Senate drug-pricing bill passes committee unscathed
Skip to main content
Sister Publication Links
  • Modern Healthcare Metrics
MDHC_Logotype_white
Subscribe
  • Subscribe
  • Register
  • Login
  • News
    • This Week's News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • People
    • Regional News
    • Digital Edition
    • Virginia doctor sentenced to 40 years in opioid case
      UPS to kick off drone delivery service with hospital campuses
      Retail giant Walmart halts sales of Zantac and related drugs
      Alabama hospitals proceeding with surgeries despite computer hack
    • Sponsored Content Provided By Abbott
      Use of Popular Biotin Supplements Could Impact Lab Test Results
      Hospitals' softening volumes drove profitability declines in August
      Recognition program aims to cultivate more trees on hospital campuses
      Q&A: Spectrum Health CEO pushes new mission, vision
    • CMS to allow states to offer individual market wellness programs
      New CMS tool helps businesses decide on HRAs
      Job-based insurance annual premiums reach $20,000 record high
      Doctors and patients tired of insurance hassles, Verma says
    • Week Ahead: Public charge rule gets its day in court
      9th Circuit unlikely to freeze Title X regulations
      Week Ahead: Hearings set for Pelosi’s drug-pricing plan
      Feds reverse decision ending immigrant medical relief
    • CommonSpirit delays first annual financial filing
      Trinity Health may issue $1.7 billion in debt
      Sponsored Content Provided By Pavilion
      Looking to strengthen your organization’s future? Reconsider investment priorities.
      X-Men to the rescue: Valuable comics sold to pay for medical treatment
    • Sponsored Content Provided By Boston Scientific
      The Many Faces of Value-Based Healthcare
      Feds crack Medicare gene test fraud that peddled cheek swabs
      Sponsored Content Provided By The Society of Actuaries
      Artificial Intelligence Requires Human Intelligence
      Drilling into the future of robot-assisted dentistry
    • CMS readmissions penalty adjustment reducing the hit for high dual-eligible hospitals
      Sponsored Content Provided By ABM Healthcare
      Best Practices: Reducing the Risk of Healthcare Associated Infections (HAIs) through Effective Environmental Cleaning Processes
      LA hospital puts some surgeries on hold after mold found
      CMS finalizes hospital antibiotic stewardship requirements
    • Former FDA commissioner to head strategy for Google Health, Verily
      North Carolina Blues CEO Conway resigns following arrest backlash
      Rush health system president stepping down
      Tenn. system Erlanger appoints new CEO
    • Midwest
    • Northeast
    • South
    • West
  • Special Features
    • Best Practices
    • InDepth Special Reports
    • Innovations
    • Michigan Medicine creates formal policy to support breastfeeding physicians
      Incorporating pharmacists into the ICU team
      Northwell opening first addiction treatment facility centered on research
      NYC Health & Hospitals reduces clinic wait times with open access scheduling
    • Physician groups crave capital but worry about future sale
      Specialty physician groups attracting private equity investment
      Success of private equity investment in hospitals, post-acute to be determined
      Medical schools focus on boosting diversity, with challenges
    • Video, apps tackling language barriers for clinicians, patients
      AI voice assistants 'listen in' on patient visits to ease the EHR burden
      New app helps Los Angeles parents care for high-risk infants
      Text messaging: The next frontier for post-operative care?
  • Transformation
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Risk of heart valve infections rises in hospitals
      Video, apps tackling language barriers for clinicians, patients
      Amazon pilots virtual health clinic for employees
      Most providers don't screen for social determinants of health
    • New CMS rules cut red tape, mandate discharge planning
      Hackensack Meridian and St. Joseph's form clinical partnership
      After rural hospital's closure, county seeks other options
      Price hikes, upcoding drive Massachusetts inpatient spending
    • UPS to kick off drone delivery service with hospital campuses
      AI voice assistants 'listen in' on patient visits to ease the EHR burden
      New therapies such as bioelectronics turning drug companies into therapy companies with hospitals' help
      Text messaging: The next frontier for post-operative care?
    • Therapists decry layoffs amid SNF reimbursement overhaul
      CMS saved $739 million last year from Medicare ACOs
      Hospitals support medical billing changes, opioid payments
      Industry group passes 50% mark for value-based pay deals
  • Data/Lists
    • Rankings/Lists
    • Data Points
    • Modern Healthcare Metrics
  • Op-Ed
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
    • Why AdventHealth's rebrand was more than a name change
      How UHS’ Alan B. Miller built a successful hospital in the middle of nowhere
      Trinity Health's Gilfillan talks about transforming his system
      Bold Moves: Maintaining a strong culture while thinking like a startup
    • The next step in healthcare evolution
      Breaking Bias: A road map to boost women and minorities into healthcare leadership
      Breaking Bias: We need to think more broadly about how actions can raise or lower barriers to diversity
      Breaking Bias: Gender equity is imperative in healthcare
    • While value transformation plods along, vanguard organizations lead the way
      Health systems using a focused approach in the drive to Zero Suicides
      Sponsor letter: Don’t stop focusing on people, culture; innovation needs both
      Treat climate change like the public health crisis it is
    • Letters: Healthcare system isn’t broken; it’s the billing that needs fixing
      Letters: Deductibles are unhealthy for employer-sponsored health plans
      Letters: Who should set prices for healthcare services?
      Letters: Don’t dilute privacy protections for those with substance-use disorder
    • Sponsored Content Provided By Optum
      How blockchain could ease frustration with the payment process
      Sponsored Content Provided By Optum
      Three steps to better data-sharing for payer and provider CIOs
      Sponsored Content Provided By Optum
      Reduce total cost of care: 6 reasons why providers and payers should tackle the challenge together
      Sponsored Content Provided By Optum
      Why CIOs went from back-office operators to mission-critical innovators
  • Awards
    • Nominate
    • Award Programs
    • Previous Award Programs
    • Other Award Programs
    • Nominations Closed - Healthcare Marketing Impact Awards
      Voting Open - 100 Most Influential People in Healthcare
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Top 25 Minority Leaders
    • Top 25 Women Leaders
    • Excellence in Nursing Awards
    • Design Awards
    • Top 25 COOs in Healthcare
    • 100 Top Hospitals
    • ACHE Awards
  • Events
    • Conferences
    • Galas
    • Webinars
    • Sponsored Content Provided By Healthgrades
      Webinar: Using hospital quality data to improve patient care
      Sponsored Content Provided By Vizient
      Webinar: How to engage clinicians to improve clinical decision making
    • Leadership Symposium
    • Healthcare Transformation Summit
    • Critical Connections: Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Critical Connections: Leading the Value Revolution
    • Workplace of the Future Conference
    • Strategic Marketing Conference
    • Health Care Hall of Fame Gala
    • Top 25 Women Leaders Gala
    • Best Places to Work Awards Gala
    • Top 25 Minority Leaders Gala (2020)
  • MORE +
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Politics & Policy
July 25, 2019 01:12 PM

