HOUSE BUDGET GOP CHATS IRA WITH CBO — Republicans on the House Budget Committee’s health care task force met with the Congressional Budget Office, an economist and an investor Thursday to discuss the office’s estimates of the impact the Inflation Reduction Act will have on future drug development. The takeaway? Republicans acknowledge there is no short-term legislative path to claw back or tweak the parameters of Medicare price negotiations, but they want a better understanding of how the nonpartisan office estimates the long-term effects of health care policy. Rep. Michael Burgess (R-Texas) told reporters that the roundtable with CBO Director Phillip Swagel, former CBO Director Doug Holtz-Eakin, venture capital investor Peter Kolchinsky and health care economic firm Vital Transformation’s Duane Schulthess was not intended to be a forum to bash the nonpartisan CBO but rather an opportunity to understand its methodology. “We as members of Congress need to be better at discerning when we get a CBO report,” Burgess said. “What is nice to know, and what is the real impact?” In July 2022, CBO estimated the law would prevent 15 in 1,300 drugs from coming to market over the next 30 years. Republicans question why private investors and drugmakers estimate the law will have a far greater adverse effect on innovation in the pharmaceutical industry than the CBO. They also want additional information about the type of drugs that might not come to market. “We had a member on the other side of the dais say, ‘I’ll give up some innovation if I can have cheaper drugs,’” Burgess said. “OK, fair enough, that’s a fair statement, but maybe we ought to know ... what are we giving up?” Larry Levitt, KFF executive vice president for health policy, told POLITICO that projecting the long-term impact of any law is a difficult exercise. “CBO often focuses on the first-order implications of health policy changes, particularly the effects on spending and revenues,” Levitt said. “Over the long term, the effects on people's health become important but are really hard to project.” IT’S FRIDAY. WELCOME BACK TO PRESCRIPTION PULSE. Best of luck to all the Marine Corps Marathon runners this weekend! Send news, tips and cool weather vibes to Lauren Gardner (lgardner@politico.com or @Gardner_LM), David Lim (dlim@politico.com or @davidalim) and Katherine Ellen Foley (kfoley@politico.com or @katherineefoley). TODAY ON OUR PULSE CHECK PODCAST, host Evan Peng talks with POLITICO health care reporter Daniel Payne, who sorts through the debate in Congress over health workforce issues, including the Biden administration's proposed rules to set minimum staffing requirements for nursing homes.
|