GOP chairman: Drug prices ‘high on our agenda’

GOP chairman: Drug prices ‘high on our agenda’

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House Energy and Commerce Committee Chairman Greg Walden (R-Ore.) said Tuesday that dealing with high drug prices will be “high on our agenda.”

The comments come after Walden attended a meeting at the White House earlier in the day with President Trump and the CEOs of several major drug companies, at which Trump pressed the companies to bring their prices down.

However, Walden pointed to solutions that are less far-reaching than what Democrats and Trump have proposed, such as allowing Medicare to negotiate drug prices. Instead, Walden said there could be legislation to speed up the Food and Drug Administration’s approval process for a new competitor to a drug that currently lacks competition.

Walden said that implementing the 21st Century Cures Act, passed by Congress last year, to speed up the FDA’s approval process, is also an important part of the picture.

Trump has gone farther than most Republicans in the past on drug prices, calling for Medicare to negotiate. Trump did not directly call for that policy on Tuesday, though.

Getting any drug pricing legislation through Congress would be a tall task, given how fraught the issue is and the resistance of many Republicans to government action on the issue.

GOP talk shifts from replacing ObamaCare to repairing it

GOP talk shifts from replacing ObamaCare to repairing it

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Key Republican lawmakers are shifting their goal on ObamaCare from repealing and replacing the law to the more modest goal of repairing it.

It’s a striking change in rhetoric that speaks to the complexities Republicans face in getting rid of the Affordable Care Act. Many of the law’s provisions are popular, and some parts of the law that the GOP does want to repeal could have negative repercussions on the parts seen as working.

“I’m trying to be accurate on this that there are some of these provisions in the law that probably will stay, or we may modify them, but we’re going to fix things, we’re going to repair things,” House Energy and Commerce Committee Chairman Greg Walden (R-Ore.), a key player on healthcare, told reporters Tuesday.

“There are things we can build on and repair, there are things we can completely repeal,” he said.

Senate Health Committee Chairman Lamar Alexander (R-Tenn.) is sounding a similar note. He notes that Republicans plan to use special budget rules known as reconciliation to prevent Democrats from filibustering a vote to repeal ObamaCare. The use of those rules won’t allow all of ObamaCare to be repealed.

“I think it is more accurate to say repair ObamaCare because, for example, in the reconciliation procedure that we have in the Senate, we can’t repeal all of ObamaCare,” Alexander said. “ObamaCare wasn’t passed by reconciliation, it can’t be repealed by reconciliation. So we can repair the individual market, which is a good place to start.”

Not everyone is on board with the new rhetoric.

Some Republicans say their party should be focused on repealing the law and replacing it, not repairing it.

“I’m hearing a lot of members say that they want ObamaCare-lite,” said Rep. Raúl Labrador (R-Idaho). “That’s not what we promised the American people.”

DOJ charges ex-Tenet Healthcare exec with role in $400M fraud scheme

http://www.fiercehealthcare.com/healthcare/doj-charges-ex-tenet-healthcare-exec-role-400m-fraud-scheme

DOJ

Six months after Tenet Healthcare reached an agreement to pay $514 million in penalties for an alleged kickback scheme, one of its former executives has been indicted for his part in the plan to pay bribes for patient referrals.

The Department of Justice announced Wednesday that it has indicted John Holland, 60, of Dallas in his role in a $400 million scheme to defraud the government, Georgia and South Carolina Medicaid Programs, and prospective patients of Tenet hospitals.

Holland, the former senior vice president of operations for Tenet Healthcare Corporation’s Southern States Region and the former chief executive officer of North Fulton Medical Center Inc. in Roswell, Georgia, was charged with mail fraud, healthcare fraud and major fraud against the United States.

The indictment alleges Holland was involved in a scheme to pay bribes for patient referrals. which helped Tenet bill the Georgia and South Carolina Medicaid Programs more than $400 million and obtain more than $149 million in Medicaid and Medicare payments based on those patient referrals.

The scheme began in 2000, according to the indictment,  when Holland circumvented internal accounting controls and falsified Tenet’s books, records and reports to conceal payments of bribes and kickbacks in return for the referral of patients to North Fulton Medical Center Inc. and other Tenet hospitals, including Atlanta Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital.

Holland pled not guilty to the charges during a court hearing, Reuters reported. His lawyer, Richard Deane, said Tenet’s agreement in August to settle criminal charges and civil claims, should have resolved this issue.

“Mr. Holland is not guilty and we now look forward to presenting this case to a jury,” Deane said in a statement to Reuters.

But Acting Assistant Attorney General Blanco said in a statement from the DOJ that “these charges underscore our continued commitment to holding both individuals and corporations accountable for their fraudulent conduct.“We will follow the evidence where it takes us, including to the corporate executive ranks.”

U.S. Health Care Reform Will Require Politicians to Change Their Attitude

https://hbr.org/2017/02/u-s-health-care-reform-will-require-politicians-to-change-their-attitude

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It is no secret that replacing the Affordable Care Act, popularly known as Obamacare or the ACA, is high on the agenda of the incoming Republican administration and Congress. Speaker Paul Ryan has said that the law has “failed.” In the campaign debates, Donald Trump said it was “destroying our country.” But even as the new administration has issued its initial executive orders, Republicans have yet to offer a true alternative plan, and the timing on replacement is still hazy.

