Health Policy Reports

Biweekly newsletter of stories impacting community cancer care.
October 8, 2024

Health Policy Report – October 8, 2024

Oncology and Hematology Care (OHC) Hosts Ohio Rep. Tim Barhorst

On September 26, Oncology and Hematology Care (OHC) welcomed 85th State District Representative Tim Barhorst and 28th State District Representative Candidate Jenn Giroux for a tour of their Eastgate Medical Center. Dr. Randy Drosick led Rep. Barhorst and candidate Jenn Giroux on a tour of the practice, discussing the value of community oncology in offering high-quality patient care in a lower-cost setting. 

State Representative Tim Barhorst is currently serving his first term as State Representative for the 85th Ohio House District, which includes Shelby and Champaign Counties and the southern portion of Logan County. Jenn Giroux is running for Ohio State Representative in the 28th District. Jenn has been a Registered Nurse (RN) for 39 years and worked in medical specialties that include infectious disease, medical-surgical Care, LDRP (labor, delivery, recovery, post-partum), same-day surgery/pre-admission testing, geriatrics, medical coding and home health/end of life care.

The US Oncology Network and OHC look forward to working with Rep. Tim Barhorst and prospective candidate Jenn Giroux on issues impacting community oncology for patients in Ohio. If you are interested in hosting a site visit for your state representative or senator, please contact Angela.Storseth@usoncology.com.

Virginia Sen. Mark Obenshain Visits Blue Ridge Cancer Centers

Blue Ridge Cancer Centers (BRCC) recently hosted Virginia Sen. Mark Obenshain for a tour of their Blacksburg facility. Dr. Joseph Mock and the BRCC team led State Senator Obenshain on a tour of the practice discussing the value of community oncology to patients in Virginia.

Senator Obenshain was elected to the Senate of Virginia in 2003. He is a member on the Senate Judiciary; Commerce & Labor; Agriculture, Conservation, and Natural Resources; and Transportation Committees. Mark is also the past Chairman of the Virginia State Crime Commission.

The US Oncology Network and BRCC look forward to working with Sen. Mark Obenshain on issues impacting community oncology for patients in Virginia. If you are interested in hosting a site visit for your state representative or senator please contact Angela.Storseth@usoncology.com.

House Unanimously Passes Seniors’ Access to Critical Medications Act
On the heels of The Network’s annual fly-in, the House of Representatives passed H.R. 5526, The Seniors’ Access to Critical Medications Act under suspension by a voice vote on September 23. 

H.R. 5526, introduced late last year by Congresswoman Diana Harshbarger (R-TN) and Congresswoman Debbie Wasserman Schultz (D-FL) would clarify that delivering medicines by mail, delivery, or courier service, or allowing a family member or caregiver to pick up medicines on behalf of a patient, would not violate the physician self-referral law and would fall under the in-office ancillary services exception starting in January 2025.

In June, the bill was passed out of the House Energy & Commerce Committee with broad bipartisan support and was ultimately waived by the House Ways and Means Committee. It has now been sent to the Senate for consideration for its final hurdle. This major policy win couldn’t have been achieved without the physician advocates who attended The Network’s annual fly-in and discussed the importance of the bill with federal lawmakers. 

To urge your Senator to pass this important legislation, CLICK HERE.

To read more, CLICK HERE.

To read H.R. 5526, CLICK HERE.

Congress Passes Short-Term Spending Bill to Avoid Shutdown, Looks Towards End of Year Site Neutral and 340B Reform
On September 25, Congress approved a stopgap measure that avoids a government shutdown and extends funding through December 20.

Mike Johnson (R-LA), Speaker of the House of Representatives, initially attempted to pass a six-month funding measure, which was ultimately rejected by a majority of Democrats and a small group of House Republicans. Following the failed measure, Rep. Johnson pushed forward a clean, shorter stopgap measure that passed by a 341-82 vote in the House, followed by a 78-18 vote in the Senate.

After passing the package, Congress began its pre-election recess and will return on November 12. In recent weeks, lawmakers have expressed interest in advancing site neutral legislation included in the House-passed Lower Cost, More Transparency Act (LCMT) during the so-called lame-duck congressional session that occurs between the election and the end of the year.

On September 20, Representative Michael Burgess (R-TX) noted the need for site neutrality at a GOP Doctors Caucus event. “Why does it cost three times more to do something in a hospital outpatient department than it does in my medical office?” he said. Meanwhile, Senator Maggie Hassan (D-NH) noted that she’s willing to tweak the language of the SITE Act, a bill she introduced last year, to get the bill across the finish line.

The bills are particularly attractive to federal lawmakers because they save the government money, making them attractive as a financial offset for other policies included in an end-of-year package.    

To read more, CLICK HERE.

