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Federal Health Policy Updates for the Week of October 14, 2019

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The Headlines

  1. Congress continues to work towards funding the government for FY 2020.
  2. Duke Health urges Congress to finalize funding for medical research.
  3. Several House committees held hearings on drug pricing.
  4. The Department of Health and Human Services (HHS) proposed changes to physician-self referral and anti-kickback statute regulations.

The Details

1. Federal funding update
Congress reconvened after a two-week recess and has until November 21 to agree on all 12 FY 2020 appropriations bills before the current continuing resolution expires. As of October 1, the House passed 10 of 12 annual spending measures, and the Senate Appropriations Committee advanced 10 bills. Among other things, the pending impeachment inquiry and funding for the president’s border wall continue to be sticking points for negotiations. 

2. Duke Health support for medical research
Duke University and Duke Health signed onto a letter with more than 140 other organizations and institutions urging House and Senate appropriators to ensure “quick enactment of a Labor-HHS-Education appropriations bill that provides robust, sustained funding for medical research.” The letter thanks congressional leadership for their longstanding support of the National Institutes of Health, including the support shown in the FY 2020 House-passed and Senate draft bills.

3. Drug pricing hearings
On October 17, the House Energy and Commerce Committee held a hearing to consider H.R. 3, which would allow the federal government to negotiate the cost of at least 25 drugs per year with the maximum price no more than 1.2 times that paid in other wealthy countries. Last week, the Congressional Budget Office estimated the bill would save the government $345 billion over seven years. The Committee also considered bills that would add a vision benefit (H.R. 4665), hearing benefit (H.R. 4618), and dental benefit (H.R. 4650) to Medicare Part B.

The House Education and Labor Committee also held a markup on and approved H.R. 3. The House Ways and Means Committee will consider the bill and this week held a hearing entitled, “Investing in the US Health System by Lowering Drug Prices, Reducing Out-of-Pocket Costs, and Improving Medicare Benefits.”

4. Proposed changes to Stark and Anti-Kickback regulations
On October 9, HHS proposed rules to modernize the Stark Law on physician self-referral and the Anti-kickback Statute. The proposed rule on Stark would create new permanent exceptions to the law for value-based and certain other arrangements. The proposed rule on the Anti-kickback Statute would provide three new safe harbors for remuneration exchanged between or among eligible participants in a value-based arrangement, among other things. The public comment period closes December 31, 2019.