Freedom to Borrow Discussion on The Jack Tomczak Show

Over the weekend, Domestic Policy Caucus Secretary/Treasurer Kent Kaiser, Ph. D., guest-hosted The Jack Tomczak Show on WTTC 1280AM The Patriot Radio to discuss several key issues facing Minnesotans. Guest Patrick Brenner, president of the Southwest Public Policy Institute. Brenner, along with two University of Minnesota students, published a report titled “No Loan For You, Too!” The report highlights the unintended consequences of interest rate caps on the individual consumer’s ability to borrow money.

Brenner discussed key findings from No Loan For You, Too! Brenner stated that one of the key findings was, “When you institute a rate cap, you're implementing a price control. A price control creates a marketplace that is ripe for abuse, because nobody has any other options at that point.”

Listen to the full discussion here.

No Fuel Ban Appears on KMHL-Marshall Radio to Discuss a Liquid Fuel Ban

On Friday, August 1, Executive Director of No Fuel Ban, Kent Kaiser, Ph. D., appeared on KMHL-Marshall Radio to discuss what a liquid fuel ban would mean for Minnesotans. The Clean Transportation Standard being pushed by Minnesota lawmakers would aim to ban liquid fuels in the state by the year 2050.

Kaiser explained how such a ban would significantly impact Minnesotans’ pocketbooks, jobs, and their ability to drive the vehicles of their choice: “It’s not within reason for a normal Minnesotan family to be able to swap out their current vehicles with an electric vehicle. We shouldn’t be forcing people to buy vehicles they wouldn’t normally buy [because they’re expensive].” 

Listen to the full interview here.

No Fuel Ban Discussion on The Jack Tomczak Show

Over the weekend, No Fuel Ban Executive Director Kent Kaiser, Ph. D., guest-hosted The Jack Tomczak Show on WTTC 1280AM The Patriot Radio to discuss several key issues facing Minnesotans. One of the topics discussed—likely to hit Minnesota’s rural communities the hardest—was a proposed liquid fuel ban.

Kaiser explained how a liquid fuel ban would significantly impact Minnesotans’ pocketbooks, jobs, and ability to drive the vehicles of their choice:  "There are all kinds of implications. One, of course, is the cost of liquid fuels as we know them. We estimate that by 2040, we will see an increase of nearly $4 for every gallon of gas. Imagine going to the pump and paying $7 a gallon." 

Listen to the full discussion here.

Fix340B Discussion on The Jack Tomczak Show

Over the weekend, Domestic Policy Caucus Secretary/Treasurer Kent Kaiser, Ph. D., guest-hosted The Jack Tomczak Show on WTTC 1280AM The Patriot Radio to discuss several key issues facing Minnesotans. Kent brought on special guest Dr. Ge Bai to discuss reform surrounding the 340B Drug Pricing Program.

They discussed how the 340B program is not being used for its intended purpose of providing affordable drugs to people in need. As Dr. Bai described it, “The intention [of the policy] was to buy [prescription drugs] low and sell [prescription drugs] low. Instead, it has developed into a buy-low, sell-high program.”

Listen to the full discussion here.

Utah State Senator Receives Friend of Transparency Award from NoGovInternet

In April, NoGovInternet presented Utah State Senator Lincoln Fillmore with the Friend of Transparency Award in recognition of his leadership in passing Senate Bill 165, which aims to protect taxpayers by promoting greater transparency in government.

NoGovInternet created the award in partnership with the Utah Taxpayers Association to honor elected officials, like Sen. Fillmore, who demonstrate a strong commitment to public accountability, open processes, and taxpayer protection.

Read the full article here.

MinnPost op-ed: "A year later, legislation that would phase out traditional transportation fuels is still a bad idea"

In MinnPost, No Fuel Ban Executive Director Kent Kaiser, Ph.D., has an op-ed published, saying that electric vehicles have a role in reducing fuel emissions, but mandating their dominance through heavy-handed policy ignores practical and economic realities.

In part, No Fuel Ban wrote, "The proposed legislation, which would impose immediate costs on consumers and eventually phase out liquid fuels altogether, threatens to unravel the foundation of our state economy. It would devastate whole sectors, most notably agriculture, but also any business that relies on liquid fuels for transportation, production, distribution, and more."

Read the full op-ed here.

The Domestic Policy Caucus today wrote to Texas legislators, requesting that they not move HB 3265 forward.

In part, DPC Secretary/Treasurer Kent Kaiser, Ph.D., wrote the following:

On behalf of the Domestic Policy Caucus, I am writing to express our opposition to the expansion of 340B, the federal law on prescription drugs, in Texas, as contained in HB 3265. We ask that you please do not move HB 3265 forward.

An expansion of 340B would create an economic environment in which incentives would be put in place to encourage even more consolidation of healthcare systems, to put healthcare farther out of reach of rural Texans, and to imperil the ability of underserved residents to receive the medications they need, all while lining the pockets of big healthcare systems and giant chain pharmacies. Meanwhile, it would do nothing to reduce healthcare costs, which is what everyone really wants.

As you know, pharmacies are essential to the communities they serve. But in Texas and throughout America, independent drugstores are struggling.

In a 2022 policy brief, the Rural Policy Research Institute reported this troubling fact: The number of independently owned retail pharmacies declined by 16 percent in the United States between 2003 and 2021. According to NPR, that has contributed to the appearance of what are called “pharmacy deserts”—areas where residents must drive more than 15 minutes to a drugstore. Expanding 340B would exacerbate the problem. In fact, according to a 2021 report issued by GoodRx called “Mapping Healthcare Deserts,” Texas is among the states with the most counties having insufficient access to a drugstore. 

Read the full letter here.

