Important Legislative Policy Information

To keep you informed about current and future changes in health care, here is the most recent information we have about Federal and State developments that may affect you or your clients

FEDERAL UPDATE

Senate Begins Consideration of Repeal & Replace

Senate Republican leaders started consideration of the House-passed American Health Care Act (AHCA) this week. Several issues emerged:

• Budget Savings: Published news reports focused on a requirement that the Senate meet total budget savings achieved by the House bill. The Congressional Budget Office, which announced it would issue a revised analysis of the House bill (originally expected last week) on or after May 22nd, estimated a previous version would achieve $150 billion in deficit reduction from 2017 – 2026. However, many of the Senate’s expected changes to the House bill, such as reducing Medicaid funding cuts and increasing tax credits for low-income populations, are likely to increase federal spending.
• CSRs: Senate Republicans have not committed to dedicating expenditures for Cost-Sharing Reduction (CSR) subsidies in the legislation, and the Trump Administration continues to deliver mixed signals whether it is willing to continue this funding. Last week, 13 Democratic Senators sent a letter to high-ranking Administration officials urging them to “permanently commit” to funding these subsidies.

The timeline for a Senate bill remains uncertain with some suggesting a vote would not take place until September. We will continue to keep you informed of ongoing developments.

Drug Pricing Issues Also on the Senate’s Agenda

The Senate Health, Education, Labor & Pensions (HELP) committee approved the Prescription Drug User Fee Reauthorization Act (PDUFA) by a vote of 21-2 on Wednesday. This act authorizes the federal Food and Drug Administration (FDA) to assess user fees on pharmaceutical manufacturers to help fund its drug review and approval activities. The legislation will soon be considered by the full Senate and must be passed by the House and signed by the president before the current authorization expires on September 30, 2017.

The HELP Committee discussions highlighted bipartisan concerns about the high costs of prescription drugs. Committee Chair Lamar Alexander (R-TN) sought to achieve a “clean” reauthorization that would not include controversial provisions addressing drug pricing. However, several Senators continued to offer amendments, including one which would have permitted drug re-importation from Canada that was defeated 13-10. The legislation approved by the Committee included an amendment to speed generic drugs to market by requiring the FDA to “prioritize the review” of new drug applications “for which there are not more than 3 approved drugs.” Alexander also agreed to hold a HELP hearing soon on drug pricing practices to fend off consideration of other amendments.

STATE UPDATE

The following legislation will be considered this week in committees of the New York State Senate and State Assembly.

Senate Consumer Protection Committee (Tuesday, May 16th)

• S. 3484 - Requires insurers to pay community pharmacies at the same rate as mail order specialty pharmacies without being held to required terms and conditions.

Assembly Insurance Committee (Tuesday, May 16th)

• A. 2317 - Prohibits formulary changes during the year.
• A. 2646 - In vitro fertilization mandate expanded.
• A. 4306 - Synchronization of multiple Rx; requires full dispensing fee be paid for partial month dispensing regardless of frequency.
• A. 6396 - Expands eating disorder mandate.

We hope you find this information helpful. We will continue to share the latest health care updates with you as we receive them.