Breaking News

The pre-recess frenzy, mental health parity, and post-PhRMA lobbying

July 25, 2023
Reporter, D.C. Diagnosis Writer
Hello and happy Tuesday, D.C. Diagnosis readers! This weekend I read a timely op-ed on gain-of function research that some lawmakers want to see barred. Send your thoughts on the debate, news and tips to sarah.owermohle@statnews.com.

Congress

Dueling health markups this week

The August break (...for lawmakers) is right around the corner, and there's a stack of bills they're trying to push through or tee up for September. This week's headliner is a Wednesday's double header of markups in the House Ways & Means Committee and the Senate Finance Committee.

Rachel scooped the details of the new Ways & Means package, which focuses on health care transparency and includes a provision that would ensure that Medicare patients pay for medicines they pick up at the pharmacy counter based on the discounted price that insurers negotiate with drugmakers, instead of higher sticker prices.

Finance, meanwhile, is taking on PBMs. Based on the chairman's marks and summary, all the major provisions laid out by STAT's Rachel Cohrs are still on the table. That includes a key reform that would bar PBMs from making money from outside service fees and prohibit them from charging those fees based on drugs' prices. Lobbying to stop or soften the measures has shot up in recent months.

Elsewhere, though, the agenda is on hold. HELP Committee Chair Bernie Sanders was planning a mark up Wednesday for a bill that would put $20 million towards boosting and training the health care workforce – and pay for it "by cutting a fraction of the enormous waste and abuse in our health care system and reduce what Americans pay for some of the most expensive prescription drugs on the market." 

Unsurprisingly, not everyone is a fan of that payment plan. Provisions include capping physician fees, cutting down on prior authorizations, and requiring all biosimilars be automatically interchangeable with their pricier biologics. And it seems Sanders doesn't have the support he wants just yet: "Senator Marshall, I, and other HELP committee members have been having very productive conversations about addressing these crises in a bipartisan way and intend to have a major piece of bipartisan legislation ready by the first week of September," he said in a statement.


white house

Biden proposes mental health coverage requirements

The White House early Tuesday announced a plan to force health insurers to cover mental health and addiction care as comprehensively as they cover treatment for physical health conditions. If enacted, it could help end decades of whack-a-mole between government regulators and insurance companies, Lev Facher reports.

For instance, White House aides said in a call with reporters that people with health insurance are more than twice as likely to seek out-of-network care for mental health conditions as for physical health conditions. 

The new rule would force insurers to evaluate their own networks to measure not just whether they're offering adequate mental health and addiction coverage, but also whether patients are truly accessing it. It'd also close a loophole that lets state and local health plans opt out of pay parity requirements. More from Lev.


drug pricing

Companies save lobbying cash post-PhRMA

Turns out leaving the club can do wonders for the budget: The three companies that recently exited PhRMA all spent less on lobbying after their departures, my D.C. Diagnosis co-writer Rachel Cohrs reports. 

AbbVie, Teva, and AstraZeneca all left in the drug lobby in the months after Congress passed itsa the hotly contested Medicare price negotiation bill. AbbVie – which has complained about PhRMA fees in the past – saw its lobbying costs more than halve in the first six months of the year. Teva's spending dropped 42% in the same period, while AstraZeneca, which only left this May, saved 35% in the second quarter. Interestingly, none of the three companies have picked up new lobbying firms this year either. 

As Rachel notes, both AbbVie and AstraZeneca make profitable drugs that could be first targets for Medicare price negotiations. Teva, meanwhile, has taken a more active leadership role in the generic drug lobby since it exited PhRMA. Dive into the figures.

 



health tech

How IQVIA became a health data giant

IQVIA has been a juggernaut of health data for decades, fueled by steady acquisitions of its rivals – and federal regulators are looking to put a stop to it. The Federal Trade Commission's recent lawsuit to block IQVIA's acquisition of digital advertising group DeepIntent marks a crossroads for the tech powerhouse and health data, STAT's Casey Ross writes. 

A snapshot of the tech giant's data banks: It processes more than 100 billion health records annually and holds 1.2 billion non-identified patient records — enough to crash a supercomputer in seconds — as well as the email addresses of 95% of the nation's health care professionals.

The FTC's suit poses an unusually direct threat to IQVIA's growth, Casey notes. The outcome of the legal battle will not only affect the trajectory of its business, but how much control IQVIA can exert over data it has amassed on American's illnesses, treatments, and outcomes — information that also could also be used to answer some of health care's most pressing questions. Read more here.


the science agencies

NIH's translational research arm gets a new lobby 

The NCATS Alliance quietly launched this spring with a mission: Make sure Congress doesn't forget about the lesser-known cousin of multibillion-dollar NIH arms. The lobby is pressing Congress to give NCATS a 16% funding bump in 2024, putting its budget at a little over $1 billion. 

That's a fraction of the spending at NIH giants like the National Cancer Institute or the brand-new ARPA-H. But despite sharing a lot of goals with ARPA-H, NCATS doesn't get quite the attention, or the funds. Part of the problem, current and former officials say, is that there isn't a natural group of advocates for translational research (trying to apply lab learnings in care, or even other fields) the way there is for cancer or Alzheimer's Disease research. Another, of course, is that Congress isn't really in a spending mood right now. Read more from me.


More around STAT
Check out more exclusive coverage with a STAT+ subscription
Read premium in-depth biotech, pharma, policy, and life science coverage and analysis with all of our STAT+ articles.

What we're reading

  • The AMA's new president on medicine's 'AI era' and the uncertain future of telehealth, STAT
  • 2024 GOP candidates forced to grapple with a 6-week abortion ban to win Iowa, NBC
  • From rapid cooling body bags to 'prescriptions' for AC, doctors prepare for a future of extreme heat, STAT
  • Rise in cancer among younger people worries and puzzles doctors, The Boston Globe

Thanks for reading! More on Thursday,


Enjoying D.C. Diagnosis? Tell us about your experience
Continue reading the latest health & science news with the STAT app
Download on the App Store or get it on Google Play
STAT
STAT, 1 Exchange Place, Boston, MA
©2023, All Rights Reserved.

No comments