On January 9, 2017, the Senate Finance Committee held a hearing to consider the nomination of Alex Azar II to be the Secretary of Health and Human Services (HHS). This hearing follows the Senate Health, Education, Labor and Pensions (HELP) Committee nomination hearing on November 29, 2017. Mr. Azar has been nominated to replace Tom Price, who resigned as Secretary in late September 2017. Members of the committee had an opportunity to ask Mr. Azar questions about his goals and agenda should he be confirmed and address concerns regarding his background in the pharmaceutical industry.
The hearing began with opening statements from Chairman Orrin Hatch (R-Utah), which included a description of Mr. Azar’s relevant professional experience and of the roles and responsibilities of the HHS Secretary in the coming years. Sen. Hatch expressed his support for Mr. Azar, stating that his record and qualifications prepare him for the position and that the attacks on his potential conflicts of interest within the pharmaceutical manufacturing community are ill-founded. His remarks were followed by Ranking Member Ron Wyden (D-OR), who voiced concern for Mr. Azar’s background at Eli Lilly and his history of raising drug prices during his tenure. Following Sen. Wyden former HHS secretaries Tommy Thompson and Mike Leavitt, who served from 2001-2005 and 2005-2009 respectively, gave their endorsement for Mr. Azar’s nomination.
In Mr. Azar’s opening remarks he stated four critical areas in which he would focus his attention following his nomination: lower drug prices while encouraging innovation, improve consumer choice while lowering premiums, improve transparency and accountability within patient-centered care, and improve opioid use prevention, education, enforcement, and compassionate treatment of those who have been impacted.
Drug prices and the future of the Social Security, Medicare, and Medicaid programs were recurring themes throughout the succeeding witness questioning. Sen. Cardin (D-MD), Sen. Grassley (R-IA), Sen. Carper (D-DE), and Sen. McCaskill (D-MO) questioned how Mr. Azar planned to lower the cost of prescription drugs, to which the nominee responded by encouraging increased competition through a viable and robust biosimilar market, changes in patent and exclusivity practices for branded drugs, improved transparency, and incentives for changes to list prices. Sen. Wyden (D-OR) and Sen. Stabenow (D-MI) pointed to Mr. Azar’s approval of price increases for Forteo, Effient, and Strattera as indicators of his lack of commitment to lowering prices. Sen. Casey (D-PA), Sen. Nelson (D-FL), Sen. Cantwell (D-WA) and Sen. Brown (D-OH) asked about Mr. Azar’s opinions on program cuts and block grants, the Medicare eligibility age, Medicaid guarantee, and the definition of an able-bodied adult.
Other topics of interest included reforms to the Patient Protection and Affordable Care Act (ACA), the government’s ability to negotiate drug prices, expanded access to services through telehealth, Medicare Advantage, and state flexibility. Sen. Heller (R-NV) discussed the Graham-Cassidy bill, Sen. Scott (R- SC) discussed a Section 1332 waiver for South Carolina to expand consumer choice and Sen. Enzi (R-WY) pointed to Wyoming’s pending Section 1115 waiver. Sen. Warner (D-VA) inquired about the future of CMS’ Center for Medicare & Medicaid Innovation (CMMI) and about Mr. Azar’s plan to address trade policy in terms of pharmaceutical research and development.
Finally, the committee voiced its bipartisan concern for and dedication to the reauthorization of the Children’s Health Insurance Program (CHIP) program before January 19, 2018. Their commitment was echoed by Mr. Azar. Members of the committee also acknowledged the recently announced retirement of Sen. Hatch and thanked him for his years of service. Following today’s hearing the Senate Finance Committee will vote on Mr. Azar’s nomination. Should his nomination pass the Finance Committee, the entire Senate will then consider Mr. Azar’s nomination.