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Federal Health Policy Updates for the Week of February 3, 2020

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The Headlines

  1. Duke University signed onto a letter in support of increased biomedical research funding for FY 2021.
  2. The House voted to oppose a plan that would convert Medicaid funds into block grants.
  3. The president delivered his State of the Union address on Tuesday.
  4. The House held a hearing to review vaping policy in the United States.
  5. The Centers for Medicare and Medicaid Services proposed a new Medicare Advantage policy.

The Details

1. Duke supports NIH funding recommendation 
The Ad Hoc Group for Medical Research, which represents patient groups, scientific societies, research institutions, health professionals, educators, and industry, is recommending $44.7 billion for the National Institutes of Health (NIH) in FY 2021. This funding level would represent a $3 billion (7.2%) increase above the FY 2020 program level and would expand NIH's capacity to support promising science in all disciplines across the agency. Duke University joined more than 285 organizations and institutions in endorsing the recommendation for NIH.
 
2. Medicaid block grant proposal
On Thursday, the House voted 223-190 on a resolution to disapprove of the Trump Administration's new plan to let states convert some Medicaid funding into block grants. Last week, the Centers for Medicare and Medicaid Services issued guidance encouraging states to request capped federal payments to cover working adults. The vote expresses disapproval of the policy and will not have any concrete effect. 

3. State of the Union
In his State of the Union address, the president called for bipartisan legislation that aims to lower prescription drug prices, asking Congress to "get a bill to my desk, and I will sign it into law without delay." The House passed a drug pricing bill (H.R. 3) in December, but it includes provisions that would allow Medicare to negotiate the price of some drugs, which is a non-starter in the Senate. A Senate drug pricing bill (S. 2543) currently lacks Republican support because of a provision that would fine drugmakers that raise prices faster than inflation.

4. Vaping hearing
On Wednesday, the House Energy and Commerce Subcommittee on Oversight and Investigations held a hearing entitled, "Vaping in America: E-Cigarette Manufacturers' Impact on Public Health." Executives from Juul and four other vaping brands responded to questions about disposable vapes that lawmakers believe teenagers have turned to after a widespread ban of flavored cartridge vapes like Juul pods. Questions focused on the appeal of disposable e-cigarettes sold by NJOY and Fontem that were not covered by the ban that went into effect on February 6, 2020.

5. New Medicare Advantage proposed policy
This week, the Centers for Medicare and Medicaid Services proposed a new policy that would let patients with kidney failure enroll in Medicare Advantage beginning in January 2021. The proposal also would allow Medicare Part D plans to offer two specialty tiers on their drug formularies in an attempt to give health plans more leverage to lower drug prices. Comments on the proposed rule are due April 6.