December 11, 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 ®

FEDERAL

Statement on Revised USMCA by BioNJ President and CEO Debbie Hart "Last year's US-Mexico-Canada Agreement (USMCA) included enhanced intellectual property protections in line with U.S. law for biopharmaceuticals. Unfortunately, the revised agreement announced yesterday removes these important protections.    "New Jersey's life sciences sector has long been a mainstay of our State's economy, not only contributing billions in economic impact and thousands of jobs, but researching, developing and manufacturing tomorrow's lifesaving cures. The USMCA would have helped spur continued innovation in groundbreaking treatments for Alzheimer's disease and other diseases states without known therapies.    "The revised USMCA misses an important opportunity to ensure American intellectual property is protected around the world."

Drug Pricing Update: Awaiting House Vote, CBO Analysis Expected, CEA Estimate Unveiled  The U.S. House of Representatives will finally consider H.R. 3 during the week of December 9. Lawmakers had delayed consideration while awaiting a final Congressional Budget Office (CBO) analysis of the impacts of the legislation. The December 10 CBO analysis shows that while the legislation will reduce federal spending by $5 billion over 10 years, H.R. 3 will ultimately lead to increased costs in Medicaid and a 10 percent reduction in biopharmaceutical research and development. Stay tuned for a Public Policy Alert on the details of the House vote on H.R. 3.   Meanwhile, an analysis from economic consulting firm Vital Transformation shows that 56 new treatments would fail to reach the marketplace should H.R. 3 become law. CBO initially estimated as many as 15 fewer treatments would be approved in the next 10 years. Regardless, the fact remains that H.R. 3 would cost Patients access to new and lifesaving treatments. BioNJ believes Patients should have access to the right treatment at the right time – Because Patients Can’t Wait. H.R. 3 will reduce not only innovation of new therapies but keep Patients in New Jersey and around the country from tomorrow’s cures. We encourage our policymakers to oppose this legislation.  Click here for more information on the H.R. 3 analysis

The Trump Administration’s Council of Economic Advisors (CEA) has also weighed in on the H.R. 3 discussion, introducing its own estimate on the impact of H.R. 3 on both Patients and innovation. The CEA estimates that H.R. 3 could lead to as many as 100 fewer drugs entering the United States over the next decades – nearly double the Vital Transformation estimate. Moreover, the CEA estimates that H.R. 3 would reduce American life expectancy by four months while reducing improvements in health outcomes and increasing overall long-term health spending.

Click here for the White House estimate of H.R. 3’s impacts

Trump Administration Releases Transparency Proposal  Consistent with an executive order released earlier this year, the U.S. Departments of Health and Human Services, Labor and Treasury, respectively, released a proposed rule on “transparency in coverage.” The proposed rule would require most employer-based health plans and insurers to disclose up-front cost-sharing and price information to beneficiaries. The information will allow Patients to have more accurate estimates on any out-of-pocket costs needed to meet deductible, co-pay or co-insurance requirements. The proposal would also require negotiated rates for in-network providers and allowed amounts paid for out-of-network providers to be published directly on a public website.

Click here for more information on the proposed rule

National Health Expenditure Data: Drug Prices Decline The Centers for Medicare and Medicaid Services (CMS) Office of the Actuary has released its annual report on national health expenditures. The report details changes in the country’s health spending during 2018. Retail prescription drug spending continued to grow at a rate slower than hospital and physician service spending, with drug spending increasing by 2.5 percent and hospital and physician spending increasing by 4.5 and 4.1 percent, respectively. Retail prescription drug prices also declined by one percent in 2018.

Click here for more information on the National Health Expenditure report

STATE

Lame Duck Update The New Jersey Legislature is back for its end-of-year “lame duck” session. Patient access is on the agenda as legislation to cap out-of-pocket costs continues to advance through the legislature. S-1865 passed through the Senate Budget Committee on December 5. The legislation, sponsored by NJ Senate Majority Leader Loretta Weinberg and Republican Leader Thomas H. Kean, Jr., would require insurers to offer plans that limit Patient prescription drug costs. A-2431, sponsored by Assembly Representatives Dan Benson, Anjelica Jimenez and BettyLou DeCroce had previously passed the NJ General Assembly in a near unanimous March vote. BioNJ thanks the Legislature for their focus on policies that will help lower Patient costs at the pharmacy counter.   A variety of other issues remain on the calendar for the lame duck session. The State’s tax incentive programs and possible reforms in New Jersey State worker pension and benefits could be resolved during the lame duck session. Meanwhile, legal recreational cannabis use appears headed for a ballot referendum following the introduction of a resolution to place the issue on the 2020 ballot. Finally, legislation looking to substantially change the use of independent contractors looks to move its way through both houses of the Legislature. BioNJ has been active in ensuring this legislation does not have a negative impact on both life sciences companies as well as independent contractors in the sector. We are hopeful the final version of the independent contractors legislation preserves the flexibility needed to keep New Jersey among the leaders in biopharma research, development and manufacturing.  Stay tuned for additional information on these issues as the lame duck session proceeds through mid-January.

Assemblyman Benson Addresses BioNJ, Caregivers of NJ Event BioNJ and Caregivers of NJ welcomed dozens of Patients, Patient advocates and others to a November 15 event commemorating national caregivers month. Event attendees heard a special presentation from NJ Assemblyman Dan Benson (D-14) with a focus on efforts to help both Patients and caregivers, including the creation of a Caregivers Task Force in New Jersey and legislation to cap out-of-pocket prescription drug costs. In addition, a panel of Caregivers shared their stories and answered questions from the audience on their experiences. Thank you to Caregivers of NJ for partnering on this important event and thank you to Assemblyman Benson for sharing his story with event attendees. We look forward to our work together in Trenton on behalf of both Patients and those who care for them.

2020 Public Policy Sponsorship Opportunities Available  Bi oNJ’s Public Policy Support Series sponsorship opportunities are available for 2020. Sponsorship opportunities help make sure that our message is delivered in both Trenton and Washington, D.C. Help ensure BioNJ continues to deliver our message of improved Patient access and enhanced innovation through a Public Policy Support Series Sponsorship. More information is available here .

Thank You To Our Public Policy Support Series Sponsors

To learn how your organization can become more engaged in BioNJ's public policy efforts, please reach out to BioNJ's Vice President of Government Affairs, John Slotman , at JSlotman@BioNJ.org . Or, for information on BioNJ Membership, please contact Kimberly Minton at KMinton@BioNJ.org . Visit www.BioNJ.org for details.

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