[House Hearing, 115 Congress] [From the U.S. Government Publishing Office] COMBATING THE OPIOID CRISIS: IMPROVING THE ABILITY OF MEDICARE AND MEDICAID TO PROVIDE CARE FOR PATIENTS ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON HEALTH OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED FOURTEENTH CONGRESS SECOND SESSION __________ APRIL 11 & 12, 2018 __________ Serial No. 115-116 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Printed for the use of the Committee on Energy and Commerce energycommerce.house.gov _________ U.S. GOVERNMENT PUBLISHING OFFICE 31-268 WASHINGTON : 2018 COMMITTEE ON ENERGY AND COMMERCE GREG WALDEN, Oregon Chairman JOE BARTON, Texas FRANK PALLONE, Jr., New Jersey Vice Chairman Ranking Member FRED UPTON, Michigan BOBBY L. RUSH, Illinois JOHN SHIMKUS, Illinois ANNA G. ESHOO, California MICHAEL C. BURGESS, Texas ELIOT L. ENGEL, New York MARSHA BLACKBURN, Tennessee GENE GREEN, Texas STEVE SCALISE, Louisiana DIANA DeGETTE, Colorado ROBERT E. LATTA, Ohio MICHAEL F. DOYLE, Pennsylvania CATHY McMORRIS RODGERS, Washington JANICE D. SCHAKOWSKY, Illinois GREGG HARPER, Mississippi G.K. BUTTERFIELD, North Carolina LEONARD LANCE, New Jersey DORIS O. MATSUI, California BRETT GUTHRIE, Kentucky KATHY CASTOR, Florida PETE OLSON, Texas JOHN P. SARBANES, Maryland DAVID B. McKINLEY, West Virginia JERRY McNERNEY, California ADAM KINZINGER, Illinois PETER WELCH, Vermont H. MORGAN GRIFFITH, Virginia BEN RAY LUJAN, New Mexico GUS M. BILIRAKIS, Florida PAUL TONKO, New York BILL JOHNSON, Ohio YVETTE D. CLARKE, New York BILLY LONG, Missouri DAVID LOEBSACK, Iowa LARRY BUCSHON, Indiana KURT SCHRADER, Oregon BILL FLORES, Texas JOSEPH P. KENNEDY, III, SUSAN W. BROOKS, Indiana Massachusetts MARKWAYNE MULLIN, Oklahoma TONY CARDENAS, California RICHARD HUDSON, North Carolina RAUL RUIZ, California CHRIS COLLINS, New York SCOTT H. PETERS, California KEVIN CRAMER, North Dakota DEBBIE DINGELL, Michigan TIM WALBERG, Michigan MIMI WALTERS, California RYAN A. COSTELLO, Pennsylvania EARL L. ``BUDDY'' CARTER, Georgia JEFF DUNCAN, South Carolina Subcommittee on Health MICHAEL C. BURGESS, Texas Chairman BRETT GUTHRIE, Kentucky GENE GREEN, Texas Vice Chairman Ranking Member JOE BARTON, Texas ELIOT L. ENGEL, New York FRED UPTON, Michigan JANICE D. SCHAKOWSKY, Illinois JOHN SHIMKUS, Illinois G.K. BUTTERFIELD, North Carolina MARSHA BLACKBURN, Tennessee DORIS O. MATSUI, California ROBERT E. LATTA, Ohio KATHY CASTOR, Florida CATHY McMORRIS RODGERS, Washington JOHN P. SARBANES, Maryland LEONARD LANCE, New Jersey BEN RAY LUJAN, New Mexico H. MORGAN GRIFFITH, Virginia KURT SCHRADER, Oregon GUS M. BILIRAKIS, Florida JOSEPH P. KENNEDY, III, BILLY LONG, Missouri Massachusetts LARRY BUCSHON, Indiana TONY CARDENAS, California SUSAN W. BROOKS, Indiana ANNA G. ESHOO, California MARKWAYNE MULLIN, Oklahoma DIANA DeGETTE, Colorado RICHARD HUDSON, North Carolina FRANK PALLONE, Jr., New Jersey (ex CHRIS COLLINS, New York officio) EARL L. ``BUDDY'' CARTER, Georgia GREG WALDEN, Oregon (ex officio) C O N T E N T S ---------- April 11, 2018 Page Hon. Michael C. Burgess, a Representative in Congress from the State of Texas, opening statement.............................. 1 Prepared statement........................................... 3 Hon. Gene Green, a Representative in Congress from the State of Texas, opening statement....................................... 4 Hon. Greg Walden, a Representative in Congress from the State of Oregon, opening statement...................................... 6 Prepared statement........................................... 8 Hon. Frank Pallone, Jr., a Representative in Congress from the State of New Jersey, opening statement......................... 9 Witnesses Kimberly Brandt, Principal Deputy Administrator for Operations, U.S. Centers for Medicare and Medicaid Services................ 11 Prepared statement........................................... 13 Answers to submitted questions............................... 419 April 12, 2018 Witnesses Michael Botticelli, Executive Director, Grayken Center for Addiction, Boston Medical Center............................... 60 Prepared statement........................................... 63 Answers to submitted questions............................... 432 Toby Douglas, Senior Vice President for Medicaid Solutions, Centene Corporation............................................ 68 Prepared statement........................................... 70 Answers to submitted questions............................... 437 David C. Guth, Jr., Chief Executive Officer, Centerstone......... 81 Prepared statement........................................... 83 Answers to submitted questions............................... 443 John M. Kravitz, Chief Information Officer, Geisinger Health System......................................................... 95 Prepared statement........................................... 97 Answers to submitted questions............................... 454 Sam K. Srivastava, Chief Executive Officer, Magellan Healthcare.. 103 Prepared statement........................................... 105 Answers to submitted questions............................... 458 Submitted Material Article entitled, ``Medicare is cracking down on opioids. Doctors fear pain patients will suffer,'' New York Times, April 6, 2018 174 Statements of various pharmacy associations...................... 177 Statement of the Washington State Pharmacy Association........... 198 CMCS Informational Bulletin...................................... 200 Statement of the National Association of Counties................ 215 Statement of the American Medical Association.................... 217 Statement of the American Society of Addiction Medicine.......... 218 Statement of the American Psychiatric Association................ 220 Statement of the Community Resources for Justice................. 222 Statement of the International Community Corrections Association. 223 Statement of the National Commission on Correctional Healthcare.. 225 Statement of the American College of Obstetricians and Gynecologists.................................................. 226 Statement of telehealth and technology stakeholders.............. 234 Statement of treatment providers in support of the access to telehealth services for their opioid and use disorders......... 236 Statement of Members of Congress supporting the Pharmacy and Medically Underserved Areas Enhancement Act.................... 238 Statement of Walgreens supporting the Pharmacy and Medically Underserved Areas Enhancement Act.............................. 241 Statement of the American Association of Oral and Maxillofacial Surgeons....................................................... 243 the Association for Behavioral Health and Wellness............... 246 Statement of AdvaMed............................................. 248 Statement of the American Hospital Association................... 251 Statement of the American Psychological Association.............. 253 Statement of the American Society of Health-System Pharmacists... 257 Statement of the Association for Community Affiliated Plans...... 259 Statement of the College of Healthcare Information Management Executives..................................................... 264 Statement of the ePrescribing Coalition.......................... 268 Statement of the National Association for Behavioral Healthcare.. 270 Statement of the National Association of Chain Drug Stores....... 274 Statement of the National Association of Medicaid Directors...... 287 Statement of the National Indian Health Board.................... 290 Statement of the Oregon Community Health Information Network..... 297 Statement of the Partnership to Amend 42 CFR Part 2.............. 298 Statement of the Pharmaceutical Care Management Association...... 301 Statement of the Property Casualty Insurers Association of America........................................................ 309 Statement of Shatterproof........................................ 311 Statement of Imprivata........................................... 315 Statement of the Pharmacy Coalition.............................. 317 Statement of the National Association of Counties................ 319 Statement of Trinity Health...................................... 321 Statement of the Infectious Disease Society of America, the HIV Medicine Association, and the Pediatric Infectious Disease Society........................................................ 328 Study entitled, ``States With Prescription Drug Monitoring Mandates Saw a Reduction in Opioids Prescribed to Medicaid Enrollees,'' Health Affairs, April 1, 2017..................... 332 Study entitled, ``Medicaid Drug Utilization Review State Comparison/Summary Report FFY 2016 Annual Report,'' Centers for Medicare & Medicaid Services, October 2017..................... 348 COMBATING THE OPIOID CRISIS: IMPROVING THE ABILITY OF MEDICARE AND MEDICAID TO PROVIDE CARE FOR PATIENTS, DAY 1 ---------- WEDNESDAY, APRIL 11, 2018 House of Representatives, Subcommittee on Health, Committee on Energy and Commerce, Washington, DC. The subcommittee met, pursuant to call, at 3:25 p.m., in room 2322, Rayburn House Office Building, Hon. Michael Burgess, M.D. (chairman of the subcommittee) presiding. Present: Representatives Burgess, Guthrie, Upton, Shimkus, Blackburn, Latta, McMorris Rodgers, Lance, Griffith, Bilirakis, Long, Bucshon, Brooks, Mullin, Hudson, Carter, Walden (ex officio), Green, Schrader, Kennedy, Cardenas, Eshoo, Pallone (ex officio). Also Present: Representatives Tonko and Peters. Staff Present: Adam Buckalew, Professional Staff Member, Health; Karen Christian, General Counsel; Paul Edattel, Chief Counsel, Health; Caleb Graff, Professional Staff Member, Health; Jay Gulshen, Legislative Associate, Health; Ed Kim, Policy Coordinator, Health; Drew McDowell, Executive Assistant; James Paluskiewicz, Professional Staff, Health; Mark Ratner, Policy Coordinator; Jennifer Sherman, Press Secretary; Austin Stonebraker, Press Assistant; Josh Trent, Deputy Chief Health Counsel, Health; Everett Winnick, Director of Information Technology; Jacquelyn Bolen, Minority Professional Staff; Tiffany Guarascio, Minority Deputy Staff Director and Chief Health Advisor; Una Lee, Minority Senior Health Counsel; Rachel Pryor, Minority Senior Health Policy Advisor; Samantha Satchell, Minority Senior Policy Analyst; Theresa Tassey, Minority Health Fellow. OPENING STATEMENT OF HON. MICHAEL C. BURGESS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TEXAS Mr. Burgess. The Subcommittee on Health will now come to order. The chair will recognize himself 5 minutes for the purposes of an opening statement. This afternoon the Health Subcommittee marks its third in a series of hearings this spring on legislation addressing the opioid epidemic. By the end of this week's hearing we will have considered a total of 67 opiate-related bills. In our last hearing we discussed 25 public health and prevention-focused bills over the course of 2 days. Today the subcommittee will be breaking a record by examining 34 bills centered around improving Medicaid and Medicare programs at the Center for Medicare and Medicaid Services. While committee members on both sides of this dais have put in a lot of time and thought in developing these bills, a majority are still in discussion draft form. And this is a feature not a bug. It is intentional. We seek to explore promising ideas while collecting important feedback from Members, providers, plans, patients, and other stakeholders. Some of these bills challenge the status quo for some practices within Medicaid and Medicare. But with more than 110 Americans dying daily from an opiate overdose, we must be willing to ask hard questions and seek solutions. With the crisis devastating our country and eroding our economic productivity, all of us must be willing to take a fresh and fair look at each of the policies presented today. We should think creatively about how to help strengthen Medicaid and Medicare's ability to combat this scourge of opiate abuse because without adequate tools and accountability our largest public players will be unable to handle the challenge that is before them. So today we are joined by Kimberly Brandt, who has been charged to lead the efforts addressing the opiate crisis at the Center for Medicaid and Medicare Services. Ms. Brandt, thank you for being here testifying before us and providing your insights on ways that we can partner together to turn the tide in this fight. Tomorrow we will hear from individuals representing healthcare providers, health plans, behavioral health specialists who provide the critical treatment to Americans with opiate addiction and substance use disorder. It is my expectation that our conversations will help us adopt effective policies that have a meaningful impact. One issue that has repeatedly come up is our physician workforce. Congress can pass bills to increase access to evidence-based treatment, but if we do not have enough physicians equipped with proper tools and training we will not have the sufficient capacity to provide treatments for individuals suffering from this disorder. To this end, I have worked on draft legislation that will provide Congress with more robust transparency about how graduate medical education dollars under current law are helping equip the next generation of doctors to better identify and treat patients with substance use disorder. Prescription drug monitoring programs are important informational tools that help track prescriptions and identify patients at risk of overdosing on opiates. The Medicaid Partnership Act would require State Medicaid programs to integrate these monitoring programs into Medicaid providers' and pharmacists' clinical workflows while establishing basic criteria for qualified prescription drug monitoring programs. I think it is common sense to ask one of our largest payers to access one of our most powerful data tools to care for some of our most at-risk patients. Another useful tool already in place in many State Medicaid programs are pharmaceutical homes. The Medicaid Pharmacy Home Act would codify the commonsense idea of requiring States to have provider and pharmacy assignment programs that identify at-risk Medicaid beneficiaries and set reasonable limits on the number of prescribers and dispensers that they can utilize. Given what we know, it is good medicine for all of us to ensure that States are using this effective approach to identify at- risk beneficiaries. We certainly have much to consider, but we are building on years of previous bipartisan efforts, and we know our work is important to our families and our communities and our constituents affected by this epidemic. Before I close, I want to touch on the growing fear that I am hearing from many patients suffering from a chronic pain condition who have actually been successfully managed by long- term opiate administration, especially when these drugs are drugs of last resort. I anticipate some discussion on the recent CMS rule to limit the amount and length of opiate prescriptions. Our effort to overcome this crisis is vital, but I want us to keep these patients in mind and not, as we say down south, overtorque the bolt. I have a submission from The New York Times that I would like to add to the record for this. [The information appears at the conclusion of the hearing.] Mr. Burgess. Again, I want to thank our witness for testifying today and our witnesses tomorrow. I look forward to learning from your insights. And I want to yield time to the vice chairman of the Health Subcommittee, Mr. Guthrie of Kentucky, for his statement. [The prepared statement of Mr. Burgess follows:] Prepared statement of Michael C. Burgess This afternoon, the Health Subcommittee marks its third in a series of hearings this spring on legislation addressing the opioid epidemic. By the end of this week's hearing, we will have considered a total of 67 opioid-related bills. In our last hearing, we discussed 25 public health and prevention-focused bills over the course of two days. And today the subcommittee will be breaking a record by examining 34 bills, centered around improving Medicaid and Medicare programs at the Center for Medicare and Medicaid Services (CMS). While committee members on both sides of the aisle have put a lot of time and thought into developing these bills, a majority are still in discussion draft form. This is intentional, as we seek to explore promising ideas, while collecting important feedback from members, providers, plans, and other key stakeholders. Some of these bills challenge the status quo for some practices within Medicaid and Medicare, but with more than 110 Americans dying daily from opioid overdoses, we must be willing to ask hard questions and find solutions. With the opioid crisis devastating our country and eroding our economic productivity, all of us must be willing to take a fresh and fair look at each of the policies presented today. We should think creatively about how to help strengthen Medicaid and Medicare's ability to combat the scourge of opioid abuse-- because without adequate tools and accountability, our largest public payers will be unable to handle the challenge before them. Today, we are joined by Kimberly Brandt, who has been charged to lead the efforts addressing the opioid crisis at CMS. Ms. Brandt, thank you being testifying before us and providing your insights on ways we can partner together and turn the tide in our fight. Tomorrow, we will hear from individuals representing health care providers, health plans, and behavioral health specialists who provide critical treatment to Americans with opioid addiction and substance use disorder. It is my expectation our conversations will help us adopt effective policies that have meaningful impact. One issue area that repeatedly comes up is our physician workforce. Congress can pass bills that increase access to evidence-based treatment, but if we do not have enough physicians equipped with proper tools and training, we will not have sufficient capacity to provide effective treatments for individuals suffering from substance use disorder. To this end, I have authored draft legislation that will provide Congress with more robust transparency about how graduate medical education dollars under current law are helping equip the next generation of doctors to better identify and treat patients with substance use disorder. Prescription Drug Monitoring Programs (PDMPs) are important informational tools that help track prescriptions and identify patients at risk of abusing or overdosing on opioids. The Medicaid PARTNERSHIP Act would require the state Medicaid programs to integrate PDMP usage into Medicaid providers' and pharmacists' clinical workflow while establishing basic criteria for qualified PDMPs. As a physician, I think it's common sense to ask one of our largest payers to access one of our most powerful data tools to care for some of our most at- risk patients. Another useful tool already in place in many state Medicaid programs are pharmaceutical homes. The Medicaid Pharmacy Home Act would codify the common-sense idea of requiring states to have a provider and pharmacy assignment program that identifies at-risk Medicaid beneficiaries and sets reasonable limits on the number of prescribers and dispensers they can utilize. Given what we know, it's good medicine for us to ensure all states are using this effective approach to identify at-risk beneficiaries and improve care. We certainly have much to consider. But, we are building on years of previous bipartisan efforts, and we all know our work is important to the families and communities--our constituents--affected by the opioid epidemic. Before I close, I would like to touch upon the growing fear of many patients suffering from chronic pain who have been successfully managed by opioids, especially when these drugs are the last resort. I anticipate some discussions on the recent CMS rule to limit the amount and length of opioid prescriptions. Our effort to overcome this crisis is vital, but I want us to keep these patients in mind and not ``over-torque the bolt.'' I again thank our witnesses for testifying today and tomorrow, and I look forward to learning your insights on making improvements in the Medicare and Medicaid system. I would like to yield the balance of my time to the Vice Chairman of the Health Subcommittee, Mr. Guthrie of Kentucky, for a statement. Mr. Guthrie. Thank you, Mr. Chairman. I appreciate the chairman's diligent efforts to ensure our committee responds quickly and meaningfully to our Nation's opioid crisis. Just last week I heard another awful story about how the destructive path of the opioid crisis harmed a family in Cecilia, Kentucky, all caused because of a motorcycle accident that led to back surgery that led to addiction. I would like to ask unanimous consent to submit a number of letters in the record on how pharmacists and the Pharmacy and Medically Underserved Areas Enhancement Act can help address these in the opioid epidemic. Mr. Burgess. Without objection, so ordered. [The information appears at the conclusion of the hearing.] Mr. Guthrie. Thank you, Mr. Chairman. I yield back. Mr. Burgess. The gentleman yields back. The chair thanks the gentleman. The chair recognizes the gentleman from Texas, Mr. Green, the ranking member of the subcommittee, 5 minutes for an opening statement, please. OPENING STATEMENT OF HON. GENE GREEN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TEXAS Mr. Green. Thank you, Mr. Chairman. This is the third in a series of hearings on the opioid epidemic and its impact on individuals, families, and communities in our nation. Our committee has heard from Federal agencies and stakeholders on the terrible cost of opioid abuse, which takes the lives of 115 Americans each day and is estimated to cost our national economy over $78 billion annually. Today's hearing will focus on the role that Medicaid and Medicare play in providing health coverage for Americans in need of comprehensive treatment and recovery services. Medicaid is the largest payer for behavioral health services, mental health, and substance use disorder, or SUD, in the United States. Medicaid delivers care to 4 of 10 nonelderly adults with opioid use disorder. Nearly 12 percent of adults enrolled in Medicaid have SUD. Adults on Medicaid are more likely than other adults to receive substance use disorder treatment. Medicaid plays a critical role for children either suffering from substance use disorder or born with neonatal abstinence syndrome, NAS. Medicaid covers more than 80 percent of the NAS babies nationwide. Medicaid expansion provided under the Affordable Care Act has played a critical role in providing comprehensive coverage for Americans suffering from substance abuse disorder who live in 31 States that have expanded. Data recently published by the Center for Budget and Policy Priorities found that under Medicaid expansion the uninsured rate among people with opioid-related hospitalizations fell dramatically in States that expanded, from 13.4 percent in 2013, the year before the expansion took effect, to just 2.9 percent 2 years later. For example, after Kentucky expanded Medicaid in 2014, Medicaid beneficiaries' use of substance use treatment services in the State rose by 700 percent. My home State of Texas and 18 other States continue to refuse to expand Medicaid, denying millions of Americans the comprehensive services and continuum of care necessary to treat and recover from opioid addiction and other substance use disorders. Medicaid expansion includes substance use services as mandatory benefit. The reality is that if folks want to save lives of these individuals, we have got to focus first on getting those people health insurance so they can access treatment. Continuity of comprehensive health insurance makes the difference between life and death. Two weeks ago the Texas Department of State Health Services released a report that found opioid overdoses as the leading cause of death for new mothers in our State, with the most occurring after a pregnant woman's Medicaid benefits end 60 days after delivery. Last year, I introduced the Incentivizing Medicaid Expansion Act, H.R. 2688, in order to incentivize States to provide critical Medicaid coverage for Americans in need and to avoid the kinds of tragedies that have led to the rising rate of maternal mortality in our home State. My legislation would guarantee that the Federal Government covers 100 percent of expansion costs for the first 3 years for States that have not yet expanded and no less than 90 percent afterwards. Medicare also plays an important role in the opioid crisis. According to SAMHSA, more than one million seniors suffered from substance use disorders in 2014. While Medicare part B and part D provide SUD treatment services, there are significant gaps in Medicare's benefits, including no coverage for substance abuse treatment at opioid treatment programs or methadone clinics. We also need to ensure that Americans on Medicaid or Medicare are not overprescribed opioids. HHS' Office of Inspector General found that more than 500,000 part D beneficiaries received high amounts of opioids in 2016, with the average dose far exceeding the manufacturers' recommended amount. Additionally, nearly one-third of the beneficiaries in Medicare part D or C had an opioid prescription in 2016. Before closing, I would like to voice my concern over the number of bills and discussions drafts being considered at the hearing, 34 in total. Never in my time on Energy and Commerce have we had legislative hearings on so many bills and drafts. Combined with the bills and discussion drafts from the two previous opioid hearings, we are looking at over 70 pieces of legislation. I am concerned that the majority is planning to mark up legislation later this month, and that has not been fully vetted by our staffs, stakeholders, and the appropriate Federal agencies. The opioid crisis is hitting communities throughout America regardless of location or political affiliation. We can and must advance opioid legislation in a bipartisan manner that the American people deserve. I ask for the majority to work with us and provide the necessary time to vet legislation being considered and ensure the anticipated markup will not become a partisan exercise. Thank you, and I yield the balance of my time. Mr. Burgess. The chair thanks the gentleman. The chair would just observe that the gentleman has never served with the current chairman before. And you may have recognized by now you do have a very active and an activist chairman and that will continue for the balance of the year. Mr. Green. Well, I like activism, Mr. Chairman, but I also like substance. Mr. Burgess. There is substance, I guarantee you, with these 34 bills. The chair recognizes the chairman of the full committee, Mr. Walden, for 5 minutes for an opening statement. OPENING STATEMENT OF HON. GREG WALDEN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF OREGON Mr. Walden. With these 34 on top of the other 24 on top of the other 6 or 7, we are going to have our hands full of good legislation, because today marks our third and final legislative hearing this spring aimed at advancing targeted, timely, and bipartisan legislative solutions to help combat the opioid crisis. This committee has already been instrumental in working in a bipartisan manner to devote a record--let me underscore record--amount of Federal resources toward the opioid epidemic, namely through passage of the CARA and 21st Century Cures Act last Congress. My colleague here, Fred Upton, led the effort with Diana DeGette to get that done. This hearing continues the work to address the crisis that has impacted virtually every neighborhood, every community, and so many families across our country. At roundtables I have done in my district, across Oregon, most recently in Pendleton and Madras, I have met with people on the front lines of this fight and with those who have lost a friend, lost a child, lost a sister, lost a loved one, lost a neighbor. These meetings have been crucial to my efforts to put forth concrete solutions to stem the tide and save lives, and I am not alone doing these roundtables around the country. With more than 100 Americans estimated to die every day from opioid overdoses, we simply have to do everything within our power. We must continue to push forward. And I would respectfully ask everyone involved, stakeholders and Members of Congress alike, to push beyond our comfort zones and think creatively and boldly about how we can help, because the status quo is simply not acceptable. The unprecedented scope of this crisis requires an unprecedented response, and that is what we are able to provide at the Energy and Commerce Committee. To that end, over the span of 2 days, we will consider 34 bills from Members on both sides of the aisle. These bills have a common theme: They seek to improve the roles Medicaid and Medicare can play in helping combat this crisis. This marks the largest numbers of bills noticed in a legislative hearing before this committee. But the number and scope of the bills helps underscore how important this topic is to all of us and how many good ideas there are to help patients. While considering this many bills does require some extra work on behalf of the staff and our members, I think we should see this as not an inconvenience, but rather as an opportunity. Just look at how many promising ideas there are to help patients who are served by these two programs who represent roughly one in three Americans. Certainly both programs play key roles in identifying at-risk beneficiaries, providing treatment, and decreasing overdose deaths. The bills we will consider today cover a range of important issues, including provisions to remove barriers to treatment, improve data to identify and help at-risk patients, provide incentives for greater care coordination and enhanced care. Many of the bills before us build on efforts in Medicaid and Medicare that are already yielding positive benefits for patients and reducing dependency or misuse of opioids. As we move forward, we look forward to stakeholders and others providing feedback on these proposals. The input of the Congressional Budget Office will also help shape our decisionmaking on several pieces of legislation before us today. But our aim remains the same: moving through committee in regular order to advance legislation to the House floor before the Memorial Day recess. That is our goal. We have seen announcements in sister committees recently as they are also developing and advancing legislation, and we look forward to continuing our work with them to get a robust bipartisan package of proposals to the White House for signature of the President in the coming months. The urgency of the crisis demands an urgent response, and the challenges facing our communities demand action now. So I would like to thank our witnesses for taking time to share their expertise with us today and tomorrow and for Members on both sides of the aisle for making this fight a top priority. With that, I would yield the balance of my time to my friend and colleague from Tennessee, Mrs. Blackburn. [The prepared statement of Mr. Walden follows:] Prepared statement of Hon. Greg Walden Today marks our third and final legislative hearing this spring aimed at advancing targeted, timely, and bipartisan legislative solutions to help combat the opioid crisis. This committee has already been instrumental in working in a bipartisan manner to devote a record amount of Federal resources towards the opioid epidemic, namely through the passage of CARA and 21st Century Cures last Congress. This hearing continues our work to address a crisis that has impacted virtually every neighborhood across our country. At roundtables throughout Oregon, most recently in Pendleton and Madras, I've met with the people on the frontlines of this fight and with those who have lost a friend or loved one to this epidemic. These meetings are crucial to our efforts to put forth concrete solutions to stem the tide and save lives. With more than 100 Americans estimated to die each day from opioid overdoses, we simply must do more. We must continue to push forward, and I would respectfully ask everyone involved--stakeholders and members alike--to push beyond their comfort zones and think creatively and boldly about how we can help. The status quo is not acceptable. The unprecedented scope of the opioid crisis requires an unprecedented