Wall Street Journal Editorial Board Writes in Opposition to Oregon Ballot Measure 118
The Wall Street Journal editorial board recently slammed a ballot proposal in Oregon that would implement a 3% corporate minimum tax on gross receipts over $25 million. “While corporate income taxes take a percentage of final profits, gross receipts taxes take their cut from total revenue without considering costs, margins, or profits,” the editorial board wrote. 

“The tax is structured as a minimum tax, so corporations would pay the greater of the gross receipts tax or the state’s existing corporate income tax. It also takes a percentage from every business in the production chain. That leaves companies with the choice of shifting production out of Oregon to reduce their points of contact with the tax or vertically integrating to bring as many parts of production as possible in-house to minimize transactions,” they continued. 

If passed, this measure would have serious consequences for community cancer centers in Oregon. Since the tax would take a cut at every step in the supply chain, many businesses will increase their prices. Community cancer clinics, however, can’t and won’t pass costs onto patients, so are forced to absorb the cost of taxes passed on. As a result, the measure would limit clinics’ ability to reinvest in patient care, hire additional staff, and continue providing unreimbursed support services. 

To read the editorial, CLICK HERE.

Senate Finance Committee Chair Ron Wyden and Intelligence Chair Mark Warner Introduce the Health Infrastructure Security and Accountability Act
On September 26, Senate Finance Committee Chair Ron Wyden (D-OR) and Intelligence Committee Chair Mark Warner (D-VA) introduced the Health Infrastructure Security and Accountability Act. If passed, the legislation would require HHS to develop and enforce minimum cybersecurity standards for healthcare providers, health plans, clearinghouses, and business associates.

The legislation also includes money to help hospitals adopt the cyber standards and would allow HHS to provide accelerated and advanced Medicare payments for providers affected by a cyberattack.

This legislation follows a series of large-scale cyberattacks, including the Change Healthcare ransomware attack this spring. “The health care industry has some of the worst cybersecurity practices in the nation despite its critical importance to Americans’ well-being and privacy,” Wyden said in a statement. “These commonsense reforms, which include jail time for CEOs that lie to the government about their cybersecurity, will set a course to beef up cybersecurity among health care companies across the nation and stem the tide of cyberattacks that threaten to cripple the American health care system.”

To read more, CLICK HERE.

To read a press release on the legislation, CLICK HERE.

HRSA Warns J&J About Rebate Program; Threatens to Exclude them from 340B Program
In response to Johnson & Johnson’s intention to implement an unapproved drug rebate proposal, Carole Johnson, Administrator of the Health Resources and Services Administration (HRSA), recently sent a letter to the drugmaker threatening to exclude them from the 340B program if the plan moved forward.  

In the letter, HRSA told Johnson & Johnson that it expected the drugmaker to “cease implementation of its rebate proposal immediately and to inform HRSA no later than September 30, 2024, in order to provide adequate notice to covered entities.”

In response, Johnson & Johnson stated that it “had no choice” but to back away from the program, which would have traded upfront 340B discounts for rebates to hospitals. “J&J nonetheless continues to believe that the Rebate Model is not only legally permissible but sorely needed to improve the integrity of the 340B Program,” the drugmaker wrote.

To read HRSA’s letter to J&J, CLICK HERE.

To read more, CLICK HERE.

FTC Brings Lawsuit Against Nation’s Largest PBMs
The Federal Trade Commission (FTC) recently filed a lawsuit against the nation’s three largest pharmacy benefit managers (PBMs) – Optum Rx, Caremark, and Express Scripts – accusing them of creating a “broken rebate system that inflated insulin drug prices.”

A recent article in AJMC featuring Ted Okon, Executive Director of the Community Oncology Alliance (COA), highlights how the FTC lawsuit fuels congressional action to lower drug prices. “There is just a crescendo of things that are happening, and I think this FTC lawsuit is just another nail in the coffin, so to speak, on these top PBMs. And I believe that this lawsuit, along with all the other things that are happening, will lead to basically curbing these PBMs and ultimately helping reduce the cost of drugs,” he said.

Lawmakers are already taking note of the lawsuit and urging the FTC to go further. In a letter to FTC Chair Lina Khan, Finance Committee Chair Ron Wyden (D-OR) and Senator Sherrod Brown (D-OH) commended the FTC for investigating PBMs and urging the agency to examine new PBM tactics that further exasperate patient access to lower-cost prescription drugs. In particular, the Senators expressed the need to investigate ‘co-manufacturing’ agreements with pharmaceutical companies like Cigna and CVS that enable PBMs to control the drug supply chain, reducing consumer options and driving up costs.

To read more, CLICK HERE.

To read the Senate Finance Committee’s letter to the FTC, CLICK HERE.