This Week in Washington - October 20, 2017

Senate Introduces Bipartisan Market Stabilization Legislation

On October 18, Senate HELP Committee Chairman Sen. Lamar Alexander (R-TN) and Ranking Member Patty Murray (D-WA) introduced their individual market stabilization bill. The bill includes 11 Republican and 11 Democratic co-sponsors. The legislation proposes to restore funding for cost-sharing reduction payments for two years. The White House announced last week that it will not make further ACA subsidy payments going forward.

The measure would also provide states with flexibility for certain ACA requirements. States can use existing ACA waivers to approve insurance plans of comparable affordability to ACA plans. It requires HHS to release guidance on model state plans that meet waiver approval requirements, such as state plans that create a reinsurance program or invisible high-risk pool.

Despite bipartisan support for the bill and a barrage of health industry support, its prospects remain uncertain. Senate Finance Chairman Orrin Hatch (R-UT) has not endorsed the measure, and Senate leadership has been quiet. House Speaker Paul Ryan opposes the measure in its current form, and the White House has sent mixed signals on the bill, making its prospects for passing as a stand-alone measure unlikely. The most likely scenario for passage has some form of Alexander-Murray included in the year-end omnibus spending bill Congress is expected to pass in early December.

Senate HELP Committee Continues to Focus on Cost of Prescription Drugs

On October 17, the Senate HELP committee held its second hearing to discuss the cost of prescription drugs. The hearing focused on how the drug delivery system affects pricing for patients. Questions were directed to the Pharmaceutical Research and Manufacturers of America, but there was also testimony from the Association for Accessible Medicines, formerly known as the Generic Pharmaceutical Association, the Healthcare Distribution Alliance and the American Pharmacists Association.

Witnesses and lawmakers did not come to agreement on what is causing drug prices in the U.S. to be higher than prices in other parts of the world. In addition to the HELP Committee, the House Energy and Commerce Committee has held hearings on drug pricing, but legislation aimed at lowering prices has not been addressed at the committee level.

New Front-Runner to Fill HHS Secretary Position

Reports this week indicate President Trump is leaning toward former pharmaceutical industry executive Alex Azar to serve as Secretary of Health and Human Services. Azar served as the HHS general counsel and deputy secretary under President George W. Bush. After leaving HHS, Azar worked at Eli Lilly and Company for almost a decade.

Health-Related Bills Introduced This Week

Sen. Tim Scott (R-SC) introduced the Increasing Access to Care Act (S. 1976). The bipartisan bill amends Section 1302(e) of the PPACA by eliminating the provision’s age-based restriction and allowing individuals over the age of 30 to purchase catastrophic health care plans.

Sen. Michael Bennett (D-CO) introduced the Medicare-X Choice Act (S.1970). The bill intends to establish a public insurance plan offered on the individual and small business health exchanges. Initially, Medicare-X would only be available in rural areas, but the goal is to have Medicare-X expand to all places by 2023.

Next Week in Washington

The House and Senate return on Monday for a full legislative week. On October 25, the House Energy and Commerce Committee will hold a hearing titled Federal Efforts to Combat the Opioid Crisis that will also focus on implementation of the Comprehensive Addiction and Recovery Act that was signed into law last year.

This Week in Washington in History

105 years ago today, 1912: Former U.S. President Theodore Roosevelt is shot and wounded in an assassination attempt in just outside the Gilpatrick Hotel in Milwaukee. He is saved by the 50-page speech in his breast pocket and an eyeglass case. Though wounded, Roosevelt insists on finishing his speech before being taken to the hospital.

70 years ago this week, 1947: The House Un-American Activities Committee opens public hearings on alleged communist infiltration in Hollywood. Among those denounced as having “un-American tendencies” are Katherine Hepburn, Charles Chaplin and Edward G. Robinson. Screen Actors Guild President Ronald Reagan testifies and denies that leftists ever controlled the Guild and refuses to label anyone a communist.

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