First Edition: February 3, 2015

The Washington Post: White House Budget: HHS Includes More Money For Medical Research, Food Safety, Ebola
President Obama is seeking $83.8 billion in discretionary funding for the Department of Health and Human Services for a broad range of efforts, from ongoing support of the health-care law to speeding development of medical innovations to safeguarding the nation’s food supply. The budget includes $4.9 billion for the Food and Drug Administration — a nine percent increase over 2015 funding levels. That would include additional resources for the agency to continue to implement the far-reaching Food Safety Modernization Act, signed by President Obama in 2011, which aims to improve the safety of both imported and domestically produced foods. The White House also wants a new, single agency housed at HHS to oversee food safety. (Dennis, 2/2)

The Wall Street Journal: Obama Budget Sets Off Push For Deals
Meanwhile, the White House pushed back against criticism that Mr. Obama had abandoned a commitment to long-term deficit reduction. Officials pointed to steps already taken to reduce health-care costs. ... An improving economy has sharply reduced annual deficits from more than $1 trillion early in Mr. Obama’s first term, when the government boosted spending sharply during the financial crisis. That has reduced the urgency for a deal to rein in spending on Social Security and Medicare, both of which are projected to boost deficits in the next decade as the baby boom generation retires. (Timiraos and Lee, 2/2)

The New York Times: Budget Plan Sees Savings In Changes To Medicare
In his new budget, President Obama proposed on Monday to squeeze $399 billion over the next 10 years out of Medicare, Medicaid and other programs run by the Department of Health and Human Services. Under the proposals, many Medicare beneficiaries would have to pay more for their care and coverage. The president would, for example, introduce a co-payment for new Medicare beneficiaries who receive home health care services, and he would collect $4 billion over 10 years by imposing a surcharge on premiums for new beneficiaries who buy generous private insurance to supplement Medicare. (Pear, 2/2)

The Wall Street Journal: Obama Health Budget Calls For Authority To Negotiate Drug Prices
The Obama administration’s fiscal 2016 budget request calls for allowing the government to negotiate the price of prescription drugs and giving regulators new funding to fight Ebola. The Department of Health and Human Services request proposes a budget authority of about $1.09 trillion for fiscal 2016, up from $1.04 trillion in fiscal 2015. Of that, $83.8 billion is discretionary funding for the agency, an increase of $4.8 billion from fiscal 2015. (Armour and Burton, 2/2)

The Associated Press: Obama's Budget Targets High Cost Of Cutting-Edge Drugs
With patients facing greater exposure to the high cost of new medications, President Barack Obama on Monday called for government to use its buying power to squeeze drug companies for lower prices. Obama's budget asks Congress to authorize Medicare to negotiate on behalf of its beneficiaries for so-called "specialty" drugs that require hefty copayments from patients. They include biologics, which are medications derived from natural substances, ranging from insulin to some of the latest cancer treatments. (Alonso-Zaldivar, 2/2)

The New York Times: In Budget, Obama’s Unfettered Case For Spreading The Wealth
Absent from the plan is any pretense of trying to address the main drivers of the long-term debt — Social Security and Medicare — a quest that has long divided both parties and ultimately proved impossible. The document instead indicates that Mr. Obama, after years of being hemmed in on his fiscal priorities because of politics and balance sheets, feels newly free to outline an ambitious set of goals that will set the terms of a debate between Democrats and Republicans and shape the 2016 presidential election. (Hirschfeld Davis, 2/2)

Los Angeles Times: Obama's $4-Trillion Budget Champions Liberal Priorities
The Republican preference is for continued austerity and lower taxes, which will probably be reflected in their own budget plans expected next month. To boost Pentagon spending as defense hawks want, their budgets are expected to slash more deeply into food stamps, healthcare and other safety-net programs. Rep. Tom Price (R-Ga.), the House Budget Committee chairman, promised Sunday on Fox News that a Republican budget would re-imagine Medicare, Medicaid and Social Security, and “will do what the American people have to do with their homes and in their businesses every single day — and that’s not spend more money than what comes in.” (Mascaro and Hennessey, 2/2)