response. To that end, over the span of 2 days, we will consider 34 bills from members on both sides of the aisle. These bills have a common theme--they seek improve the roles Medicaid and Medicare can play in helping combat the crisis. This marks the largest number of bills noticed in a legislative hearing before this committee. But the number and scope of bills helps underscore how important this topic is to all of us and how many good ideas there are to help patients. While considering this many bills requires some extra work from members and staff, I think we should see this not as an inconvenience, but as an opportunity. Just look at how many promising ideas there are to help patients who are served by these two programs-who represent roughly one in three Americans. Certainly, both programs play key roles in identifying at-risk beneficiaries, providing treatment, and decreasing overdose deaths. The bills we will consider today cover a range of important issues--including provisions to: remove barriers to treatment, improve data to identify and help at-risk patients, provide incentives for greater care coordination and enhanced care. Many of the bills before us build on efforts in Medicaid and Medicare that are already yielding positive benefits for patients and reducing dependency or misuse of opioids. As we move forward, we look forward to stakeholders and others providing feedback on the proposals before us. The input of the Congressional Budget Office will also help shape our decision-making on several pieces of legislation before us today. But our aim remains the same--moving through committee in regular order to advance legislation on the House Floor before the Memorial Day recess. We have seen announcements in sister committees recently as they are also developing and advancing legislation, and we look forward to continuing our work with them to get a robust, bipartisan package of proposals to the White House for signature in the coming months. The urgency of the crisis demands our response, and the challenges facing our communities demands action. I'd like to thank our witnesses for taking the time to share their expertise with us today and tomorrow, and for our members--on both sides of the aisle--for making this fight a top priority. Mrs. Blackburn. Thank you, Mr. Chairman, and thank you, Dr. Burgess, for the hearing on these issues. There are two components that I am looking forward to. And I will tell you, Ms. Brandt, I appreciate the work of the administration to support the State Medicaid programs in their efforts to examine combat these programs. Tennessee's TennCare program recently implemented some new policies, and I had some good discussion this past weekend with some of our State legislators and some physicians who are hard at work on that with a 5-day limit on the prescriptions, prior authorization for any refills, a robust buyback program. And I am looking forward also to discussing with you the IMD exclusion. Some of those that treat substance abuse have talked about this as a barrier to getting individuals into beds, into the treatment that they need. So we really appreciate the work that you all are doing and look forward to getting the legislation across the finish line. I yield back. Mr. Burgess. The gentlelady yields back. The chair thanks the gentlelady. The chair yields to the gentleman from, New Jersey, Mr. Pallone, ranking member of the full committee, 5 minutes for an opening statement, please. OPENING STATEMENT OF HON. FRANK PALLONE, JR., A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW JERSEY Mr. Pallone. Thank you, Mr. Chairman. Today's hearing is the third in a series to address the opioid and substance abuse crisis that is ravaging communities across the country, and our focus today is on the role of the two largest public health insurance programs, Medicaid and Medicare. A lot needs to be done to address this epidemic, but we should focus our time on what is most meaningful and impactful. While I support addressing this crisis through a bipartisan process, I am concerned that the sheer quantity of bills before the committee today and the chairman's extremely ambitious timeframe will not leave us much time to get these policies right. Today we will discuss 34 bills in one 2-day hearing, the vast majority of which the members of the committee have seen for less than a week. So I am concerned that many of the proposals have not been introduced. Most have not had the benefit of technical assistance or a CBO score. In fact, CMS' own testimony today I don't believe discusses any of the bills under consideration. So at times to me this process feels more like an opioids media blitz than a thoughtful discussion about our national public health crisis, and this is not the deliberative process that the members of this committee and the American people deserve. But with that important caveat aside, I will say that many of the proposals we are examining today have merit and strive to address a number of policy problems that Medicaid and Medicare face in combating the opioids epidemic. In Medicaid, we are considering legislation that would strengthen the continuity of coverage that people receive, particularly vulnerable populations, like adults and children leaving the justice system and former foster youth. And I know that the best way to combat the opioids crisis is for people to have access to strong and consistent health coverage that provides the treatment they need. You also will hear about policies that invest in our providers on the ground, and our State Medicaid infrastructure helps States to build on what works, like Medicaid health homes, and promote new models of care to expand treatment capacity of providers. We are also looking at complex issues related to how our Medicaid programs track and dispense prescribing of opioids and relieving barriers to lifesaving treatment, like naloxone and MAT. And I think we could do even more in this area. There are bills to improve quality and data on how this crisis impacts Medicaid that will also be important to know in the coming years. In addition, Mr. Chairman, there is legislation related to repealing the so-called IMD exclusion for a 5-year period. Medicaid IMDs are one very important piece of the treatment puzzle that States are incorporating into their delivery systems already through Medicaid's special Substance Use waivers. This is an example of a bill that needs a very thoughtful approach so we do not hurt the efforts that are already occurring in States today. And we are also considering legislation regarding the role of Medicare parts B and D to address the rising epidemic of opioid overprescription and misuse among seniors. For example, we will discuss legislation under Medicare part B to expand opioid disorder treatment options through telehealth and also legislation under part D to ensure e-prescribing is utilized when prescribing controlled substances. And we will also discuss legislation to create an alternative payment model to incentivize the delivery of high-quality, evidence-based opioid treatment service for Medicare beneficiaries. These bills are important because evidence suggests that opioid use among older adults is a significant and growing problem. According to the OIG, more than 500,000 part D beneficiaries received high amounts of opioids in 2016, with the average dose far exceeding the manufacturers' recommended amount. So I want to be clear, this committee must focus on meaningful proposals that will address the opioid crisis. I intend to oppose any bill that has nothing to do with opioids, that makes the problem worse, or that is simply not ready and vetted in the time that we have allotted. Our policy goal should always be to first do no harm, and without the proper time to vet the legislation before us I can't be sure that we are meeting that goal. For instance, I have significant concerns regarding one of the discussion drafts to add a pain assessment to the Welcome to Medicare physical. While well intentioned, I am concerned that this bill could actually exacerbate our opioid crisis. I have heard from numerous stakeholders in the medical community that a similar approach adopted by the Joint Commission in 2001 to treat pain as a fifth vital sign actually contributed to the opioid epidemic, because by requiring healthcare providers to ask every patient about their pain and incentivizing aggressive management of pain these measures may have resulted in the overprescribing of opioids. So finally, Mr. Chairman, I hope to work with my colleagues to address these concerns so that we can all support concrete and thoughtful legislation that will actually help address the crisis. And thank you again. I yield back. Mr. Burgess. The gentleman yields back. The chair thanks the gentleman. That concludes member opening statements. The chair reminds members that, pursuant to committee rules, all members' opening statements will be made part of the record. And we do want to thank our witness for being here this afternoon, staying with us through the previous full committee hearing, taking the time to testify before the subcommittee. Today our witness will have the opportunity to give an opening statement, followed then by questions from members. The panel today, of course, will be Dr. Kimberly Brandt, the Principal Deputy Administrator for Operations for the United States Centers for Medicare and Medicaid Services. We appreciate you being here today, Dr. Brandt, and you are recognized for 5 minutes to summarize your opening statement, please. STATEMENT OF KIMBERLY BRANDT, PRINCIPAL DEPUTY ADMINISTRATOR FOR OPERATIONS, U.S. CENTERS FOR MEDICARE AND MEDICAID SERVICES Ms. Brandt. Chairman Burgess, Ranking Member Green, and members of the subcommittee, thank you for inviting me to discuss CMS' work to address the opioid epidemic. CMS understands the magnitude and impact the opioid epidemic has had on our communities and is committed to a comprehensive and multipronged strategy to combat this public health emergency. As the principal deputy administrator for operations at CMS, I am charged with addressing cross-cutting issues that affect our programs, with the efforts to fight the opioid epidemic being one of our agency's and the administration's top priorities. Over 130 million people receive health coverage through CMS programs, and the opioid epidemic affects every single one of them, as a patient, family member, caregiver, or community member. This theme has been repeated throughout multiple stakeholder listening sessions that CMS has facilitated to discuss best practices and brainstorming solutions. As a payer, CMS plays an important role by incentivizing providers to provide the right services to the right patients at the right time. Our work at CMS is focused mainly on three areas: prevention, treatment, and data. Due to the structure of our programs, Medicare part D plan sponsors in State Medicaid programs are well positioned to prevent improper opioid utilization by working with prescribing physicians. Our job at CMS is to oversee these efforts and to make sure that plan sponsors in States have the tools they need to be effective. Beginning in 2019, CMS expects all part D sponsors to limit initial opioid prescription fills for acute pain to no more than 7 days' supply, which is consistent with the guidelines set by the Centers for Disease Control and Prevention. Additionally, we expect all sponsors to implement a new care coordination safety edit that would create an alert for pharmacists when a beneficiary's daily opioid usage reaches high levels. Pharmacists would then consult with the prescriber to confirm intent. Thanks to recent action taken by Congress, CMS now has the authority to allow part D plan sponsors to implement lock-in policies that limit certain beneficiaries to specific pharmacies and prescribers. We recently finalized a proposal to integrate lock-in with our Overutilization Monitoring System, or OMS, to improve coordination of care. The administration also has put forth legislation to require plan sponsors to implement lock-in policies. These new tools will add on to existing innovative approaches in part D to track high-risk beneficiaries through OMS and to work with plan sponsors to address outlier prescribers and pharmacies. We have seen a 76 percent decline in the number of beneficiaries meeting the OMS high-risk criteria from when we started this in 2011 through 2017, even at the same time that part D enrollment was increasing. We also support State efforts to reduce opioid misuse. Medicaid programs can utilize medical management techniques such as step therapy, prior authorization, and quantity limits for opioids. In this year's President's budget, CMS proposed establishing minimum standards for the Medicaid Drug Utilization Review program, a tool that we use to oversee State activities in this area. In addition to our prevention measures, ensuring that Medicaid and Medicare beneficiaries with substance use disorder have access to treatment is also a critical component to addressing the epidemic. Our aim is to ensure the right treatment for the right beneficiary in the right setting, and we are working to increase access to medication assisted treatment, or MAT, as well as naloxone. The President's budget also includes a proposal to conduct a demonstration to cover comprehensive substance abuse treatment in Medicare through a bundled payment for methadone treatment or similar MAT. Because current statute limits CMS' ability to pay for methadone, we are focused on ensuring access to other evidence-based MAT. The administration is also committed to increasing treatment access for Medicaid beneficiaries as well through our 1115 waiver authority. CMS recently announced a streamlined process last November providing more flexibility for States seeking to expand access to treatment. Already we have approved five State demonstrations, which include services provided to Medicaid enrollees in residential treatment facilities. As this committee knows, ordinarily residential treatment services are not eligible for Federal Medicaid reimbursement due to the statutory exclusion related to institutions for mental disease or IMDs. Combined with the full spectrum of treatment services, we believe the new residential treatment flexibility is a powerful tool for States, and we look forward to reviewing more requests. Finally, CMS is utilizing the vast amount of data that we have at our disposal to better understand and address the opioid crisis to share with our partners and to ensure program integrity. This includes active monitoring of trends, sharing prescribing patterns publicly through heat maps, and various other efforts to ensure the effectiveness of prevention and treatment policies. While CMS has taken numerous steps in the areas of prevention, treatment, and data to address this national epidemic, we know there is more we can do. We appreciate the work that your subcommittee has already done to highlight the importance of addressing this crisis, and we look forward to engaging with you on the legislative solutions that you are developing. Thank you for your interest in our efforts to protect our beneficiaries, and I look forward to answering your questions. [The prepared statement of Ms. Brandt follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Burgess. Thank you, Dr. Brandt. Thank you for your testimony. Thank you for being here today. We will move on to the question portion of the hearing, and I would like to first recognize the vice chairman of the committee of the Health Subcommittee, Mr. Guthrie, 5 minutes for your questions, please. Mr. Guthrie. Thank you very much. Thank you, Ms. Brandt. Thank you, Mr. Chairman, for the time. Thank you for being here, Ms. Brandt. As you know, there is a lot of interest in the committee on more timely, accurate, and complete Medicaid data, whether it is the Transformed Medicaid Statistical Information System, otherwise known as T-MSIS, or basic Medicaid expenditure data. I think having more timely data is important in the opioid fight for targeting, funding, and understanding how the program is evolving. One of the bills before the Committee would amend the law to allow States only 1 year instead of 2 to submit claims for Federal matching. This deadline does not include adjustments to prior year spending, and the Secretary is allowed to waive the requirement if needed. The requirement in current law was added by Senator Moynihan in 1980. Yet today nearly 99 percent of Medicaid claims are submitted within 1 year. Ms. Brandt, can you talk about why we would have providers in 2018 that are still taking up to 2 years to submit claims? Ms. Brandt. Thank you for the question, sir. As you noted, the T-MSIS system is one of our big priorities at CMS. Moving to get more accurate and timely data from the States is one of the Administrator's top priorities. We are pleased at this point that we have 49 States, the District of Columbia, and recently, just as of a week ago, Puerto Rico now reporting in. So we have 98 percent of Medicaid data now being reported in. We share your goal in working to make sure that data is as timely as possible, and one of our challenges right now is ensuring that we have good quality data. As much as the timeliness of the data is an issue, we want to make sure that it is good quality data, as well. So now that we have the data being reported in, we are working to scrub the data and try and make it as good a quality of data as possible, and we are focusing particularly on the pharmacy files from the data so that we can begin to get information that will particularly help us with the opioid issue because of the State data that they report. Mr. Guthrie. You said 49 States plus District of Columbia, Puerto Rico, are you using the system. They report within 1 year? Ms. Brandt. It is the most recent data that they have. It is not all within 1 year, and that is something we are working on with them. It is as timely as the States have the ability to report it. Mr. Guthrie. But I guess my question is States should be able to do that within 1 year. I know that is one of the bills that we are looking at. Ms. Brandt. We are working with them to try and get them to transmit it as timely as possible. Mr. Guthrie. OK. I want to transition then. According to NIH, every 25 minutes a baby is born suffering from opioid withdrawal. These are the most vulnerable victims of the opioid epidemic. I, along with Congressman Lujsn, plan to introduce a bill on this important issue later this week. Do you believe that we should facilitate public-private partnerships to provide additional information in support to women, children, and those tasked with their care? Ms. Brandt. Yes. In fact, CMS is very much dedicated to committing resources to help mothers and their infants struggling with opioid addiction, and we actually approved a State plan amendment for West Virginia back in February to provide additional treatment services and additional resources to help target just that issue. Mr. Guthrie. OK. And my final question, as you know, in November of 2017 the President's Commission on Combating Drug Addiction and the Opioid Crisis recommended that CMS revise reimbursement policies that limit patient access to non-opioid drugs used to treat post-surgical pain. Would you please provide the committee an update on where CMS is on the report and specifically on this issue? Ms. Brandt. I am sorry, can you repeat the part of the question? Mr. Guthrie. Yes. The President's Commission revised reimbursement policies that limit patient access to non-opioid drugs used to treat post-surgical pain. Ms. Brandt. So we are committed to working to make sure that we get the right treatment in the right setting, and that certainly includes making sure that we explore non-opioid alternatives to treat pain, and it is something that we are continuing to look at as an agency to determine how we can best address it from a reimbursement perspective. Mr. Guthrie. Thank you. Mr. Chairman, in the spirit of today, I used 4 minutes. So I will yield back a minute. Mr. Burgess. The chair thanks the gentleman. The chair recognizes the gentleman from Texas, Mr. Green, 5 minutes for your questions, please. Mr. Green. Thank you, Mr. Chairman. Ms. Brandt, thank you for being here. For years, States and the Federal Government have underinvested in building the necessary infrastructure for provider treatment capacity, workforce development, and wraparound services needed to help Americans suffering from opioid abuse. Do you agree that the administration should work with States to strengthen the Medicaid coverage and infrastructure and remove the barriers for coverage for people that need the treatment? Ms. Brandt. Yes. In fact, that is the whole point. As I mentioned in my testimony, we have already been working to give States as much flexibility as possible. We have, as of last November, since then approved five States to have more flexibility through our 1115 waiver authority and are very much committed to continuing to work with States to give them the flexibilities they need so that they can determine the right types of coverage to address the opioid crisis. Mr. Green. Well, let me ask another question. I just see that CMS is finalizing a rule allowing more State options in the essential health benefits package. Is that essential benefit package going to include mental and substance abuse? Ms. Brandt. I can't speak specifically to what was just included in the recent benefits package, but I can say that as a whole we have been committed to trying to work with States to allow more support for behavioral health services and those types of support services. Mr. Green. Well, in the Affordable Care Act there was essential benefits package, and substance abuse and mental health was included in there. We didn't get as much as we should. I know a lot of folks wanted parity, and I support it, but we just couldn't afford it. But my concern is that we can pass all 70 of the bills, and if we limit States to making sure that they don't cover substance abuse all this paperwork is not going to be worth it. So that is the issue, whether it is through Medicaid or through an insurance policy bought through the ACA. That is my concern, and particularly with the cutting in cost-sharing reduction payments last year. Do you think CMS plans to continue these efforts to sabotage the ACA marketplaces and endanger healthcare coverage of the millions of Americans? Because, again, if CMS is not making sure that that essential benefits package covers mental health and also substance abuse, it doesn't do us any good to have you and to have these hearings. If you would take that back. Ms. Brandt. I will take that back certainly, sir. Mr. Green. OK. And I appreciate it. The other concern, I think, when Congress did recently authorize $6 billion in Federal grants for opioids for 2018 and 2019, this additional funding still falls short of the treatment for Americans struggling with opioid use. Even more troubling is the uncertainty for the new funding stream for 2019. This uncertainty may keep States from fully spending the funds without a commitment of long-term stable funding. Will CMS urge the Department of Health and Human Services to request increased block grant funding for opioid abuse and other substance use disorders beyond 2019? Ms. Brandt. Well, as you are probably aware, sir, the President's budget does advocate for block grants to States for more flexibility, and we believe that that is appropriate because that gives States the right to decide the right type of coverage that they need for the opioid crisis and to address their own individual needs. Mr. Green. Well, and again, one of the reasons we have on the ACA side the essential benefits package, and, frankly, even in Medicaid. Medicaid is the predominant server for mental health and for substance abuse, and if we don't fund those programs, like I said, we can pass all the bills we want, it just won't help us with people being treated out in the street. And so I appreciate you being here. And thank you, Mr. Chairman. Ms. Brandt. Thank you. Mr. Burgess. The chair thanks the gentleman. The chair recognizes the gentleman from Michigan, 5 minutes for your questions, please. Mr. Upton. Thank you, Mr. Chairman. Ms. Brandt, welcome. Last week I--actually it was this week, Monday--Debbie Dingell, my colleague, we were in west Michigan, and we sat down with a good number of our local mental health providers in my district to talk about pressing issues facing them, how we can be of more help. And I want to flag one of those issues for you and ask that you might be able to work with us on resolving it. As part of an 1115 waiver, our providers were told that they had to adopt a universal assessment tool called GAIN, G-A- I-N. It is a 77-page assessment tool that takes more than a couple of hours to complete. It is completely duplicative, as every agency already does a comprehensive assessment for each beneficiary. Our providers were told by the Michigan PIHPs that it has to do with the Federal 1115 waiver requirement and that the reason for completing the tool is that we have to do this, we are only the messenger. And they read some of the questions they are going to actually provide with me later on. Again, I didn't realize this hearing was already scheduled when we sat down Monday afternoon. They are going to share with me that document. But it seems, as they said, they want to practice medicine, often this document turns people away from even continuing the process. And I just wonder if you can work with us and see if this is really the right approach for them to look at. I know it came, the regs, I think, were written before, but they have been finalized, and it is just something else. Ms. Brandt. Well, certainly we welcome if you could provide us with the information and the tool I will take it back. Mr. Upton. I will. I will get it to you next week. Ms. Brandt. But I will say that one of the Administrator's top priorities has been patients over paperwork, which has been an effort that I know that she has talked to many of you about, to reduce regulatory burden and to try and put patients first over paperwork, hence the name. So it is something that we certainly will go back and look at and appreciate you flagging for us. Mr. Upton. Great. I will follow up with you on that next week. The last question I have is a 2018 report notes that psychotherapeutic drugs might account for up to 4 in 10 drugs prescribed to kids in Medicaid. HHS' Office of the IG has recommended that CMS work with the State Medicaid programs to perform utilization reviews on the use of second-generation antipsychotic drugs prescribed to kids. The Medicaid Drug Improvement Act seeks to codify that recommendation by requiring that every State have a program to protect kids from unnecessary utilization of these powerful drugs, which could place them at a greater risk for substance abuse. Do you think that such a requirement on States could help CMS better monitor how States are providing care for kids in their State programs? Ms. Brandt. Well, we have read the OIG report and are familiar with their recommendations and are committed to working with them to see how we can reduce the high number of drugs that kids would be potentially subject to. We are committed to making sure that kids get the right treatment in the right setting, and we will work with the OIG and with you all to see what we can do to address that. Mr. Upton. Great. Thank you. I yield back. Mr. Burgess. The gentleman yields back. The chair thanks the gentleman. The chair recognizes the gentleman from Oregon, 5 minutes, for your questions, please. Mr. Schrader. Thank you, Mr. Chairman. Thank you very much, Ms. Brandt, for all the work you are doing at CMS to help deal with the opioid prescription issues. At least I think that we are seemingly getting somewhere. A recent Post article indicated some substantial reduction. Our medical and dental colleagues are getting on board with prescribing less long-term doses, seems like much in line, might be some incentivized by CMS, but in any case helping drive down the prescription drug abuse problem. And I think that is huge. We work together both in your office and here, frankly, at the practice level. I think that is a big deal. Are you getting any pushback with regard to some of the guidelines you are putting out there? It seems to be in line with what I am hearing from my medical colleagues. Ms. Brandt. I think that the biggest thing we got comments on when we put out the proposals that we codified in our call letter in our proposed regs was making sure that we were striking the right balance. And that is something that I have heard several of you as well mention today, and that is making sure that the people who have a chronic illness or cancer or a real need for these types of drugs are able to have the access to them while still making sure that we put the safeguards in place on our side to ensure that those who maybe are just taking it for acute pain or maybe should not be having it at the full level are not at risk of getting addicted. And I think that is a balance we are striking to get, and that is really where I wouldn't say it is pushback, I think it has just been a constructive dialogue that we have been having with the community on that issue. Mr. Schrader. It is a work in progress as we work through this. There is some recent evidence that even for chronic pain you can manage--depending on the person and the situation-- chronic pain with modest anti-inflammatories as opposed to having to go to the narcotic. Ms. Brandt. Correct. And that is why we are looking at other types of MAT and other solutions to be able to work that and try and provide as much flexibility on that as possible. Mr. Schrader. Would you comment at all on the other, the flip side of this, unfortunately, is that creative people, unfortunately, find alternate ways to satisfy their habits, and there has been a huge rise in the deaths with regard to synthetic opioids and fentanyl, very dangerous, tainted products out there in the market. What does CMS or how is CMS responding to that and what might we want to help you do. Ms. Brandt. Well, it certainly is a real risk, and it is something we have taken several steps to address. I mentioned our Overutilization Monitoring System that we have, OMS. That allows us to put alerts in place to tell us when we see a high number of beneficiaries that are using drugs. So, for instance, if a beneficiary has 90 morphine milligram equivalents or higher for a sustained period of time, say 6 months, and has been using either three or more providers or three or more pharmacies during that time, it puts an alert in place. I mentioned the 76 percent reduction that we have been able to see as a result of some of those alerts on the part D side, and we are very encouraged by that. But we are really working to put additional edits in place. These are really checks, if you will, that allow it so that the pharmacist, who is obviously a big part of the care team, can work with the provider to ensure that the beneficiary is getting what they need. I mentioned we have the new 7-day initial fill limit for acute pain. That is, again, intended to make it so that it is part of a discussion. If there is a need to have something more than that, great, but if not, that really would stop that supply because really, as the CDC has pointed out, there is no need to go beyond that. So we have got that. We are also looking at prescribers. Unfortunately, while most providers are good, upstanding individuals, we do have a number of people who are overprescribers. And so, we work with our MEDIC, who is our sort of fraud integrity contractor, to really look at identifying the outliers. They provide reports on who those outliers are. And we rely on our plans to really be able to monitor for that. And then, obviously, States use their PDMPs and other things to help them identify where they see outliers, as well. It is really a multipronged approach. Mr. Schrader. Yes, we have that issue in my part of the profession, also. There are a few outliers, unfortunately, that give the rest of us grief and lead to sometimes more overregulation. I certainly appreciate your approach and CMS' approach to work with the providers to come up with that right balance to get good results, and it looks like we are getting there. Ms. Brandt. Slow but sure. We still have a ways to go. Mr. Schrader. I yield