Given that one party controls both the executive and legislative branches of government, one might be tempted to think that “renegotiate” may be the wrong word — that “fiat” may more appropriate. Not so fast. There are Republican governors who oppose the rollback of Medicaid expansion. Even within Congress there are differences over whether a repeal should take effect immediately or over time. Despite the demonization of the ACA on the campaign trail, there are elements of the law that are quite popular across the political spectrum. While the president has stated on the record that he wants health care for everyone, his nominee for secretary of health and human services refused to back that promise in confirmation hearings.

The policy and politics promise to be nettlesome at best, and many experts are weighing in. At the Program on Health Care Negotiation and Conflict Resolution, at the Harvard T.H. Chan School of Public Health, we look most closely at the leadership and negotiation issues, each of which offers opportunities as well as pitfalls that can be seen clearly even now.

Given the number of stakeholders and the diversity (and divergence) of their interests and points of leverage, “renegotiating” is exactly the right word. And there are few negotiations as complex as reforming the U.S. health care system. Certain changes can be forced into the system from on high, but the essential goodwill, commitment, and voter loyalty that political will is derived from cannot be commanded.

The promise of much better care at greatly reduced costs for citizens is simply a fantasy unless Congress is willing to increase subsidies for coverage. The budget hawks on Capitol Hill are not likely to go along with that. Or they could regulate prices, but that is also anathema to conservatives. Physicians and hospitals will come to the table wanting more now that they better understand the impact of the various components of the ACA. Insurers will remember that Congress funded just 12.6% of their claims under the “risk corridors” of the ACA and will want greater certainty regarding the risks they are undertaking. The public’s expectations are that the parts of the law they like will remain — including the expense-heavy coverage for preexisting conditions and elimination of lifetime benefit caps — while those they dislike, such as the employer and individual mandates that help mitigate risk and lower costs, will go away.

Why hospitals really don’t want to go back to pre-Obamacare days

https://www.axios.com/why-hospitals-really-dont-want-to-go-back-to-pre-obamacare-days-2162243137.html

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Hospital executives know that if Obamacare is repealed and not replaced, the ranks of the uninsured will swell, and they will still be required to treat those patients.

That’s why they’re hit especially hard these days by the uncertainty over what will happen and when, as Republicans try to figure out how they want to get rid of the law. The biggest concerns for hospital executives: losing Medicaid payments, and having more privately insured patients who can’t pay their bills because of high out-of-pocket costs. Hospitals were just getting relief from uncompensated care, and don’t want those costs to rise again.

The primary concern: It’s not the potential loss of patients with private Obamacare insurance that worries hospitals the most. It’s the loss of patients with Medicaid coverage.

Even though state Medicaid programs pay hospitals less than Medicare or private insurers, it’s still been better than nothing. That’s why state hospital associations have aggressively lobbied for Medicaid expansion in Republican states that haven’t embraced it.

Dennis Dahlen, chief financial officer of Banner Health in Phoenix, recently said there could be “dire consequences” if Medicaid expansion is rolled back and if Republicans move toward Medicaid block grants. That would threaten revenue immediately and lead to more uninsured patients walking into the emergency room.

“Our biggest exposure and biggest concern is Medicaid funding,” Dahlen said. About 13% of Banner’s patient revenue comes from Medicaid.

Today in Obamacare: the big hurdle to block-granting Medicaid — explained by a GOP legislator who wants to do it

http://www.vox.com/2017/2/1/14475974/obamacare-medicaid-block-grants

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GOP legislator: Block-granting Medicaid will be “harder” than I thought

Yesterday afternoon, I interviewed Rep. Phil Roe (R-TN), a conservative legislator who co-chairs the GOP Doctors Caucus and authored the Republican Study Committee’s Obamacare replacement plan. We spent most of the time talking about that health care bill, and you can read that full conversation here.

But one of the things Roe told me that surprised me the most was that he has begun to think block-granting Medicaid is going to be much harder than he initially expected. Here was the full answer:

What I thought was going to be easy was I thought Medicaid, we’d just block-grant it to the states. That one actually is going to be a little harder than I thought. The reason is there are states like New York, states that expanded [Medicaid]. How do you cover that 10 or so million people on Medicaid?

Why this is surprising: There is a lot that divides Republicans on health policy right now (what exactly to do about the Affordable Care Act, for example). But if there is one major idea that unites them, it is block grants for Medicaid.

Today in Obamacare: Trump quickly changed his mind on drug prices. Expect the same on Obamacare.

http://www.vox.com/policy-and-politics/2017/1/31/14455656/obamacare-trump-drug-prices

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If Trump’s pharma comments are any clue, we have no idea what he wants on Obamacare

President Trump has apparently done some rethinking on his views of American drug pricing policy, offering confusing remarks that indicated he might not support Medicare negotiating drug prices.

“I’ll oppose anything that makes it harder for smaller, younger companies to take the risk of bringing their product to a vibrantly competitive market,” Trump said after meeting with pharmaceutical executives Tuesday. “That includes price-fixing by the biggest dog in the market, Medicare, which is what’s happening.”

This appears to contradict what he said a mere two weeks ago, at a press conference in Manhattan. “Pharma has a lot of lobbies, a lot of lobbyists, and a lot of power. And there’s very little bidding on drugs,” he said there. “We’re the largest buyer of drugs in the world, and yet we don’t bid properly.”

This back and forth on drug pricing is suggestive of what to expect from the president on the Affordable Care Act. There too, Trump has made big promises that most of his Republican colleagues on the Hill have not. The biggest one is that he will come up with a plan to cover everybody and do it at a lower cost than Obamacare.

In this drug pricing example, I see how Trump could break his promise to cover everyone. It boils down to three main reasons, all present in the drug pricing situation.