Health Care Checkup: February 10, 2023

Health Care Checkup

February 10, 2023

THE BIG PICTURE

HHS released a snapshot of the agency’s accomplishments from 2022 that “support the health and well-being of everyone living in America.” The report can be found here.

The House Energy and Commerce subcommittees on Oversight & Investigations and Health held a hearing titled, “The Federal Response to COVID-19.” Our summary can be found here.

What to Expect Next Week: On Monday, February 13, the Department of Health and Human Services Office of Intergovernmental and External Affairs will host a call at 3:00 PM ET to discuss the end of the COVID-19 Public Health Emergency (PHE). You can register for the meeting here. Additionally, the Senate HELP Committee will hold a hearing on Thursday, February 16 titled “Examining Health Care Workforce Shortages: Where Do We Go from Here?”

DEEP DIVE

President Biden Delivers SOTU, Advocates for Capping Insulin Costs and Vows to Prevent Medicare Cuts

On Tuesday evening, President Joe Biden delivered his State of the Union (SOTU) address to Congress. President Biden advocated for extending the Inflation Reduction Act’s (IRA’s) $35 insulin price cap to all Americans, not just those on Medicare. He also advocated for making the American Rescue Plan’s (ARP’s) Affordable Care Act (ACA) tax credits permanent. Unless Congress takes additional action, these advanced premium tax credits are slated to expire after 2025. The President also vowed to prevent Republicans from cutting Medicare and Social Security benefits. He stated that some Republicans want Medicare and Social Security to sunset every five years, and others say that they will let America default on its debt if the programs are not cut. Biden said that he will release his fiscal year (FY) 2024 budget proposal next month and said that he would like to sit down with Republicans to discuss their plain as well. The President also addressed the COVID-19 pandemic and said that we must remain vigilant and still monitor new variants and support new vaccines and treatments. Additionally, President Biden said that we must combat the fentanyl crisis in the country, as well as the mental health crisis. President Biden’s full speech can be found here.

HHS Issues Guidance for Medicare Prescription Drug Inflation Rebate Program

The Department of Health and Human Services (HHS) issued guidance for the new Medicare Prescription Drug Inflation Rebate Program, detailing the program’s requirements and procedures. Under the program, drug companies who raise prices faster than the rate of inflation will be required to pay a rebate to the Medicare Trust Fund. In October 2022, the first 12-month period began for which drug companies must pay a rebate for Part D drugs with prices rising faster than the rate of inflation. HHS said that beginning April 1, 2023, Medicare beneficiaries with Traditional Medicare and Medicare Advantage may pay less out-of-pocket for certain Part B drugs with prices that have risen faster than the rate of inflation. A fact sheet on the Medicare Prescription Drug Inflation Rebate Program can be found here. The Medicare Part B Prescription Drug Inflation Rebate guidance can be found here and the Medicare Part D Prescription Drug Inflation Rebate guidance can be found here.

HHS Creates COVID-19 PHE Transition Roadmap, as PHE is Slated to End in Early May

On Thursday, HHS Secretary Xavier Becerra sent a letter to U.S. Governors, giving them 90-days’ notice that the COVID-19 public health emergency (PHE) will end on May 11. The PHE was originally put into place in January 2020 by former President Donald Trump and it has been renewed every 90 days since. In light of the impending expiration, HHS created a fact sheet, detailing the programs that will and will not be affected. Medicaid telehealth flexibilities will not be affected, and “major” Medicare telehealth flexibilities will not be affected. Additionally, Food and Drug Administration (FDA) emergency use authorizations (EUAs) for COVID-19 vaccines and treatments will not be affected. HHS noted that coverage for COVID-19 testing will change after the PHE expires, as well as reporting of COVID-19 laboratory results and immunization data to the Centers for Disease Control and Prevention (CDC). Furthermore, the ability of health care providers to dispense controlled substances via telemedicine without an in-person interaction will be affected. However, HHS stated that there will be future proposals to extend these flexibilities. The full fact sheet can be found here.

HHS Releases Report on How it is “Building a Healthier America”

HHS released a snapshot of the agency’s accomplishments from 2022 that “support the health and well-being of everyone living in America.” These accomplishments include: tackling the COVID-19 pandemic; reducing health care costs and expanding access to coverage and care; strengthening mental and behavioral health care; improving nutrition and encouraging healthy choices; tackling climate change as a public health issue; investing in the public health workforce and supporting care givers; strengthening supports for vulnerable children and families; investing in health innovation; strengthening public health preparedness and response; and advancing equity and increasing opportunity for communities. The report can be found here.

Senate HELP Chairman Bernie Sanders Proposes Major Expansion of Community Health Centers

In a speech before the Advocates for Community Health, a health care membership organization, Senator Bernie Sanders (I-VT) announced his plans for a “historic” expansion of community health centers. Sanders, the new Chairman of the Senate Health, Education, Labor and Pensions Committee, said that we must give community health centers the “funding and resources they need to hire more primary care doctors, nurses, dentists, and mental health counselors who keep these centers going.” He also told reporters that he expects President Joe Biden’s FY 24 budget will “reflect the need to significantly expand funding to the community health centers.” More on Senator Sanders’ proposal can be found here.