Senate drug-pricing legislation passes committee unscathed

Susannah Luthi
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Senate Finance Committee Republicans nearly gutted the core policy in the Senate Finance Committee's major drug-pricing legislation before approving the package Thursday.

    Ultimately, 19 senators approved the entire package, with nine Republicans opposing it.

    With a tie vote on the amendment, the attempt by Sen. Pat Toomey (R-Pa.) and others ultimately failed. But it forecasts a tough road ahead for the bipartisan package that roiled pharma groups this week and left many leading GOP senators disgruntled despite strong White House support for the legislation.

    The provision would affect how much of a price increase Medicare will pay for existing drugs; it basically demands full rebates for the amount that a company raises the price for a drug above the rate of inflation. It is considered the cornerstone of the proposed legislation negotiated over six months by committee Chair Chuck Grassley (R-Iowa) and ranking member Ron Wyden (D-Ore.). It also accounts for a large portion of the more than $100 billion in savings over a decade projected by the Congressional Budget Office for the government and Medicare beneficiaries.

    Throughout Thursday's committee markup, Sens. Mike Crapo (R-Idaho), John Thune (R-S.D.) and others blasted the policy as a "price control" or hurting the "free market" aspects of Medicare Part D. These statements echoed points laid out by the Pharmaceutical Research and Manufacturers of America, the leading trade association for pharmaceutical companies.

    Supporters of the committee package said that without this policy, the legislation loses its force.

    "If you take out the inflation rebates, you basically gutted the bill," argued Shawn Gremminger of the Washington-based liberal advocacy group Families USA. Gremminger has characterized the package as "by far the most significant drug-pricing bill that has a chance of success this year."

    Toomey introduced the amendment to strike the penalty the government would impose on any drugmaker that hikes its prices above the rate of inflation. He was joined by Sens. Pat Roberts (R-Kan.), James Lankford (R-Okla.) and, in a late-breaking change, John Cornyn (R-Texas), who posited that under the policy, drugmakers would have to "eat the cost" of limits to their price increases.

    Cornyn, who until this year served as majority whip and wields significant influence in the upper chamber, also warned Grassley he found the legislative package "nowhere near ready" for a floor vote.