back, Mr. Chairman. Mr. Burgess. The chair thanks the gentleman. The gentleman yields back. The chair recognizes the gentlelady from Tennessee, 5 minutes, for questions, please. Mrs. Blackburn. Thank you, Mr. Chairman. I have two questions that I wanted to talk with you about. The Medicaid Drug Improvement Act, which is going to look at the States' drug utilization review or the DUR programs and would put in place the minimum standards for the States while giving them some flexibility to determine what is and isn't going to work. But they would have to have a minimum standard for the limitations in place for the opioid refills, monitor concurrent prescribing of opioids and other drugs, monitor the antipsychotic prescribing for children, and have at least one of the naloxone-buprenorphine combination drugs on their formulary. And as I mentioned in my opening statement, TennCare has already put in place some of these limitations, but as we have seen the growth of Medicaid and with the Medicaid expansion, I wanted you just to talk a little bit about what you think putting these guidelines in place, passing this legislation, what that would do to help with clinical care and the health outcomes for our Medicaid enrollees. Ms. Brandt. Thank you. It is a great question. And as you may be aware, actually in the fiscal year 2019 budget there is a proposal to establish minimum standards for Medicaid drug utilization review programs, and that is something that we think is an important first step. We have already seen that States have been using many tools to address this. We get reports through our DUR report each year that let us know this, and States have been using a lot of medical management techniques like step therapy, prior authorization---- Mrs. Blackburn. What are the outcomes when they report them to you? Ms. Brandt. I think thus far, from what we have seen in some of the initial outcomes that we have gotten from our DUR reports, is that it seems to be going well, that these things are making a difference and it is starting to make an impact. Mrs. Blackburn. How many States are doing this, electing to do this, to move forward with it? Ms. Brandt. Well, right at the moment we have 37 States that limit the short-acting opioids, and we have 39 States that limit the quantity of long-acting opioids. Mrs. Blackburn. So we have got different components that are being implemented in different States? Ms. Brandt. Correct. Mrs. Blackburn. Would it be helpful if you had the benchmarks that they had to hit across the board? Ms. Brandt. Well, I think that is one of the reasons that the President's budget proposal advocates for minimum standards, so that there would be something unified across the board. Mrs. Blackburn. OK. That is great. Let's talk about the IMD exclusion, because this comes up in nearly every provider meeting that I have, and in my district in Tennessee I have constituents who are so involved in the delivery of substance abuse and mental health programs. And so the IMD exclusion comes up a good bit. So if you will elaborate on your efforts there. I know that Ms. Verma is working on this issue. She has mentioned that she is. But we want to ensure that Medicaid enrollees are going to be able to get access to the needed care. Ms. Brandt. Well, as I mentioned in my testimony, our goal is to make sure there is the right treatment in the right setting for the right individual, and a big part of that is allowing flexibilities for IMD. So as I mentioned, since last November we have implemented some new demonstration projects in five States--Louisiana, New Jersey, Utah, Indiana, and Kentucky--all of which have flexibility to be able to waive IMD requirements and allow them to have greater residential flexibility. We have gotten a lot of interest from other States and we are talking with them about giving similar flexibilities, and look forward to working with you all as a committee to determine how we can address this from a statutory perspective. Mrs. Blackburn. Thank you. I yield back. Mr. Burgess. The chair thanks the gentlelady. The chair recognizes the gentlelady from California, Ms. Eshoo, 5 minutes for your questions. Ms. Eshoo. Thank you, Mr. Chairman. And thank you, Ms. Brandt, for your testimony and your work at CMS. Ms. Brandt. Thank you. Ms. Eshoo. I have several questions. Let me start with this, and it is hard to get the exact amount. Do you know how much we spend today, what the Federal Government spends on services related to opioids? Ms. Brandt. I do not have an exact number for you. Ms. Eshoo. Approximate? Ms. Brandt. I would say that it is definitely in the hundreds of millions, but I couldn't give you an exact number. I am happy to get back to you. Ms. Eshoo. I think it would be helpful because the committee staff doesn't have it either. Ms. Brandt. We are happy to look from our perspective. Ms. Eshoo. But at any rate, it comes from different places, and I understand that, and there are grants and all of that. I believe the majority of it is funded through Medicaid, though, correct? Ms. Brandt. Medicaid is certainly a part of it. There are multiple funding streams in the Federal Government, including NIH, CDC, SAMHSA, FDA. So there are multiple components. Ms. Eshoo. But I do think that Medicaid is the single largest payer both of mental health services and substance abuse, or a major player in it. Ms. Brandt. It definitely is for behavioral health, yes. Ms. Eshoo. All right. Now, this is a little bit of a tough question, but the agency I am sure had done some kind of analysis of this. The President's fiscal year 2019 budget proposal slashes $1.4 trillion from Medicaid. So have you done an analysis of that and the impact it will have on the very issue that we have 35 bills on in this committee, on opioids? Ms. Brandt. I think that the challenges with the opioid epidemic is it is not something that we can necessarily spend our way out of. We want to make sure that---- Ms. Eshoo. Well, that is not what I am asking you. I am not asking you that. Ms. Brandt. We have not done an analysis, specifically. Ms. Eshoo. Money provides access to fill in the blank. This is not a partisan issue, Member after Member has spoken to the needs of people in their communities, the needs for access to a variety of services, one of the most important being treatment for this after people are hooked, after they are addicted. So there is a direct correlation between dollars and services. So maybe you haven't done an analysis, you can tell me that, but I think that it is important to put this on the table. Otherwise this is an extraordinarily serious issue that is plaguing the country, and we are going to reduce it, diminish it to next to nothing if, in fact, this $1.4 trillion is cut from Medicaid. I mean, this is reality. That is the proposal, the President's budget. So I would like to hear back from the agency as to what your analysis is to the impact of Medicaid and the issue of opioids, otherwise we are just fooling ourselves here. I mean, it is important to have the discussion, but if, in fact, there is going to be a balanced budget amendment that comes up on Friday, what is contained in that? How is it going to affect this issue? There is a linkage between all of these. And I think unless and until we acknowledge that, that we are really not being straight up. Now, I am very proud that Stanford University is in the heart of my congressional district. I think they are doing great work in the telemedicine space, specifically for opioid and pain management treatment. They have told me that there are barriers to Medicare and Medicaid reimbursing telemedicine, such as originating site requirements. Does telemedicine, do you think, save the Federal Government money compared to in-person medicine? Ms. Brandt. We absolutely---- Ms. Eshoo. That is such a softball question. So there is the softball. Ms. Brandt. We appreciate the question, and it is one of the top priorities of the current CMS Administrator. Ms. Eshoo. That is not what I asked you. I asked you if you believe---- Ms. Brandt. And she does believe it has money-saving possibilities, and it is something we are pursuing as part of our proposed payment rules for this next year. Ms. Eshoo. Do you think the patients, whether they are in a rural setting or an urban setting, should be able to access telemedicine if it is appropriate, obviously, for them? Ms. Brandt. We absolutely believe it is a very critical tool, particularly for the rural areas and for underserved communities. Ms. Eshoo. Has CMS identified any barriers that providers face when trying to use non-opioid treatments for pain? Ms. Brandt. We have been working with the providers to discuss how we can eliminate some of the barriers for treatment and are trying to work with them on solutions. Ms. Eshoo. Well, that is pretty broad. What steps has the agency taken to reduce the barriers? She can answer. I won't ask anymore. Ms. Brandt. We have had a number of stakeholder sessions, as I said, and have been engaged in lots of discussions with the industry to figure out where the barriers are and how best to address them. Ms. Eshoo. Thank you. Mr. Burgess. The chair thanks the gentlelady. The gentlelady yields back. The chair recognizes the gentleman from Ohio, Mr. Latta, 5 minutes for your questions, please. Mr. Latta. Thanks, Mr. Chairman, and thank you very much for holding today's hearing. Again, the opioid epidemic is a scourge on this country. And in the State of Ohio, I am sure, Ms. Brandt, you are aware, that we are about the third hardest hit State. We had 5,232 people lose their lives because of it by the end of the fiscal year of June 30 of last year. But in 2015, six newborns a day were admitted to Ohio hospitals for neonatal abstinence syndrome, NAS, because of drug use by their mothers, and the cost to Medicaid is $133 million. The State of Ohio has been diligently working to address this issue and helping to improve health outcomes for the moms and the babies out there. Could you point to any CMS efforts to prevent and treat neonatal abstinence syndrome? For example, States may also include funding for facilities that provide care for infants with NAS to an 1115 demonstration waiver. That is correct, I believe. Ms. Brandt. Certainly. Certainly this is an issue that we know is very important not only in Ohio, but lots of other States. And we have been working to commit resources to really help mothers and their infants that are struggling with opioid addiction. One of the ways that we have been doing it is through the Early and Periodic Screening, Diagnostic, and Testing services, or EPSDT. We are requiring States to provide a comprehensive array of prevention, diagnostic, and treatment services for low-income infants, children, and adolescents under age 21. This would include providing treatment services for conditions such as neonatal abstinence. I mentioned earlier, but in February we approved a State plan amendment for West Virginia to provide additional treatment services for neonatal abstinence syndrome in NAS treatment centers. This would allow West Virginia to reimburse all medically necessary NAS services through an all-exclusive bundled cost per diem rate based on a prospective payment methodology. And it also would allow them to fund things like nursing salaries, supportive counseling, and case management, which are important wraparound services. Mr. Latta. Thank you. And last week in my district I held a roundtable with pharmacists also to talk about the opioid crisis in Ohio, and most of the pharmacists agree that we need to have non-opioid alternatives for pain treatment and management; furthermore, that payments need to be expanded to alternative drugs and therapies outside of opioids. Should CMS be taking the lead in setting the example to private payers by encouraging non-opioid alternatives for pain management? Ms. Brandt. Absolutely. As I mentioned in my oral testimony, we are looking very aggressively at MAT and how we can provide that, including things such as naloxone, to be able to have other non-opioid treatment alternatives to be able to address the problem. Mr. Latta. How do you get that information out to everybody out in the real world who are treating folks and saying that we need to make sure we are using non-opioids? How are you doing that? How are you getting that information out? Ms. Brandt. We have a variety of methods that we use. We have Medicare Learning Network, MLN, which allows us to get information out. We have open door forums. We have our plan sponsors communicate directly with their providers, and we communicate directly with Medicare providers through various listserves and emails and other things. We have also partnered with the Centers for Disease Control and other Federal partners to try and get the word out. But we can always work with you all to do more and to try and figure out how to do that more effectively. Mr. Latta. OK. And also there is often a lot of discussion about developing new drugs for pain treatment, but also new medical devices have also shown promise in effectively managing pain. What has CMS done to make sure that medical devices are included in CMS' efforts to address this crisis? Ms. Brandt. That is actually a big area. I can tell you during our stakeholder sessions and during the meetings that myself and other members of the CMS team have had we have had probably hundreds of people come in with various alternatives and other things. And we have been working very closely with the FDA, who is our partner in this, to be able to figure out a parallel track process so that as they are approving new alternatives we can simultaneously be looking at coverage and reimbursement for them to help get those alternatives in the system as quickly as possible. Mr. Latta. Well, thank you very much. Mr. Chairman, I yield back the balance of my time. Mr. Burgess. The chair thanks the gentleman. The gentleman yields back. The chair recognizes the gentleman from California, Mr. Cardenas, 5 minutes for questions. Mr. Cardenas. Thank you very much, Mr. Chairman. I am glad we have an opportunity once again to speak about this very, very important issue that is crushing our communities and individuals and families. Ms. Brandt, what is your current title? Ms. Brandt. Principal Deputy for Operations. Mr. Cardenas. OK. And do you report to somebody who is a permanent person in that position or are you reporting to somebody who is actually temporary as you go up the ladder? Ms. Brandt. Well, I report directly to the Administrator for CMS, who is appointed by the President. Mr. Cardenas. OK. All right. Thank you. Many times when we have these hearings there are a lot of vacancies in and around the people who are testifying. I am glad to hear that they have a permanent person in that position. Ms. Brandt. I am, too. Mr. Cardenas. I want to point something out and then ask you a question. And what I want to point out is that often when we talk about healthcare we never mention how it interacts with the justice system, and when we talk about improving the justice system we leave out healthcare for children. Even if we do talk about both of them at the same time once again, with the children we tend to leave them out of the dialogue. My bill, which is in our committee, which is being discussed today, the At-Risk Youth Medicaid Protection Act, does just that. This bipartisan bill, which I was proud to work on with Congressman Morgan Griffith of western Virginia, keeps the government from kicking at-risk youth off of Medicaid if they come into contact with the justice system. With this bill, when a child returns home she would immediately be able to see a doctor again and have access to any physical, mental health, and addiction treatments that she may need. Right now children are left out in the cold to battle with the bureaucracy on their own because many States are automatically kicking them off. The opioid epidemic has grown in a way that the country was not ready for. According to a June 2017 MACPAC report, the opioid epidemic disproportionately affects Medicaid beneficiaries, and thus, State Medicaid programs are taking the lead in identifying and tailoring strategies to prevent and treat opioid use disorders. It does not matter whether it is on the streets of Los Angeles or the hills of Appalachia; opioid addiction can cripple communities and destroy families. But among those affected the most are our most vulnerable, which is our youth. Kids suffering from addiction need to be able to see a doctor and get better quick. In some States, when a child comes in contact with the justice system, her access to Medicare is permanently terminated. Imagine her leaving the facility without family support, wanting to get better, and trying to figure out how to continue with her recovery, manage her mental health issues though she has no ability to refill her medication, get back into school, and find housing. On top of all that, do we really expect her to have to fill out a bunch of Federal forms and wait until she can get the support that she deserves and needs so badly? The bill that I am talking about does, in fact, fix that. The need for continuous access to healthcare goes beyond the opioid crisis and not just benefits to children, but also their families, their communities, and the society they will continue to be successful as adults in. This bill will ensure that children do not fall through the cracks because of red tape that adults created. The legislation has broad support in the law enforcement, healthcare, and social justice communities. I appreciate the ability to discuss this bill and look forward to seeing it advance through the legislative process. Ms. Brandt, currently Federal law prohibits States from receiving Federal financial participation for individuals covered by Medicaid while they are incarcerated. It does not, however, specify how each State should handle the Medicaid enrollment of these individuals once they get back in the community. While some States are beginning to suspend instead of terminating Medicaid enrollment of incarcerated individuals, 19 States still permanently terminate healthcare coverage of incarcerated individuals. Therefore, I ask you, do you agree that these policies limit the ability of most incarcerated children who are covered by Medicaid to access treatment for substance use disorders once they are back in their community? Ms. Brandt. Well, I am not familiar entirely with the policies that you are describing, but as I said before, we are committed to working with States to be able to provide flexibility so that they can get the right treatment to the right people, whether that is juveniles, infants, or others. And so, we are happy to work with you to provide technical assistance and work with the issues. I can't speak specifically beyond that, because I am not familiar, but we are committed to providing the right treatment and the right setting to the right people. Mr. Cardenas. Well, I am familiar with that one point that is affecting so many young people in our country. And the point here is that we can and hopefully will clarify in the law that the States do have that option right now to continue to remove them--right now they have the option to remove them once they come in contact with the justice system. But what should be happening, they should be suspended, because they are going to get out. And for a person with any medical need, mental or otherwise, shouldn't have to go a month, 2, 3, 4, 5, 6, without the care that has already been identified for them, and that is the rub and that is the part that we are trying to fix. So hopefully we will do that and then you will be able to follow suit. Ms. Brandt. Very good. Happy to follow. Mr. Cardenas. Thank you. I yield back. Mr. Burgess. The chair thanks the gentleman. The chair would observe we have a series of votes that have been called on the floor. We will entertain questions from Mr. Shimkus, and which we will then recess until after the vote series. Mr. Shimkus, you are recognized for 5 minutes, please. Mr. Shimkus. Thank you, Mr. Chairman. So Dr. Burgess, and also, really, Dr. Schrader, mentioned the concern on the chronic pain end of these folks. And I have been trying to carry that message, because they are different, right? They are not addicted. They need it to just live normal lives. Having said that, could you--because I get a lot of questions on this issue of the editing process that you have. Can you briefly explain that. I know that there is a soft edit, hard edit, and that is milligram based, and what the purpose is and why we do it that way. Ms. Brandt. Sure. So the whole purpose, again, of the edits is to make sure that if you see folks who are potentially over- utilizers, for instance, someone, as I mentioned before, who would be receiving maybe 90 morphine milligram equivalents or higher on a sustained basis for up to 6 months or more, maybe getting prescriptions from three or more providers, three or more pharmacies, people who look like they really are not someone who maybe has a dedicated physician, a dedicated care issue. The whole point is that the pharmacist works with the provider to be able to have a discussion about whether or not that pain treatment is right for that individual. The whole point of the edits is to serve as a flag, if you will, to be able to highlight it so that if you have something that looks like an aberrancy, we can stop it early. The 76 percent number that I keep going back to, I think, is an important example of this, because by using those types of edits, we have been able to really reduce those numbers by over 25,000 individuals, and that is a significant step forward in that program. So the point of the edits is more to ensure that there is the right treatment being provided to the right person, and to have that discussion among the care team about what that is. Mr. Shimkus. So are we seeing any response by the chronic pain community that this is inhibiting their ability and slowing up the process of prescriptions for them? Ms. Brandt. Well, as I said, that is something that we have had a very active dialogue with the community on. We got a lot of comments on that back in response to our call letter. And we have really been working with them to try and make sure that we are striking that right balance. That is one of the reasons in the call letter that we went to a 7-day initial fill for acute pain, and to make it so that there was the ability to have that conversation between the pharmacist and the provider about the needs of the individual so that hopefully someone who has cancer or some other disease that requires them to need these drugs would be able to get them and to keep getting them as appropriate. Mr. Shimkus. And Illinois is an 1115 waiver State. Can you explain some of the issues with applying for that? I think it is going to end up being a big discussion within the committee about, if it is working, then we need to make sure that that is working and why versus other responses to this issue that we may hear from some of our other colleagues. Ms. Brandt. Well, again, the whole goal of our waiver process is to allow States more flexibility, and it is to allow them more flexibility to be able to utilize their resources to treat the opioid crisis in their State as best fits the needs of their State. Each State is very unique and has different populations and different needs and different resource constraints, so the idea is to be able to work with the States to give them the flexibility. Mr. Shimkus. And how many States do we have in that process right now? Ms. Brandt. Well, as I mentioned, since we started the new process in November, we have gotten five States that have gotten substance use disorder waivers. I can't speak to the total number because there were waivers before that, but since we sort of began the new process, there are five States that have been approved. And we have discussions ongoing with several others. Mr. Shimkus. And I would just like to end on the--obviously in the coding issue and reimbursement on nonopioid pain management treatments. Obviously, you have heard the concern that if we don't adequately reimburse them, it may move to pain management through a different venue by which we would end up having more challenges than we would like. Can you talk about your involvement or your concern about CMS and coding? Ms. Brandt. Certainly. Again, that is an area where we are having an ongoing dialogue with the provider community to determine what the right levels are there in terms of coding and how we can work with them to make sure to balance the burden with the appropriate targeting of treatment and codes for that. Mr. Shimkus. I appreciate you being here. Thank you for your time. And, Mr. Chairman, I yield back. Mr. Burgess. The chair thanks the gentleman. The gentleman yields back. And once again, the chair observes we have a series of three votes on the floor of the House. The Committee is going to briefly recess while we record those votes over the in the House Chamber, and we will reconvene immediately after the last vote. I thank the witness for the forbearance during that time. Ms. Brandt. Thank you. Mr. Burgess. The committee stands in recess. [Recess.] Mr. Burgess. I call the subcommittee back to order. I want to thank everyone for their forbearance while the vote series occurred. At this point, I would like to recognize for 5 minutes the vice chairwoman of the conference, Cathy McMorris Rodgers, 5 minutes for your questions, please. Mrs. McMorris Rodgers. Thank you, Chairman, Ms. Brandt. I want to first applaud CMS for clarifying in the final part D rule that MTM programs will fall under quality improvement activities when calculating the medical loss ratio requirements. This should encourage plan sponsors to expand access to MTM programs, which will ensure a greater number of patients can benefit. Given the important role pharmacists can play in addressing the opioid epidemic, we are considering legislation today to add patients at risk for prescription drug abuse to the list of eligible beneficiaries for MTM under Medicare Part D. Can you please give us your thoughts on utilizing pharmacists to help address the opioid epidemic? Ms. Brandt. Thank you. We think that pharmacists are a very important part of the care coordination. As I mentioned in several of my answers today, pharmacists play a vital role and are on the frontline in helping work with providers to address this. And we think the MTM treatments, in particular, have been very beneficial to beneficiaries, and we look forward to working with you to expand that. Mrs. McMorris Rodgers. And while we are on the topic of MTM, can you provide us with a quick update on where CMS is ensuring sufficient retail pharmacy representation in the CMMI enhanced MTM model demonstration project? Ms. Brandt. I can't speak specifically to that, but I am happy to get back to you with some more information about how that is going. I am sorry, I am just not familiar with that particular one. Mrs. McMorris Rodgers. OK. That would be great. I am interested in how existing dollars can be leveraged in the effort to help educate providers providing care for patients with substance abuse disorder. When we spend more than $2 billion in Medicaid-funded GME programs each year, it is just common sense for Congress to better understand how these programs are helping to train providers on pain management and substance use disorder. For example, the University of South Carolina implemented a program into their medical school curriculum to address the opioid crisis using case studies, panel discussions, and group work. By the end of medical school, all USC-trained medical students will be able to recognize patients that are at risk for substance abuse, and have solutions for treatment. I think that this is a great model for other medical schools. Do you think that it is appropriate use of GME dollars, particularly since Medicaid beneficiaries represent a disproportionately large share of those with substance abuse disorder? Ms. Brandt. Well, we certainly agree that education is an important component. And we agree that we want to continue, as we have been doing, to work with States in the accrediting organizations to make sure that GME dollars are put towards education to help make sure that that is targeted in the appropriate way. Mrs. McMorris Rodgers. Thank you. I would also like to take this opportunity to submit for the record from the Washington State Pharmacy Association, pharmacists play a unique role in patient care and are frequently the healthcare professional that a patient sees the most, especially in our rural communities. Authorizing pharmacists clinical services under Medicare Part B, which H.R. 529 accomplishes, will go a long way to empower pharmacists and give them an opportunity to help address prescription drug misuse and abuse. So I would like to submit this letter for the record, Mr. Chairman, and with that, I will yield back. Mr. Burgess. Without objection, so ordered. [The information appears at the conclusion of the hearing.] Mr. Burgess. The chair thanks the gentlelady. The gentlelady yields back. The chair recognizes the gentleman from Massachusetts, Mr. Kennedy, 5 minutes for your questions, please. Mr. Kennedy. Thank you, Mr. Chairman. I appreciate the opportunity to have this hearing. Thank you, Ms. Brandt, for being here as well, answering our questions. Mr. Chairman, I would like to start just by submitting or requesting an opportunity to submit for the record a letter of support from about 2 dozen or so organizations in support of our mental health parity bill, if you would be so kind. Mr. Burgess. Without objection, so ordered. [The information appears at the conclusion of the hearing.] Mr. Kennedy. Thank you, sir. Ms. Brandt, I wanted to drill down a little bit your understanding and the administration's understanding about the current status of Medicaid with regard to the two areas of focus, substance abuse and mental illness, with regards to some of the policies that I think have been put forth from a couple of States that you mentioned earlier. Do you have any information or data that indicates how long it takes the average patient to recover from a substance use disorder? Ms. Brandt. I don't know exactly the amount of time, but I can get back to you with any information that we have. Mr. Kennedy. Yes. And I would imagine that it obviously is going to vary quite a bit individual to individual. Ms. Brandt. Yes. I think it depends on the type of person, the type of treatment, and the setting. Mr. Kennedy. Yes. And I would assume, with regards to a broader mental health issue, some of that is, obviously, a lifelong condition and some of that with adequate treatment and access to care can be successfully managed. Is that fair? Ms. Brandt. That is fair, yes. Mr. Kennedy. So you can imagine my concern, Ms. Brandt, when I hear that five States, Maine, Arizona, Utah, Wisconsin, and Kansas, have applied for waivers to impose lifetime limits on Medicaid patients in their States, knowing that substance use orders and mental health problems are often lifetime challenges, and knowing that Medicaid is a single largest payer of behavioral health service in this country. How do I understand the testimony that you have given so far, and this administration's stated commitment to provide access to care, particularly in the midst of an opioid epidemic, recognizing that for the young people that are afflicted with this epidemic, it is going to be a lifelong issue and a lifelong challenge with a policy of lifetime caps? How do I rectify that? Ms. Brandt. Well, as I mentioned before, we have been working to try and work with States to try and give them as much flexibility as they can to manage the populations in their area to hopefully get the right treatment in the right setting for the right duration. Mr. Kennedy. I appreciate your answer, but how is a lifetime limit ever going to be the appropriate response for somebody facing a lifetime illness? Ms. Brandt. Well, I can't speak to that specifically, but, again, we are committed to working to give the States the flexibility they need to hopefully provide the right types of treatments for their individual constituents. Mr. Kennedy. So with regards to a similar policy and a work requirement, is there a study that you are aware of that indicates that Medicaid--that people are healthier, not the causation between health and work, but between work and health? Are you aware of a study that shows that work will make somebody healthier? Ms. Brandt. I cannot speak to such a study. Mr. Kennedy. I can't either. I am not sure there actually is one. And so I am curious as the administration tries to push forward with a Medicaid work requirement, you had said earlier that the philosophy of this administrator was to put patients over paperwork. I think we can agree that when it comes to a work requirement, the paperwork necessary for an individual patient to try to either, one, prove that they are working is an additional administrative burden; and two, to try to provide, assuming that you are carving out some sort of exemption for people under certain conditions, mental illness, caregiver, student, others, that that is an additional administrative hurdle on top of that. How is that putting patients above paperwork? Ms. Brandt. Well, with the States where we have already gone ahead and worked with them, one of the things that we tried to do was to make sure that the States would make reasonable modifications. And we are trying to work with them to ensure that they are striking that appropriate balance, to ensure that they are getting people access to the treatment they need without hopefully having additional bureaucratic requirements. Mr. Kennedy. And if somebody is suffering with a mental illness, such that they--as I know over the course of--you have been dedicated to public health and health policy for a long time, the challenges that those individuals and families have with getting access to care and maintaining the care that they need, and the struggles that they go on on a daily basis to sometimes get through the day, the administrative burden added for them to prove that they are--should be exempt for those work requirements, does that not make it even harder for them to do so? And if so, isn't the risk of them losing access to their healthcare and Medicaid even higher to one of the most at-risks populations we have got? Ms. Brandt. Well, to your point, that is one of the reasons that we remain committed to trying to work with States to sort of strike that reasonable balance I talked about. We want to make sure people have reasonable access and the appropriate access to the care they need in those States, and, hopefully, balance that with the requirements needed to be able to show that they need that care. Mr. Kennedy. And how would a work requirement ever tilt in the way of a patient for access to health? Ms. Brandt. As I said, we are working with States to try and make sure to assure that balance. Mr. Kennedy. Appreciate that. Thank you. Yield back. Mr. Burgess. The chair thanks the gentleman. The gentleman yields back. The chair recognizes the gentleman from Virginia, Mr. Griffith, 5 minutes for your questions. Mr. Griffith. Thank you, Mr. Chairman. Appreciate you being here this afternoon. The Medicaid Pharmacy Home Act that the Committee is considering would require that States take into account a patient's history of receiving care in geographic proximity to providers and pharmacies when locking a patient into two providers and two pharmacies. How would CMS define proximity? Ms. Brandt. Well, that is a good question and something that in each of our rulemaking, we actually look to do. We recognize that we are always looking to make sure that we can ensure appropriate access for patients. As I said, we want to make sure people are getting the right treatment in the right setting, and so it is something that we are definitely always looking to determine what is the right proximity. Is it driving distance? Is it actual mileage distance? What is the appropriate balance? And that is something that we do through notice-and-comment rulemaking and working with individuals such as yourself. Mr. Griffith. And you anticipated the next part of my question, because I was going to go to, historically it has been a mileage requirement, but in districts like mine, which have mountains in them, one town might be closer as the crow flies, but not nearly as close on driving time. I have got a classic situation in one of my areas where in Dickenson County, Haysi, and Clintwood, on the map may look like they are 15 miles apart but there is a mountain in between. And because of the road that goes around the mountain, I have been advised by the mayor of Haysi that he allots--it doesn't always take him that long, but he allots an hour to get from one down to the other. When he has a meeting over in Clintwood, he has to allocate an hour on his calendar, weather, coal trucks, timber trucks, a slow driver worried about the curves, all can make that trip a lot longer, and there may be closer facilities that the drive time is better for, or whatever, and keeping that in mind. And I just ask that as you all look at this--and we will too--if you would keep that in mind, I would greatly appreciate it. Ms. Brandt. We certainly will. Mr. Griffith. Thank you. In MACPAC's report this past June, the commission noted research in health affairs that found States with prescription drug monitoring programs requirements saw reduction in opioids prescribed to Medicaid enrollees, reducing the total scripts in the dosage as well, and a reduction in Medicaid spending on those prescriptions. A 2016 CMS bulletin also highlighted similar findings. Wouldn't you agree that this evidence demonstrates the critical role of the PDMPs in addressing the opioid epidemic, saving both lives and dollars? Ms. Brandt. Yes. We absolutely think the PDMPs play an important role. Forty-nine States currently have a PDMP, and we are very much committed to continuing to work with them to ensure that they are as effective as possible. For instance, the State of New York, which has been requiring prescribers to access a PDMP, has seen a 75 percent drop since 2013 and the number of patients who use multiple prescribers and pharmacies for controlled prescription drugs just because of the PDMP. Mr. Griffith. And appreciate that. The Medicaid Partnership Act draft before us allows States flexibility in how they design their programs. However, it also ensures that PDMPs are a part of Medicaid's provider clinical flow work. If more physicians and pharmacists were checking the PDMP, would you expect the number of opioid prescriptions to decrease? I would. Ms. Brandt. Well, as stated with the example I just gave you from New York, we think that there is a lot of promise to having greater access to PDMPs, and to making sure that people are utilizing them. Mr. Griffith. Now, here is an interesting twist that we have to try to figure out. If you have the prescribers checking it, is it duplicative to have the pharmacy checking it also? Ms. Brandt. Well, it is a good question. And, as I mentioned before, we view the pharmacist as well as the prescriber as part of that care coordination team. So it is something where prescribers have been checking this, but we also view the pharmacist as a part of the discussion, and it is something we are certainly open to discussing with you all. Mr. Griffith. Yes. I think we do need to discuss it, because one of the things that it also says is is that if there is a patient in hospice or palliative care, they would be exempt from the requirement to consult the PDMP. How is a pharmacist going to know that? The prescriber should know that, but---- Ms. Brandt. At this point in time, I do not believe that type of information would be available to people checking the PDMP, so that would be an impediment. Mr. Griffith. Right. So we have got to figure that out if we are going to go forward on that particular line of the bill. But I do think we are all trying to work in the same direction, and I appreciate any input that you can give us to make our bill, as we go forward and discuss it, better and practical. Ms. Brandt. Well, we look forward to offering technical assistance, and this is an area that we have been very focused on, so thank you. Mr. Griffith. Thank you, and I yield back. Mr. Burgess. The chair thanks the gentleman. The chair recognizes the gentleman from Florida, Mr. Bilirakis, 5 minutes for your questions, please. Mr. Bilirakis. Thank you, Mr. Chairman. I appreciate it. I appreciate your testimony as well. Ms. Brandt. Thank you. Mr. Bilirakis. Thanks for your patience. Ms. Brandt. No problem. It has been a long day for everyone. Mr. Bilirakis. Yes. Not over yet. Last week, CMS issued final rules for Medicare Part C and D, which include the rules for the lock-in program. This program is important for me not only because I authored the provision, but also because addiction is a serious problem that cuts across age, gender, and income. Programs like Medicare need to have and use all the tools available to help beneficiaries. Let's see, can you update the Committee on what changes CMS did with this implementation of the drug management program for at-risk beneficiaries, also known as lock-in, in Medicare's Part D program, please. Ms. Brandt. Certainly. As I mentioned in my oral testimony, we were very appreciative of the additional tool that Congress gave us. This is a very important tool in our fight at the Federal level against the opioid epidemic. Starting next year, plan sponsors have the option to go ahead and implement a lock-in requirement, which would require a beneficiary to use certain providers and/or certain pharmacies, depending on what is deemed appropriate. There is also a proposal in the President's budget to do mandatory lock-in for plans. Again, ours is a ``may'' not a ``shall'' right at the moment, but the President's budget has a ``shall.'' But we think that the lock-in authority is something that will be very helpful. We have seen a lot of good results from States. Many of the States have been using lock-in authority. And we think that some of the early results from States we have seen, such as Pennsylvania, which has saved about $55 million in 2016 from using lock-in authority, are a good indicator of where we can go with this authority going forward. Mr. Bilirakis. The President's budget has a ``shall,'' recommends a ``shall''---- Ms. Brandt. Right. Mr. Bilirakis [continuing]. As opposed to the ``may''? Ms. Brandt. Correct. Mr. Bilirakis. And my original bill had a ``shall'' as opposed to the ``may.'' Why do you think it is so important to--if that is your position as well, because I agree it should be a ``shall.'' Why do you think it is so important that we say ``shall,'' and require them to have the lock-in program under Medicare as opposed to giving them a choice? Ms. Brandt. Again, it is an important extra tool for our toolbox. And if the tool is optional, it doesn't mean it can always be used. But if the tool is mandatory, that means it can and should be used. And it is just another important tool to allow us to address those really high over-utilizers and to be able to take important steps to limit their usage and to be able to protect the program. Mr. Bilirakis. And, again, we want to emphasize this is only for high risk? Ms. Brandt. Only for high risk. Only for those who are particularly high risk. And as I indicated from the results we saw from the State of Pennsylvania, we think they will also have cost implications to the programs in terms of savings, which is something that we are always looking for, particularly in the Medicare side of the house. Mr. Bilirakis. Very good. Thank you. Under Medicare, yes. Thank you. Next question. Do I have time? Yes, I think I am all right. Almost every State Medicaid program runs or authorizes a lock- in program using, physicians or pharmacies, or a combination of both. Every State Medicaid program runs their program differently from each other. Does CMS currently collect data from States on their Medicaid lock-in programs, such as how it is structured, eligibility triggers, estimated cost savings, outcome measures, or other data that could help States with establishing best practices? Ms. Brandt. So we are starting to do that through our Medicaid drug utilization review program. Our DUR reports that we get are allowing us to start to get that sort of information. We are still sort of, I would say, solidifying exactly what requirements we are getting, but it does allow us to get a snapshot of what is working. And that is how I was able to give you an example from Pennsylvania, where we were able to see some initial positive results from their lock-in program. So it is something that we are starting to collect. Mr. Bilirakis. How many States actually collect this data? Ms. Brandt. I would have to get back to you with that. I don't know the exact number of States. Mr. Bilirakis. But there are advantages for the States to collect this data? Ms. Brandt. Absolutely. Because as you can tell, you can provide savings data. It also provides data on how it reduces over utilization and other important markers that we can use from a program management perspective. Mr. Bilirakis. OK. Very good. Thank you. I yield back, Mr. Chairman. Appreciate it. Mr. Burgess. The chair thanks the gentleman. The gentleman yields back. The chair recognizes the gentleman from Indiana, Dr. Bucshon, 5 minutes for your questions, please. Mr. Bucshon. Thank you, Mr. Chairman. I was a surgeon before, and I was in healthcare. I have seen this problem coming for 25 years, caught up to us pretty quickly for a variety of reasons. There is no one particularly at fault, but I think we kind of got caught with that. And, it is going to take us a while to get out of this problem. It is a multifactorial in origin as well as the solutions to it, all the way from border security and preventing the 90 percent of heroin that comes to the United States from coming across our southern border, all the way to the other end of the spectrum where we have to provide affordable treatment options for people who are currently addicted. I have seen countless families in my district, in the 8th District of Indiana, destroyed due to this. We are losing a lot of people in all of my counties. Rural America is devastated by this problem. And I believe that some more emphasis maybe should be placed on innovative treatments, including medications and devices, to help individuals manage pain without becoming dependent on opioids. And CMS plays a critical role in this effort. That is why I have worked with Scott Peters, who is down at the end, on the Postoperative Opioid Prevention Act to create a temporary pass- through payment to encourage development of nonopioid drugs for post-surgical pain management and Medicare. Additionally, I am working on a draft legislation to add an evaluation of management of chronic pain to the Medicare initial assessment, which would include an emphasis on nonopioid pain management alternatives. Have you had a chance to look at those options? Ms. Brandt. I have not personally, but I know that our office has been reviewing them for technical assistance. Mr. Bucshon. OK. It is important to remove barriers to access for patients new options for management of post-surgical and chronic pain in order for society to shift from the overreliance on opioids. My daughter, for example, had her wisdom teeth taken out, and her dentist wrote a prescription for 60 opioids. Of course, my wife and I are doctors. We never filled it. We said, some ice on the cheeks and a little bit of Advil and Tylenol. But you see the extent of this problem. We still, even as a provider, I will say that providers are part of the solution, and I think we are doing much better, but we have a way to go. It is a cultural shift that we need. It is starting in training, I think, all the way up through current practitioners, and I think that we are going to get there. I know there are barriers to nonpharmaceutical therapies for chronic pain. I think someone asked you earlier about that. How can those barriers be addressed and primarily its coverage decisions from CMS, honestly, to increase the utilization of evidence-based therapies, particularly FDA-approved medical devices for pain? Ms. Brandt. So as I mentioned earlier, we are constantly looking at CMS to determine how we can look at evidence-based criteria to improve our coverage decisions. One of the things we really would like to do and are trying to do is, within our statutory authority, to expand the amount of nonopioid alternative treatments that we can cover as much as possible. And we are committed to working with the FDA and our other partners to really try and expand our reach of that as much as possible. We have been working very much with NIH to get more clinical evidence to support our coverage decisions and are continuing to try and fast track all of that to open up as many new options as we can. Mr. Bucshon. And administrator Verma met with the Doctors Caucus this morning, and we talked a little bit about that. And I know that that is a goal to try to, and you may need some more authority legislatively, I think, to adapt, because we need to be more nimble here. If we have something that is FDA approved, we need to get coverage decisions in a more nimble way, not reinvent the wheel. And I have found, since I have been in Congress--this is my 8th year--that coverage decisions are a barrier to access more than, I think, I really realized. And it is nobody's fault; it is just the way it is. Some of the bills before us today will increase access to methadone also. An informational bulletin on best practices for addressing prescription opioid overdoses, misuse, and addiction in Medicaid was issued by your predecessors in the Obama administration. That bulletin cautioned that methadone, in particular, accounts for a disproportionate share for opioid- related overdoses and death. Methadone, as everyone knows, is an opioid. The bulletin also warned of an increased risk of morbidity, mortality associated with methadone in the Medicaid population. Mr. Chairman, I ask for unanimous consent to submit that CMS report for the record. Mr. Burgess. Without objection, so ordered. [The information appears at the conclusion of the hearing.] Mr. Bucshon. I know every member here wants the patients to get the care they need, but we also need to make sure it is the right treatment from the right provider at the right time. Can you talk about CMS's current work--briefly, because I am almost out of time--to better understand the clinical risks the literature associates with methadone? Ms. Brandt. Certainly. Again, we have been looking at different ways that methadone can be utilized where it is appropriate, both for opioid use disorder and how it is currently being utilized for acute pain, in determining whether or not there are alternative treatments or other ways that we can work with you all in Congress to expand our statutory ability to be able to use methadone where appropriate for OUD. Mr. Bucshon. OK. Thank you. Mr. Chairman, I yield back. Mr. Burgess. The gentleman yields back. The chair thanks the gentleman. The chair recognizes the gentleman from New Jersey, Mr. Lance, 5 minutes for questions, please. Mr. Lance. Thank you very much. And good afternoon to you all. In a CMS report on the Medicaid Health Home State Plan option, CMS noted States report that they plan to continue the Health Home Programs after the current law 8-quarter enhanced Federal match ends--and I think it is a 90 percent match--in part, because they are saving money. CMS explained States believe that the cost savings are a result of the improved health status and reduced utilization, which are expected to, at a minimum, cover the costs of the Health Home Program and anticipate savings in excess of health home costs. Mr. Chairman, I ask that the report be submitted for the record. Mr. Burgess. Without objection, so ordered. [The information appears at the conclusion of the hearing.] Mr. Lance. Thank you. Given these findings, what impact would an additional year of enhanced Federal matching for Health Homes have for States? Do you think more States would adopt this special model to provide care coordination and wraparound services for patients with substance abuse disorders? Ms. Brandt. We have seen good initial results from the Health Home, particularly in Vermont, with the hub-and-spoke model that we have there. The Health Home has seemed to be very positive and had very good results. So it is something that we are supportive of because the Health Homes do provide us with another option to provide the right care in the right setting, and Health Home can be an important part of that. Mr. Lance. I would imagine that funding is safe if patients are permitted to stay in their homes. I think that that probably is a cost saver. Ms. Brandt. I can't speak to that specifically, because I haven't seen numbers to support that. But like I said, at least initially, based on the Vermont model, it does seem that they have achieved some savings using the Health Home model. Mr. Lance. I thank you very much. And, Mr. Chairman, I yield back 3 minutes. Mr. Burgess. The chair thanks the gentleman. The chair recognizes the gentlelady from Indiana, Mrs. Brooks, 5 minutes for your questions, please. Mrs. Brooks. Thank you, Mr. Chairman. And thank you for being here and for your work. One of the reasons why I think the opioid epidemic has become so pervasive is because of the prevalence of pain, and pain being the most common reason Americans access the healthcare system to begin with, and number one cause of disability in the country. We know pain is a major contributor to healthcare costs, not to mention societal costs and the economic loss because of the opioid crisis. But how can HHS and CMS ensure that educators, or providers rather, are better educated about pain management alternatives, including the technological alternatives to opioids that Dr. Bucshon was just talking about? In a previous answer, I know you mentioned the Medicare Learning Network. I would like to know a little bit more about how you are doing more of the education for providers? Ms. Brandt. Ma'am, it is a great question. I think the pain issue is one that we have really tried to address through multiple fronts at CMS. Part of it is having more of a discussion with providers about pain. Our quality measures used to have pain management survey questions in them. We have changed those to have it be more of a discussion about pain instead of how can we just manage your pain. It is having a discussion about the type of pain and sort of why that is happening and trying to figure out the right solution. We have also been working on quality reporting on adverse events in the hospital to sort of work with physicians to say, OK, how can we have a better understanding of this? How do you know what the alternatives are? So part of that is through the outreach we do through our quality improvement organizations, our QIOs, and our quality improvement network. They do a lot of outreach in physician and hospital education. We use the Medicare Learning Network, MLN, that I talked about before, where we issue a lot of bulletins electronically that go to physicians and hospitals to update them on, Hey, here is a new treatment that you might not be aware of, or, Here is some new developments that we have on coverage for alternative treatments. We have also tried very much to have more of an ongoing dialogue through open-door forums and just more one-on-one educational interactions with various medical societies and others, to really educate them about what we are doing, and to hear from them about how we can do better. So I think there is always more that we can do, but we have really been trying to do it through both an in-person and virtual approach, and think we can do more. Mrs. Brooks. How do you know about the utilization of that type of information? Ms. Brandt. Well, that is the challenge. We have a good idea of how many people subscribe, for instance, to our Medlearn Matters articles. We have a good idea of how many people participate in our open-door forums and things like that. But a lot of that information then gets disseminated on even further from there, so it is hard for us to completely track. But we are trying to do a better job of targeting our outreach. And one of the things that our stakeholder sessions taught us was that we really are thinking through how we can better partner with our Federal partners and our private sector partners, the plans, a lot of the associations and others, to do more coordinated outreach and education in this space, and that is something we are currently working on. Mrs. Brooks. When we passed in CARA, the interagency group that was formed with various Federal partners to focus on prescribing practices? Are you familiar with that group? Ms. Brandt. I know that we have participation in many types of groups like that. I am not sure if it is the one specifically described in CARA. I can get back to you. But we are in active coordination and discussions with CDC, NIH, SAMHSA-HRSA, all of the different components within HHS, DEA, and others to kind of work and sort of figure out how our piece as a payer impacts with the different pieces that they have from the other perspectives. Mrs. Brooks. I would be interested in you getting back to us as to whether or not---- Ms. Brandt. We will certainly follow up. Mrs. Brooks [continuing]. This was part of CARA. And I would like to know, and I think it would be important for you to participate. Would you agree, however, that we could continue to do even more prescriber education? And I am working on a bill to require more prescriber education, but to allow it to be focused at the State level, and to have the societies and the other entities at the State level oversee that type of training, because not all States require continuing medical education. Were you aware of that? Ms. Brandt. I did not know that. Mrs. Brooks. So that is something that not all States currently have, and so right now, it is all voluntary. Everything is voluntary, is it not? Ms. Brandt. Yes. Mrs. Brooks. Unless the State is requiring it. Some States do. Indiana happens to now require it. Ms. Brandt. Right. Mrs. Brooks. Thank you. I yield back. Ms. Brandt. Thank you. Mr. Burgess. The chair thanks the gentlelady. The gentlelady yields back. The chair recognizes the gentleman from Georgia, Mr. Carter, 5 minutes for your questions, please. Mr. Carter. Thank you, Mr. Chairman. Thank you, Ms. Brandt, for being here. Appreciate it very much. I want to talk to you, first of all, about abuse deterrent formulations. To be quite honest with you, in my years of practice in pharmacy, when this first came out, I wasn't too high on it. But now that we have developed as much of a problem as we have with the opioids and drugs of abuse, I am beginning to warm up to it quickly. And I see the usefulness of it and the fact that you won't be able to crush it so that you can't snort it or turn it into an injection. I understand that there might be some extra cost involved. I am wondering what kind of barriers that your agency is seeing in using these medications, and what is limiting the use to access to these types of medications? Ms. Brandt. So right at the moment, we agree that abuse deterrent opioids are definitely a potential tool in tackling this epidemic. At this point, the epidemic is so pervasive that we are looking at any and all tools. Mr. Carter. Exactly. I would agree with that. Ms. Brandt. We need to explore all. I think under our current statute, we cannot tell our plan sponsors what to negotiate and what types of drugs that they have to cover on their formularies. It is the plan sponsors' responsibility to do negotiations and negotiate with drug manufacturers and determine which of the FDA-approved medications to make available to the---- Mr. Carter. Now, who sets forth those results and regulations? Is that in the statute? Ms. Brandt. It is under current statute, yes, sir. Mr. Carter. So that is something we in Congress can help you with? Ms. Brandt. You have the ability to influence that, yes. Mr. Carter. OK. Well, that was my next question, how can we help you? And you just answered it. We can help you by rewriting those rules and regulations to include this. Ms. Brandt. As I said, right at the moment, we cannot interfere in those negotiations under the statute as it is currently written. If you all were to change that, that could potentially give us more flexibility. Mr. Carter. Right. Well, as this evolves and as it continues, it is certainly something we need to be looking at from a perspective here. I want to go now to the Medicaid Pharmacy Home Act. And before I ask you just a couple of questions about it, I want to compliment my colleague, Mr. Bilirakis, in his work on this. I think this is good. I have been involved during my time of practicing pharmacy with lock-ins, and I see the advantage of them, but I also see some concerns. I do think that they can help lower the incidents of fraud and abuse. But at the same time, I am just wondering in the legislation--pharmacy preference is very important. And I have often wondered when these programs are used how they determine which pharmacy is going to be the lock-in pharmacy. What do you think about pharmacy preference and about the patient having the ability to request a certain pharmacy? Ms. Brandt. Well, I think, as I said, we currently have this as an optional authority, starting in 2019, for our plan sponsors to do lock-in. And part of it is working with the beneficiary to make sure that it is a pharmacy that fits for them, that is geographically appropriate, that is somewhere that they can access. And part of that is the right care and the right setting that I was talking about before. So I think that our expectation is that pharmacies and plans will work with the patients and the providers to make that best fit. Mr. Carter. Well, one of my concerns is access to the medication. I have seen situations where they are locked in to a pharmacy. That is the only place they can get it, and that pharmacy might not have a certain product that they need, and, therefore, the access is denied. What do you think about having more than one pharmacy in that situation? Ms. Brandt. Well, that is one of the reasons where we gave some flexibility to be able to potentially have, in certain instances, pharmacies or providers and, again, trying to do so in a limited way to sort of limit the potential for abuse, but yet, still be able to give those options that you are talking about. Mr. Carter. Well, I am glad to hear you say that, because I think that is going to be extremely important. I know that the lock-in provisions can work, but I am very concerned about accessibility and particularly about patient preference. That is very important. And certainly, in this situation, I think it would be most important in working with the patient to make sure that they are getting the pharmacy preference of their choice would be paramount, I think, in this situation. Well, thank you for what you are doing. Appreciate you being here today. Mr. Chairman, I yield back. Ms. Brandt. Thank you. Mr. Burgess. The gentleman yields back. The chair thanks the gentleman. All members of the subcommittee having had an opportunity to ask questions with the exception of the chairman, the chairman will now recognize the gentleman from the full committee, Mr. Tonko of New York, 5 minutes for your questions. Mr. Tonko. Thank you, Mr. Chair. Thank you for letting me waive onto the subcommittee. Before I begin, Mr. Chair, I have a unanimous consent request. I have here letters of support for the Medicaid Reentry Act from National Association of Counties, the American Medical Association, the American Society of Addiction Medicine, the American Psychiatric Association, Community Resources for Justice, the International Community Corrections Association, the National Commission on Correctional Healthcare, and the Coalition to Stop Opioid Overdose. I would ask unanimous consent, Mr. Chair, that these letters be entered into the record. Mr. Burgess. Without objection, so ordered. [The information appears at the conclusion of the hearing.] Mr. Tonko. Thank you, Mr. Chair, for holding this important hearing and for including legislation that I have authored, the Medicaid Reentry Act, as a part of this conversation. And welcome, Ms. Brandt. My goal with the Medicaid Reentry Act is simple: To reduce overdose deaths among individuals leaving jail or prison and returning to the community. We have heard from earlier hearings in this committee that this is a uniquely vulnerable population with the risk of overdose reaching as high as 129 times that of the general population during the first 2 weeks of post release. To reiterate, 129 times more likely to die of an overdose during the period in time when an individual is supposed to be getting a second chance at life. That number is astounding and should serve as a moral call to action for our nation. The good news is that we are not helpless when it comes to solutions. We just need to have the will to see them through. Expanding quality addiction treatment to individuals while incarcerated can dramatically improve health outcomes and reduce overdose deaths and recidivism. Early reviews of a groundbreaking program in Rhode Island that provides access to all forms of medication-assisted treatment in jails and prisons resulted in a 61 percent decline in overdose deaths post release. However, widespread implementation of programs like this still face a number of obstacles, not least of which is funding. That is where my legislation enters in, as it would grant States new flexibility to draw Federal Medicaid funds for services provided to existing incarcerated Medicaid beneficiaries in the 30-day period prior to release. It is just common sense to initiate treatment for incarcerated individuals who are about to be released while they are in a stable, controlled setting rather than the moment they are thrown back out into the often chaotic environment to which they will be returning. I would like to get some feedback from CMS on ways that the agency can utilize Medicaid as a tool to help this vulnerable population. And so, Ms. Brandt, given this administration's openness to providing States with structured waiver guidance when it comes to outdated payment restrictions in Medicaid when these policies stand in the way of providing beneficiaries quality addiction treatment such as the IMD waiver guidance, I am wondering if CMS has contemplated, or would be open to, promoting limited waiver opportunities around the inmate payment restriction that would similarly promote the agency's goal of reducing overdose deaths and improving care coordination for beneficiaries? Ms. Brandt. Well, this is an issue actually that we have heard from several stakeholders about. And we have had some very extended conversations internally, and I think we are very much willing to work with you and this committee to look at what the options are, because we understand that this is a big issue. It is one that several States have come to us about, and we would be very much willing to talk with you all about where we could potentially have some flexibilities. Mr. Tonko. That is wonderful. It is just encouraging that the agency would commit to working with me and other interested stakeholders to explore the possibilities of developing 1115 waiver guidance around the inmate payment restriction issue, so I appreciate that. One other obstacle that Medicaid beneficiaries leaving correction settings face is that many States terminate rather than suspend Medicaid coverage for incarcerated individuals. When States terminate benefits, this can lead to a lengthy reapplication process and gaps in care at a time when these beneficiaries are most vulnerable. How can CMS take a leadership role in encouraging States to suspend rather than terminate Medicaid benefits for incarcerated individuals which public health advocates overwhelmingly agree is a best practice? Ms. Brandt. That is another issue that has come to our attention and that we have been talking about how we can work with States to perhaps share best practices or better guidance, and look forward to continuing to work with you and the Committee on possible solutions. Mr. Tonko. Well, whatever we can come up with. I am open to suggestions that your agency can offer us in terms of speaking to the needs of the incarcerated population. The stats are very much a guiding tool. And we need to develop policy, I believe, that will substantiate the effective use of taxpayer dollars and not have recidivism be part of it, and in a bolder sense, save lives. So I thank you very much for your kind attention and look forward to working with the agency, with you, in particular. And, Mr. Chair, I yield back. Ms. Brandt. Thank you. Mr. Burgess. The chair thanks the gentleman. The gentleman yields back. I am going to recognize myself for questions. And, Mr. Tonko, I will just point out the--that is an issue that has been worked on in the past, in particular, with individuals who have been charged but then released so they were not actually found guilty. And they fall into that conundrum that you describe, and they have to go through the reapplication process. And that is really not an agency problem; that is a legislative problem at some point in the distant past governed by offset, and that was an offset that produced a pay-for for some other policy that some other Congress thought was important. But I agree with you, that needs to be remedied, and I have heard from people as well. Mr. Tonko. All right. Well, I thank you, and I look forward to working with you also, Mr. Chair. Mr. Burgess. Let me just ask you--and, Ms. Brandt, I also want to just address the Bilirakis bill on the lock-in. Many, many, many years ago when I was a resident in training an attending physician pointed out to us that one of the highest risk situations in medicine was when two doctors were writing insulin orders or more than one doctor was writing insulin orders. He said, in fact, the only thing more dangerous than two doctors writing insulin orders is two doctors writing pain med orders. Any way you stop and think about it, in the continuity of care and do people communicate with each other, and you can very quickly get into a high-risk situation. So I think the lock-in provision is--and some people see that as a restriction of access, but actually, I see that as continuity of care and actually good patient care. And I hope we get a chance to work on that when we do our formal markup. Mr. Bucshon talked about the methadone program. When I was in medical school in the 1970s, I actually spent a month in a methadone clinic. I don't think it has changed a lot since the 1970s. Ms. Brandt. Probably not. Mr. Burgess. And it was hard on people to--you have to go every day. You have to sign in. You have to wait your turn. You have to take your stuff. People have to see you take your stuff. It becomes very, very hard to maintain outside employment because you are spending so much time dealing with the methadone maintenance. I don't know if there is a way to change that, but I think Dr. Bucshon is onto something. We do need to think about how we are administering that. We have a GME transparency bill, one that I have been interested in. There was a GAO report that said graduate medical education in 2015, State agencies--State and Federal Medicaid agencies spent over $16 billion for graduate medical education making Medicaid the second largest payer of graduate medical education. But they also pointed out a lack of transparency. Do you agree that it is important to know how those dollars are being spent and where they are being spent? Ms. Brandt. Absolutely. Transparency on spending of that is very important. Mr. Burgess. So you would be in agreement that better transparency going forward with our Medicaid GME dollars makes sense? Ms. Brandt. All Federal dollars need to be accounted for. Mr. Burgess. Thank you for that. I certainly agree. Now, I mentioned in my opening statement, and I think we heard from Mr. Shimkus on the protecting legitimate access to patients who are on--not just cancer patients but people who have chronic pain conditions and are maintained on an opiate and it works well, and, in fact, they are able to maintain outside employment and family relationships. So while they may be habituated they are not addicted, they don't exhibit addictive behavior, unless, of course, their chain of therapy is broken. So the forced attenuation of therapy or the rapid attenuation of therapy is something that many outside groups are concerned about. I am concerned about that because I think we will drive some of these individuals from their structured maintenance on an opiate for their chronic pain, and they will look for other avenues, and as we all know, those other avenues are heroin and fentanyl, and they are not safe because of the quality control that the criminal element does not participate in, and that is where our deaths come from. So I want us to be careful about the prescriptions going out, and I think your overuse of work that you are doing is extremely important, and I want to be supportive of that, but I think we also have to recognize there are people where, again, we can't tighten that bolt down any more without breaking it off, and that would be a bad thing. Ms. Brandt. No, absolutely. We absolutely concur. Mr. Burgess. Just on the issue of the overuse or overutilization, and I appreciate that you are focusing on providers, I appreciate you are focusing on patients, but I have got to tell you, one of the things that has been frustrating for me, the CMS has a lot of data at your disposal, and we have come up against problems where pharmacies in relatively small communities have received way too much product for the patient populations they are treating, and I hope you will use when you talk about overutilization, yes, focus on the doctors who are outliers, focus on the patients who are overconsumers, but really, those fact manufacturers who to whom you are then writing reimbursements, that needs to be part of the equation, as well. And I will just tell you here at the committee level we need help with that. While there are other agencies that have not been as helpful or as forthcoming as they could have been, but CMS does have that data, and we need your help on that. I have a number of other questions that I am going to submit in writing because I can see Mr. Green is getting nervous, but I do want to thank you for your time today, and I think we have learned a lot today in this hearing, and I know there was some criticism that we were taking on a little bit too much work, but I think it is important, and I don't think there was anything that we heard today that was superfluous or duplicative or anything that actually wasn't important for us to hear. But I thank you for your testimony. Let's see. We are going to recess until tomorrow morning at 10:15 at which time we will reconvene with our second panel that is going in a room upstairs. Obviously, Ms. Brandt, you are excused, and we appreciate your participation, but without objection, the subcommittee will go into recess and convene tomorrow morning at 10:15 a.m. [Whereupon, at 6:00 p.m., the subcommittee recessed, to reconvene at 10:15 a.m., Thursday, April 12, 2018.] COMBATING THE OPIOID CRISIS: IMPROVING THE ABILITY OF MEDICARE AND MEDICAID TO PROVIDE CARE FOR PATIENTS, DAY 2 ---------- WEDNESDAY, APRIL 12, 2018 House of Representatives, Subcommittee on Health, Committee on Energy and Commerce, Washington, DC. The subcommittee met, pursuant to call, at 10:16 a.m., in room 2123 Rayburn House Office Building, Hon. Michael Burgess (chairman of the subcommittee) presiding. Members present: Representatives Burgess, Guthrie, Barton, Shimkus, Latta, Lance, Griffith, Bilirakis, Bucshon, Brooks, Mullin, Hudson, Collins, Carter, Walden (ex officio), Green, Engel, Schakowsky, Butterfield, Matsui, Castor and Kennedy. Also present: Representatives Kinzinger and Tonko. Staff present: Daniel Butler, Staff Assistant; Zachary Dareshori, Legislative Clerk, Health; Paul Eddatel, Chief Counsel, Health; Margaret Tucker Fogarty, Staff Assistant; Caleb Graff, Professional Staff Member, Health; Jay Gulshen, Legislative Associate, Health; Ed Kim, Policy Coordinator, Health; Drew McDowell, Executive Assistant; James Paluskiewicz, Professional Staff, Health; Kristen Shatynski, Professional Staff Member, Health; Jennifer Sherman, Press Secretary; Josh Trent, Deputy Chief Health Counsel, Health; Jacquelyn Bolen, Minority Professional Staff; Waverly Gordon, Minority Health Counsel; Tiffany Guarascio, Minority Deputy Staff Director and Chief Health Advisor; Una Lee, Minority Senior Health Counsel; and Samantha Satchell, Minority Policy Analyst. Mr. Burgess. The Subcommittee on Health will come back to order. We want to thank our witnesses for being here and joining us again this morning, taking their time to testify before the subcommittee. Each witness will have an opportunity to give an opening statement followed by questions from members. This is a continuation of yesterday's hearing, so we will not go through opening statements from the top of the dais. People heard enough from us yesterday. So, today we are going to hear from the Honorable Michael Botticelli, the Executive Director, Grayken Center for Addiction, Boston Medical Center; Mr. Toby Douglas, Senior Vice President for Medicaid Solutions, Centene Corporation; Mr. David Guth, CEO of Centerstone; Mr. John Kravitz, the Chief Information Officer from Geisinger Health System, and Mr. Sam Srivastava--close enough?--the CEO of Magellan Healthcare. And we do appreciate all of you being here with us today. Mr. Botticelli, you are now recognized for 5 minutes to give a summary of your opening statement, please. STATEMENTS OF MICHAEL BOTTICELLI, EXECUTIVE DIRECTOR, GRAYKEN CENTER FOR ADDICTION, BOSTON MEDICAL CENTER; TOBY DOUGLAS, SENIOR VICE PRESIDENT FOR MEDICAID SOLUTIONS, CENTENE CORPORATION; DAVID C. GUTH, JR., CHIEF EXECUTIVE OFFICER, CENTERSTONE; JOHN M. KRAVITZ, CHIEF INFORMATION OFFICER, GEISINGER HEALTH SYSTEM; AND SAM K. SRIVASTAVA, CHIEF EXECUTIVE OFFICER, MAGELLAN HEALTHCARE STATEMENT OF MICHAEL BOTTICELLI Mr. Botticelli. Thank you, Chairman Burgess, Ranking Member Green, and members of the committee. It is a privilege and honor to be before you again. And I really want to thank you for your continued leadership on this issue. I really want to focus today on how we can make progress, continued progress, against the opioid epidemic, and particularly the roles of Medicaid and Medicare in combating this crisis. As I said and as your introduction, I am the Executive Director of the Grayken Center of Boston Medical Center. We are the largest safety net provider in New England with approximately 42 percent of our patients entering through Medicaid and another 27 percent through Medicare. For decades, BMC has been a leader in treating substance use disorders. Many BMC programs have been replicated not only across Massachusetts, but nationally. The Grayken Center for Addiction at BMC encompasses over 18 clinical programs for substance use disorders. I offer my perspective not only as the Executive Director, but with over 25 years' experience in addiction services, having formerly the honor of serving as the Director of the White House Office of National Drug Control Policy and as the Director of the Massachusetts Department of Public Health. My perspective is also as a person in long-term recovery with over 29 years in recovery. The experience at BMC and in Massachusetts highlight the critical role that Medicaid plays in addressing the opioid epidemic, and this cannot be overstated. The vast majority of BMC patients receiving treatments for opioid addiction have Medicaid, which is widely available to low-income individuals and families and covers a comprehensive set of benefits that allow our providers at BMC to offer our patients the highest- quality care while also at the same time reducing healthcare costs. Massachusetts Medicaid covers all three FDA-approved medications, includes naloxone on its formulary, and will soon cover residential rehabilitation services and recovery coaching services, all benefits which are not available in many other state Medicaid programs. Sadly, in America today access to treatment is very much dependent on where a person lives. Among the many bills under consideration by your committee are new opportunities for Medicaid to play a more substantial role in addressing the opioid epidemic, and here are a few, I think, for action: All FDA-approved medications for opioid use disorder should be available to patients. Evidence for medication for addiction and treatment is unequivocal. Patients with medication experience significantly improved rates of recovery and, simply put, they don't die. Yet, many settings do not make all or some of the medications available because of coverage rates and often ideas and philosophy. Only one in five people with opioid use disorders receive medication, while the percentage for youth is even less. In the words of Secretary of Health and Human Services Alex Azar, ``Failing to offer medication is like trying to treat an infection without antibiotics.'' And, like any disease, clinicians need as many treatment tools as possible because what works for one person might not work for the next. However, many patients are limited to what medications they can access, if any. Medicare, for example, does not cover outpatient opioid treatment programs, although there are bills, including one by Ranking Member Pallone, to address this. And also, any federally-funded substance use disorder treatment program that bills Medicaid or Medicare should be required to provide medications consistent with approved best practices. Medicaid and Medicare should make naloxone universally available, preferably without a copay. In 2017, Massachusetts for the first time saw an 8.3 percent drop in annual opioid overdose deaths, the first year it decreased since 2010, but at the same time the number of non-fatal overdoses went up. What it suggests is that broad availability of naloxone in Massachusetts is keeping more people alive while the epidemic is continuing to grow. Just last week, the Surgeon General of the United States urged people to carry naloxone. Overdose data in Massachusetts also show that individuals recently released from incarceration overdose at 120 times the rate of the general public, most often within the first 2 weeks. This devastating trend emphasizes the need to focus on transitions of care for patients leaving incarceration, as well as treatment during incarceration, as several bills under review by this committee have proposed. Despite modest decreases in prescribing in the United States over the past few years, prescribing opioids is still a driver of this epidemic. Medicare and Medicaid should mandate that prescribers have continuing medical education around safe prescribing as well as they register and use state-based prescription drug monitoring programs in order to more appropriately treat pain and to diligently track prescribing patterns. To complement these successful efforts to reduce opioid prescribing, we need to ensure that patients have access to non-pharmacologic pain management strategies such as acupuncture, physical therapy, and cognitive behavior therapy. Unfortunately, only about half of state Medicaid programs specifically support these services. Access to services continues to be a barrier in many parts of the country. One study showed that only 40 percent of counties in the United States did not have an outpatient treatment program that accepted Medicaid, and CMS could do more to expand its network. BMC has many treatment programs that have become national models. The foundation of all these programs is the absence of stigma. Without exception, patients who are aided to recovery at BMC credit the lack of judgment they felt in our programs. Medicaid and Medicare can and should do more to get evidence- based addiction treatment to all these patients. Addiction is a disease, and long-term recovery should be the expected outcome of any treatment. Thank you, and I look forward to your questions. [The prepared statement of Mr. Botticelli follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Burgess. We thank you for your testimony. Mr. Douglas, you are recognized for 5 minutes, please. STATEMENT OF TOBY DOUGLAS Mr. Douglas. Mr. Chairman, members of the committee, thank you so much for inviting me to this hearing and your leadership on this issue. My name is Toby Douglas. I am the Senior Vice President for Medicaid Solutions at Centene Corporation. Centene is the largest Medicaid managed care plan in the country, serving 7.1 million members in 25 different States. I am also the Commissioner on the Medicaid and CHIP Payment and Access Commission, known as MACPAC, and a board member on Medicaid Health Plans of America, a health plan association. And previously, I was a longstanding Medicaid director and behavioral health director in California for the Department of Health Care Services. So, my testimony today is really based on my experience in all these positions as well as my interactions with colleagues in these various states and managed care organizations who are all working together to combat this epidemic. The epidemic disproportionately affects Medicaid beneficiaries. And a few facts from my written testimony: Opioid addiction is estimated to be 10 times as high in Medicaid as in commercial populations. Medicaid beneficiaries are prescribed opioids twice as much as individuals in commercial insurance. And Medicaid has higher rates of hospitalization and emergency department use for drug poisoning and six times the risk of overdose death. So, Centene, other Medicaid MCOs, and States are taking a comprehensive approach on prevention, treatment, and recovery. First, we are working with members and providers to prevent addiction from occurring by curbing excessive prescribing patterns. We are preventing overdose. And finally, we are facilitating treatment and recovery in chronic opioid users. I am going to lay out different areas where Congress can enact policies that really further the ability of Medicaid managed care organizations and states to take a comprehensive approach to prevention and treatment. First, there needs to be the adoption of best practices and ensuring appropriate prescribing and utilization patterns and increased member and provider education. For example, States and MCOs are taking several actions related to improved formulary management. MCOs and States are removing medications from the formulary that could have a greater potential for misuse. They are limiting early refills and prescription quantities and duration. And finally, some plans, including Centene, are using prescription data to lock in high-risk individuals to one prescriber and/or one pharmacy to fill opioid prescriptions. Congress should also invest in the development of continuum-of-treatment modalities, including the use of medication-assisted treatment and ASAM criteria. Several States as well as managed care organizations are working to expand the availability of MAT, recognizing there is a significant shortage in this area, and they are implementing very innovative models that are using the expertise of both a hub, which serves as kind of a center of excellence, and spokes to expand the access to MAT in primary care settings. Congress should eliminate the Medicaid payment restriction on residential treatment, also known as the IMD restriction in substance use. This is an important component of the overall continuum-of-treatment modalities and should be done within that context of ensuring there are a full continuum of services. Congress should invest in state adoption of prescription drug monitoring programs and use strategies to ensure all appropriate entities, including both the Medicaid agency systems, managed care entities, and providers have efficient access to PDMP data. Congress should reform 42 CFR Part 2 to align substance use disorder privacy protections with HIPAA. The lack of alignment between Part 2 and HIPAA really is a challenge for overall primary care and behavioral health integration, and there needs to be the reform to align those privacy protections with HIPAA, but at the same time maintaining the important patient information around substance use from any type of use for criminal, civil, or administrative proceedings. And finally, the last point I leave you with is that Congress should look to invest in State officials Medicaid leadership as well as ensuring that leadership is investing appropriately in managed care organizations. States continue to face considerable staff turnover in their Medicaid agencies and leadership. And in order to ensure that States have the right leadership to address this epidemic as well as future public health crises, there needs to be an investment in the appropriate resources, so that both the States as well as the MCOs can execute the right policies. Thank you very much. [The prepared statement of Mr. Douglas follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Burgess. We thank you for your testimony. Mr. Guth, you are recognized for 5 minutes, please. STATEMENT OF DAVID C. GUTH, JR. Mr. Guth. Thank you, Mr. Chairman, and my thanks to the Committee for your comprehensive work on this epidemic that is ravaging our country. I want to say a special thank you to Representatives from our service area: Congressmen Guthrie, Bucshon, Brooks, Bilirakis, Shimkus, and Blackburn. And I am honored to be here today not only as the voice of my colleagues at Centerstone, but really on behalf of the nearly 180,000 people at Centerstone that we serve each year. So, a little bit about Centerstone. We are celebrating our 63rd year of service as a not-for-profit behavioral health organization, and we provide a comprehensive set of services throughout our footprint of Florida, Indiana, Illinois, Kentucky, and Tennessee. We also serve individuals beyond that footprint, principally through our network of specialized therapists providing service to men and women who serve this country in uniform and their loved ones. Do we really know how to treat opioid addiction? Do we have proven treatments and recovery strategies to move people out of opiate dependency and into recovery? And the simple answer is, yes, we do. But, unfortunately, far too few people have access to comprehensive evidence-based treatment they need. There are many reasons why this is the case. A major challenge is a lack of providers. We know that there are more than 30 million Americans, living principally in rural communities, who have no access to treatment whatsoever for their condition, let alone comprehensive evidence-based ones. Another challenge is that in places where treatment options do exist, many available are woefully inadequate. This stems from the fact that fundamentally we do not as a Nation treat opioid use disorder like the chronic disease that it is. And despite the body of evidence, there are no standards of quality care that providers are held to and no consistent protocols for care. This is a dramatic departure from our treatment of other severe health conditions. The experience for someone seeking treatment for substance use, opioid use in this case, disorder is entirely different than that of a heart patient. If an opiate-addicted person visits five different treatment centers, they might well receive five different treatment protocols. What happens is where they present makes a greater difference in terms of what they are offered than how they present, and we must change that. There is no set path a provider is encouraged to follow when no one is holding that provider accountable for administering an evidence-based protocol or for ensuring that the patient has a positive outcome. It is often the case that other healthcare providers that may be engaged in that patient's care around other disorders may not even know that their patient is in treatment for their addiction, let alone have access to the full medical record. In short, fragmented care and absence of quality standards and immense workforce shortages result in delayed access or no access at all to lifesaving care. This is what we have to change. Opioid use disorder is similar to heart disease in that there is no one magic bullet for treating it. You cannot take a pill so that it will disappear. It is a condition based on the patient's presentation and severity that requires a combination of treatments--medication, therapy, follow-up care--and a condition that may require significant changes in a person's life to overcome. Fortunately, there is data that shows what can work. This is why we support treatment initiatives that approach addiction as a chronic and relapsing disease with emphasis on building a patient's recovery. However, in order to ensure positive outcomes, we also need to modernize our health IT infrastructure and optimize our workforce. I realize that saying all of this is the solution is much easier said than done. Getting people in need the right care close to home means dealing with standards of care, infrastructure issues, knowledge gaps, technology gaps, and serious shortages among addiction treatment providers. Fortunately, many of the bills that have been introduced before this committee address these issues. Centerstone supports all legislative action that eliminates barriers to care and, instead, creates and rewards providers for following quality standards, so that when a patient walks through the door of any treatment provider, they have the best chance of receiving the right services that will help them on the path to recovery. We support advances in technology-enabled solutions such as prescription drug monitoring programs and incentives to modernize behavioral health IT. Investments in the health IT backbone of our behavioral health system are a critical tool in improving care. As our chief medical officer often says, the most costly care that we provide across this nation is care that does not work. We must address that. I am going to leave you with a quick story of a gentleman that received his care at Centerstone. His name is Keith Farah. He is now a peer support specialist at Centerstone. He struggled with severe and persistent addiction for years. As he put it, ``I had given everyone who loved me more than enough reasons to give up. I was homeless, unemployed, and a convicted felon. Even worse, I was hopeless and terrified of living life sober.'' He made the decision to enter into Centerstone's Addiction Recovery Center, and today he celebrates a life he never dreamed of. So, I know I am out of time here. I just want to say, on behalf of all of the teams that provide services to our communities, on behalf of the board members that volunteer their time and energies to advance this, I want to thank you for your attention to this and the opportunity to provide commentary. And I look forward to your questions. Thank you, Mr. Chairman. [The prepared statement of Mr. Guth follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Burgess. Thank you for your testimony. Mr. Kravitz, you are recognized for 5 minutes, please, for an opening statement. STATEMENT OF JOHN M. KRAVITZ Mr. Kravitz. Good morning, Chairman Burgess and members of the Health Subcommittee of the House Energy and Commerce Committee. My name is John Kravitz. I am the Senior Vice President and Chief Information Officer of Geisinger Health System. I want to thank the Committee for holding this hearing on a key issue facing the Nation, one that Geisinger and healthcare providers are addressing. And that is to combat the national opioid crisis. Geisinger has employed a multifaceted approach to curb the use of opioids, such as utilizing information technology and electronic prescribing, implementing best practices for pain management, embedding pharmacists in our primary care clinics, establishing drug take-back programs, and others. Collectively, these initiatives have significantly reduced the use of opioids for our patients and members and increased quality of care and outcomes by reducing costs. With our history as an innovator of health IT and care delivery models, we saw opportunity to reverse these trends. Our physician leadership proposed, by limiting or eliminating the prescribing of opioids in the clinical setting, Geisinger could minimize and prevent patients' exposure to these drugs and consequent risk of developing an addiction that could lead to overdose or death. Reducing opioid addictions could also ease the burden on healthcare providers. In an analysis of 942 of our patients who are also insured by our organization, overdoses were found in opioids with steep increases in acute care cost as well as emergency department services prior to an overdose. We developed and initiated several approaches that focus on changing physician practice patterns to reduce the prescribing of opioids, including creating a provider dashboard which is linked to our electronic health record to identify current practice patterns for our providers. We found that providers greatly vary in their approaches to prescribing opioids, and the smallest number of providers are typically the ones that prescribe the largest number of opioid prescriptions. When we had this information, we could target the outliers and provide them with the best practice for pain management. This includes the pain management program for surgical patients where we counsel patients and their families to expect some manageable level of pain for minor procedures and the use of non-addictive alternatives for managing pain. In cases where our physicians believe an opioid prescription is in the best interest, they are highly encouraged to order smaller quantities, seven days or less. While I am not a clinician, I am pleased that information technology plays an important role in Geisinger's approach to decreasing use of opioids. There are several concerns, for example, with prescribing opioids through a paper process, including drug diversion, prescription forgery, provider DEA numbers being exposed to the public, and doctor shopping to obtain opioids. We have implemented the following initiatives to help alleviate these concerns: We are tracking documentation on our electronic health records and dashboards that show providers reviewed the mandatory PDMP programs, documenting findings in the patient's medical records. We are integrating specifically from a pain app that we have developed on a mobile device that measures physical activity, patient-reported pain, and other metrics into the dashboard and feeding into the medical record. And finally, we have deployed an EPCS program. Back in August 23rd of 2017 and through February of 2018, 74 percent of our providers of controlled medications have been prescribed through the EPCS system. All 126 of our clinics are on this process and having great success. Our results are encouraging. We have reduced opioid prescriptions by half since launching these initiatives two years ago, and monthly average of opioids, we had been prescribing about 60,000 per month; we are down to 31,000 and that number is dropping. Additional information on cost savings we realized from implementing the electronic prescribing of controlled substances were reducing by 50 percent the number of patient calls to determine if their paper prescriptions had been ready for them. So, we initially had about 660,000 calls per year from our patients for opioid prescriptions. We have reduced that to close to 330,000. With the number of diversions decreasing, we are able to decrease the size of our diversion staff to monitor and manage those, and provider time, most importantly, to write an opioid prescription with the EPCS system had gone from a time period of 3 minutes to write a paper prescription to 30 seconds with the EPCS system. Nursing time as well for opioid scripts went from 5 minutes to 2 minutes. These cost savings accrued approximately $1 million in savings in time and hard-dollar savings for our organization. Although the dashboard may be unique to Geisinger, we believe other health systems and hospitals can generate similar reports for opioid prescribing, and their electronic health records and clinical entry systems can do the same work that we have been doing. The initiatives rolled out by Geisinger are broadly applicable to other healthcare systems across the country, and we encourage others to apply these strategies to their organizations. To succeed, organizations need the support of their physician leadership. We are a physician-led organization. This is a process change that has to occur with physicians; it is not technology. Technology is told to support this. Everything we do at Geisinger is about caring. Part of our caring means that we believe that our members and our patients deserve the best care possible and the best outcomes. That is why we emphasize and support evidence- based medicine and care delivery, including e-prescribing of opioids. The evidence and results are clear. E-prescribing has reduced forgery and diversion while helping patients avoid all unnecessary exposure to addiction and harm. So, I would like to close out with a couple of concluding comments. We have found that the electronic prescribing process has led to quality improvements in care while reducing opioid prescriptions, drug diversions, prescription forgery, and reducing total cost of care. Thank you again for the opportunity to provide these thoughts on this critical issue, and I entertain any questions. [The prepared statement of Mr. Kravitz follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Burgess. And thank you for your testimony. Now, Mr. Srivastava, you are recognized for 5 minutes for your opening statement, please. STATEMENT OF SAM K. SRIVASTAVA Mr. Srivastava. Thank you, Mr. Chairman. Mr. Chairman, Ranking Member, and all members of the House Energy and Commerce Committee, thank you for inviting me to testify today on the challenges addressing the opioid crisis and offer thoughts about legislative ideas within the Medicaid and Medicare programs. Magellan Health is a leader in the management of complex population health. For over 40 years, we have been pioneers in behavioral health, innovators in specialty health, and experts in pharmacy services. We work with health plans, employers, providers, and government agencies, and we serve 25 million people with behavioral health services and 24 million people with specialty health services. We are also privileged to be able to serve a lot of the members here right on our panel today. We bring a wide range of experience and challenges facing the country with regard to the terrible opioid epidemic. The Committee is well aware of the facts of the opioid epidemic. The most recent CDC report says that over 42,000 overdose deaths occurred by opioids in 2016. This is truly a national epidemic, and we commend the Committee for its work to develop bipartisan legislation to reduce and prevent addiction and to provide treatment and recovery for those facing this disabling disease. We look forward to continuing to partner with all of you as we move forward in the legislative process. So, let me start by saying that the draft bills that have been recently introduced are critically important components to developing a comprehensive response to the crisis. While we have not thoroughly reviewed all of these bills, our initial takeaway is that they point in the right direction and the Committee is on the right track. We need to expand capacity for treatment and recovery services, develop programs for at-risk populations that limit access to highly addictive drugs. We need to allow further access to drug monitoring program data, so providers, health plan clinicians, and care coordinators can access an individual's controlled substances history to identify potentially inappropriate prescribing, dispensing, and the use of opioids and other lethal drugs. We also need to update privacy laws that limit the provider's ability to share information on substance use which may hinder a provider from making informed healthcare decisions. These are all critical components for an overall framework to help address the opioid crisis. Let me offer a couple of observations. A more detailed discussion of our organization's views can be found in my written testimony to the Committee. But expanding access to evidence-based medication-assisted treatment, or MAT, is an important cornerstone to treatment and recovery. MAT combines FDA-approved medications with evidence-based behavioral health therapies and psychosocial interventions, such as peer recovery and support services, to provide a whole patient approach to treating substance abuse disorder. MAT is a highly effective treatment option and has been shown to reduce drug use and overdose deaths and improve retention in treatment. Now because Magellan believes in MAT as an effective treatment, we are committed to taking steps to ensure that it is more readily available and paired closely to peer recovery and support services. To further improve the adoption and availability of evidence-based MAT, we recommend expanding the ability to prescribe MAT through the use of telehealth. We also recommend and encourage the use of other practitioners to be eligible to prescribe MAT, such as nurse practitioners and other medical professionals. We ask that the Committee also consider a pay bump or other incentives to provide treating patients with a substance use disorder through MAT, and we also encourage that all forms of MAT be covered under Medicare Part B. A major barrier to care coordination for those who suffer from opioid addiction is the limits of health privacy data regulations placed on healthcare organizations for people with substance use disorders. The vast majority of today's integrated care models rely on HIPAA-permissible disclosures and information sharing to support care coordination; that is, without the need for the individual's written consent to share relevant medical treatment details between providers. 42 CFR Part 2 currently does not allow the confidential sharing of information on substance use disorder diagnosis and treatment for care coordination or when individuals move from one health plan to another. Excluding substance use disorder from the care coordination hinders the ability to continue to develop comprehensive treatment plans and coordination of services. Magellan recommends the statute be amended to permit sharing of substance use disorder information for purposes of treatment and healthcare operations, as defined by HIPAA and for medical care. Also essential to the modernization of Part 2 is the express permissibility of substance use disorder diagnosis and treatment information to be included in electronic medical records. We would like to thank again the Committee for the opportunity to offer some thoughts and recommendations on how to address the opioid crisis. Magellan has seen firsthand the magnitude of this crisis, and we are fully committed to continue to provide evidence-based, effective care services to those with substance use disorders. We look forward to working with the Committee in partnership to address the critical crisis facing our nation. Thank you. [The prepared statement of Mr. Srivastava follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Burgess. Thank you. I want to thank all of our witnesses for your testimony and participating with us this morning. And now, we will move into the question-and-answer portion of the hearing. Before beginning questioning, I would like to submit into the record a statement from the American College of Obstetricians and Gynecologists. Without objection, so ordered. [The information appears at the conclusion of the hearing.] Mr. Burgess. I would also like to submit for the record a New York Times article entitled, ``Medicare Is Cracking Down on Opioids. Doctors Fear Patients Will Suffer.'' I would like to submit that for the record. Without objection, so ordered. [The information appears at the conclusion of the hearing.] Mr. Burgess. And let me recognize myself, 5 minutes for questions. Mr. Douglas, I think in your testimony--and I think it actually comes up as a repetitive theme--but just looking at your remarks that you have provided to the Committee, ``Opioid addiction is estimated to be 10 times as high in Medicaid as in commercial populations,'' and then, you go on to delineate some other statistics that indicate Medicaid beneficiaries are prescribed opiates twice as often as individuals with private health insurance. I am going to ask you this question; you may not know the answer to it. I may be able to find the information elsewhere. But when was this phenomenon recognized? Is this relatively recent or this is something that has gone on for--I mean, Medicaid has been around since 1965. Has this been recognized in the '60s and '70s or is this a more recent phenomena? Mr. Douglas. I don't have the exact timing. But what I would say, given my previous life as a Medicaid director, that part of the phenomena within Medicaid is the growing role of Medicaid and being a broader program than just physical health. This problem in many ways was siloed off, with substance use being a separate program run in many cases in states by separate agencies. And what we went through in the evolution in around 2010 0911 was acknowledging the importance of integrating in California behavioral and physical health. That started to drive more of Medicaid and, then, our more integrated MCOs to work to solve and recognize the impact it was having on inpatient, on emergency room utilization. It was impacting medical spend and the outcomes and the need to expand services, which is why California started moving forward with how do we expand and integrate, as well as acknowledging there was actually with a siloed program a lot of unfortunate fraud going on within our substance use program, and the need to integrate into a system would allow for making sure the right care and the continuum is being provided. Mr. Burgess. And again, is that a more recent phenomenon or was that something that has just been longstanding? Mr. Douglas. As I said, the Medicaid agencies were starting to deal with this. When I look back on my time around 2010, around there, it was starting to become more and more of the need to think holistically about behavioral and physical health integration and brought these to the head. Mr. Burgess. And I actually would be interested in what other panel members have to say about this. I am not asking the question to be provocative. It is just that we are the payer here. The federal government is the Aetna, United, the Cigna. We are the payer. And if there is something about our structure that is putting people at risk, then I think we need to recognize that, and if there is a way to mitigate that risk, we ought to do so. So, are there any other thoughts that any of you have as to whether the identification of the type of coverage putting someone at risk, is that a real phenomenon or is that an observer bias? Mr. Botticelli, you look like you want to make a statement. Mr. Botticelli. I do, and no disrespect to Mr. Douglas. While we, I think, know the prevalence of substance use disorder in both Medicaid populations is high, and higher than the general population, there was a recent Kaiser health survey that just came out that shows the growing trend of substance use disorders and opioid use disorders prevalent in both commercial and employer plans. So, again, I think that while we do see slightly higher rates among Medicaid populations, I don't think that the differences are as vast between kind of the Medicaid population and the commercial market as one would have previously thought. Mr. Burgess. So, we can effectively ignore the type of coverage? It is of no consequence? Mr. Botticelli. No, coverage is significantly consequential because I think what we also see in other studies is that coverage, quite honestly, accelerates access to treatment, and we have seen it with both Medicaid and commercial plans. Mr. Burgess. So, intuitively, yes, that would be obvious. I am going to run out of time. And, Mr. Douglas, I also want to mention, thank you for bringing up Project ECHO, which was a product of this committee. And many of you have mentioned prescription drug monitoring programs and, of course, the NASPER authorization originated in this committee back in 2005. So, although the focus recently has been more intense, this subcommittee has been dealing with this problem for some time. I see my time has expired. I am going to yield to Mr. Green 5 minutes for questions, please. Mr. Green. Thank you, Mr. Chairman. And again, I thank all our panelists. One of the biggest issues of Americans struggling with opioid addiction and substance abuse generally are the barriers to treatments and ensuring there is a continuity of coverage, and particularly for vulnerable populations. Just that exchange, Dr. Botticelli, the compare between private insurance and Medicaid, at one time I assumed Medicaid was more. Coming from an urban area in Houston, Medicaid is such a predominant care for not only physical care, but also mental care. And my concern, Mr. Douglas, is that, if you are splitting off that, I think it ought to be a continuity of care between the physical doctor and--because, obviously, we know the behavioral and the physical is important. So, we need to have that coordination of care, whether it is through Medicare or the private sector, or whatever. What would be the consequences if it becomes more difficult for Americans struggling with substance use disorders to receive Medicaid coverage? Mr. Botticelli. I think we have seen, yes, we would not be able to do what we do at Boston Medical Center were it not for a generous benefit through Medicaid. And not only do we see successful clinical outcomes on both the behavioral and the physical side, but we have also been able to demonstrate that we can actually lower healthcare costs by giving people good, comprehensive, quality care. We have seen, if we can get people in treatment, we can reduce emergency department admissions and hospitalizations, as well as get them to long-term recovery and really kind of miraculously return people to jobs, to the community. I think, without coverage--and we have seen time and time again the devastating impact--that one would anticipate that we will see significant increases not only in mortality, but we are also dealing with other epidemic issues of hepatitis C. We are seeing outbreaks of HIV across the United States. And so, you are entirely correct that this is not just about adequate access to substance use treatment, but people need adequate access to the entire spectrum of physical health issues. Mr. Green. I was interested, Mr. Douglas, in saying, in 2010, you saw the more concern or interest, and it was because of the separation maybe from behavioral care as compared to physical care. Was that because of the Affordable Care Act getting ready to kick in or expansion of private sector funding because of the Exchanges? Mr. Douglas. So, again, this is really, I want to say, through my lens in California as well as on the National Association of Medicaid Directors, working with Medicaid directors at that time again, of Medicaid directors' acknowledgment. And I would believe that there were many factors. I think the Affordable Care Act was one of them, of understanding both looking more at how we were--at that time the Affordable Care Act, besides the expansion, was really focused on integrating care, as you said, of physical and behavioral health and aligning the right payment incentives and outcomes. And so, States were really looking holistically and realizing that, to address better health outcomes, there needed to be more integration and expansion of treatment modalities within behavioral health and substance use. And so, we are now in Centene, and where we stand is we do still see differences by States in the availability and access to substance use treatment services, and it varies. While Medicaid has a richer benefit, it still varies in terms of the availability of substance use. In States where we do have Medicaid expansion, we are seeing the ability in the data of being able to address unmet need more within the substance use area. So, it is a combination of factors. I don't want to say that the ACA didn't; the ACA spurred both expansion of benefits as well as thinking through how to integrate physical and behavioral health, as you said is so important. Mr. Green. Thank you. Mr. Chairman, you and I have had the opportunity, and a number of our members on both sides of the aisle, to attend the Commonwealth and the Alliance. Once a year we go off for a long weekend and have folks. Mr. Kravitz, Geisinger, for a number of years, has been at those facilities. And coming from a guy from Texas with my accent, I didn't know anything about Geisinger until then. But, then, I happened to have my father who moved back home, so to speak, from Houston, to northern Pennsylvania. He was a patient there. During his lifetime--he lived to be 91 and a half, a great life--but I was really impressed by Geisinger's facility there treating the whole person. Mr. Kravitz. Thank you. Mr. Green. Anyway, I am out of time, Mr. Chairman. Thank you. Mr. Burgess. The Chair thanks the gentleman. The Chair recognizes the gentleman from Virginia, Mr. Griffith, 5 minutes for your questions, please. Mr. Griffith. Thank you very much, Mr. Chairman. And thank you all for being here today to testify. Mr. Douglas, the Centers for Medicare and Medicaid Services recently released its 2016 Drug Utilization Review Report. The report noted that 26 Medicaid agencies have access to prescription drug monitoring program data. States can use this data from the PDMPs to manage the overutilization of opioids and detect fraud, waste, and abuse. On the other hand, 23 State Medicaid agencies report that they do not have access to the PDMP data. Can you describe how Medicaid agency officials would use PDMP data to combat opioid misuse? Mr. Douglas. So, both, again, from the view of talking with both current and former State Medicaid directors as well as managed care organizations, the use of PDMP is really, really important in combating. We have seen effective use in ability to both make sure that our providers, they understand and have a clear sense of where our members are receiving other opioid prescriptions. And so, it creates alerts. It creates information that we can then, as we go through utilization management back as a managed care organization, to be able to create and prevent prescribing from occurring. And so, in the cases where we have it, it effectively improves our ability to combat inappropriate prescribing patterns and utilization. And so, as I noted in my remarks, this is an area where I think Congress could do a lot in both incenting states to make sure that all entities, both the agencies, the Medicaid agencies, the providers, as well as the managed care organizations across all States and territories, have access to the data to combat and ensure there is judicious prescribing. I would note--and I think you heard from some of my colleagues--that that is not going to be sufficient. We have to also figure out how to overlay this into EHRs and make sure it is as easy as possible for our providers. We are at Centene trying to do that, but it is more than just a role of managed care organizations to be able to solve this. It takes investment in IT systems and prescribing to make sure that there is easy utility and it fits into the workflow of our providers. Mr. Griffith. One of your suggestions for ensuring all appropriate entities have access to PDMP data is to proactively share that data, the data reports, with each other. Can you explain how this would work in practice? Mr. Douglas. Well, this gets, again, to in practice the importance of IT, because, as providers work, it needs to be real-time. In terms of our responsibility for utilization management of pharmacy, there are requirements on turnaround times. And so, if the information is not shared quickly and through electronic means, we are either going to be out of compliance with our utilization management or providers are going to have problems within their workflow. And so, in practice, it makes sense. In the actual real life right now, until we get better IT systems across all systems--I am sure in Geisinger and others it is there--but we need, especially with Medicaid providers, more investment. Mr. Srivastava. So, Congressman, if I could add? Mr. Griffith. Yes, sir. Mr. Srivastava. One is it is spot on that with PDMP we are data-rich, but we are processing-poor in this construct. You need interoperability to share it with health plans that share it with pharmacy providers and with providers. It needs to be at the workflow level, so that it is in an EMR. But, also, you are getting data that is not just those that are prescribed, but also cash pay. So, if a person seeks drugs, and it is through the benefit in Medicaid or the benefit within your employer, you are going to get information. But, if you are actually going and cash paying for drugs, that processed claim would also show up in this report. So, we are getting more data sources, and it needs to be at the point of care, where the individual can act and understand whether there is a lot of drug history there, to be able to change the regimen. Mr. Kravitz. I would like to also add a comment, if you don't mind. Mr. Griffith. Yes, sir. Mr. Kravitz. From an information technology perspective, we use PDMP before any opioid is being prescribed for a patient. What is important, though, is not all States have reciprocity where they can go through and exchange information. We actually need to go to a level where we are closer to a national PDMP for patients traversing different State lines. Where there are reciprocal arrangements that are occurring, not all States participate. The other problem that is a national problem is a national patient identifier to make sure we have the right patient identified in the PDMPs. The other component of that, while we have advanced IT systems, we don't have the ability to put it into our workflow because our Commonwealth of Pennsylvania does not have APIs established yet to do that. We will have those in the next 3 months. We will automate that entire process, so that it doesn't have to take the provider out of the workflow, but trigger those events in the background. So that they know if a patient is traversing multiple locations to try to get opioids. Mr. Griffith. I appreciate that, and I will have additional questions for the record. Thank you, Mr. Chairman. I yield back. Mr. Burgess. The Chair thanks the gentleman. And, Mr. Kravitz, I would point out that NASPER, which was the national PDMP authorized by this committee in 2005, for the first time it was funded in the last funding bill that we just passed a few weeks ago. So, we are moving in that direction. It takes us some time, but we are getting there. The Chair now recognizes the gentlelady from Illinois, Ms. Schakowsky, for 5 minutes for your questions, please. Ms. Schakowsky. Thank you, Mr. Chairman. And speaking of what direction we are moving in, today's hearing on Medicaid and Medicare proposals to address the opioid epidemic actually comes on the same day that the House is considering the balanced budget amendment. I just want to comment on the effect that would have. If enacted, the balanced budget amendment would undercut the structure of Medicare and Medicaid by opening both to dramatic cuts in funding. Republicans passed what I believe is a misguided tax bill that blows a $1.5 trillion hole in the budget, gives 83 percent of these tax cuts to the wealthiest among us. And we see Republicans offer budgets that would fill that gap by cutting more than $1.5 trillion in Medicare, Medicaid, and Social Security. And now, Republicans want to amend our Constitution to require that we can only spend in any given year what we raise in tax revenue in that same year, after just cutting those revenues. So, this is a serious threat to Medicaid, which is on the frontline of fighting the opioid epidemic, as we have been talking about. So, let's see, who am I asking? Mr. Botticelli, what are some examples of the actual services that Medicaid programs cover for substance use disorder treatment? Mr. Botticelli. So, Medicaid--and I will talk specifically about a program that we have at Boston Medical Center---- Ms. Schakowsky. OK. Mr. Botticelli [continuing]. Where we have virtually 100 percent of our people who are Medicaid-eligible. That program serves over 700 people within the context of our adult primary care clinic. What we have been able to demonstrate through that is, at 12 months, we have 65 percent of people still engaged in treatment at 12 months or longer. But I also think what is important, too, is, as I indicated, because of that program, we have been able to do a retrospective study of utilization of healthcare services prior to people getting treatment and, then, in the duration of treatment afterwards. What we have been able to show is we could actually reduce--emergency department admissions go down by two times and inpatient hospitalizations go down three times. So, not only do we see our ability to provide good, high-quality care for treatment, but, simultaneously, we are able to reduce healthcare costs for some of the highest utilizers of health care, not only within Boston Medical Center, but within our larger healthcare delivery system. So, I think that is a really good example, and part of the reason that we are able to do that is through our Medicaid program, and largely because they also fund a whole host of medication-assisted treatment, a wide variety of other recovery support services that our patients need access to. So, I think it is a good example of the critical nature of our ability to execute high-quality care because of our patients' access to Medicaid. Ms. Schakowsky. So, I am assuming, then--my next question, you sort of answered it in the positive--it would be the negative. What would a drastic cut in Medicaid specifically mean for those enrollees receiving the care that you have outlined? Mr. Botticelli. I think it would be devastating, and I don't think I am overexaggerating kind of the impact that that would have for our patients' ability to access care. I think it is very hard. And I was actually the Director of Treatment Services in Massachusetts prior to healthcare reform and prior to Medicaid. So, I saw the issues that people had not only in terms of their ability to access care, but also some of the devastating consequences that we see. I think Massachusetts is a good example of being able to achieve some modest reduction in overdose deaths, unlike many, many states across the country. And I think part of the reason that we are able to do that is because of our patients' abilities to be able to access treatment when they need it. Ms. Schakowsky. So, you are saying ``modest''. Why isn't it robust, for example, in lives that are saved? Mr. Botticelli. Well, if you are one of the 10 percent of people that your life was saved in Massachusetts, that is robust. I think why I am kind of cautious is because deaths are still too high. Again, I think while we are all cautiously optimistic that a 10 percent reduction is good---- Ms. Schakowsky. It is good. Mr. Botticelli [continuing]. It is moving in the right direction, it is still way too high. And we still had over 2,000 people in Massachusetts die in 2017, and that is just way too high, despite a 10 percent decrease. Ms. Schakowsky. I am just going to skip to, what services can health homes provide for those with substance use disorder? Mr. Botticelli. Actually, Mr. Douglas mentioned one. Vermont is a really great example of how you use health homes to not only increase access to treatment, but increase access in rural parts of the country. So, they use what is called a hub-and-spoke model where they induct people in the hubs and, then, move people to primary care sites in the spokes. And I don't know the latest data, but they have been able to really significantly increase access to treatment. I think Rhode Island as well has utilized the health home model to dramatically increase access to treatment. So, I think a number of states have used this, but I also think it is really important, as we think about how do you push out treatment to rural parts of the country that don't have a treatment program and don't have providers. I think medical homes, some States have really implemented innovative programs to be able to do that. Ms. Schakowsky. So, I am out of time. Mr. Douglas, so Vermont is an example of how it can work? Mr. Douglas. That is correct, and it is spreading to other States. California, too, is doing it. It is an investment, and this is an important piece. The resource shortage can't just be dealt with on substance use providers. We need to spread the best practices back into the physical health and the primary care, knowing that the expertise would be in the substance use treatment centers, but this hub-and-spoke, this idea of working together and providing the expertise and creating the incentives to do that through health homes and ways to share. And telehealth and other opportunities are great ways that we can better integrate the systems. Mr. Burgess. So, the short answer was yes. Ms. Schakowsky. Thank you. Mr. Burgess. The gentlelady's time has expired. The Chair recognizes the