Los Angeles Times: Obama Budget Seeks To Spread The Wealth; GOP Calls It A Pipe Dream
Outside budget hawks, though, gave Obama poor marks for his approach to entitlement programs. “Failing to address the drivers of the debt will ultimately undermine the president's other priorities,” said Maya MacGuineas, president of the bipartisan Committee for a Responsible Federal Budget. “The focus on promoting investment today will do little good if our massive debt is choking the investments of tomorrow.” The budget does propose changes to Medicare designed to curb its share of total government spending. The administration is planning to expand initiatives designed to further slow Medicare spending, which has been growing at historically low levels in recent years. (Hennessey and Parsons, 2/2)

Politico: Obama's Proposals: From Healthy To Dead On Arrival
Disease doesn’t discriminate by political party. And lawmakers of all stripes seem poised to embrace one of the flashiest proposals in Obama’s budget: a $215 million Precision Medicine Initiative, which aims to harness the power of genetics research to accelerate the development of treatments and cures. ... Look for this proposal to survive and lead to a boost in appropriations for the National Institutes of Health. And while we’re talking health: The president may also find bipartisan support for his proposal to invest $100 million to combat abuse of prescription opioids and heroin. (Simon, 2/2)

The Wall Street Journal: Obama Asks For More Spending On Veterans
Mr. Obama has proposed a $168.8 billion budget [for the VA], compared with $163.9 billion in 2015. He is requesting $70.2 billion in discretionary funding for the department, nearly 8% more than in 2015. Discretionary funding includes items like medical care, research and construction, but not things like disability compensation payments, which are considered to be mandatory funding. The department would also be able to use some $3 billion in funds collected from things like payments from health insurers and copays for discretionary purposes. (Kesling, 2/2)

The Associated Press: Obama Aims To Shore Up Health Law As 2nd-Year Deadline Nears
President Barack Obama is seeking to shore up support for his health care law by putting its beneficiaries on display at the White House. The White House says Obama will meet Tuesday with 10 Americans from across the country who wrote him letters about how they benefited from the Affordable Care Act. Obama plans to speak and hold a photo-op with them in the Roosevelt Room. (2/3)

Politico: Supreme Court Obamacare Case Poses Political Peril For GOP
The Supreme Court could be months away from blowing a huge hole in Obamacare — and Republicans on Capitol Hill are at odds over how they’ll respond if their side wins. It’s the latest example in a long-running quandary for Republicans: They don’t agree on what alternative, if any, their party should offer to President Barack Obama’s signature health care law. But the issue is taking on new urgency for the GOP congressional leaders as the court takes up a case that could leave more than 5 million people without Obamacare’s crucial subsidies. (Haberkorn and Raju, 2/3)

The Washington Post's The Fact Checker: A Zombie Obamacare Stat Emerges Again, Earns Four Pinocchios
“Under Obama, Average Family Premiums Have Increased $4,154.” The RNC circulated this talking point during the State of the Union address, and it is now popping up in the twitter feeds of Republican House members and state parties. But this is a zombie statistic; a version of it keeps coming back no matter how many times we try to debunk it. So let’s try to explain once again why it does not really say much about health-care inflation under the Affordable Care Act, aka Obamacare. (Kessler, 2/3)

USA Today: Obama's Day: Health Care Letters
President Obama devotes Tuesday to defending his health care law. In the morning, Obama meets with ten people who have written him letters about how the Affordable Care Act has helped them. ... The Obama event with letter writers takes place as the Republican-run House plans to vote again Tuesday to repeal the law, saying it has led to higher insurance premiums and canceled policies. Obama has vowed to veto the House bill, though previous efforts to repeal the health care law have stalled in the Senate. (Jackson, 2/3)

USA Today: With Obamacare Bill, Veto Threat Count Now Stands At 10
The Obama administration issued its 10th veto threat of the year Monday, promising to scuttle a House bill to repeal the Affordable Care Act. The veto threat wasn't surprising -- Obama has long said he would defend his landmark legislative achievement with his veto pen if necessary. (Korte, 2/2)

The Associated Press: Obama Threatens Veto Health Care Repeal Bill
President Barack Obama is threatening to veto a Republican bill that would repeal his health care law. The White House says the Affordable Care Act is working and is improving care for Americans. Officials say repealing the law would take health coverage away from millions of Americans and prevent others from gaining coverage. (2/2)

The Wall Street Journal: Aetna Raises Outlook As Revenue Beats Expectations
Aetna said its overall membership stood at 23.5 million at the end of 2014, an increase of about 6 percent. Last month, the company said it expected to report overall membership for last year to be higher than the 23.4 million members it had previously projected. Aetna, like its rival health insurers, has benefited from higher enrollments driven by requirements under the federal Affordable Care Act. However, the industry has maintained concerns over rising care costs, particularly for expensive new drugs to treat hepatitis C. (Calia, 2/3)

The Associated Press: Aetna 4Q Profit Drops But Meets Forecasts, Guidance Climbs
Aetna’s fourth-quarter earnings slid 37 percent as the health insurer spent more to grow its business, but its performance matched expectations, and the company raised its forecast for the year. The Hartford, Conn., company said Tuesday that it now expects full-year operating earnings of at least $7 per share, up from its previous forecast for at least $6.90 per share. (2/3)

The Wall Street Journal's Corporate Intelligence: Gilead Sciences Earnings: What To Watch
Gilead Sciences Inc. is scheduled to announce its fourth-quarter earnings Feb. 3. Here is what you need to know. ... Last year, Gilead’s Sovaldi had the top-selling drug launch in history with more than $8.5 billion in sales through the end of September. The fourth-quarter results will give a hint how Gilead’s newest hepatitis C pill, Harvoni, approved Oct. 10, will fare. ... Harvoni sales face a big challenge that Sovaldi didn’t: competition. The Food and Drug Administration approved AbbVie Inc.'s Viekira Pak on Dec. 19. To win business from health plans, both companies are presumed to be offering discounts off their drugs’ list prices. The discounts will damp its revenues, which is why it will be worth listening for any indication how much Gilead is discounting Harvoni. (Rockoff, 2/2)

The Wall Street Journal's Pharmalot: FDA System For Reporting Side Effects Needs A ‘Thorough Overhaul:’ Study
A new analysis finds that the U.S. system for reporting side effects caused by prescription drugs may be producing an unfortunate side effect – incomplete information about injuries. And the reason appears to be haphazard reports filed by drug makers, according to the Institute for Safe Medicine Practices, a non-profit that tracks drug safety issues. The FDA’s Adverse Event Reporting System is the primary vehicle for gathering information about side effects that may be caused by prescription medicines. Consumers and physicians may voluntarily report problems to the agency or a drug maker, while drug makers must investigate and then report any side effect that may be attributable to one of their products. (Silverman, 2/2)

The Washington Post: Vaccination Debate Flares In GOP Presidential Race, Alarming Medical Experts
Medical experts reacted with alarm Monday as two top contenders for the Republican presidential nomination appeared to question whether child vaccinations should be mandatory — injecting politics into an emotional issue that has taken on new resonance with a recent outbreak of measles in the United States. First, New Jersey Gov. Chris Christie, while visiting a vaccine laboratory here, called for “some measure of choice” on whether shots guarding against measles and other diseases should be required for children. Then, Sen. Rand Paul (R-Ky.), an ophthalmologist who is also readying a 2016 campaign, said in two U.S. television interviews that he thinks most vaccines should be voluntary, citing “many tragic cases of walking, talking, normal children who wound up with profound mental disorders after vaccines.” (Rucker and Helderman, 2/2)

The New York Times: Measles Proves Delicate Issue To G.O.P. Field
The politics of medicine, morality and free will have collided in an emotional debate over vaccines and the government’s place in requiring them, posing a challenge for Republicans who find themselves in the familiar but uncomfortable position of reconciling modern science with the skepticism of their core conservative voters. As the latest measles outbreak raises alarm, and parents who have decided not to vaccinate their children face growing pressure to do so, the national debate is forcing the Republican Party’s 2016 presidential hopefuls to confront questions about whether it is in the public’s interest to allow parents to decide for themselves. (Peters and Perez-Pena, 2/2)

NPR: Gov. Chris Christie, Sen. Rand Paul Jump Into Vaccine Debate
As the country deals with what the Centers for Disease Control and Prevention is calling a record number of measles cases, New Jersey Gov. Chris Christie, a rumored 2016 presidential contender, has jumped into the national debate on vaccines. (Peralta, 2/2)

Politico: Vaccination Foes On The Defensive
The Disneyland measles outbreak has forced a reckoning on the politics of vaccination: Likely GOP presidential candidates are stumbling over the issue, President Barack Obama has forcefully weighed in, and several states are pushing to make it harder to exempt children from vaccinations. On Monday, New Jersey Gov. Chris Christie had to backpedal on the question of parental choice in vaccinations. Kentucky Sen. Rand Paul drew fire for connecting vaccines to mental disorders. (Villacorta and Shah, 2/2)

Politico: In 2008, Barack Obama Called Science On Vaccines ‘Inconclusive’
President Barack Obama called the science behind vaccinations “indisputable” on Monday, but he was not always such a staunch believer in getting children vaccinated. In 2008, as a senator and presidential candidate, Obama discussed the possible link between vaccines and autism. (Breitman, 2/2)

The Washington Post: Vox Got It Wrong When It Said Barack Obama ‘Pandered To Anti-Vaxxers In 2008′
Things got pretty hot in the vaccine debate on Monday as the lines of an emerging culture war were sketched out. On one side, there was President Obama, who urged parents to get their kids vaccinated, calling the science behind vaccines “indisputable. … I just want people to know the facts and science and the information. And the fact is that a major success of our civilization is our ability to prevent disease that in the past have devastated folks.” Then on the other side were likely Republican presidential hopefuls Chris Christie and Rand Paul. Both said parents should have more choice in whether to their kids get vaccinated. Paul took it further, citing “many tragic cases of walking, talking, normal children who wound up with profound mental disorders after vaccines.” The divide seemed clear. But wait. Was it? Or had Obama, while campaigning in 2008, actually said something different? That’s at least how Vox called it on Tuesday afternoon. Its headline: “Obama supports vaccines now — but pandered to anti-vaxxers in 2008.” (McCoy, 2/3)

Los Angeles Times: Measles Outbreak Q&A: Some Schools Breaking Law On Vaccinations
Why are vaccine rates so low at some California schools? One reason is that some parents have exempted their kindergartners from vaccinations because they don't believe in them. Another reason: parents who enroll their child on a "conditional" basis, promising that they'll catch up on the state-required vaccines at some point. Some schools never actually follow up to ensure kindergartners get the vaccinations required by the state, according to the California Department of Public Health. (Lin, 2/2)

Los Angeles Times: Opponents Of Insurance Rate Initiative Spent Big Before Election
Opponents of Proposition 45, a health insurance rate regulation initiative that was overwhelmingly defeated by California voters, spent big in the run-up to the November election. Final campaign finance reports filed Monday with the secretary of state showed that opponents spent $55.7 million to defeat the measure, up from $42.1 million in the campaign's Oct. 23 report. (Lifsher, 2/2)

The Washington Post: Va. Lawmakers Must Weigh Budget Demands With New Needs For Mental Health Services
Finances were one of the barriers to Alison Hymes’ release from Western State Hospital — not hers, but the state’s. Her placement at an assisted living facility in Charlottesville depended on whether her social workers could secure extra funds from the Discharge Assistance Program. DAP is designed to support individuals leaving state hospitals resume their lives in the community. Her hospital records which she shared with Post show that there was no more DAP funding available at the local level and her social workers had to appeal to the state for extra money, which eventually came through. (Shin, 2/3)