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Health Policy Updates for the Week of January 28, 2019

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The Headlines

  1. The government reopened on January 25, without border wall funding. Congress now has until February 15 to avert another partial shutdown.  
  2. Hearings on drug pricing and protecting Americans with pre-existing conditions occurred this week in the House and Senate.
  3. CMS released proposed changes to Medicare Advantage and Medicare Part D, focusing on supplemental benefits for chronically ill and non-opioid therapies to address the opioid epidemic.
  4. The HHS released a drug rebate proposed plan that would attempt to help lower drug costs by amending safe harbor exemptions. Also on Thursday, President Trump and the Office of National Drug Control Policy released its ‘National Drug Control Strategy.’
  5. Hearings in the House and Senate are scheduled for next week. Check out the full schedule below.

The Details

  1. Government Funding
    On January 25, day 35 of the partial government shutdown, a deal was reached to reopen the government at current funding levels and without border wall funding, through February 15. A bipartisan congressional conference committee was tasked with finding a solution to fund border security, but the President has signaled he could declare a national emergency if there is no deal by February 15.
     
  2. Hearings This Week
    Both the Senate Finance Committee and the House Oversight Committee held hearings on drug pricing on Tuesday. Senate Finance Chairman Chuck Grassley (R-IA) and House Oversight Chairman Elijah Cummings (D-MD) took turns in their respective committee meetings to urge pharmaceutical companies to be more transparent in pricing and to be held accountable. Drug pricing will be a key health care issue in the new Congress, with both committees expected to schedule additional hearings on the topic in the coming weeks.
     
    Also this week, the House Ways and Means Committee held a hearing titled “Protecting Americans with Pre-Existing Conditions.” In opening remarks, Chairman Richard Neal (D-MA) shot down the recent Affordable Care Act as unconstitutional ruling by U.S. District Court Judge Reed O’Connor, stating that the pre-existing protections should be kept in place. Kaiser Family Foundation, Oregon Division of Financial Regulation, American Cancer Society Cancer Action Network, American Heart Association, and Nebraska Farm Bureau Federation all testified during the hearing. The House Education and Labor Committee will also hold a hearing on protecting pre-existing conditions, date TBD.
     
  3. CMS Proposed 2020 Medicare Advantage and Part D Changes
    On Wednesday, Centers for Medicare & Medicaid Services (CMS) released the Medicare Advantage rate notice proposal for 2020, and the new proposed payment policies for Part D plans. The proposals include an increase in Medicare Advantage average payment plans, providing room for insurers to offer non-medical benefits for patients who qualify as chronically ill, such as transportation and home delivered meals. Also in the proposal are new ways for Medicare Advantage and Part D to promote non-opioid therapies, such as peer support and cognitive behavioral therapies. Comments are being accepted through March 1, 2019, with the final announcement published by April 1, 2019.
     
  4. Proposed Drug Rebate Plan Released & Trump’s National Drug Control Strategy
    On Thursday, the Department of Health and Human Services (HHS) released a proposed plan that would overhaul the drug purchasing system in an effort to lower the cost of medicines. The plan would amend “safe harbor” exemptions, and force pharmaceutical rebates for insurance plans and pharmacy benefit managers subject to anti-kickback fines. The rule would apply to federal health programs.
     
    Also on Thursday, the Office of National Drug Control Policy released the ‘National Drug Control Strategy,’ a plan to help combat the opioid crisis. The document aligns with the work already underway at HHS and in Congress; primarily focusing on treatment, prevention and stopping the drug supply chain.
     
  5. Hearings Scheduled for Next Week