Vice Chair of the subcommittee, Mr. Guthrie, 5 minutes for questions. Mr. Guthrie. Thank you very much. I appreciate it very much. These questions are for Mr. Srivastava. Johns Hopkins University and the Clinton Health Foundation released a document in 2017 that contained a number of recommendations for combating the opioid crisis. One recommendation was to support restricted recipient programs, otherwise known as lock-in programs, for at-risk populations. From what I understand, lock-in programs are designed to restrict overutilization of opioids and to identify potential fraud and abuse of controlled substances. Mr. Srivastava, can you talk about if your organization has been involved in a lock-in program and if you have found the program to be useful in combating opioid abuse? Mr. Srivastava. Thank you, Congressman. In terms of lock-in programs, we actually support over 100 health plans across the country and serve their Medicaid and commercial and Medicare needs. So, we have experience working with Medicaid lock-in across the country. We also have our own special needs plans in Florida, Massachusetts, New York, and Virginia. Our experience has been in our special needs plans where within Medicaid we have had the ability to lock in on prescribers where there was a lot of overutilization. There was multiple providers as well as multiple use within a period of time. Today what we are finding is State by State there is different criteria. So, for example, in Florida, you have to have three prescriptions, three providers, and three different settings, and claims within the last 180 days. But we found that lock-in allows for, one, an integrated care plan to be developed for the individual. Two, it eliminates a lot of drug- seeking behavior. And then, three, it allows for transition beyond managing the pills themselves, but actually helping the individual to get support cycle social support services and treatment and recovery services afterwards. So, we are finding that there has been good evidence that lock-in programs work in Medicaid. It will be launched, I believe, in 2019 for Medicare as well. And so, general expectation is you will see a broader user of that program. Mr. Guthrie. OK. Thank you. And I have another question for you. Some have expressed concern with going to the HIPAA standard for substance abuse/use disorder records for the purposes of treatment, payment, and healthcare operations because they are afraid the record will get into the wrong hands and they will be fired from their job. Can you tell me what are the activities that fall under these three categories, so we have a better understanding of why it is so important to have access to a patient's record for treatment, payment, and healthcare operations? Mr. Srivastava. So, confidentiality is critical and important. And this kind of speaks to CFR 42 Part 2. Historically, all of how providers communicate and coordinate with health plans and with facilities to coordinate care has been to get a release under HIPAA to be able to maintain confidentiality to provide care. And what is happening is we have stigmatized those individuals with substance use disorder and created CFR 42 as an added layer of protection. It has actually limited a provider's ability to actually coordinate care effectively. And so, our recommendation is to think through and expand and modernize CFR to be regulated under HIPAA, which is confidentiality. But that, if an individual happens to have diabetes and has a substance abuse issue that they are seeking care from a provider, and then, they go to an outpatient setting or they go for treatment and recovery services, or they go to a dentist, that we are not having to, as a health plan be able to, or as a PCP be able to get permission from each individual provider to be able to coordinate the care. At times, we don't know that that occurs. And so, as a result, there can be misuse, and as a result, can also be adverse outcomes. Mr. Guthrie. So, if you use that information, what prevents an employer from having access to it? Mr. Srivastava. Under HIPAA guidelines today, we are managing, as a health plan or as a provider, we are confidentially treating individuals who have cancer, individuals who might have AIDS/HIV, or any sort of kind of behavioral health SMI disorder, and we don't communicate that with the employers. So, we are kind of bound by HIPAA. We are also bound additively by CFR 42. So, from our perspective, it is confidentiality, and we are kind of trained as healthcare professionals not to be able to share that information beyond what is needed for a treatment plan and to be able to service the provider. Mr. Guthrie. OK. Thank you. I thank you for your answers. And I yield back my time. Mr. Burgess. The Chair thanks the gentleman. The gentleman yields back. The Chair recognizes the gentleman from New York, Mr. Engel, 5 minutes for your questions, please. Mr. Engel. Thank you, Mr. Chairman, for holding another hearing on this important topic. In Westchester County, part of which is in my district, 124 people died due to opioids in 2016, and in the Bronx, New York, which is part of my district, more in New York have died of overdoses than in any other borough of New York City. We must do more to turn the tide of the opioid epidemic, and we cannot hope to do that if we fail to recognize the importance of Medicaid. Medicaid covers nearly 4 in 10 non- elderly Americans grappled with an opioid addiction. Through the Medicaid expansion under the Affordable Care Act, states were afforded new resources to cover Americans living with substance use disorders and get them the treatment they need. We must continue to expand States' capacity to combat the opioid crisis and take care to avoid hamstringing that capacity in any way. This brings me to a number of bills we are considering today that I fear could hinder States' ability to address this crisis, the Medicaid Pharmacy Home Act, the Medicaid Drug Improvement Act, and the Medicaid Partnership Act. I worry that asking States to make complicated changes to their Medicaid programs in less than a year sets them up for failure. And since non-compliant States would be punished with FMAP penalties, States' ability to deliver treatment and recovery services could be hampered as a result. I also have concerns regarding the Medicaid Graduate Medical Education Transparency Act. In my opinion, the reporting required under this bill is overly prescriptive and burdensome and may take the limited resources states have for Medicaid GME and offer reporting that will not tell us very much. And I have heard similar concerns from stakeholders as well. After all, Medicaid spending constitutes just 16 percent of Federal spending on GME. So, this reporting would offer an extremely narrow picture of the training physicians are getting. I also worry that the information gleaned from these reporting requirements could be viewed as a microcosm for State Medicaid programs' holistic efforts to combat the opioid crisis, but it is my understanding that those efforts involve many facets of the healthcare system, not just physician training. So, Mr. Douglas, I want to ask you, is that a fair assessment, that the efforts involve many facets of the healthcare system, not just physician training, and that information gleaned from these reporting requirements could be viewed as a microcosm for State Medicaid programs' holistic efforts to combat the opioid crisis? Mr. Douglas. I am sorry, the question? Mr. Engel. OK. Let me move on. I am not opposed to collecting more data on Medicaid GME or other GME programs. However, I think we need to be more thoughtful about the data we are asking states to collect when facing a shortage of providers, of said providers. But I don't believe this bill would address that, and solving the problem cannot be left solely to a group of specialists with specific training in substance use and addiction. A more comprehensive approach is needed. We need to be thinking about the full spectrum of providers and their roles in solving this crisis. Mr. Douglas, let me try again. How can we improve and build our workforce so that said providers and others can help end this epidemic? Mr. Engel. Great. As I noted in my written testimony, as well as the chairman mentioned, I think an important area we are focusing, as a managed care organization at Centene as well as States, is around ways to make sure that we are educating providers and disseminating that education. Project ECHO is a great way of doing telementoring opportunities and really spreading, especially as it gets to rural and underserved areas. So, we have to focus both from making sure we are educating on the prevention side, but, then, as you noted, there has to be a continuum of service as the treatment modalities. From the lens of MACPAC that we have seen identified, there is a wide disparity, that you might have in Boston a larger rate of treatment modalities, but in many States the modalities aren't all there. And so, the continuum of services on the treatment side from both outpatient to peer support, to MAT-related services, and, of course, as I mentioned before, there needs to be residential, where appropriate, on the evidence-based, and that means eliminating the IMD exception. So, those are all approaches that need to be taken. Mr. Engel. Thank you. Let me quickly go to Mr. Botticelli, based on some of the comments that were made before I gave my question. Do you have any concerns about rolling back 42 CFR Part 2? Mr. Botticelli. I do, both as a policymaker and a person in long-term recovery. Unfortunately, substance use disorders are different from other diseases. They are still highly stigmatized. They are subject to discrimination and criminal penalties. SAMHSA, I think--and this is fully supporting the fact to give people good care, we need to integrate physical care with part of their substance use disorder treatment. I think all of us support better integrated and holistic care. But I do think a patient should have a right to consent to disclose their records. The Substance Abuse and Mental Health Services Administration actually just modified their regulations twice to support enhanced integration of 42 CFR Part 2 information, treatment information, into primary care records. Mr. Engel. Thank you. Thank you, Mr. Chairman. Mr. Burgess. The Chair thanks the gentleman. The gentleman yields back. The Chair recognizes the gentleman from Illinois, 5 minutes for your questions, please, Mr. Shimkus. Mr. Shimkus. Thank you, Mr. Chairman. Great to have you all here. Mr. Botticelli, you were with the previous administration, were you not? Mr. Botticelli. I was. Mr. Shimkus. And what was that position again? Mr. Botticelli. I was the Director of the White House Office of National Drug Control Policy. Mr. Shimkus. Yes, great. Thank you for your service. And to segue now into what you do in Massachusetts, I think it is important. And this is an all-hands-on-deck process. Obviously, we are trying to do our best to affect the public policy and to help you all do your job. But let me go to, in your testimony you mentioned one report which found only about half of the State Medicaid programs currently cover non-pharmacological alternatives to pain such as, as you have talked about, cognitive behavior therapy and physical therapy. Mr. Douglas, the Committee has heard from Medicaid directors about the importance of Federal funding for evaluation of non-pharmacological alternatives to build strong empirical basis for making coverage decisions. Could you both please talk about the degree to which you think this research about the utility and cost-effectiveness of non-opioid alternatives already exists and what more Congress or CMS can do to help state Medicaid programs have the information needed in making coverage decisions that ultimately impact patients? Mr. Botticelli. Great. I will start and, then, turn to Mr. Douglas. Throughout the course of our work area, I think we have to be very careful, while we know we want to make sure that we are diminishing opioid prescribing, that we are giving patients access to really good pain management therapies. I think we are hearing more and more stories, quite honestly, of patients in legitimate pain not being able to access non-pharmacologic approaches. And so, I think we have to couple our efforts with not only opioid reducing, but making sure that we are giving people good access. We do have a number of evidence- based--and we need to continue to research non-pharmacologic approaches. We know acupuncture works. We know physical therapy works, yoga, exercise. And so, again, I think if you talk to our clinicians at Boston Medical Center who deal with both substance use disorder and pain, that because our Medicaid program actually supports a wide variety of non-pharmacologic approaches, we are able to give patients good pain care and at the same reduce opioid prescribing. Mr. Shimkus. Mr. Douglas? Mr. Douglas. Yes, I would just echo the points of Mr. Botticelli that there needs to be more work on this. Both from a state as well as an MCO perspective, we are continuing to want to ensure that we are doing evidence-based practices on treatment modalities. And that gets to being able both from a state policymaker to be able to give the Medicaid agencies the ability to test new treatment modalities or ensure that those modalities are being executed on. And so, without the evidence, you have disparity across States as well as you have a harder time for MCOs to get the best practices and the right care and the right setting to be provided. And so, we encourage there continue to be work in this area. Mr. Shimkus. Yes. So, I will ask you to take this back and maybe submit some more information. And I appreciate that, but the question is, what more can we do legislatively or what can CMS do to help fill this space to give the information needed to help? So, my follow-up question is going to be, one of the most dangerous things about opioids is that they are cheap or at least much cheaper than non-opioid alternatives, some. And your testimony and Mr. Botticelli also underscores the need to complement the largely successful efforts to reduce opioid prescribing. We need to ensure patients have access to non- pharmacological pain management practices. To that end, several of us on this committee have expressed concerns about the declining Medicare reimbursements for certain pain management procedures frequently performed by the ambulatory surgical centers because they are more expensive. Can you talk about the importance of incentivizing non- opioid, non-pharmacological treatments and stemming the tide of opioid addiction, particularly as it relates to patients' access, Mr. Botticelli? And then, I want to go to Mr. Kravitz to answer this. Mr. Botticelli. I think part of the reason that we are in the predicament that we are in is that writing a prescription for opioids is not only far cheaper, but it is also far easier for the clinician to be able to write a prescription versus having a conversation with their patient on pain and pain expectations and pain management. So, I think both CMS and Medicare need to do everything that they can, quite honestly, to provide financial incentives that drive toward those other kind of pain management therapies. While there might be some modest cost increases in the short term in terms of those strategies, I think the return on investment of not getting people addicted and not having to go through all the other medical expenses probably far outweighs any modest increase in cost for those therapies. Mr. Shimkus. Thank you. And, Mr. Chairman, can Mr. Kravitz answer that? Mr. Kravitz. Yes. So, at Geisinger Health System, we are very much in a consultative measure with our patients as well on the same topic. We take the time to counsel them and to look at all other alternatives for treatment for these patients. So, especially chronic disease patients, as I stated in my opening statement, we utilize things like rehabilitation, Tai Chi, yoga, things of that nature, to alleviate pain. And they have been proven to be successful. In cases where they are not the case, where opioids do have to be prescribed, we are very careful and judicious to not extend an extensive prescription quantity for those patients. So, they don't have the opportunity to get addicted to opioids. Mr. Shimkus. Thank you very much. Thank you, Mr. Chairman. Mr. Burgess. The Chair thanks the gentleman. The gentleman yields back. The Chair recognizes the gentlelady from California, Ms. Matsui, 5 minutes for your questions, please. Ms. Matsui. Thank you, Mr. Chairman. And I want to thank the witnesses for being here today. I also want to say, Mr. Chairman, thank you for holding this third hearing today on legislation to address this opioid epidemic. It is so important that we are focusing on a variety of perspectives on how to solve this crisis. We know the problem is multifaceted and the solution will be, too. And I just want to also point out the importance of the Medicaid program in addressing this crisis. Medicaid serves a large proportion of the population with substance use disorder, and any effort to cut the program's funding will severely jeopardize access to those services. I also must say, while we must act urgently, I am concerned that, if we move the nearly 70 bills through our committee too quickly, some of the policies will have unintended consequences that will contribute to the problem rather than the solution. And I look forward to further discussions with my colleagues and stakeholders as we ensure that these policies are going to be as effective as possible. I think that the biggest potential for transforming our healthcare system lies in the power of technology. Electronic health records have the potential to streamline care, increase coordination of care across providers, and aggregate data for population health management and research purposes. Telehealth provides the opportunity to get care to patients faster or in cases where they can't otherwise have the access to the appropriate provider. This has a huge potential to help us address the opioid epidemic. Technology can help us to integrate the behavioral health care and physical health care, treating a person as a whole and ensuring that all of their needs are met in a timely manner. Most people with a substance use disorder have an underlying mental health issue and/or physical condition. If all conditions are not addressed, we will have less success in treating the addiction. One of the ideas I am working on with Representatives Mullin and Blumenauer is how we can assure that substance use information can be shared for the purposes of care coordination and patient safety without infringing on patient privacy rights. None of that work will have any effect, though, if substance use and behavioral health providers don't even have electronic health records to facilitate the data sharing. That is why I co-lead H.R. 3331 with my colleague on the Ways and Means Committee, Representative Jenkins. Behavioral health providers were left out of the Meaningful Use Program which encouraged adoption of electronic health records by hospitals and doctors. This would certainly extend an incentive to behavioral health providers via a demonstration project. Mr. Kravitz, my understanding is that your organization has been successful as a result of investing in electronic health records. Could you please describe how electronic health records have improved quality of care and reduced cost? Mr. Kravitz. Yes, I am happy to, Congresswoman. So, we have invested in electronic health records back in 1995. I think we were one of the earlier adopters of the EPIC electronic health record system, which has been predominantly used between EPIC and Cerner across the country with all scripts. We have also invested heavily in analytics. In fact, we have a big data platform similar to Google, and we look at that data all the time. We analyze the data very carefully. In fact, one of our scenarios, we did a 10-year study with Geisinger Health Plan, which has 580,000 members in our population. We looked at that data very, very carefully, and that is where we recognized and realized that patients on opioids that were part of that process had higher levels of acute care stays before they had overdoses as well as ED visits were tremendously increased over the last 22 to 12 months prior to an overdose occurring. So, information is key. The ability to integrate that data and interoperate that data with other systems is extremely important. Ms. Matsui. So, you believe that this will be helpful to extend this to behavioral health providers? Mr. Kravitz. Absolutely. Ms. Matsui. OK, great. Mr. Kravitz. Absolutely. Ms. Matsui. Well, let me just right now, also, submit for the record here a letter from the Behavioral Health IT Coalition, which includes the American Psychological Academy, NAMI, Mental Health America, the National Council of Behavioral Health, in support of H.R. 3331, for the record. Mr. Burgess. Without objection, so ordered. [The information appears at the conclusion of the hearing.] Ms. Matsui. I also want, Mr. Douglas, thank you for your past service as a Medicaid director. I currently have another bill coauthored with my colleague, Representative Harper, that will allow behavioral health clinics to register with the DEA to be able to use telemedicine to prescribe controlled substances, increasing access to medication-assisted treatments in our communities. Can you describe the benefits of medication-assisted treatment and detail the current barriers you see that might prevent its expansion? Mr. Douglas. Thank you. So, as I mentioned in my written testimony, the expansion of medication-assisted treatment is a really important component of the overall continuum, especially as we learn and have substance use treatment providers working with primary care. As you said, being able to create more technology interfaces will be an important way to work across this idea of a hub-and-spoke with our primary care and sharing data back and forth. And so, as we are looking at more a holistic approach to medication-assisted treatment and primary care integrating with it, what you are laying out would really solidify and improve the infrastructure. Ms. Matsui. OK. Thank you. And I have run out of time. I yield back. Mr. Burgess. The Chair thanks the gentlelady. The gentlelady yields back. The Chair recognizes the gentleman from Texas, Mr. Barton, 5 minutes for your questions, please. Mr. Barton. Thank you, Mr. Chair. I have a question for the chairman before I ask a question of---- Mr. Burgess. The answer is no. [Laughter.] Mr. Barton. I was going to say, did you think you are the greatest Health Subcommittee chairman we have ever had? [Laughter.] Mr. Burgess. No, that would be Governor Deal. Mr. Barton. We have got about three dozen bills that we are looking at. Is it your plan to move all of these bills individually, collectively, some of them, none of them? What is the---- Mr. Burgess. Well, as you will recall from my opening statement yesterday and previous opening statements in previous hearings that we have had--I am assuming the gentleman is yielding to me for an answer. Mr. Barton. Yes, sir, of course. I wouldn't ask a question if I didn't want you to answer it. Mr. Burgess. I don't have a precise answer to your question, but the fact that we are considering so many bills, and some of the bills we are considering are, in fact, still in draft form, we do want to be inclusive. We have done a significant amount of outreach. As you will recall, we had a many-hour hearing in this subcommittee in October where we invited every Member, not just from the committee and subcommittee, but from the entire Congress to come and share with us their thoughts on what the opioid epidemic looked like in their districts and how they were reacting to it, and ideas that they had. As a consequence of that interaction, a number of ideas were presented to the subcommittee, and we have been over the last several months going through those. Right now, most of them are in individual bill forms. It is quite likely there is some duplication; there is some consolidation that is available. And as you will recall from bills like the Comprehensive Addiction Recovery Act from the last Congress, the Cures for the 21st Century, ultimately, numerous bills were consolidated into one larger bill. That could still happen, but also a part of me wants to consider them as individual bills. So that, as we go through at least the subcommittee markup and the full committee markup, there will be ample opportunity for people's ideas to be heard. Mr. Barton. OK. Mr. Burgess. I hope that satisfies your request for information. And I will yield back. Mr. Barton. Well, you used half of my time. Well, I think it is important to give the subcommittee and the stakeholders some idea of the potential plan. And I wasn't here yesterday. I was at the Zuckerberg hearing on Facebook. So, I am just asking for my own illumination. One of the bills is a bill by Mr. Tonko, H.R. 4005. He has actually introduced it. He is ahead of the curve here, which is kind of normal for him. He is one of our more energetic Members. But this particular bill, I wish he wasn't so energetic, actually, because it allows Medicaid programs to receive matching Federal dollars for medical services to an incarcerated individual, which in Texas means somebody in jail for the 30-day period right before they are released. I have a real concern about that for a number of reasons. So, I am going to ask Mr. Douglas if, under current law, the states couldn't ask CMS to use their 1115 waiver for a demonstration project to test this idea, instead of actually passing a federal statute. Mr. Douglas. So, current Federal law prohibits payment, Medicaid payment, for individuals who are in prison, except for the one exception relates to for inpatient settings when they leave the actual prison facility and go to an inpatient setting. And that is clear in Federal law. So, even under an 1115 waiver, that could not occur. Now, that being said, there are creative alternatives. Centene, as a managed care plan, are working in Ohio, for example. Ohio is very concerned, given recidivism. The high rate of individuals within the prison system, as they transition, have needs of social services, medical care, behavioral health, to do early transition work as a responsibility, knowing that they are going to be assigned to a managed care plan, and the managed care plan is going to have increased costs if they don't work in the transition. And so, that is occurring right now in states. And other states are doing that. There are different creative approaches, but there is no ability from a payment standpoint right now under Federal law. Mr. Barton. OK. Well, thank you for that answer. In my one second that I don't have, I want Mr. Kravitz to talk about e-prescribing and if he thought that could help in some other areas, in addition to what has been done under his business. And I am only asking this question because the chairman took two-and-a-half minutes of my time. [Laughter.] Mr. Kravitz. So, we feel at Geisinger e-prescribing is very valuable to our organization. It is very much a patient or customer satisfier as well compared to the old process of a paper script that oftentimes was not available to them and would cause multiple visits to come back to a physician's office and able to get those. What I can tell you is use of e-prescribing is very much endorsed by our physicians. The second-factor authentication is seamless, works very well. And that is why we are able to reduce the amount of time for prescribing an opioid prescription from 3 minutes to 30 seconds, because of the new process that we followed. What I can also tell you is the first day--and we, typically, at Geisinger don't do things small, unfortunately-- we did not do a proof-of-concept with a small group of physicians. We hit 1330 physicians day one to enroll them in the program, and we have other physicians that are requesting to be part of this process because it is so efficient and it has worked so well for them. The other point that I made about the PDMP, we are clamoring to get the APIs or the integration points, so that we can do a lot more automation behind the scenes and not obstruct the workflow process or the physicians, so they could see more patients, to provide better quality care for more patients. That will be coming in the next 3 months, and we are very eager to have that happen, so that we can encourage that be part of the process. Mr. Barton. Thank you. Thank you, Mr. Chairman, for your courtesy. Mr. Burgess. The Chair thanks the gentleman. The Chair recognizes the gentleman from Massachusetts, Mr. Kennedy, 5 minutes for questions, please. Mr. Kennedy. Thank you, Mr. Chairman. Thank you for continuing the hearing. Thank you to our witnesses for being here. Mr. Botticelli, wonderful to be with you again. Thank you for your service and your outspokenness on these incredibly important issues. I know we are here on a series of several dozen bills that are before this committee, which I hope many of them will see action, including, Mr. Chairman, our own. Thank you for putting that on the list. I wanted to get your thoughts and members' of the panel thoughts on some of the broader priorities of this administration, recognizing that the administration has acknowledged that there is an opioid and behavioral health epidemic across this country. They have indicated that they want to prioritize it. Yet, we have also some policies come out of this White House that I was curious to get your thoughts on. I did have a chance to question our CMS witness yesterday. So, maybe just going right down the list. And, Mr. Botticelli, I was wondering, given your expertise on this issue, can you explain to me how cutting Medicaid by $800 billion, as the Trump administration budget does, is effective in addressing behavioral health and addiction? Mr. Botticelli. First of all, thank you, Congressman, for the question and for your leadership not only here, but in Massachusetts. I think we have broadly acknowledged that this is a public health crisis that we have and we have got to focus these issues largely on health responses to this issue. Tantamount to that response is making sure that people have adequate access to insurance and coverage. And when you ask historic data, when you look at why people can't get treatment, the No. 1 reason why people can't get treatment is because they don't have adequate access to insurance. Mr. Kennedy. And so, does cutting $800 billion from Medicaid help or hurt? Mr. Botticelli. It hurts, and it hurts dramatically. Mr. Kennedy. And I am sorry to cut you off; I just want to get everybody else on the record. Mr. Douglas, how would you respond to that? And be quick, just because I have got a couple of more of these. Mr. Douglas. Yes. No, I am going to turn this around. As you know, as a former Medicaid director and as a managed care, our responsibility is how to use the resources most effectively as possible. And so, the idea of cutting $800 billion, there are ways to achieve savings, but it has to be rational. Mr. Kennedy. So, does a $800 billion cut help or hurt an administration's ability to---- Mr. Douglas. I can't answer without understanding what the flexibilities and the ability to provide the right services and the right setting. Mr. Kennedy. And, Mr. Guth? Mr. Guth. Yes, so this is a complex situation we are dealing with. This really goes back to the first question we had before this panel. And that is about the disparity in presentation with Medicaid and with private insurance. For a long time, people with private insurance didn't have access to substance use treatment, or very limited access. Most of the people I know that went through private insurance with these issues ended up spending college funds and retirement funds, in order to get care. Mr. Kennedy. So, Mr. Guth, would you support greater enforcement of mental health parity? Mr. Guth. I think we have got to do everything we can right now, Congressman, to ensure that people have access to care. And for the majority of Americans, that means access through some form of third-party coverage, and for many of them, that means either Medicaid or some other form of Federal funding. Mr. Kennedy. Mr. Kravitz? Mr. Kravitz. I would say at Geisinger Health System we treat all patients equally. Eighteen percent of our patient