By Robert Pear
June
12, 2018
WASHINGTON — Democratic senators blistered President Trump’s
health secretary on Tuesday, telling him that the Trump administration’s
efforts to undo health insurance protections for people with pre-existing
conditions made a mockery of the president’s campaign to rein in prescription
drug prices.
The secretary of health and human services, Alex M. Azar II,
told Congress that he would be glad to work with lawmakers on legislation —
“alternatives to the Affordable Care Act, modifications of the Affordable Care
Act” — to provide access to insurance for people with pre-existing conditions.
The decision regarding pre-existing conditions is “a
constitutional and legal position, not a policy position,” Mr. Azar told the
committee.
Mr. Azar also conceded that Mr. Trump’s promise late last month
that drug companies would come forward with “voluntary massive drops in prices”
within two weeks might not be fulfilled by that deadline. He told Congress on
Tuesday that several drugmakers wanted to reduce prices but were reluctant to
do so for competitive reasons.
The heated exchanges came just days after the Justice Department
told a Federal District Court in Texas that it would no longer defend crucial
provisions of the Affordable Care Act that protect consumers with pre-existing
medical conditions.
The senators told Mr. Azar that the effort to lower drug prices
and the push to end protections for people with pre-existing conditions
contradicted each other. If a federal court accepts the administration’s
argument on pre-existing conditions, they said, tens of millions of people with
such conditions could lose access to affordable insurance that includes
coverage for prescription medicines.
“This is like some kind
of sick joke,” said Senator Maggie Hassan, Democrat of New Hampshire.
Mr. Azar, testifying at a hearing of the Senate health
committee, said that bringing down drug prices was a top priority for Mr.
Trump. He suggested that the Justice Department’s position on pre-existing
conditions was separate.
In a Rose Garden speech on May 11, Mr. Trump unveiled a strategy
to “bring soaring drug prices back down to earth” by promoting competition
among pharmaceutical companies and by requiring drugmakers to disclose prices
in their ubiquitous television advertising.
Then last week, the Justice Department made its novel argument
against protections for pre-existing conditions. The 2010 health law required
most Americans to have insurance or pay a penalty with their taxes. In
December, as part of a huge tax-cutting bill, Congress eliminated the penalty.
The Supreme Court upheld the mandate in 2012 as an exercise of Congress’s
taxing power. Without any tax penalty, the Justice Department said, the mandate
is unconstitutional. And the protections for people with pre-existing
conditions, being inseparable from the mandate, must also fall, Attorney
General Jeff Sessions said.
Senator Patty Murray of Washington, the senior Democrat on the
health committee, said on Tuesday that she was appalled that the administration
refused to defend protections for people with pre-existing conditions, one of
the most popular provisions of the Affordable Care Act.
Senator Bob Casey, Democrat of Pennsylvania, said, “I don’t know
of any American who wants to go back to those days when you could be denied
coverage or treatment because of pre-existing conditions.”
Republicans repeatedly tried and failed to repeal or roll back
the health law last year.
The term “pre-existing conditions” refers not just to serious
illnesses like cancer. Before the Affordable Care Act, some insurers denied
coverage or charged higher premiums to people with high blood pressure,
seasonal allergies, diabetes, arthritis and migraine headaches, among other
conditions. The Kaiser Family Foundation has estimated that at least one-fourth
of Americans below the age of 65 have conditions that could have made them
uninsurable under medical underwriting practices used before the Affordable
Care Act.
At a bill-signing ceremony on May 30, Mr. Trump said that major
drug companies would, within two weeks, announce “voluntary massive drops in
prices.”
Mr. Azar told Congress on Tuesday that might not happen on that
schedule.
“We had several drug companies come in who want to execute
substantial material reductions in their drug prices,” Mr. Azar said. “They are
finding hurdles from pharmacy benefit managers and distributors.”
The benefit managers, he said, make money when drug companies
set high list prices because the managers receive rebate payments from
drugmakers — a percentage of the list price — in return for promoting the use
of those companies’ products.
“Everybody wins when list prices rise — except for the patient,
whose out-of-pocket cost is typically calculated based on that price,” Mr. Azar
said. For this reason, he said, “we may need to move toward a system without
rebates, where pharmacy benefit managers and drug companies just negotiate
fixed-price contracts.”
The Senate majority leader, Mitch McConnell, Republican of
Kentucky, said on Tuesday that the protections for people with medical problems
had broad support in that chamber.
“Everybody I know in the Senate — everybody — is in favor of
maintaining coverage for pre-existing conditions,” Mr. McConnell said.
Senator Chuck Schumer of New York, the Democratic leader, said
that if Republicans were serious about that, they should join Democrats in
urging the Justice Department to reverse its position on pre-existing
conditions.
The American Cancer Society Cancer Action Network, the American
Diabetes Association and the American Heart Association said in a joint
statement with other patient advocacy groups that the Justice Department’s
position could be catastrophic for their members, and they urged the Trump
administration to reconsider.
Mr. Azar tried to bring the conversation back to the president’s
drug pricing proposals. He said he believed he had the authority, as secretary,
to require drug companies to disclose prices in their advertisements and to
restrict the payment of drug rebates in Medicare. But he said he would welcome
action by Congress to clarify that authority.
And he asserted that the president’s proposals were bolder than
Democrats acknowledged.
“We’re talking about the wholesale restructuring of the drug
pricing and drug distribution system in this country,” he said.
A
version of this article appears in print on June 12, 2018, on
Page A14 of the New York edition with the headline: Health
Chief Hears It From Democrats on Benefits. Order Reprints | Today’s Paper | Subscribe
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