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Physician fees in flux on the Hill

Presented by Philip Morris International: Delivered daily by 10 a.m., Pulse examines the latest news in health care politics and policy.
Nov 17, 2022 View in browser
 
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By Daniel Payne and Krista Mahr

Presented by Philip Morris International

With Alice Miranda Ollstein

Driving the Day

A doctor shakes hands with an elderly gentleman.

Doctors face a nearly 4.5 percent cut to their Medicare reimbursements next year. | AP Photo

DOCTORS' MEDICARE PAYMENT CUTS ENTER SPOTLIGHT — Representatives are bringing the issue of Physician Fee Schedule cuts to discussions about year-end priorities, POLITICO's Megan R. Wilson reports. The main question on most minds: How much of the nearly 4.5 percent Medicare payment cut should be stopped?

The new payment rates, set to go into effect in 2023, are front-of-mind for provider groups — with many arguing that patient access is on the line.

Some on the Hill have noted that the issue has been a part of nearly every conversation about health priorities for the coming omnibus package. That still leaves a lot of room to decide exactly how to address the cuts, though.

Lawmakers are considering a package that would reduce the cuts to somewhere in the neighborhood of 2 to 3 percent, according to lobbyists and congressional staffers.

Doctors say that reimbursement rates haven't kept up with inflation and failing to prevent reimbursement cuts could hurt patient access by making it harder for medical practices to survive. The amount Medicare reimburses doctors, providers say, often impacts what private insurance pays, which would compound the damage.

These year-end debates aren't new — and stopping the need to stop the cuts is also on lawmakers' minds. The beginnings of a more permanent fix could be ahead but probably not until the next Congress.

WELCOME TO THURSDAY PULSE, where we're thinking about the nearly 10,000 mink that were on the loose Wednesday in Ohio.

See a group of the critters? Don't try to capture them, officials say. But if you see something newsworthy? Send it to us at dpayne@politico.com and kmahr@politico.com.

TODAY ON OUR PULSE CHECK PODCAST, Grace Scullion talks with Lauren Gardner about President Biden's Covid funding request, the intense lobbying efforts on possible health care legislation and a push by some key doctor and hospital groups for a public health emergency declaration for respiratory syncytial virus.

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GO INSIDE THE MILKEN INSTITUTE FUTURE OF HEALTH SUMMIT: POLITICO is featuring a special edition of our "Future Pulse" newsletter at the 2022 Milken Institute Future of Health Summit from Dec. 6 to 8. The newsletter takes readers inside one of the most influential gatherings of health industry leaders and innovators solving the biggest global health issues to ensure a healthier, more resilient future for all. SUBSCRIBE TODAY TO RECEIVE EXCLUSIVE COVERAGE .

 
 
Public Health

A reporter holds up an example of the amount of fentanyl that can be deadly.

Most overdose deaths from June 2021 to June 2022 were caused by illegal synthetic drugs like fentanyl. | Jacquelyn Martin/AP Photo

A DROP IN OVERDOSE DEATHS — Drug overdose deaths have declined in the U.S. for three consecutive months, according to provisional data released Wednesday by the Centers for Disease Control and Prevention. The downturn offers some respite from the relentless climb in deaths that started when the pandemic began, Krista reports.

The increase in overdose deaths has been slowing over the past eight months, but the overall picture is still dire. More than 107,500 people died from overdoses during the 12 months from June 2021 to June 2022. Most deaths were caused by illegal synthetic drugs like fentanyl and methamphetamine, often combined with other drugs.

The Biden administration has taken a two-prong strategy to combat the opioid crisis by increasing access to treatment and harm-reduction programs and ramping up law enforcement efforts to disrupt the supply of illegal drugs like fentanyl.

From July 2021 to June 2022, Customs and Border Protection seized about 280,900 pounds of illicit drugs at U.S. borders, including 11,582 pounds of fentanyl and 177,932 pounds of methamphetamine, according to the Office of National Drug Control Policy.

SHIFTING SUICIDE RATES — Suicide rates have declined in recent years among white Americans, while rates among Black and Hispanic Americans have risen, according to new data released by the CDC on Wednesday.

It's a shift in the historic pattern of suicide deaths in the U.S., Krista writes, which have traditionally been higher among white individuals. They still are: From 2000 to 2020, suicide rates for white people were two to three times higher than for Black and Hispanic people.

But between 2018 and 2020, the suicide rate for white people declined by 7 percent, while rates for Black and Hispanic people continued to increase.

Preliminary data for 2021 shows that the age-adjusted rate for all three groups increased, but the percentage increase was 3 percent for white people compared with 13 percent for Black people and 8 percent for Hispanic people.

 

A message from Philip Morris International:

Everyone wants a world without cigarettes—but it will take our collective action. Philip Morris International is doing its part. Now, we need others to step up too. It's not enough to wait for smokers to stop on their own. We have to do everything possible to help those adults who would otherwise continue smoking move away from cigarettes for good. Join us.

 
In Congress

BETTER CALL PAUL — Sen. Rand Paul (R-Ky.) told reporters he'll announce this morning on Twitter whether he plans to serve as the ranking member of the HELP Committee or the Homeland Security Committee, Alice reports.

