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Hill Watch


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Volume 12 Number 67
ISSN 1091-4021
Monday, April 9, 2007

In this Report: Compilation

The following chart summarizes the status of key issues in health care legislation currently pending in Congress. The first column provides a synopsis of the purpose, content, and support for the bill or legislative initiative. The second column summarizes the provisions of the legislation. The third column outlines the procedural path ahead and the political prospects for enactment of the bills.

Legislative Purpose Bill Status Outlook
MEDICARE RX PRICE NEGOTIATION
(H.R. 4) The bill removes the statutory provision in the 2003 Medicare prescription drug law preventing Medicare from negotiating drug prices with pharmaceutical makers. House: By a 255-170 vote, the House Jan. 12 approved legislation requiring Medicare to negotiate lower drug prices on behalf of Medicare beneficiaries. Twenty-four Republicans joined Democrats in voting for the bill, but the final tally was not large enough to override a promised veto by President Bush. The vote followed a week of intense, mostly partisan debate, in which Democrats said the bill would save beneficiaries money on their prescriptions. Republicans countered the bill would interfere with a program that already is bringing low drug prices to beneficiaries.
Senate: Senate Finance Committee Chairman Baucus (D-Mont.) is developing a Medicare drug pricing bill. Baucus has said he favors stripping from law the prohibition on negotiations, although not necessarily requiring Medicare to negotiate with drugmakers. Senate Majority Leader Reid (D-Nev.) said March 27 the Senate would take up a Medicare pricing bill after the congressional Easter recess.
Administration: The Bush administration issued a veto threat on H.R. 4, saying the legislation would not lower prices for seniors nor save Medicare money.
House: The House does not have the votes to override a veto if a drug pricing bill is rejected by Bush.
Senate: The Senate also lacks the votes to override a presidential veto.
Administration: Bush likely would veto any negotiations bill.
SCHIP REAUTHORIZATION
Authorization for the State Children's Health Insurance Program (SCHIP) expires Sept. 30, at the end of fiscal year 2007. Sens. Baucus (D-Mont.) and Rockefeller (D-W.Va.) amended the FY 2008 budget resolution by committing the Senate to reauthorizing SCHIP before Sept. 30. Baucus and Rockefeller also were successful in securing a commitment of $50 billion for SCHIP over the next five years in the FY 2008 budget. These funds will allow the program to meet the needs of those currently enrolled in SCHIP and to reach the 6 million children currently eligible but not yet enrolled. House: Reps. Barton (R-Texas) and Deal (R-Ga.) March 6 introduced the Guaranteed Access for SCHIP's Target Population Act of 2007 (H.R. 1329), a bill that would provide federal funding for states' SCHIP shortfalls, only for the purpose of covering low-income children below 200 percent of the federal poverty level (FPL) and pregnant women. The bill would allow states to cover other populations, such as nonpregnant adults or higher income children under their SCHIP plans, but only with state funds.
Senate: Rockefeller, along with Sen. Snowe (R-Maine), plans to introduce the primary SCHIP reauthorization vehicle when Congress returns from the Easter recess. The bill would provide $50 billion for the state block grant program; create “Express Lane” enrollment, allowing states to use eligibility information from applications from other means-tested programs, such as free or reduced price school lunches; and give financial help for outreach activities to enroll the 6 million eligible children not yet enrolled.
Meanwhile, Sen. Clinton (D-N.Y.) March 14 introduced the Children's Health First Act (S. 895), which would expand SCHIP to allow states to enroll all children living in families with incomes up to 400 percent of FPL , or $70,000 per year for a family of three. The bill also would allow states to permit uncovered children who are ineligible for public health insurance to “buy into” SCHIP.
Administration: The administration's FY 2008 budget request would allow the enhanced SCHIP federal matching rate only for enrolled children or pregnant women with family income below 200 percent of the FPL . The president's proposal would ban any further expansion of coverage to parents, or in states already covering them, childless adults.
House: The Barton-Deal bill is unlikely to pass, since many states already cover children above 200 percent of FPL and there is not much public support for making major cuts to the program.
Senate: Both Rockefeller and Snowe serve on the Senate Finance Committee, the panel responsible for SCHIP reauthorization and are likely to be able to drum up the necessary support for passage of this bill.
Administration: The administration has made no public statements about the Rockefeller proposal, which has garnered a great deal of support compared to other proposals.
DRUG SAFETY
(S. 484) This bill seeks to improve drug safety oversight by the Food and Drug Administration by requiring annual reviews of newly approved drugs during the drugs' first three years on the market. The House counterpart (H.R. 1561) would go even further, by requiring periodic assessment of drugs that have been on the market for as long as seven years. House: House Oversight and Government Reform Committee Chairman Waxman (D-Calif.) and Rep. Markey (D-Mass.) March 19 introduced the House version (H.R. 1561) of the Senate drug safety bill. A drug safety hearing was held March 22 in Waxman's committee.
Senate: S. 484, from Senate Health, Education, Labor and Pensions Committee Chairman Kennedy (D-Mass.), and the committee's ranking Republican, Enzi (R-Wyo.), is likely to be merged with drug user fee legislation.
Administration: FDA has signaled that it already has begun to address many of the reforms called for in a 2006 Institute of Medicine drug safety report that spurred congressional efforts to reform FDA.
House: The Waxman-Markey drug safety bill has several provisions not contained in the Senate bill, including more frequent reassesment of approved drugs, a longer moratorium on radio and television drug ads, and a packaging symbol to indicate that a drug is new to the market and may have unknown risks. Consumer groups say the Waxman-Markey bill is a stronger bill than its Senate counterpart but could be further improved by setting a specific goal for FDA to begin using Medicare databases in post-market surveillance of drugs.
Senate: The Kennedy-Enzi drug safety bill could pass this year if, as is expected, it is merged with must-pass legislation reauthorizing the Prescription Drug User Fee Act. Funding for the bill is uncertain, but an additional $40 million in drug safety funds could come from the congressional budget resolution.
Administration: FDA Commissioner von Eschenbach has indicated that the user fee agreement reached between the agency and the pharmaceutical and biotech industries does not account for the Kennedy-Enzi bill requirements, and additional resources would be needed to comply with the legislation. Any additional resources for FDA should come from Congress not industry fees, the drug industry lobby contends.
STEM CELL RESEARCH
(H.R. 3, S. 5) This bill would allow in vitro fertilization clinics to donate embryos that would otherwise be discarded for medical research. This bill essentially would overturn the president's current stem cell policy, which does not allow scientists to receive federal funding for work on any stem cell lines created after Aug. 9, 2001. It is identical to a bill passed in the previous Congress. House: The House passed H.R. 3 by a vote of 253-174 on Jan. 11; 216 Democrats voted with 37 Republicans in favor of H.R. 3, while 16 Democrats and 158 Republicans voted against the bill.
Senate: Senate Majority Leader Harry Reid (D-Nev.) said he expects a vote on S. 5 the week of April 9, after the Senate returns from its recess.
Administration: President Bush opposes legislative attempts to change the 2001 policy.
House: Sent its bill to the Senate.
Senate: The Senate is expected to pass the bill as it has in the previous Congress. However, unlike the previous bill, there is the possibility of attaching amendments to the legislation.
Administration: In anticipation of the House vote, the White House released a statement of administration policy announcing that the president intends to veto the bill. He vetoed identical legislation in July 2006.
GENERIC BIOLOGICS
(H.R. 1038, S. 623 The legislation would create a regulatory pathway for Food and Drug Administration approval of comparable or interchangeable versions of biotech drugs, also known as follow-on proteins or generic biologics. House: A hearing was held March 26 by House Oversight and Government Reform Committee, chaired by bill sponsor Waxman (D-Calif.).
Senate: The Senate Health, Education, Labor, and Pensions Committee held a hearing March 8.
Administration: A key consideration is whether clinical data are needed for approval. FDA is developing industry guidance on the science that would needed to gain approval for a follow-on protein. FDA Deputy Commissioner Woodcock has testified that current science could allow simpler follow-ons to be approved through a short-cut process that would sidestep clinical testing. But she says the science would need to evolve before more complex proteins could be approved without clinical tests.
House: The House is expected to wait for the Senate to act first on the bills affecting the drug industry, including user fees and generic biotech. The biotechnology industry wants these measures to be kept separate.
Senate: Bill sponsors are eyeing Rx industry user fees legislation (a must-pass bill) as a way to get action on biotech generics. But some lawmakers like Sens. Hatch (R-Utah) and Enzi (R-Wyo.) want to make sure the science and patent protections are addressed thoroughly.
Administration: FDA appears ready to move toward approval of follow-on proteins, but the agency has signaled that a higher bar would be needed for a product to be considered a generic version, or exact copy of previously approved biologic.
MENTAL HEALTH PARITY
(H.R. 1367, S. 558) Mental health parity legislation seeks to end discrimination in provision of mental health benefits, compared to other health benefits. House: Reps. Kennedy (D-R.I.) and Ramstad (R-Minn.) March 7 introduced legislation (H.R 1367) to require mental health benefits offered by group health plans with 50 or more enrollees to be equal to coverage for other medical conditions.
Senate: By an 18-3 vote, the Senate Health, Education, Labor, and Pensions Committee Feb. 14 approved legislation (S. 558) requiring businesses with 50 or more workers to offer the same medical benefits for mental health care as they do for other medical conditions.
Administration: The administration has not commented on the bills, but President Bush in the past has spoken favorably about the issue, leading advocates to believe a bill could be passed by Congress and signed into law by Bush in 2007.
House: The House has begun to hold hearings on mental health parity. Similar bills garnered support from a majority of lawmakers in the House when Republicans were the majority, although they were not considered by committees of jurisdiction.
Senate: A Senate vote on S. 558 has not been scheduled. It appears to have enough votes to be approved by the chamber.
Administration: Advocates of mental health parity believe Bush would sign mental health parity legislation if it reached his desk.



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