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The Hill’s talking health care costs, scaled-back changes to MA, & a national cancer plan without new funds

April 4, 2023
Reporter, D.C. Diagnosis Writer

Happy Tuesday, D.C. Diagnosis readers! Congress might be out of town this week, but the news hasn't slowed in Washington. And no, I'm not talking about the Trump indictment. Send news, tips and health legislation rumors to sarah.owermohle@statnews.com

CAPITOL HILL 

House, Senate leaders prep a pile of health bills

House and Senate committees are drafting their next set of health care bills, with some hope that they can garner ever-elusive bipartisan support by targeting favorite bogeymen in the health costs debate.

That includes legislation in the Senate aimed at pharmacy benefit managers and drugmakers' patent thickets, plus measures designed to to boost generic drug competition, according to four lobbyists who spoke to my colleague John Wilkerson (Axios first reported Senate talks).

In the House, health committee leaders want to tackle transparency in hospital costs, a priority that E&C Committee Chair Cathy McMorris-Rodgers signaled early in her tenure and with a recent hearing. Lobbyists tell D.C. Diagnosis that transparency measures — designed to get hospitals actually complying with Trump-era price rules — could get tied into a larger affordability package with Democrats' buy-in. But it's still early days, and if the recent QALY bill debate is any indicator, bipartisan bills can fall apart fast. 


INSURANCE

A modest Medicare Advantage move

D3 vis exported to PNG

CMS late Friday quietly announced a smaller-than-expected pay cut for Medicare Advantage plans and a three-year runway for coding changes designed to rein in costs, dramatically softening an initiative to reverse years of overpayments to commercial insurers after intense industry lobbying, as my colleague John Wilkerson reported Friday

The agency will decrease baseline payments by 1.1%, up from the 2.3% decrease previously proposed — but payments will be higher after factoring in how plans code their members' illnesses. And while it will eventually consolidate some treatment codes to prevent Advantage plans from overbilling the government on sick patients, skeptics say the three-year timeline gives plenty of room for insurers to make changes that protect their bottom line. If you had any doubt of whether the delay benefits the insurance industry, look what happened to the stocks of the biggest MA players yesterday. Humana, for instance, represents 18% of the MA market according to KFF, and: 

The government still plans to aggressively audit Advantage plans, but that might not deliver savings for a while. Meanwhile, CMS said in updated projections Friday that traditional Medicare spending will go up 2.3% in 2024 and said the program's trust is solvent until 2031. While that provides a few years' more padding than the agency projection last year (lasting until 2028), it relies in part on projected savings from Medicare Part D negotiation that hasn't been finalized.


WHITE HOUSE

Biden officials: Please, fund our cancer efforts

HHS on Monday released a National Cancer Plan that essentially reiterates President Biden's relaunched Moonshot — to halve cancer deaths and curb new cases — but without mentioning the billions of dollars the president requested to fund those goals in 2024. 

The eight-point, 25-page plan rehashes Biden's goals of catching cancer early through screenings, curbing new cases through preventive education and improving data and care. Awkwardly, it comes just days after a Texas federal judge struck down an Obamacare provision requiring insurers to cover a range of cancer screenings — a decision HHS is appealing. It's not in the new National Cancer Plan, but in its 2024 budget proposal the agency has asked for $3.6 billion to refill the Moonshot's coffers, on top of more than $7 billion for the National Cancer Institute and another $2.5 billion for the Advanced Research Projects Agency for Health, which could fund cancer research projects.

"This is a sensible plan, an achievable plan," Karen Knudsen, CEO of the American Cancer Society, told DCD. But at the same time, "we need to erase some of these unnecessary barriers," she said. "The data tell us without question, unequivocally, that copays are barriers to cancer screening."



CORONAVIRUS

Biden's Covid coordinator talks misinformation 

White House Covid-19 czar Ashish Jha rallied doctors this weekend to tackle pandemic misinformation and talk to their patients more about false coronavirus rumors. The comments at a Boston conference come amid reports that the White House is winding down its Covid-19 task force – and with it, Jha's role – when the pandemic emergency ends in May. 

"Almost every one of those [current Covid-19] deaths is preventable. And yet people are still dying. And that is the power of misinformation. That is the power of disinformation that we all have to work on countering," Jha said to an audience convened by the Massachusetts Medical Society, my colleague Liz Cooney reports. 

The Harvard T.H. Chan veteran also nodded to the unfurling fight against long Covid, which he said is "not totally surprising" to see because of other post-infection syndromes in other viruses, but that the lingering Covid-19 ailments are "probably" worse and "not one condition." Read more


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