Austin American-Statesman

Azar avoids a fight over pre-existing conditions

- By Amy Goldstein and Laurie McGinley Washington Post

Health and Human Services Secretary Alex Azar told lawmakers Tuesday that he wants to preserve access to affordable insurance for Americans with pre-existing medical conditions, but he declined to disclose his view of an administra­tion move that could undercut such consumer protection­s.

Calling it “a constituti­onal position ... not a policy position,” Azar sidesteppe­d grilling on whether he agreed with a legal brief filed last week by Justice Department attorneys stating they would not defend the Affordable Care Act in a federal lawsuit by Texas and 19 other Republican-led states.

During a hearing before the Senate Health, Education, Labor and Pensions Committee that was mainly about the president’s blueprint to address drug prices, Sen. Maggie Hassan, D-N.H., told Azar that Justice’s legal position is “like some kind of a sick joke.” The administra­tion argues that the ACA’s individual mandate, requiring most people to carry health insurance, will become unconstitu­tional next year — and, with it, the law’s insurance protection­s for consumers.

“Will you encourage the Trump administra­tion to change its position?” Hassan challenged Azar, a lawyer and former HHS general counsel.

He replied that “we do believe in finding solutions on the matter of preexistin­g conditions and the matter of affordabil­ity, regardless of the litigation.”

The committee’s Republican­s were silent on the question, even though some GOP lawmakers have said they were bewildered by the Justice Department’s surprise stance. The move has become a lightning rod ahead of the November midterm elections.

Democrats also pressed Azar on a statement by President Donald Trump last month that drug companies would, within two weeks, “announce voluntary, massive drops in prices.”

“That would be tomorrow,” noted Sen. Elizabeth Warren, D-Mass., challengin­g Azar to name companies that have carried out Trump’s promise.

The secretary said several drug manufactur­ers have told federal officials that “they want to execute substantia­l price reductions” but are “encounteri­ng hurdles.” Pharmacy benefit managers (PBMs), he said, are threatenin­g to drop those companies’ drugs from formularie­s — that is, lists of medicines covered by an insurer — because lower list prices would translate into smaller profits for the PBMs. “I find that unconscion­able,” he said.

Azar’s remarks were consistent with the administra­tion’s portrayal of “middle men,” not the pharmaceut­ical industry itself, as the root of the nation’s high drug prices. He reiterated that direct government negotiatio­n of drug prices in the vast Medicare program — a longtime Democratic goal that Trump embraced during his campaign — would be ineffectiv­e.

Azar noted that the Food and Drug Administra­tion on Tuesday issued final guidelines designed to make it easier for pharmaceut­ical companies and insurers to negotiate prices based on a drug’s value and effectiven­ess.

The rules, first drafted during the final days of the Obama administra­tion, define permissibl­e “medical communicat­ions” between the manufactur­ers and payers such as health plans and hospitals. They fit within a priority of Azar’s to shift healthcare payments from methods based on the amount of treatment provided to ones based on services’ quality and effectiven­ess.

FDA Commission­er Scott Gottlieb said the guidance clarifies how drug companies may communicat­e informatio­n about patient outcomes that are important to purchasers, but are not expressly included in a product’s approved labeling.

 ?? MARK WILSON/GETTY IMAGES ?? Health and Human Services Secretary Alex Azar testified Tuesday before the Senate Health, Education, Labor and Pensions Committee about the president’s blueprint to address drug prices.
MARK WILSON/GETTY IMAGES Health and Human Services Secretary Alex Azar testified Tuesday before the Senate Health, Education, Labor and Pensions Committee about the president’s blueprint to address drug prices.

Newspapers in English

Newspapers from United States