    Ultimately, every Republican member of the committee except Grassley and Sen. Bill Cassidy (R-La.) voted for the Toomey amendment. They were joined by Sen. Bob Menendez (D-N.J.), whose state is a manufacturer base.

    CBO Director Phillip Swagel, who testified before the panel on Thursday, said the CBO does not view the proposal as a price control, a point Wyden echoed.

    "It does not set prices, it limits subsidies," Wyden said of the policy. "And that is a crucial distinction."

    On the other side of the debate, Sen. Debbie Stabenow (D-Mich.) urged the panel to let Medicare negotiate prices as a way to bring existing costs down. The amendment failed, with Republicans unanimously opposed, and all Democrats except Menendez in support.

    In one surprise twist early on in the hearing, Grassley said he wanted to revive the proposal dropped earlier this month by the Trump administration, to force pharmacy benefit managers to pass all Part D drug rebates directly to patients when they purchase drugs.

    Grassley said the administration "threw a curveball" in withdrawing the embattled Part D rebate regulation, which the CBO projected would cost more than $177 billion. Wyden agreed he wants to look at the entire "broken" pharmaceutical supply chain.

    "We do have to figure out this point-of-sale rebate issue," Wyden said.

    The GOP's internal fight over the finance legislation underscores a deep divide between the Trump administration and many Senate Republicans over how far the party should be willing to stray from pharmaceutical company interests in the quest to lower prices.

    Most Republicans on the committee also voted for an amendment to block the Trump administration's international reference pricing idea for Medicare Part B, which hasn't yet been formalized as an official proposal. Grassley had raised the specter of this policy idea earlier as he urged his members to support the package.

    Next steps are unclear for the legislation, as Grassley and the White House will doubtless face ongoing pressure from GOP senators to change the inflation caps policy.

    After the vote, Grassley and Wyden hailed the passage of the legislation as a victory. Ultimately, outspoken GOP critics like Cornyn and Sen. Rob Portman (R-Ohio) voted to advance the package.

    Grassley warned that reluctant Republicans and the pharmaceutical industry should take the long view of what could happen if they don't act now on what he characterized as a "moderate" approach from him and Wyden.

    "I think there's got to be some reality to this whole debate," Grassley said. "Look at what's down the road."

    He also flagged a potential deal between the White House and House Democrats, where the momentum is on the side of Medicare negotiation.

    "There's got to be a realization on the part of Republicans about that, and there ought to be a realization on the part of pharmaceutical companies of where they would be if we had the non-interference clause go away," he said.

    PhRMA CEO Steve Ubl and manufacturer CEOs met with President Donald Trump on Wednesday.

    In a statement, PhRMA said Ubl "reiterated our opposition to the current Senate Finance Committee legislation because it fails to achieve this shared goal and imposes harmful price controls in Medicare Part D."

    In what could be a preview of the forces in play, Portman proposed shrinking the rebate penalty on manufacturers that raise their prices above inflation from 100% to 20%. Sen. Richard Burr (R-N.C.) made a point of recording his vote against the entire package.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Sponsored Content
    Get Free Newsletters

    Sign up for free enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today

    The weekly magazine, websites, research and databases provide a powerful and all-encompassing industry presence. We help you make informed business decisions and lead your organizations to success.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS
    • Instagram

    Stay Connected

    Join the conversation with Modern Healthcare through our social media pages

    MDHC_Logotype_white
    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    Copyright © 1996-2019. Crain Communications, Inc. All Rights Reserved.
    • News
      • This Week's News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition
    • Special Features
      • Best Practices
      • InDepth Special Reports
      • Innovations
    • Transformation
      • Patients
      • Operations
      • Care Delivery
      • Payment
    • Data/Lists
      • Rankings/Lists
      • Data Points
      • Modern Healthcare Metrics
    • Op-Ed
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Awards
      • Nominate
      • Award Programs
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Top 25 Minority Leaders
        • Top 25 Women Leaders
      • Previous Award Programs
        • Excellence in Nursing Awards
        • Design Awards
        • Top 25 COOs in Healthcare
      • Other Award Programs
        • 100 Top Hospitals
        • ACHE Awards
    • Events
      • Conferences
        • Leadership Symposium
        • Healthcare Transformation Summit
        • Critical Connections: Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
        • Critical Connections: Leading the Value Revolution
        • Workplace of the Future Conference
        • Strategic Marketing Conference
      • Galas
        • Health Care Hall of Fame Gala
        • Top 25 Women Leaders Gala
        • Best Places to Work Awards Gala
        • Top 25 Minority Leaders Gala (2020)
      • Webinars
    • MORE +
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing