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Federal Health Policy Updates for the Week of December 9, 2019

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The Headlines

  1. Congress is getting closer to funding the government for FY 2020.
  2. The House approved legislation that aims to lower prescription drugs costs .
  3. The Senate voted to confirm the Administration's nominee to lead the FDA.

The Details

1. Federal funding and calendar update
The current continuing resolution that funds the federal government expires on December 20. Next week, the House may vote on several if not all 12 FY 2020 spending bills.

The House is also expected to vote on two articles of impeachment -- which the House Judiciary Committee approved today along party lines -- and a new North American trade deal known as the U.S.-Mexico-Canada Agreement (USMCA) before adjourning for the year. 

2. House passes drug pricing legislation
On December 12, the House approved legislation that aims to bring down the cost of prescription drugs. Among other things, the bill would require the federal government to negotiate the cost of at least 50 and up to 250 of the most costly brand name drugs that do not have competition. Insulin for diabetes would be included. The maximum price negotiated would be capped at 120 percent of the average price charged in other industrialized countries that typically pay less than the United States. Under the bill, drug companies would either comply or pay an excise tax starting at 65 percent and rising to 95 percent. Private insurance plans could also use the negotiated prices.

The Congressional Budget Office estimated the bill would lower spending by $456 billion over a decade by allowing for government negotiation but result in eight fewer new drugs being introduced in the US over that same time. Democrats would use the resulting savings to expand Medicare coverage to dental, vision, and hearing services. 

On December 6, the Senate Finance Committee released an updated version of its drug pricing bill, which also includes provisions to eliminate cuts to the Medicaid Disproportionate Share Hospital program for two years and to reauthorize the Patient-Centered Outcomes Research Institute (PCORI). It awaits actions by the Senate.

While it is very unlikely either chamber will take up the other's drug pricing legislation, some of the few common elements could pass in an end-of-year bill. Duke Health Government Relations will continue monitoring and reporting updates in future newsletters.

3. FDA nominee confirmed by the Senate
On December 12, the Senate approved the nomination of Stephen Hahn, MD, to be Commissioner of the Food and Drug Administration by a vote of 72-18. According to STAT News, "the Senate’s vote margins make Hahn one of the most contentious picks to lead the FDA in recent history: Scott Gottlieb was confirmed in 2017 with a 57-42 vote, but the two previous chiefs were confirmed with overwhelming support."