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Compromise on Cures Heads to House

The House Rules Committee has noticed that 21st Century Cures will be considered next week. The package is expected on the House floor on Wednesday, November 30. The legislation is expected to be added as an amendment to an existing bill (H.R. 34) to allow for expedited action in the Senate. 

The House Rules Committee’s summary memo is 44 pages. The bill text is just under 1,000 pages. The package contains major provisions in the Cures and Senate Innovation packages, and the Mental Health Crisis Reform Act of 2016, (which includes Sections 9031 and 9032 on college mental health training and services grants and establishes interagency working group on mental health).

Generally

NIH is reauthorized until 2020 and the bill includes provisions intended to address the regulatory burden imposed on researchers, among other provisions. Rather than establish mandatory funding increases for NIH, appropriators would have to release (appropriate) funding each year to the Office of the Director.  The bill establishes a similar mechanism providing $500 million for initiatives at FDA for FYs 2018-2026, and $1 billion for the Secretary to provide to states in FYs 2017 and 2018 for opioid abuse prevention and response efforts.

There are limitations to the general funds going to the office of the Director. The bill also establishes an “Innovation Projects” account for specific initiatives at NIH and FDA, which are special limitations on the general appropriations going to the Office of the Director. For NIH, the bill provides a total of $4.796 billion for FYs 2017-2026 to the NIH director, including $1.4 billion for the Precision Medicine Initiative, $1.564 billion for the BRAIN Initiative, $1.802 billion for cancer research, and $30 million for clinical research to further the field of regenerative medicine using adult stem cells. 

The funding for the Innovation Fund is discretionary, but due to the phrasing in the legislation, monies the Innovation Fund does not count against the appropriators caps. However, the language essentially says that appropriations from the account are subtracted from the discretionary budget authority.  What’s more important is that both CBO and the Administration (the OMB specifically) agree that spending from the Innovation funds do not count against the caps and the language works the way described below. The money will be put in a specific fund every year for the appropriators to use specifically for NIH, FDA, Cancer Moonshot, etc. In lay terms, the funds can only be used for these purposes and every dollar must be used in the next 10 years. 

There are significant inclusions and some noticeable absences including:

  • Section 2034 – Reducing Administrative Burden for Researchers (p 66). This section contains several provisions to reduce administrative burdens on grants, including subrecipients, financial conflict of interest reporting, and reducing burdens on animal care and use in research. 
  • Section 202 – Supports young, emerging scientists by prioritizing policies and programs (p. 45). FY 2017 appropriations includes funds for a national Academies of Science study on improving opportunities for new researcher; and Strengthens NIH’s existing loan repayment programs by increasing the yearly loan repayment amount from $35,000 to $50,000 and streamlining the loan repayment categories.

The revised draft also includes bipartisan, House-passed legislation, the Helping Hospitals Improve Patient Care Act of 2016 (H.R. 5273), that contains several provisions related to socioeconomic status (SES) adjustment and off-campus hospital outpatient department (HOPD) site-neutral payment policy. 

To pay for this effort, the bill includes some of the offsets originally included in H.R. 6, including: 

  • Section 5009. Rescinds $3.5 billion for Prevention and Public Health Fund;
  • Section 5010. Directs the DOE to sell a portion of the Strategic Petroleum Reserve; 
  • Section 5011. Rescinds $464 million available to U.S. territories under ACA. 

Trump First Day Agenda

President-elect Trump posted a 2 minute 37 second video on You Tube, which is the first time he’s addressed the American people directly since the election.

Mr. Trump’s video included six calls for action on trade, immigration, energy, regulatory curbs, national security (specifically cyber infrastructure), and lobbying ethics changes, most of which have already been announced either during the campaign or the transition period.

Of note, Trump did not mention action on the Affordable Care Act, his proposed wall along the southern border, the tax code, or the Iran nuclear deal, all of which were central arguments for his election.

See the video here or below.

House Dems Delay Leadership Election

House Democrats have delayed their caucus leadership elections which were slated for Thursday. The current Democratic leader,  Nancy Pelosi (D-CA), agreed to the delay at a closed-door conference meeting. Initially it appeared the House Democrats would decide on Thursday whether to go forward with their elections that day but decided today to simply delay the election.

Some House Democrats had been pressing for a delay in Thursday’s vote, something that could conceivably give more time for an opponent of Pelosi’s to mount a challenge.

The election will now be held on November 30.

 

Jindal HHS Secretary Possibility, Carson Out

Former Louisiana Governor Bobby Jindal is in the running for Secretary of HHS. He has health care policy in his background. At just 24 years old, he served as secretary of the Louisiana Department of Health and Hospitals, and later served as principal policy adviser to HHS Secretary Tommy Thompson in President George W. Bush’s administration. Pence and Jindal served in the House together. 

Jindal has proposed Obamacare replacement plan, which he first released in 2014. Full report: More. Executive summary: More.

However, others are still in the mix, and Jindal was no fan of Trump during the Republican primaries. Jindal also attempted a run for president this cycle and then threw his support to Rubio. That could take him out of serious contention. 

Dr. Ben Carson, presidential nominee, has announced he will not be in the Trump Cabinet effectively taking himself out of the running for a series of Secretary positions to which his name has been linked.