With help from Sarah Owermohle
Editor's Note: This edition of Pulse is published weekdays at 10 a.m. POLITICO Pro Health Care subscribers hold exclusive early access to the newsletter each morning at 6 a.m. Learn more about POLITICO Pro's comprehensive policy intelligence coverage, policy tools and services at www.politicopro.com.
Quick Fix
— President Donald Trump went big on health care in last night’s State of the Union address, taking aim at Democrats’ single-payer proposals and touting about a dozen of his own health efforts.
— The U.S. response to the Wuhan coronavirus outbreak is raising fresh tensions with China and new concerns from public health groups.
— Leaders of Juul and other e-cigarette companies will testify in front of Congress today, as lawmakers continue to scrutinize vaping's popularity among teens.
WELCOME TO WEDNESDAY PULSE: THE JOINT SESSION EDITION — Where the newsletter has officially added a co-author, just in time to handle the ever-expanding amount of health care news in Congress, on the trail and across the industry amid a busy 2020 campaign season.
The State of PULSE is strong: Four hands means we can now answer your emails twice as fast. Tips to Adam Cancryn at acancryn@politico.com and Dan Diamond at ddiamond@politico.com.
Driving the Day
TRUMP: THE STATE OF THE UNION IS ENDANGERED BY “SOCIALISM” — The president directly invoked Democrats’ plans for single-payer health care, leaning into his 2020 campaign message that private insurance plans are at risk.
"To those watching at home tonight, I want you to know: We will never let socialism destroy American health care!" Trump vowed, to GOP cheers and boos from Democrats.
IT WAS A HEALTH CARE-HEAVY SPEECH — Trump spent roughly 15 minutes, or about 1,000 words, extolling his past moves on health care and announcing a new $50 million request for neonatal research. (For contrast, President Barack Obama’s 2012 State of the Union address almost entirely avoided Obama’s health record.)
One reason for the president’s focus: The White House has worked to broaden Trump’s health care message beyond Obamacare repeal, which was widely viewed as a political loser for Republicans in 2018.
— A handful of shoutouts last night were bipartisan, like the president’s mention of investments to fight kidney disease, HIV and other public health problems, prompting Democrats to join Republicans in applause. Trump also touted his efforts on health-care transparency and reducing the opioid epidemic, which have been cheered by patient advocates.
— But many health care lines played to Trump’s base, like attacking care for undocumented immigrants. “If forcing American taxpayers to provide unlimited free health care to illegal aliens sounds fair to you, then stand with the radical left,” the president said, taking aim at Democrats’ efforts and pledges to extend health care to undocumented populations.
Trump also promised to “always protect patients with pre-existing conditions” — a line that’s been consistently debunked by fact-checkers, given the president’s ongoing efforts to kill Obamacare’s protections without a replacement. Advocacy groups already had prepared ads to rebut the president’s claim.
— Trump’s comments on drug pricing even got many Democrats standing and shouting, after the president said he wanted bipartisan legislation to reduce drug costs.
“Get a bill to my desk, and I will sign it into law without delay,” Trump said.
“H.R. 3! H.R. 3!” Democrats chanted in response, referencing H.R. 3 (116), the House-backed drug package that is stalled in the Senate.
HOW IT PLAYED ON THE HILL — Adam Cancryn, PULSE’s new coauthor, reports that Democrats and Republicans emerged from the 83-minute speech just as divided as they entered – if not more so. Several Democrats left the chamber visibly upset, trashing Trump’s speech as divisive and akin to a political rally.
“I think all of us wanted to scream after this speech,” Sen. Chris Van Hollen (D-Md.) said. “I’ve never seen such a disgraceful performance in all my years.”
Republicans struck a far more optimistic tone, highlighting Trump’s calls for bipartisan action on drug pricing, and expressing relief that the speech focused largely on the administration’s policy goals – not impeachment. “He put it all in a positive spin,” said Sen. Mike Rounds (R-S.D.).
— The speech isn’t expected to jump-start bipartisan dealmaking. Trump offered no specifics on his vision for shared priorities like drug pricing, allowing both parties to fall back on their favored partisan proposals. And Democrats eyeing a chance to retake the presidency in November saw little new reason to try to negotiate with the president. “It didn’t set the table for bipartisan agreement,” said House Majority Leader Steny Hoyer (D-Md.).
WHAT WENT UNMENTIONED — Not every Trump priority, or target, made it into the lengthy speech. Among the issues that went unstated:
— Obamacare. The president never directly mentioned the health law, even if he did tout his “affordable alternatives,” like short-term health plans.
— Insulin. A plan to lower insulin costs is underway but it wasn’t ready in time to get a shoutout in last night’s speech, two officials told PULSE.
— Medicaid. While Trump vowed to protect Medicare and Social Security, he notably omitted the safety-net health program from his list. CMS Administrator Seema Verma last week announced new Medicaid block grants, part of the administration’s ongoing effort to set new limits on the program.
— Long-developing plans to tackle rural and maternal care, although Trump’s top health deputy hinted at those priorities afterward.
“HHS will expand our focus to new issues, like improving maternal health and transforming health care in rural America, and continue to work with Congress to deliver common-sense health care reforms,” HHS Secretary Alex Azar said in a statement.
MEANWHILE: THE DEMOCRATIC RESPONSE DWELLED ON HEALTH CARE — Michigan Gov. Gretchen Whitmer repeatedly invoked the Affordable Care Act’s coverage expansions and the Trump-backed lawsuit to strike the law down.
“It’s pretty simple,” Whitmer said. “Democrats are trying to make your health care better. Republicans in Washington are trying to take it away.”
