July 10, 2019
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Keep your finger on the pulse of the most critical issues facing the industry, our Members and Patients with BioNJ's bi-weekly Public Policy Update .

Because Patients Can't Wait ®
STATE
FY2020 Budget Signed into Law
Governor Murphy signed the State fiscal year 2020 Budget into law on June 30.  BioNJ was pleased to see several Patient friendly bills as well as an enhanced Angel Investor Tax Credit considered and passed by the legislature and signed by the Governor.  See BioNJ's July 1 Public Policy Update for additional information.  

The $38.712 billion budget funded many of Governor Murphy’s priorities with several exceptions. In particular, the budget did not include a millionaire’s tax, a fee on opioid manufacturers, or a “corporate responsibility” payment for companies with Medicaid enrollees. 

On July 3, Governor Murphy’s Administration announced the budget spending items placed in a “lock box” pursuant to Executive Order 73. The $235 million in State fiscal year 2020 spending will be withheld until revenues and/or savings to fund the budget items materialize.
Governor Murphy Approves State Health Exchange 
Governor Murphy has approved legislation formally establishing New Jersey’s State Health Exchange. The ACA created health insurances marketplaces, and New Jersey’s exchange had previously been a federally facilitated marketplace. The legislation will allow for the State to operate an exchange that is tailored to the needs of New Jersey consumers. New Jersey is the 12th state to take full control of its ACA health insurance marketplace. Assembly Representatives Herb Conaway, Jr. (D-7), John McKeon (D-27) and Nancy Pinkin (D-18); along with Senators Nellie Pou (D-35), Nia Gill (D-34), Joseph Vitale (D-22) and Vin Gopal (D-11) were the primary sponsors of the legislation.
FEDERAL
Judge Blocks HHS DTC Rule
A federal judge on July 8 blocked the Trump Administration from implementing a rule on direct-to-consumer (DTC) advertising. The rule would have required any DTC advertisements to disclose list prices (WAC) with typical treatments higher than $35. Several organizations had sued in mid-June to overturn the regulation on First Amendment grounds. U.S. District Judge Amit Mehta ruled in favor of the plaintiffs, stating that the U.S. Department of Health and Human Services (HHS) does not have the regulatory authority to force manufacturers to include list prices in television advertisements. 
CMS Approves Louisiana State Plan Amendment
The Centers for Medicare and Medicaid Services (CMS) have approved a State Plan Amendment providing for a modified subscription model for Louisiana’s state Medicaid program. The model follows recent actions in support of innovative reimbursement in other states, including Oklahoma, Michigan, Colorado and Washington. The Louisiana waiver approval allows for a modified subscription model focusing on Hepatitis C. Under the model, state expenditures will be capped while an unlimited quantity of treatments become available via the state’s Medicaid program. Louisiana currently has roughly 40,000 Hepatitis C Patients combined in its state prison and Medicaid programs. 
Senate Committees Move Drug Pricing Bills 
BioNJ continues to work with our federal policymakers to ensure federal drug pricing legislation improves both Patient access and innovation. Two U.S. Senate Committees completed consideration of health care legislation prior to leaving Washington for the July 4 District Work Period. The Senate Judiciary Committee unanimously approved S. 1416, the Affordable Prescriptions for Patients Act, introduced by Senators John Cornyn (R-TX) and Richard Blumenthal (D-CT). S. 1416 would codify “product hopping” and “patent thicketing” within the FTC and included a cap on the number of cases that can be litigated. The Senate Health, Education, Labor and Pensions Committee considered draft legislation attempting to address health care costs. While the underlying legislation focused on transparency, surprise medical bills and a number of other issues, the Committee also voted in favor of incorporating language into the bill mandating reporting should the price of a treatment that costs at least $100 increase by 10 percent in a given year or 25 percent over three years. A final package of bills is expected soon from the Senate Finance Committee.
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