it can't happen soon enough."

Names in the News

— PULSE has learned that JooYeun Chang stepped down as acting director of the Administration for Children and Families. It's unclear where she'll go next, but she said from the start she would serve in the role for only a year, a person familiar with the move said. Chang previously served as senior deputy director at the Michigan Department of Health and Human Services' Children's Services Agency.

— Longtime vaccine expert John Mascola is leaving the National Institute of Allergy and Infectious Diseases, where he served as director of the Vaccine Research Center since 2013 and worked for two decades.

Mascola plans to retire at the end of next month, NIAID Director Anthony Fauci said in a statement commending his work. Richard Koup, currently the center's deputy director, will serve as acting director when Mascola departs.

— Judy Stecker has joined Hill+Knowlton Strategies as senior vice president and U.S. healthcare media and public affairs lead for the public relations agency.

Stecker was previously a senior official in the Trump-era HHS, serving first as assistant secretary for public affairs and then as deputy chief of staff for operations and strategy. She also led external outreach for Operation Warp Speed and the health department's Covid response work.

What We're Reading

A new Omicron-targeting vaccine won't be ready until April or May, BioNTech CEO Ugur Sahin told German publication Bild on Wednesday,pushing back the company's original March timeline.

Hong Kong hospitals have set up outdoor tents to grapple with a new coronavirus wave, but officials insist no new lockdowns are imminent, Bloomberg's Kari Soo Lindberg reports.

Sen. Elizabeth Warren told Insider's Camila DeChalus that she wants to ban all state lawmakers and elected officials from trading corporate stocks, building off a federal proposal she has advocated.

 

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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Dan Goldberg @dancgoldberg

Erin Banco @ErinBanco

Katherine Ellen Foley @katherineefoley

Lauren Gardner @Gardner_LM

Ben Leonard @_BenLeonard_

Rachael Levy @rachael_levy

David Lim @davidalim

Megan Messerly @meganmesserly

Alice Miranda Ollstein @aliceollstein

Sarah Owermohle @owermohle

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Megan R. Wilson @misswilson

 

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