At a House Energy Committee hearing prior to the Congressional recess, Rep. Neal Dunn (R-FL) questioned HHS Sec. Xavier Becerra about domestic production of medical supplies.
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NewsTranscript
00:00 Done. Five minutes. Thank you very much, Mr. Chairman. Thank you, Secretary Becerra, for
00:04 being here today. I have some questions specifically about a new program housed in
00:09 ASPR. I'm excited about the mission of the Office of Industrial-Based Management and Supply Chains,
00:14 though, to be frank, I have some concerns over ASPR's experience in executing on
00:19 a program this size. So I want to highlight for you that Congress is watching. I think HHS needs
00:26 to get this right and ensure that the focus remains on this critical need. I hope we can
00:31 work together to make that a success. I believe in the shared goal of prioritizing U.S. investments
00:37 and strengthening the domestic biomanufacturing industrial base, which makes us more resilient
00:43 when future crises occur, enables us to surge production to meet demand for domestically
00:49 produced medical supplies and products. This office aims to respond to critical lessons learned
00:56 from COVID-19 pandemic. It'd be a disgrace for us to have to relearn all the same lessons again.
01:02 I also want to support good paying biomedical manufacturing jobs in the United States. So I
01:08 think the creation of the Office of Industrial-Based Management and Supply Chain, IBMSC,
01:13 was a part of the elevation of ASPR to an operating division of HHS. Now, as you know,
01:21 that office was implemented using supplemental appropriations. It was tasked with that critical
01:27 medical countermeasures like drugs, vaccines, and therapeutics are manufactured in the United
01:34 States or certainly "French" short, as it were. IBMMSC also aims to support innovative manufacturing
01:42 technologies in the fill finish capacities to better produce and distribute drug products and
01:48 vaccines, etc. In your 25 budget, you requested 95 million at ASPR for the biodefense production
01:55 of medical countermeasures and essential medicines, which would be managed by that
01:59 office as I understand, correct? Okay, good. How is the new office of IBMSC within ASPR?
02:06 How's it working to ensure these supplies are in fact manufactured here?
02:12 Congressman, first, I appreciate the mention of the work that ASPR and BARDA are doing.
02:18 And here, I'm going to ask you for some help because this is what we're requesting. We don't
02:23 know if we're going to get it. We haven't been getting the resources we need. We had a proposal
02:27 to do domestic production last year and the year before, but we didn't get the funding to do it.
02:32 How we would do it? BARDA, ASPR, they're ready to go. We've been doing some of this. COVID gave us
02:39 the capabilities to do it. Our folks are raring to go. We have private sector partners who are
02:45 raring to go because we would love nothing more than to know that the production of the most
02:51 critical countermeasures that we need in case of a pandemic are accessible to us and we don't have
02:58 to go to China or anywhere else. I see if people approach us, we have companies approach us all
03:03 the time that are actually very, you know, good American companies that are trying to manufacture
03:07 and do that in America. So I think we can help them with that. Let me turn my attention to the
03:12 IRA for a moment. The, you know, the price part of that bill. So according to the Kaiser Family
03:18 Foundation, a number of standalone drug plans is plummeting under this administration. It's down
03:24 29% since 2021 and it increased 34% under the Trump administration. So many analysts are actually
03:32 predicting that the mass exodus of standalone drug plans in 2025 is going to leave Part D,
03:38 that's when Part D we decide goes into effect, it's going to leave these
03:43 patients who take traditional Medicare, no alternative for prescription drug coverage.
03:50 So, I mean, it looks like our policy here is going to be to corral our seniors into HMOs that
03:56 restrict their choices of physicians and treatments, or they don't get a drug plan coverage
04:02 at all on CMS. Can you address that? Yeah, I'd love to see what you're reading because that's
04:07 not what I understand. What we're doing is making sure that drugs are actually going to go down in
04:13 price. Well, but the drug plans are going away. So the insurance plans for traditional Medicare,
04:19 this is not the Medicare Advantage plans, the traditional Medicare, that they will be,
04:24 they will lack coverage. Again, please share. I'm an old guy. This is a personal question.
04:29 Please share that information because that's not what I'm hearing.
04:33 Well, I'm quoting the industry at large. Well, I can understand the industry. I can understand the
04:40 industry's trying to spook people, but I'm asking to, I want to see the data myself instead of
04:45 relying on industry generated data. Turnaround is fair play. You're asking us for a written response
04:51 after that. Okay. Within 30 days. Okay. We'll do it. Thank you very much. I yield back.
04:56 Chairman yields back. Recognize Ms. Bettigan for five minutes.
05:00 Thank you, Mr. Chairman. Thank you, Secretary.