DPC Applauds Release of U.S. Senate HELP Committee Report Highlighting Need for340B Program Reform

The Domestic Policy Caucus applauds a newly released report from the U.S. Senate Health, Education, Labor, and Pensions (HELP) Committee which highlights the need for 340B program reform.

Earlier this week, U.S. Senator Bill Cassidy, M.D., Republican of Louisiana and chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, released the report detailing findings from his years’ long investigation into how covered entities (certain health care facilities or programs that serve low-income patients, as designated in law) use and generate revenue from the 340B Drug Pricing Program. Cassidy also outlined potential reforms needed to improve the program to better serve patients.  

Congress created the 340B Program in 1992 to allow covered entities to purchase outpatient drugs at a discounted rate “to stretch scarce Federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.” Drug manufacturers are required to provide these discounts as a condition of participation in the Medicaid Drug Rebate Program. 

The Domestic Policy Caucus has long expressed concerns that the 340B program is failing to benefit vulnerable populations of patients as it was intended to do, and studies have backed up our concerns.  

According to a press release issued by his office, as part of his investigation into the 340B Program, Cassidy requested information from hospitals, Federally Qualified Health Centers (FQHCs), contract pharmacies, and drug manufacturers to better understand how revenue flows throughout the 340B Program and how covered entities use 340B revenue to benefit patients. He found: 

• Bon Secours Mercy Health and Cleveland Clinic, both of which are covered entities, generated hundreds of millions of dollars in 340B revenue, but do not pass 340B discounts directly to their patients. Shockingly, the two investigated hospitals saved hundreds of millions of dollars from 340B, and their executives stated that the 340B program was not designed to provide direct savings to patients. Additionally, these hospitals report using 340B revenue on “capital improvement projects” and “community benefit programs,” but do not account for what specific expenses 340B revenue goes towards.  

• CVS Health and Walgreens charge covered entities a complex range of fees for using their pharmacy services to dispense 340B drugs to patients. They also charge additional administrative fees for Third Party Administrator (TPA) services. These fees, which generally increase each year, divert resources from the 340B program’s intended purpose. 

• Drug manufacturers report significantly increasing 340B sales to contract pharmacies compared to direct sales to hospitals and grantees. Additionally, they report having difficulty taking actions that ensure 340B program integrity, such as preventing unlawful diversion to ineligible patients and duplicate discounts. 

In light of these findings, Cassidy laid out potential reforms for Congress to improve transparency in the 340B Program and ensure vulnerable patients directly benefit from revenue created by discounted drugs: 

• Require covered entities to provide detailed annual reporting on how 340B revenue is used to ensure direct savings for patients, providing a more transparent link between program savings and patient benefit. 

• Address potential logistical challenges caused by increased administrative complexity, leading to burdens that may impede patient benefit from the program. 

• Investigate the types of financial benefits contract pharmacies and TPAs receive for administering the 340B Program to ensure that increasing fees do not disadvantage covered entities and patients. 

• Require transparency and data reporting for entities supporting participants in the 340B Program (i.e., contract pharmacies and TPAs). 

• Provide clear guidelines to ensure that manufacturer discounts actually benefit 340B-eligible patients, including examining legislative changes to the definition of eligible patient and contract pharmacies’ use of the inventory replenishment model. 

Clearly, these reforms are needed, as is further investigation into the 340B program, because as Senator Cassidy has shown, transparency and accountability have been shockingly absent. 

We are grateful to Senator Cassidy for the compilation and release of this report.

We also applaud Senator Cassidy’s willingness to apply his professional perspective in the quest to bring reform to the 340B program, to inject transparency and accountability into the program, and to get the program on track to fulfill its intended purpose of providing savings for patients.

DPC Urges North Dakota Senators to Reject 340B Expansion

The Domestic Policy Caucus wrote to members of the North Dakota Senate today, urging them to vote against HB1473, which would expand the flawed federal 340B program.

In the letter, DPC wrote, in part,

North Dakota’s unique pharmacy ownership rules are just another reason you should have serious concerns about HB1473. According to the Pioneer Institute, 51% of current 340B contract pharmacies are located outside of North Dakota (of the 254 contract pharmacies, 129 are outside North Dakota). Supporting this bill will mean there will be unlimited contracts with the likes of CVS and Walgreens in Moorhead or East Grand Forks--or as far away as Hawaii. Meaning, those 340B funds meant to help North Dakotans are leaving the state. Layer that on top of what we heard in earlier testimony on this bill some days ago, where one hospital system official talked about using North Dakota's 340B funds to provide a variety of services in Minnesota...

Disappointingly, HB1473 does not have any transparency provisions, which House members had said they wanted added to the bill when they voted it out of the first chamber...

Read the full letter here.

DPC Testifies Against 340B Expansion Bill before North Dakota Senate Human Services Committee

Domestic Policy Caucus Secretary/Treasurer Kent Kaiser, Ph.D., testified virtually before the North Dakota Senate Human Services Committee on March 12 to oppose House Bill 1473, which would expand the federal 340B program in the state.

Among other points, Kaiser said, "...North Dakota's unique pharmacy ownership rules are just another reason you should have serious concerns about HB1473. According to the Pioneer Institute, 51% of current 340B contract pharmacies are located outside of North Dakota (of the 254 contract pharmacies, 129 are outside North Dakota). Supporting this bill will mean there will be unlimited contracts with the likes of CVS and Walgreens in Moorhead or East Grand Forks--or as far away as Hawaii. Meaning, those 340B funds meant to help North Dakotans are leaving the state. Layer that on top of what we heard in earlier testimony on this bill some days ago, where one hospital system official talked about using North Dakota's 340B funds to provide a variety of services in Minnesota..."

Listen to the full hearing here, with DPC testimony beginning at about 10:22:15 AM.