August 7, 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
BioNJ Unveils Value of Medical Innovation Primer 
Medical innovation provides tremendous value to our nation’s health care system. Innovations in treatments save lives and improve quality of life for Patients and their families. Today’s curative therapies are keeping Patients from costly institutional care and saving precious health care dollars. Our policymakers should pursue policies that encourage innovation in the life sciences sector, with innovation happening right here in our own backyards. BioNJ has released an updated document articulating the value medical innovation brings to our health care system.
Senate Select Committee Holds First Hearing
The Senate Select Committee on Economic Growth Strategies held a July 29 hearing to examine Grow NJ and other New Jersey tax incentive programs. Co-Chaired by New Jersey Senators Bob Smith and Joseph Pennacchio, other Committee members include Senators Nilsa Cruz-Perez, Dawn Addiego, Joseph Lagana, Anthony Bucco and Declan O’Scanlon. The Committee heard testimony from former Senators Joseph Kyrillos and Raymond Lesniak, the authors of the 2013 legislation creating the Grow NJ program. In addition, the Committee heard from former NJ Economic Development Authority (NJEDA) Board Chair Larry Downes as well as current NJEDA CEO Tim Sullivan and groups representing business and labor. The hearing focused on ways to improve the newly expired programs as New Jersey is now one of the few states without incentive programs aimed at encouraging businesses to grow and remain in a given state. The Committee will continue its work on economic growth strategies with additional hearings expected this summer.  
Registration Open for BioNJ Patient Advocacy Summit
Registration has opened for BioNJ’s Fourth Annual Patient Advocacy Summit. The Summit will be held October 4 at Celgene in Summit, NJ. The Patient Advocacy Summit brings together Patients, Patient advocacy groups and the life sciences industry for a morning of Education, Engagement and Empowerment. 
FEDERAL
Finance Committee Considers Drug Pricing Legislation 
Following earlier markups by two other Senate Committees, the Senate Finance Committee considered and passed legislation aimed at addressing drug pricing in the Medicare program. The legislation would make several changes to Medicare Part B and D as well as the Medicaid program. The conceptual legislation would reduce spending by approximately $100 billion over 10 years. Unfortunately, the framework misses the mark in both protecting innovation and Patient access to new and groundbreaking therapies. Additionally, the legislation will not do enough to lower Patient out-of-pocket costs at the pharmacy counter. 

BioNJ thanks Senator Menendez for his continued work on behalf of New Jersey’s Patients during the Finance Committee markup. Senator Menendez thoughtfully articulated the perils to Patients and innovation alike in moving forward with provisions included in the legislation. We look forward to working with Senator Menendez and the New Jersey delegation to ensure any legislation addressing drug pricing addresses both Patient costs at the pharmacy counter and the need for continued medical innovation.
President, Congressional Leadership Cut Budget Deal, Head Home for August District Work Period
President Trump and Congressional leadership were able to successfully negotiate a two-year budget deal prior to leaving for the August District Work Period. Starting at the October 1 beginning of fiscal year 2020, the deal raises budget caps by $50 billion in 2020 and $54 billion the following fiscal year. The budget deal also averts a possible financial crisis by including provisions to raise the debt ceiling through mid-2021.

Congress will return following Labor Day with a significant to-do legislative list, including annual appropriations bills. Speaker Nancy Pelosi is also expected to release a House proposal on drug pricing in the coming months. BioNJ will continue to monitor Congressional action to ensure our delegation understands the importance of continued medical innovation.
Part D Premiums Expected to Decline
The Centers for Medicare and Medicaid Services (CMS) has announced that the average basic premium for Medicare Part D plans is expected to decline. In a release, CMS notes that basic premiums for Part D plans have declined by 13.5 percent from 2017 to 2020. The projected basic premium in 2020 is expected to be $30 with enrollment increasing 12.2 percent since 2017. Given a decade plus track record of success in the Part D program – with a nearly 90 percent approval rating among Part D beneficiaries – it is critical that the Part D program be protected as a crucial source of lifesaving treatments for Medicare beneficiaries. BioNJ continues to work with our federal delegation to ensure any Part D reforms are lowering Patient out-of-pocket costs while minimizing disruption in a successful program for New Jersey’s seniors.  
U.S. House Backs Cadillac Tax Repeal, E&C Advances Surprise Medical Billing Plan 
The oft-maligned ACA tax on health plans with rich benefits is halfway to repeal. The so-called “Cadillac Tax” would have placed a 40 percent tax on the most expensive insurance plans beginning in 2022. The tax was originally set to take effect in 2018 but was delayed through previous legislation. The legislation – the Middle Class Health Benefits Tax Repeal Act of 2019 – cleared the U.S. House by a 419-6 vote. 

Meanwhile, the U.S. House Committee on Energy and Commerce has moved forward with a proposal to address surprise medical bills. Like debate on New Jersey’s out-of-network legislation, the federal discussion has focused on improving Patient notification and holding Patients harmless when an out-of-network provider provides a service. Rather than making the Patient responsible for the balance of out-of-network charges, the legislation instead sets a benchmark payment with a provider option to appeal to an arbitrator in certain circumstances. The U.S. Senate through the Committee on Health, Education, Labor and Pensions is also crafting a proposal to address surprise medical bills.
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