Thank you, Madam President. Today I received a letter from the U.S. Ambassador to China, Terry Branstad. Governor Branstad's letter said the following: I am delighted to inform you that China's Ministry of Public Security announced China…
Thank you, Madam President.
Today I received a letter from the U.S. Ambassador to China, Terry Branstad. Governor Branstad's letter said the following:
I am delighted to inform you that China's Ministry of
Public Security announced China will make all forms of
fentanyl a controlled substance effective May 1, 2019. If
implemented effectively, this will fulfill the commitment
President Xi made to the President at the G-20 last December
in Buenos Aires. That commitment and this key development are
direct results of your visit to Beijing during which you
highlighted China's role in the global opioid crisis.
Separately, I have asked my staff to share diplomatic
reporting with you that addresses China's action in greater
detail.
That is from Ambassador Terry Branstad, our Ambassador to China.
This is important news. It will save thousands of American lives. President Trump deserves great credit for persuading President Xi at their meeting in Argentina in December to do this, the one thing that our drug enforcement agents have said will reduce the flow of fentanyl into the United States more than any other single thing.
President Xi, the President of China, deserves the thanks of the American people for making this decision because our Drug Enforcement Agency is convinced that this decision by China and its senior officials will save thousands of American lives.
The reason for this, we were told by our Drug Enforcement Agency personnel in China, is that, one way or the other, almost every bit of fentanyl that makes its way into the United States starts in China. These chemicals are made and mixed there. Then they come through the mail. They come through Mexico, through China, many different ways, but the chemicals start in China.
Every time China has made some form of fentanyl illegal, the availability of that form of fentanyl in the United States has begun to go straight down.
What President Trump and President Xi agreed to do on May 1 is to make all forms of fentanyl illegal. This means that if some clever scientist in China says: Well, this form of fentanyl is illegal, so I will make a different form that isn't, that clever scientist will now be out of business.
One thing the Chinese know very well how to do is to police their country. I would not want to be the Chinese person, after May 1, who is in violation of Chinese law that says all forms of fentanyl are controlled substances and illegal in China.
In October, I led a delegation of senior Members of the House of Representatives and the Senate to meet with the Chinese senior delegation. One would have thought that all we talked about was trade because trade was important to all of our States, but at Governor Branstad's insistence, in every meeting we had with senior Chinese officials, we said: Fentanyl is our biggest problem, and you can solve our biggest problem more than anybody else in the world. Instead of being our problem, why don't you be our solution? Why don't you let the United States point to China and say that you helped us solve a problem that is killing thousands of Americans on a regular basis?
China agreed to do that in December with President Trump. It has now been announced that on May 1, all forms of fentanyl will be controlled and therefore illegal.
We should watch and make sure it is effectively done, but what we should say today is: President Trump, we thank you for putting fentanyl on top of a busy agenda in December, and, President Xi, we are grateful to you for a decision we believe will save thousands of American lives. I might add, it is very helpful to have such an effective Ambassador as Terry Branstad in China because he knew how to focus the attention of many visiting delegations.
Our delegation wasn't the only one who carried this message; Senator Portman and others have been there. But this is an example of China responding to an urgent American problem, and we ought to give both Presidents much more than a pat on the back for this important step.
Healthcare
Madam President, I often suggest to Tennesseans that we should look at Washington as if it were a split-screen television. For example, last October, on one screen, you would have seen Senators throwing food at each other all month long over the Kavanaugh debate, but in another part of the Capitol, you had 72 Senators working together--Democrats, Republicans, three different committees from the Senate, five from the House--working together to enact what the President called the single most important law to deal with a public health epidemic ever passed, and that was the opioids bill.
