House Oversight Committee Holds Hearing with PBM CEOs: On Tuesday, the House Oversight Committee held a hearing with the CEOs of America’s three largest PBM companies, OptumRx, Express Scripts, and CVS Caremark. Legislators criticized high drug prices, formulary decisions by PBMs that “ignore” physician recommendations, reimbursement rates to pharmacies, and DIR fees. The three panelists insisted that average prescription costs are lower thanks to PBM negotiations and manufacturers are to blame for increased costs.  

Biden Drops Out. Kamala Harris to Earn Democratic Nomination: On Sunday, President Biden announced that he will not run for reelection, and quickly endorsed Vice President Kamala Harris to lead the Democratic ticket; Harris garnered rapid support from leading Democrats, and now holds enough pledged delegates to win the official nomination in August. On health policy, like almost all other issue areas, Harris’ potential presidential platform may differ compared to her record in the U.S. Senate. While a senator, she promoted a “Medicare for All” model with private coverage options, and sponsored more aggressive drug pricing policies than Biden has been willing to employ, such as linking U.S. prices to ones negotiated by other wealthy nations. She may pursue more authorities reviewing health care acquisitions for anticompetitive practices. She has also stated willingness to exercise so-called “march-in rights” to allow competition for drugs, a move Biden has yet to fully endorse. Harris’ strongest health care issue is her high-profile position in the White House advocating for reproductive rights.

Agriculture-FDA Appropriations Bill Pulled from House Floor Consideration: Republicans pulled their funding bills for the Agriculture Department – FDA and Financial Services from floor consideration this week. According to sources, Republican appropriators decided last month to leave out controversial language blocking access to abortion pills in the FDA measure after it prompted opposition last year from swing-district Republicans. Abortion pill disagreements and overall funding levels remained the issue preventing even party-line passage.  

House Holds Hearing on Congress After Chevron Overturn: On Tuesday, the House Committee on House Administration held a hearing on what Congress in a post-Chevron world will look like. Panelists broadly agreed that Congress should increase its lawmaking and staff capacity in response. Georgetown Law professor Josh Chafetz noted that Congress could essentially reinstitute Chevron deference through legislation; Sen. Elizabeth Warren (D-MA) has already introduced such a bill.  

HHS Merges Technology and AI Offices: On Thursday, HHS announced it is merging two offices dedicated to health technology, creating a new role for a top White House official and increasing the focus on artificial intelligence policy. The HHS Office of the Chief Technology Officer — whose top role has been vacant since 2020 — will be merged with the Office of the National Coordinator for Health IT. A new office will oversee technology, data and AI policy.

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