The former would set him up to clash with the expected incoming chair Bernie Sanders (I-Vt.) over a range of health policy issues, while the latter would give him a broader jurisdiction.

Should Rand opt for Homeland Security, Sen. Bill Cassidy (R-La.) will likely fill the top Republican spot on HELP.

Cassidy — who, like Paul, is a doctor by training — told Alice that he has no idea which way Paul is leaning but hopes the Kentucky senator will leave the top GOP spot on the HELP committee to him.

"Of course, I'd like to be the ranking member," he said. "I love the HELP committee. It's a great committee, and it fits my interests."

 

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HEALTH TECH

PULLING BACK ON HEALTH TECH — Investors are growing skittish about health tech companies, and there's not much Washington, D.C., can do about it, POLITICO's Ben Leonard and Ruth Reader report.

The slowdown in venture funding comes after money flooded the sector through the pandemic. But now, many startups are announcing layoffs and trying to stay afloat.

The Federal Reserve has already committed to more rate hikes to tamp down inflation, and the next Congress is set to be more divided than the last, making legislative bailouts unlikely.

With a collapse in order for much of health tech funding, conventional wisdom about the pandemic's lasting impact on health care's future is shifting.

At the Agencies

HHS' RSV TRACKING — HHS is closely monitoring the rising respiratory syncytial virus and flu cases and responding accordingly, a spokesperson told Pulse.

The statement comes after the Children's Hospital Association and the American Academy of Pediatrics asked the Biden administration to declare a public health emergency over the surging caseloads filling pediatric hospitals.

The administration pointed to continued outreach and tracking from the CDC and the Administration for Strategic Preparedness and Response, which have been collecting and sharing data about the evolving outbreaks with providers across the country — as well as listening to the concerns of health workers treating those affected.

 

A message from Philip Morris International:

Today, anti-tobacco activists, public health leaders, and policymakers have an opportunity to do something real, practical, and grounded in science to help millions of smokers stop smoking and significantly improve public health.

There's no doubt that the best choice for anyone who smokes is to quit tobacco and nicotine completely. However, we also know that many won't, and these adults deserve access to better alternatives to continued smoking.

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Everyone wants a world without cigarettes—but it will take our collective action. We must help those adults who would otherwise continue smoking move away from cigarettes for good.

Learn more

 
Eye on Insurers

FIRST IN PULSE: MEDICARE ADVANTAGE'S EXPANDED SUPPLEMENTS RISING — According to a new report commissioned by the Better Medicare Alliance, the number of benefits a 2018 CMS rule allowed has continued to rise through 2022.

The supplemental benefit offerings, which include several in-home services, grew 35 percent from 2022 to 2023.

Global Health

GLOBAL FUND'S MISSED GOAL — The Global Fund to Fight AIDS, Tuberculosis and Malaria has failed to reach its three-year fundraising target by more than 13 percent, which could lead to notable impacts on efforts to fight diseases worldwide, POLITICO's Carmen Paun reports.

It could also lead to an $800 million cut in the United States' contribution to the organization, which is tied to how much other countries invest in the fund.

The fund had hoped to raise $18 billion for the next three years. It raised $14.2 billion at an event hosted by President Joe Biden in September, and though some pledges have been announced since, a gap remains.

The Global Fund has emphasized a need to make up lost ground on disease responses interrupted by the Covid-19 pandemic.

Names in the News

Millie Bhatia is now a policy adviser for the White House's Covid-19 response team. She previously was a health policy adviser for Rep. Steven Horsford (D-Nev.).

Kara Jones is joining America's Health Insurance Plans, or AHIP, as its newest vice president of federal affairs. She has been with the Foundation for Research on Equal Opportunity since 2019, running its Washington, D.C., office and advocating on issues such as drug and hospital price reforms.

John Kraus is joining HHS as assistant secretary for public affairs/public health. He previously was comms director for Sen. Tammy Baldwin (D-Wis.).

Maya El Jawhari and Sequoia Ragland are joining Ferox Strategies. El Jawhari will be a policy analyst and previously was an intern at the Joint Economic Committee. Ragland will be a health care policy analyst and previously was a health policy intern at the Federation of American Hospitals.

Lynn Rosenthal is joining the Office of the Assistant Secretary for Health as the HHS director of sexual and gender-based violence. She most recently was president of the Center for Family Safety and Healing in Columbus, Ohio.

What We're Reading

Even where abortion remains legal, some hospitals refuse to provide reproductive care, Emily Stewart writes in Health Affairs .

Adderall shortages are hitting people with ADHD across the country, The New York Times' Dani Blum reports .

The WHO's chief scientist is stepping down, which could be a sign of a larger shakeup at the organization, Reuters' Jennifer Rigby and Emma Farge report .

 

STAY AHEAD OF THE CURVE: Our Future Pulse newsletter will continue to bring you the biggest stories at the intersection of technology and healthcare, but now five times a week. Want to know what's next in health care? Sign up for our Future Pulse newsletter. If you aren't already subscribed, follow this link to start receiving Future Pulse .

 
 
 

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