While we are arguing--which we know how to do--on such issues as the border or the special counsel's report, on the other screen, you will see a lot of work getting done if you take time to look. That means there are bipartisan efforts. That means Republicans and Democrats are working together. It takes 60 votes to get most things done here. We are 53 to 47. So, as I learned to count in the public schools of Tennessee, I know I need to work with some Democrats to get up to 60. Usually, we find that when we do that, we get up to 70 or 80 or 85 because we can take even the most difficult issues and find our way through them.
Today, I want to talk about one of those efforts--a bipartisan effort to try to reduce healthcare costs. Healthcare and health insurance are often conflated. We often mix them up, both in Congress and in media stories. The President sometimes does that too. I want to be very clear that what I am talking about is a bipartisan working effort, that healthcare itself, not just health insurance, is too expensive.
Health insurance has gotten a lot of attention lately. The President tweeted earlier this week that ``deductibles, in many cases [are] way over $7,000, mak[ing] it almost worthless or unusable.'' I agree. High deductibles tied to high premiums make healthcare inaccessible for too many Americans. I know the President is looking at ways to give Americans more affordable health insurance and to protect patients with preexisting conditions, and I look forward to hearing his plan. But the truth is, the cost of health insurance will not come down or even grow more slowly unless we lower the cost of healthcare. You can't have low- cost health insurance when you have high-cost healthcare.
My top healthcare priority this Congress is to enact legislation that will give all Americans an opportunity for better health outcomes and better health experiences at a lower cost. Democrats and Republicans are working together on that to get a result.
That is why Senator Murray, the lead Democrat on the Senate's Health Committee, and I are working with Senator Grassley and Senator Wyden, the senior leaders on the Senate Finance Committee, which shares jurisdiction over healthcare. We are working together on developing specific, bipartisan steps to help deal with the startling fact--which has come by way of experts who come before our Health Committee--that up to half of what Americans spend on healthcare is unnecessary. That is according to Dr. Brent James of the National Academies in testimony before our committee.
Last December, in order to help focus on reducing healthcare costs, after the Senate Health Committee held five hearings on reducing the cost of healthcare, I wrote a letter to the American Enterprise Institute, the Brookings Institution, governors, State insurance commissioners, doctors, patient groups, academic experts, and the public asking them to submit specific recommendations to Congress to lower healthcare costs. As of the March 1 deadline for response, we have received over 400 recommendations, some as many as 50 pages long.
I want to talk about some of those today. Before I do, it is important to know that the cost of healthcare, in effect, has become a tax on the budgets of families, employers, the Federal Government, and State governments. Warren Buffett has called the ballooning cost of healthcare ``a hungry tapeworm on the American economy.''
Almost every day, I hear from Tennesseans who are concerned that healthcare is too expensive. For example, Sherry from Hermitage, TN, wrote me about her daughter's family and said:
They are new parents now and spend almost as much on
healthcare premiums as they do on their mortgage payment.
That doesn't include the out-of-pocket expenses, such as
copays and deductibles.
Many people worry about a surprise billing, which is when a patient receives care at an in-network hospital, but an out-of-network specialist--like an anesthesiologist, for instance--also treats the patient.
Todd is a father from Knoxville, TN, who recently took his son to an emergency room after a bicycle accident. The son was treated. Todd paid a $150 copay because the emergency room was in-network for his health insurance, and they headed home. Todd was pretty surprised when he received a bill later for $1,800 because even though the emergency room was in-network, the doctor who treated his son was not.
I hear a lot about the high cost of prescription drugs. Shirley recently wrote me from Franklin saying:
As a 71-year-old senior with arthritis, I rely on Enbrel to
keep my systems in check. My copay has just been increased
from $95 to $170 every 90 days. At this rate, I will have to
begin limiting my usage in order to balance the monthly
budget.
I hear from doctors about administrative burden. Dr. Lee Gross, a Florida direct primary care doctor, testified at one of our hearings that insurance and government regulations were making primary care too expensive. Dr. Gross founded one of the first direct primary care practices. This is where a patient might pay $60 a month for an adult, $25 for the first child, $10 for each child after, and receive all their primary care--strep tests, vaccines, minor surgical procedures, and more. He calls it ``NetFlix for healthcare. After you pay your membership, you don't have to pay for each episode of care.''