— Expect the Democrats to continue touting the parties’ health care contrast, especially after their efforts to impeach Trump divided the country and may have contributed to a recent boost in the president’s popularity.
“Health care, health care and health care are the three most important issues,” Speaker Nancy Pelosi told reporters Tuesday afternoon, as top Democrats from both chambers gathered to give a health-heavy prebuttal of the president’s speech. House Democrats also introduced a resolution of disapproval of Trump’s new Medicaid block grants, seeking to get Republican members in both chambers on record.
Pelosi sharpened her criticism later in the night, calling Trump's speech — which she publicly ripped up — a "manifesto of mistruths" on issues like prescription drugs and pre-existing conditions.
Wuhan Coronavirus
THE DELICATE DIPLOMACY OVER CORONAVIRUS — The Trump administration’s aggressive response to the Wuhan coronavirus is raising fresh worries about U.S. relations with China — and the impact the quarantine and travel ban policies could have on people of Asian descent, POLITICO’s Alice Miranda Ollstein reports.
The World Health Organization has warned against cracking down on transportation and trade, adding that alarmist actions could damage international efforts to fight the virus. And on Tuesday, flight attendants and other labor unions criticized the administration over a lack of transparency about its plans for screening and treating travelers returning to the country. Lawmakers, meanwhile, are growing concerned the approach risks fueling fear and prejudice.
“The virus doesn’t discriminate between Asian versus non-Asian,” Rep. Ami Bera (D-Calif.) said. “In our response we can’t create prejudices and harbor anxieties toward one population.”
— Happening today: Bera will chair Congress’ first hearing on the coronavirus, held by a House Foreign Affairs subcommittee.
CORONAVIRUS TEST CAN BE SENT TO STATES — The FDA granted emergency authorization on Tuesday for the CDC to distribute a coronavirus diagnostic test to public health laboratories, POLITICO’s David Lim reports. That will let states and localities test patients, rather than having to confirm cases by sending samples to the CDC’s Atlanta headquarters.
DEMOCRATS TO HHS: SEEK EMERGENCY FUNDING — A pair of House appropriators are pushing back on HHS’ potential plan to shift funds within the department to fight the coronavirus, urging Secretary Alex Azar to simply request more money from Congress instead.
Appropriations Chair Nita Lowey (D-N.Y.) and Rep. Rosa DeLauro (D-Conn.) — who leads the Labor-HHS-Education spending panel — wrote that he should ask for enough funding to cover enhanced screening, quarantines, vaccine research and more, POLITICO’s Caitlin Emma reports. They also want a breakdown of how HHS anticipates spending its money on coronavirus efforts.
HHS previously said it might need to shift up to $136 million from other department accounts to aid the fight.
Vaping
WHAT E-CIG EXECS ARE LIKELY TO TELL CONGRESS TODAY — Executives for five major e-cigarette brands could take markedly different approaches to this morning's testimony in front of the House Energy and Commerce’s oversight subcommittee, according to their prepared remarks.
Juul CEO K.C. Crosthwaite — who moved over from major Juul stakeholder Altria last year — will highlight extensive research suggesting e-cigarettes can help smokers switch to less risky products, POLITICO’s Sarah Owermohle writes. But he’ll also acknowledge that public trust in Juul eroded as e-cigarettes became massively popular among teens.
Reynolds American, Logic, NJOY and Fontem representatives are likely to stress instead that their products are overwhelmingly used by adults (which they’ll back up with plenty of statistics) or include safeguards to make sure teens don't buy their e-cigarettes.
Juul is the only one of the companies that's previously sent executives to testify on e-cigarettes in front of the House before. That July 2019 grilling — which centered on the company's efforts to appeal to teens — likely foreshadows today’s central topic, Sarah writes.
Policy Roundup
A BIPARTISAN PLAN TO REFORM HEALTH CARE — That’s how the Bipartisan Policy Center is billing its new report, which takes aim at shared frustrations across the U.S. health system, like high out-of-pocket spending and excessive billing.
One proposal in the 62-page plan would limit hospital charges in certain concentrated markets. Another proposal would boost premium tax credits for middle-income individuals.
— The plan’s authors include former Senate Majority Leaders Tom Daschle and Bill Frist, as well as Obama-era CMS chief Andy Slavitt and George H.W. Bush-era CMS chief Gail Wilensky. Prominent health policy figures Sheila Burke, James Capretta, Chris Jennings, Cindy Mann, Avik Roy and the late Alice Rivlin also contributed guidance.
Names in the News
ANGELA OSTRUM, CAROLYN MULLEN now leading Coalition for Health Funding. Ostrum, who had been PhRMA’s senior director of advocacy and strategic alliances, is now executive director of the group, which advocates for public health investments. Mullen, ASTHO’s senior VP of government affairs and public relations, is now president of the coalition’s board of directors.
What We're Reading
What happens when doctors don't want to treat an outbreak? Hong Kong medical staff are on their third day of strikes over coronavirus fears, Reuters reports.
U.S. officials should start testing cases of unexplained pneumonia for coronavirus links, former White House official Luciana Borio and former FDA Commissioner Scott Gottlieb argue in the WSJ.
Walgreens will pay $7.5 million to settle claims that it let an unlicensed pharmacist handle hundreds of thousands of claims, NYT's Mihir Zaveri reports.
Tobacco companies are testing out new tactics, like peppermint inserts and menthol-releasing capsules, to get around a forthcoming European menthol ban, Bloomberg’s Corinne Gretler reports.
At Kaiser Health News, Judith Graham details what to do if your home-health agency ditches you.
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