Dr. Atul Gawande, who is leading the Amazon-Berkshire Hathaway- JPMorgan healthcare venture, told me recently in a conversation that direct primary care doctors are a powerful group for driving improved outcomes in healthcare because the doctors take responsibility for the outcomes, the risks, and the cost to the patient.
I also hear that the place where medical procedures are performed can make healthcare more expensive. For example, Michael from Johnson City shared that he recently had an endoscopy of his esophagus--a fairly common, routine procedure. He had the procedure at an outpatient facility, which typically is less expensive than a hospital; however, the procedure was billed as being done at a hospital. Michael is on Medicare, and he wrote to me saying: ``Not only am I charged a higher ``hospital'' rate, but taxpayers are charged a higher rate, as well.''
I imagine that every Senator has heard similar stories from people in their States and wants to do something about reducing the cost of healthcare.
In addition to the more than 400 comments we received, the American Enterprise Institute and Brookings sent us a detailed list of 18 specific policy recommendations. The Senate Health Committee can work on some of these. Some of these fall into the jurisdiction of other committees, and some are steps the administration itself can take without congressional action.
My staff and I are still reviewing all of these recommendations, but I want to mention some of them today.
One reason healthcare is so expensive is that the cost is in a black box. Patients just don't know how much a particular test and procedure will cost. That makes it nearly impossible to adequately plan for future healthcare expenses, and because of that, the healthcare system does not operate with the discipline and the cost-saving benefits of a real market.
Congress has already taken some steps to increase transparency. For example, last Congress, we passed and the President signed legislation by Senator Collins of Maine to ban the so-called gag clauses in pharmacy contracts that prevented pharmacists from telling a patient that a drug was cheaper if they paid with cash instead of their insurance.
Now we have received recommendations on how to build on that first step. For example, patients shouldn't be prohibited from knowing the cost of a surgery or a doctor's visit in advance of scheduling the procedure or appointment. Insurers and employers should
not be prohibited from providing patients with information recommending lower cost options or higher quality providers.
Another recommendation--this one from AEI and Brookings--is that employers contribute claims data--which is information on how much a test or service costs and how much insurance paid for it--to what is known as an all payer claims database. Eighteen States currently have these databases so employers and insurers can see trends in healthcare spending. This would help break open the black box around the claims data for the 181 million Americans who get their healthcare on the job.
One of our new Health Committee Members, Senator Braun of Indiana, owns a manufacturing and distribution company. He employed over 1,000 people before he became a Senator. He was aggressive about helping his employees reduce healthcare costs.
Healthcare Bluebook, a Tennessee company that testified at one of our five hearings on how to reduce healthcare costs, recommended that we look at the clauses in contracts employers sign with insurers that block the employer from accessing de-identified claims data that they could use ``for purpose of price and quality transparency.''
The Trump administration is also focused on transparency. For example, Secretary Azar has proposed a regulation to start requiring that advertisements for prescription drugs include the list price, and he has asked for feedback on the idea of requiring that the prices patients pay for medical services also be disclosed.
Another strategy for achieving better outcomes and better experiences at lower costs is to focus on the 300,000 primary care doctors in our country. Dr. Sapna Kripalani of Vanderbilt testified at one of our healthcare cost hearings that primary care providers are the ``quarterbacks'' of healthcare. By coordinating patients' care, managing their chronic diseases, and providing other preventive care, primary care doctors are able to help patients stay healthy and out of the emergency room.
Adam Boehler, who leads the Center for Medicare and Medicaid Innovation, told me that while primary care accounts for only 3 to 7 percent of healthcare spending, it can affect as much as half of all healthcare spending.
One recommendation we received came from Dr. Gilliam, a primary care doctor in West Tennessee who runs a direct primary care practice--the same type of practice I mentioned earlier that Dr. Gross runs. Dr. Gilliam said: ``[Direct primary care] is the only model that is able to offer affordable healthcare with complete price transparency.''
One suggestion we have heard is to change Internal Revenue Service rules that block Americans from using their health savings accounts to pay for the monthly direct primary care fee.
Then there is drug pricing. Many recommendations are focused on reducing what we spend on prescription drugs, which is about 17 percent of all healthcare spending.
One way is reforming prescription drug rebates, the discounts that pharmacy benefit managers negotiate with pharmaceutical companies. The Trump administration has proposed a new rule for the $29 billion rebates on prescription drugs that the government pays for through Medicare Part D. One recommendation is to expand that to the estimated $40 billion of rebates negotiated in the private market.
Another way to lower drug prices is to increase competition through generic drugs, which can be up to 85 percent less expensive than brand drugs when there are multiple approved generics. I have heard concerns about brand drug companies not providing generic companies the samples needed to make generic drugs and other ways that brands delay drug competition.
It was recommended that we increase competition for the generic versions of biologic drugs, which are called biosimilars. One way to do that may be with a bill Senator Collins introduced to ensure that biosimilar manufacturers have access to the information they need to develop and bring to market more biosimilars.
Then there is surprise billing.
AEI and Brookings also recommended we focus on helping to eliminate surprise medical billing, which is what happened when Todd, of Knoxville, took his son to the emergency room. AEI and Brookings said the issue is not that insurance companies have limited doctors and hospitals in their networks but that emergency departments and ancillary physicians, as well as hospitalists and ambulance companies, have a lucrative out-of-network billing arrangement that is unavailable to other providers, which encourages doctors to go out of network and send patients high bills. Senator Cassidy and Senator Hassan are leading the way to help eliminate surprise billing.
We received comments about the importance of the seamless exchange of information between electronic health records, which includes stopping information blocking.
A goal of the 21st Century Cures Act, which is a bipartisan bill that Senator McConnell said was the most important bill that Congress, was to make it easier for patients to access their health records and for doctors and hospitals to get the information they need to treat patients. Last month, the Department of Health and Human Services released two proposed rules required by the Cures Act to lead to better coordinated care and to less unnecessary health care. We held a hearing on those last week. We heard a story of the better experiences and outcomes that can happen when health records are interoperable. Finally, there is the consolidation of healthcare.
We received comments on the decreasing choices and competition in the healthcare system, which is when hospitals merge with doctors' offices or other hospitals, when insurers merge with other insurers, or when hospitals and insurers merge so that these hospitals or insurers have even more control over the market.
Some argue that the consolidation in healthcare can benefit patients and lower costs. Others say that it gives patients fewer options and that healthcare prices increase.
AEI and Brookings suggested that one way to address the potential negative consequences of consolidation would be to improve oversight of the 340B drug discount program, which has been found to incentivize hospitals to purchase physician practices or to employ physicians directly in order to bring in additional revenue from the 340B discounts. This echoes what we heard at our committee's three hearings.
I am also asking for other Senators to continue to come forward to Senator Murray, to Senator Wyden, to Senator Grassley, and to me with their specific proposals as to how we can reduce healthcare costs. What I hope to do is to compile the proposals that fall under the jurisdiction of our Senate HELP Committee into a package of legislation that the committee will vote on early in the summer. We could then combine that with whatever the Senate Finance Committee passes and ask the leader to put it on the Senate floor and work with the House to send legislation to the President's desk.
This morning, in a hearing before the Appropriations Committee, Secretary Azar reiterated his support and the President's support for this bipartisan process to reduce health care costs.
My staff and I will continue to review recommendations and work with other Members to incorporate ways so that Americans like Sherry, Todd, Shirley, and Michael will have better outcomes and better experiences at lower costs.
I yield the floor.