population in our provider network are medical assistance patients; 44 percent are Medicare. We have a number of programs, and there are care management programs that address this. It would be my impression that it would hurt. Mr. Kennedy. Sir? Mr. Srivastava. From Magellan's perspective, we fundamentally believe that health care needs to be not just below the neck, but above the neck. And so, it is a full whole patient approach. And so, to the extent we have adequacy of funding, to be able to have behavioral health, improve access for behavioral and physical health issues, then we are a proponent of that. Mr. Kennedy. I have got about a minute and a half left and two more issues I want to address with the panel. So, Mr. Botticelli, I will address them both to you, and just go down the line. Given your expertise, how long does it take for somebody to recover from a mental/behavioral illness? Mr. Botticelli. So, this is a chronic disorder, and one could argue that it is a lifelong issue. The biggest predictor of success is duration and time in treatment. Mr. Kennedy. And so, two policies put forth by this administration, lifetime caps and work requirements, if you think work requirements could, in fact, be helpful to people suffering from mental/behavioral illness, I would ask anybody on the panel to point me to one single study that says so. So, your opinion on those two, lifetime caps and work requirements, coming from this administration? Mr. Botticelli. So, lifetime caps seem to me to be a violation of parity because I think that we understand that that has been a historic discriminatory tool that insurance companies have implemented to not treat this as a chronic disease and give people long-term care. Mr. Kennedy. OK. And work requirements? Mr. Botticelli. So, one, we know people on Medicaid generally now are working, and often working more than one job. And I think the ultimate goal of treatment, quite honestly, is to get people and restore them. Mr. Kennedy. Is there any study that you are aware of that says a work requirement increases health, understanding that people who are working can be healthier, but that causation goes the other direction? Mr. Botticelli. I have nothing. Mr. Kennedy. Mr. Douglas? Mr. Douglas. I don't know of studies on that. What I say is that this gets to the issue of underlying social determinants and making sure from States, as well as Medicaid organizations, Medicaid managed care plans, that we are working on how to engage people into ensuring they are getting both the right social and getting back into the workforce. Mr. Kennedy. Mr. Guth? Mr. Guth. Yes. So, we were working with two of our States that have these, are implementing work requirements, and the devil is in the detail because what you don't want to do is insist that somebody who is very, very sick get a job before they can have access to treatment. On the other hand, the plans that we are working with in the two States that we work with, Indiana and Kentucky, we are seeing administration-- understanding that and making sure that we are not asking people who are actively sick to become employed before they become stable. So, I think it is all about the implementation. Mr. Kennedy. The CMS witness yesterday said they are trying to put patients before paperwork. Is there a work requirement initiative out there that does, in fact, lead to less administrative burden for somebody that is suffering from mental/behavioral illness to make sure that they stay on Medicaid? Mr. Guth. Can you ask that question again? Mr. Douglas. What I would say is that what we are seeing in Indiana as well as in Arkansas, there are exceptions for certain populations such as those with substance use disorders. Mr. Kennedy. I am about a minute over time. Thank you for your generosity, Mr. Chairman. Mr. Burgess. That is all right. I have subtracted it from Mr. Latta's time. Mr. Green. Mr. Chairman, I ask unanimous consent---- Mr. Burgess. Oh, I beg your pardon. Does the gentleman have a unanimous consent request? Mr. Green. The gentleman does. I ask unanimous consent that a letter from the telehealth and technology stakeholders and a letter from treatment providers in support of the access to telehealth services for their opioid and use disorders, I ask unanimous consent to place it in the record. Mr. Burgess. Without objection, so ordered. [The information appears at the conclusion of the hearing.] Mr. Burgess. The gentleman from Ohio is recognized for 5 minutes for your questions, please, Mr. Latta. Mr. Latta. Thank you very much, Mr. Chairman. And thanks again for holding this hearing today, because, again, combating this opioid epidemic is something we are all in and we have to do, because we are looking at these very sobering statistics that 115 Americans are dying every day in the State of Ohio. And I hate to keep repeating these statistics, but in 2015 we lost 3,050 people. In 2016, that number went up to 4,050. And then, the fiscal year ending at June 30th of last year, it was 5,232. So, it is an epidemic that we have got to take on and fight. And I appreciate you all being here today. Last week I held a roundtable in my district with local pharmacists to discuss the opioid crisis in Ohio. Most of the pharmacists agreed that prescription limits would help prevent addiction. Overprescribing of opioids for acute episodes of care can have dire consequences as pills can be diverted, misused, and perpetuate addiction. In response to this problem, over 20 States, including Ohio, have adopted laws limiting the number of pills that a patient new to therapy prescribed an opioid for an acute episode can receive. These laws reflect guidelines promulgated by CDC which note that, for the vast majority of acute procedures, 3 to 7 days' worth of therapy is sufficient. They also respect the judgment of the prescribing practitioner by providing for exceptions if a prescriber thinks in his or her best judgment that a longer duration of treatment is medically necessary. Furthermore, we recently saw CMS finalize a similar policy for beneficiaries and wrote in Medicare Part D, driving home the severity of the problem and the belief that such rules will have a measured impact on opioid diversion and misuse. Mr. Douglas, what impact would expanding this type of policy beyond Medicare have on the diversion and misuse of opioids? Mr. Douglas. As I noted in my written testimony as well as earlier, we are doing a lot within Centene, as well as a lot of States are working on making sure that we are reducing the limits on duration as well as refills. And so, creating clear policies on that, where we have been able to do that and work with the State, it helps on overprescribing as well as reduced inappropriate utilization. And so, this is an important area that we are seeing. In many States we can work and partner with our State agencies and be able to put in place those types of utilization controls. But incenting States and incenting managed care organizations, that is an important part of the overall continuum of how we need to prevent this epidemic. Mr. Latta. Thank you. Mr. Guth, my district ranges from densely populated cities and towns to very rural areas. And we all know that the opioid epidemic knows no boundaries. Therefore, health access in rural America is vital, especially as it relates to the opioid epidemic. It is hard enough for individuals to make the decision to overcome addiction without the added barriers to access to treatment due to their location. Would you go into some detail about the barriers are out there for opioid treatment for individuals in rural communities and what they face, and how we have to address those issues? Mr. Guth. Thank you. Yes, Congressman. There are several issues that jump out. One is that we have a shortage nationwide of professionals who are certified and trained in addiction services. So, that permeates the whole country, and it is most acutely felt in our rural areas. Centerstone, most of the communities we serve are very small rural communities across the five states that we serve. So, we are very attuned to this issue. Telemedicine can make a huge difference. There are current challenges with telemedicine, but we have been involved with telemedicine services since the early '90s. And we would wheel in these great big, giant monitors on these enormous carts. That was really to address the issue of access to care in our rural areas. In many cases it was the first time we could get a child psychiatrist into some of these communities. The very first time. So, this issue is true with opioid use as well. We have to be able to provide expert care into our rural communities, but we have to address the overall shortage of practitioners nationwide in order to do that. The other is we have to also recognize that there are other specialists involved in this care that are very important. Mr. Douglas mentioned peer support services. Those are critical, and we find that those services, if we can get them funded, which is very spotty, if we can get those services funded, we can provide some really vital linkages in our rural communities. We generally can have access to those individuals. So, telemedicine, we are using apps right now to help people be connected remotely from their service provider. But when somebody is dealing with an acute psychiatric disorder or an acute addiction challenge, asking them from a rural community to drive hours into an urban area to seek service is really an insurmountable barrier for most of them. And what they will do is they will end up in the emergency room in a really critical state. So, those are all issues that I think we would need to address. Technology plays a role. Workforce improvements play a role. And the other is we really do need to be advancing the use of peer specialists. And we found peer specialists--we have got the data--peer specialists make a huge difference in the continuum of care. Mr. Latta. Thank you very much. Mr. Chairman, my time has expired and I yield back. Mr. Burgess. The gentleman is correct, his time has expired. Does the gentlelady from Florida wish to be recognized? Ms. Castor. Yes, sir. Mr. Burgess. The gentlelady from Florida is recognized, 5 minutes for questions, please. Ms. Castor. Well, thank you, Mr. Chairman. And thank you to all the witnesses. I have been monitoring this hearing from another E&C hearing, and I am heartened by the discussion and the commitment, particularly relating to Medicaid and Medicare, and how we have to strengthen and modernize Medicaid to tackle all these challenges that we face, particularly opioids. And I noted some of the discussion, coming from Florida, on the difference in treatment between expansion States and non- expansion States. We have hundreds of thousands, if not millions, of Floridians who really would benefit with consistent treatment, if we had expanded Medicaid. So, I know that is going to continue to be an issue. A lot of these bipartisan bills are very positive, in my opinion, and I have heard what you have said about a number of them. But I don't think we are yet at the scale we need to really tackle the problem. I have heard others talk about a Ryan White type of commitment, something that is dependable and consistent moving forward that aren't relying on the budget battles of the Congress, so that providers and law enforcement, everyone across the board can really tackle the problem the way we need to. Does anyone have a comment on that and about creating more of a Ryan White type of consistent commitment? Mr. Kravitz. I will just mention this: I think when we look at the financial crisis, one of the things that our medical director points out is that a huge amount of the resources we are spending, we are spending on people that are returning for care. They are returning for care because they didn't get proper care to begin with. And we also look at the cost that we are spending in emergency rooms and acute care hospitalizations for folks that have untreated or undertreated substance use disorders or psychiatric disorders. And I appreciate the breadth of bills that are before this committee and the work that everybody here has done on this crisis. But I think this is a huge call to action for all of us. And it is not just about doing more of what we are doing. We have to change. I want you to think about this. I represent one of the largest nonprofit providers in this space nationwide, and we are saying to you we need more regulation in this field; we need to be held to a higher standard; we need to be accountable for outcomes, and we also need to be accountable for providing a full continuum of care, so that people get the care they need, not the one specialty service that a provider has found a business model to support. So, long answer to your question. Absolutely, it should be a huge call to action. We can't let this epidemic continue to rage across this country. This is a complex problem. It didn't happen overnight. You heard the talk today about the different presentations, why people get into addiction to begin with, whether it is because of unmanaged pain or because of a co- occurring psychiatric disorder. There are lots of reasons for it. This is not a simple solution. But I would say a big focus needs to be on we have got to quit doing things that don't work, and also understanding that the investment we make here will be more than realized with the savings in other areas, not even just the social impact of these issues, but in the medical costs in other areas of health care. Ms. Castor. Thank you. Mr. Kravitz. I hope that answers your question, Congressman. Ms. Castor. Yes, and I have one more question, but if somebody wants to add quickly--yes, sir? Mr. Botticelli. For many years I presided over the treatment system in Massachusetts. I think if you talk to many providers, while grant funding is great, having a stable insurance-based program really ensures that we are going to have--we have been talking about provider workforce here and how critical it is. So, I think we need to make sure that we particularly ensure Medicaid coverage for people with substance use disorders. I think grants are great, but providers, I think, are often reluctant to get into this business---- Ms. Castor. Yes. Mr. Botticelli [continuing]. And stay in this business without a stable insurance base from which to build. Mr. Douglas. And if I could just say that, from both a state as well as an MCO, the idea of, well, Ryan White is really a trusted and needs to be an integrated approach. And so, looking at this through the lens of not creating a siloed solution, but how it integrates into the continuum of health and behavioral health. Ms. Castor. Yes. Thank you. Mr. Srivastava, in your testimony you mentioned that the number of physicians that prescribe MAT pales in comparison to providers able to prescribe oxycodone. And SAMHSA estimates over 48,000 providers currently certified to prescribe MAT versus 900,000 providers prescribing oxycodone. The lack of providers is undoubtedly more extreme in areas with a high proportion of Medicaid beneficiaries or in rural areas. How can we both increase the capacity to prescribe evidence-based treatment like MAT and realize the benefits? Could you expand specifically on the key lessons Magellan learned working in Pennsylvania and how that could be expanded elsewhere? Mr. Srivastava. Absolutely. So, in Pennsylvania, for example, we recently launched, in partnership with the governor, we provide county-based behavioral health services. And so, we have created 20 centers of excellence which look at both primary care coupled with behavioral health care in an integrated fashion, connected by telehealth, and all evidence- based. And it allows for substance use disorder to be kind of effectively treated and managed. We also partner with Geisinger as well on some behavioral health---- Ms. Castor. And you had a specific recommendation on a temporary FMAP increase? Mr. Srivastava. Correct. So, roughly, about 900,000 doctors today are licensed to be able to prescribe. Only 48,000 can prescribe MAT services. So, there is a need to be able to, one, educate more providers and, two, to be able to potentially offer a pay bump, if you will, in order to incent those providers to take 8 hours out of their day to get certification and, then, training wrapped around that as well. And so, our sense is that there should be funding set aside to be able to drive more certifications, so that providers know how to prescribe medication-assisted therapy. We would augment that with tele-behavioral health, digital therapy, text therapy, and coupled with peer supports and care coordination. Ms. Castor. Thank you. I will yield back. Mr. Carter [presiding]. The gentlelady has yielded. The Chair recognizes the chairman of the Full Committee, the gentleman from Oregon, the Honorable Mr. Walden. Mr. Walden. Thank you. Thank you, Mr. Carter. I appreciate it. And thanks to all our witnesses. Sorry I wasn't here at the beginning. We have a concurrent hearing going on with the Secretary of Energy on energy-related issues before the Committee. But we really appreciate your participation. So, I have a couple of questions I wanted to make sure and get in this morning. I think we all recognize the importance of ensuring that patients in Medicaid with substance use disorder have access to a continuum of care. One of the bills before the Committee is a targeted proposal that would remove a barrier to care and allow care in an IMD for up to 90 days in a 12-month period. Now this allows for longer treatment periods for all beneficiaries, not just selected subpopulations. And we believe this is budgetarily responsible as well. Virtually every stakeholder group that I have met with suggests that some of the IMD exclusions should be repealed or at least recalibrated, since residential treatment may be needed for some beneficiaries with substance use disorder. So, my question for each of you is, do you agree that the bill before the Committee which offers a partial repeal of IMD is a helpful step to ensuring that Medicaid beneficiaries receive the care that they need? So, do you think this makes sense? We will start with you. Mr. Botticelli. Chairman Walden, I think while we are trying to do everything that we can to expand access to treatment, and particularly looking at Medicaid, I think just looking at the categorical waivering of IMD requirements, quite honestly, I think has a potential to exacerbate our problem. Mr. Walden. Why is that? Mr. Botticelli. Well, one, I think we want to ensure, and I think CMS's approach to looking at this issue through the 1115 waiver I think makes a lot of sense. Because what they have been saying to states is you need to demonstrate to us that you are not just providing residential and often expensive levels of care, but that you have a full continuum of care, outpatient services, medication-assisted treatment. The other piece, too, and I think we have seen this and we are all talking about increasing access to medication-assisted treatment, but the reality is that only about 20 percent of our programs now provide access to medication-assisted treatment. And so, I worry that we are, in our efforts and, then, I think our good intents to expand access to treatment, we are focusing not necessarily on the most effective treatment needed for people with substance use disorders---- Mr. Walden. All right. Mr. Botticelli [continuing]. Which is often outpatient care. Mr. Walden. Mr. Douglas? Mr. Douglas. So, I agree with a lot of what Mr. Botticelli said, but I would say the waiver process is still cumbersome. I have gone through it from California, seen it in other States. The regulation on the managed care side doesn't go far enough. That being said, so the idea of eliminating the IMD rule on substance use is very important from an MCO, and States support it, but it does need to be part of an overall continuum. It can't be siloed because there are many cases where residential is not appropriate. We need to ensure that we are using ASAM evidence criteria and other treatment modalities within that and creating the right incentives---- Mr. Walden. Right. Mr. Douglas [continuing]. That there is in a continuum. Mr. Walden. All right. Mr. Guth? Mr. Guth. So, I'm just going to reiterate very quickly some of the same things you have heard. We think it does need to be expanded. But I think, absolutely, we must have requirements on continuum of care, accountability around outcome, really criteria that places people in the right level of care. What we are all worried about--and I know this is the issue around this bill--is that, suddenly, we are going to have this plethora of very expensive care that is now just exploding across the country. Mr. Walden. Right. Mr. Guth. The answer to that is to ensure that when these expansions are permitted, that they are coupled with requirements around continuum of care and documented evidence that people are placed in the least restrictive care appropriate to their presentation. That is known. We can do that, but we don't do it in isolation. Like everything else we have talked about today, these are complex issues. So, we have to have solutions that have the complexity associated with them. Mr. Walden. All right. Thank you. Mr. Kravitz? Mr. Kravitz. We are very much affiliated with continuum of care. And so, we just launched a new program last week, and it's called Geisinger at Home, where a physician actually goes into the patient's home. It sounds like old times, but that is the way it is going in the future. And so, the technician supports all of that. It is based upon chronic diseased patients. These are the same types of patients that we will be treating in the home setting with telemedicine and other opportunities, as well as documentation and electronic feeds right into our electronic health record. Mr. Walden. OK. Mr. Srivastava. In short, although we have the 1115 waiver process, supportive of an overall process. However, it is just one kind of solution in a suite of solutions. So, I don't want to overprescribe the fact of the value created with this. It could create capacity, but at a cost that may not be sustainable. Mr. Walden. All right. My time has expired again. Thank you all for your testimony and your answers to that question and others today. I yield back. Mr. Carter. The gentleman yields. The Chair recognizes the gentleman from Florida, Mr. Bilirakis, for 5 minutes. Mr. Bilirakis. Thank you. I appreciate it, Mr. Chairman. And I wanted to thank Mr. Botticelli for coming down to my district in the Tampa Bay area when he was the drug czar about a couple of years ago. It was very informative, the forum we had. So, I appreciate it very much. Also, I want to talk about and I want to ask some questions on the lock-in. I know we have covered it a little bit, but I have a couple of bills with regard to that. So, I want to start with Mr. Douglas, if that is OK. Yesterday CMS talked about the importance of lock-in as a tool to manage prescription drug abuse in Medicare Advantage and Medicare Part D. Lock-in is not new and has been used for years in Medicaid and commercial insurance. Since you run a Medicaid managed care plan, you might be able to talk about how lock-in programs operate and what you have seen. Does your plan run a Medicaid lock-in program and, if so, can you tell me how you structure the program and what triggers you are looking for in identifying an at-risk beneficiary, please? Thank you. Mr. Douglas. So, yes, as you said, lock-in programs have been around for a long time, both from a State agency as well as from managed care programs. And Centene, in our States we have over 10 States where we do have lock-in programs. We work in partnership with the Medicaid agency to structure and be able to create the policies and procedures. There is no, I would say, one-size-fits-all approach to lock-in programs. In some States, the lock-in is around the prescriber; in other cases, it is about lock into a pharmacy. Or, it could be both prescriber and pharmacy being locked in and having the member have one prescriber and one pharmacy. So, it varies. Now there are triggers in terms of the types of utilization, looking at how, for example, in one criteria I will go through they are looking at using three or four pharmacies within a 30-day period. Three or more prescribers within a 30-day period become triggers, utilizing five or more controlled substances in a 30-day period, different drug classes. So, we look at all different types of triggers and create that policy. In many cases, the pharmacy board is part of the process, too, to make sure that they are integrated into the policy development along with the Medicaid agency. We, then, also, before we do the lock-in, there are notices sent out to members, notices sent out to prescribers and the pharmacies. So, everyone is onboard and understands the new process that is in place. We have found this to be very effective. Again, you need to cast the net appropriately, and that is where having the right triggers and knowing who that you are bringing into the program, so you are not inappropriately restricting access to needed services. But, where done, we have some evidence and data that has shown that we have been able to bend the cost curve and be able to still provide the right outcomes in these lock-in programs. Mr. Bilirakis. Mr. Srivastava, do you want to elaborate? I know you answered that question when Mr. Guthrie asked you that question. But do you want to elaborate as to the triggers? Mr. Srivastava. Sure. Mr. Bilirakis. And how do you identify the at-risk beneficiaries? Mr. Srivastava. Absolutely. Just to add on what I said previously, we operate two plans, in Florida and in Massachusetts today where we have a lock-in place on Medicaid. And we see kind of expanding that into Medicare Advantage in 2019. Really, it is a community-based outreach effort to do lock- in effectively. So, it is engaging with the individual. Each State has different criteria as it relates to Medicaid. And so, we are kind of following the State's guidelines and trying to be coordinated. But it is coordinating with the individual and coordinating with primary care as well as specialty care. In a lot of these cases, these are individuals with physical health as well as comorbid behavioral health issues. And so, as a result, we are working with community-based mental health centers as well to be able to have a coordinated approach towards a lock-in related to a prescriber at a location, so that we can kind of reduce overuse or misuse of drugs. But I think another key element is simply making sure that we have care management wrapped around that, as well as in-home services, peer supports, and access to tele-behavioral health and telehealth services as well, to make sure there is a coordination of care. Mr. Bilirakis. How effective has the program been? Mr. Srivastava. So, we have seen it has been effective in Florida, from our perspective, in your area, and we have been able to see kind of reduced utilization and stability in terms of outcomes. So, the recidivism or kind of admissions and readmissions related to things have gone down. Mr. Bilirakis. Mr. Douglas, how effective has the program been? Mr. Douglas. Again, very effective, that we have seen a reduction in costs, overutilization, primarily from pharmacy spend, but also on the medical side as well from inpatient as well as emergency room. So, when done right, it has been very effective. Mr. Bilirakis. OK. Very good. I will yield back, Mr. Chairman. Appreciate it. Mr. Carter. The gentleman yields. The Chair recognizes the gentleman from Indiana, Dr. Bucshon. Mr. Bucshon. Thank you, Mr. Chairman. Mr. Kravitz, prior to becoming a Member of Congress, I was a cardiovascular and thoracic surgeon. As a physician, I believe that in order to properly address some part of the opioid crisis, we need to address the causes, one of which is how we diagnose and manage chronic pain. From your experience as a system, what is the most effective way for providers to engage patients about pain and pain management? Mr. Kravitz. So, I have a personal situation. My wife today had a pain management visit due to an injury to her neck. Mr. Bucshon. Yes, particularly new patients and seniors also? Mr. Kravitz. OK. So, she is a new patient, and seniors, the same way. Our prescribers and our specialty physicians--and I attended the visit with her to see a neurologist--they take the opportunity to counsel and discuss, to review what actually the injury is for that particular patient. Again, firsthand, I saw where opioids were not even introduced. That was discussed as not being an option in this case. Other methods with regard to physical therapy, behavioral therapy, things of that nature, in this case it is physical therapy, which will begin immediately. Injections and things like that which are non-opioid type of medications. But we take the initiative to work with the patients, the same as with our Medicaid or Medicare population patients. We would much prefer not to go down the path of opioids because of the risk associated with opioids. And so, I think that has been our process, and I have seen it firsthand. Mr. Bucshon. The gist of it is it is critical to have the good evaluation of the causes of pain---- Mr. Kravitz. Absolutely. Mr. Bucshon [continuing]. And, also, proper counseling with the patient and family about alternative treatment? I will speak for the physicians. I am a physician. Historically, I think maybe we haven't done that as well as a society as maybe we could have, right? Mr. Kravitz. I think being part of a physician-led organization like Geisinger, and known for the innovation that our physicians lead and our technology supports, that has been our mantra, so to speak, that that is the direction we want to go. Is it a perfect organization? No, far from it, but we will continue to iterate and make it better and tighter as time goes by. Mr. Bucshon. Yes, and it is also pretty clear that it is important for care providers to have a complete understanding of not only the current pain problem, but their pain history. CMS testified yesterday and it was mentioned that the way we look at pain needs to evolve from just treating the pain to a full conversation about pain management, and I think you would agree with that. Mr. Kravitz. Yes, absolutely. Mr. Bucshon. So, we had that yesterday. Mr. Srivastava. Congressman, if I could just add? Mr. Bucshon. Yes. Mr. Srivastava. Geisinger is a vertically-integrated system that has complete access to data and a strong delivery model-- we were on a network model. So, we serve about 7.5 million people today with chronic pain management services where we partner with health plans and partner with providers. I think the key there is having strong data and analytics and offering up alternative therapies, as you outlined. The one piece that I will just add is that the alternative therapies wrapped around virtual care delivery is really a first-line therapy for us. So, how can you manage pain with cognitive- based therapy? Second, then, with telehealth or tele-behavioral health as well, text therapy as well, in order to kind of augment. So, there is a level of that compounded with home care services that could also alleviate pain beyond just opioid use. Mr. Bucshon. Yes. And again, for you, Mr. Srivastava, in your testimony you suggested that any willing provider requirements are problematic for health plans due to the behavior of some rogue pharmacies who engage in fraud. I would like to try to get a better understanding for that because I have a little bit of a skeptical view on that. It is my understanding that fraudulent behavior from a pharmacy is prosecuted by CMS and other state authorities. Is the concern that managed care plans have to take any pharmacy willing to accept the plan's contract and maybe they don't want to do that? Or, is the concern that pharmacies with problematic business patterns are not identified and pursued quickly enough? Mr. Srivastava. It does not have to do with kind of building a network and accessing discounts. It has everything to do with having a quality network where things are credentialed and there is high-quality delivery. And if there is aberrant behavior, things that are outside the norm, that we should be able to not have to be required to contract with that entity. And we are not speaking to the majority or a large portion, but a very small portion. Mr. Bucshon. OK, yes, because, from my standpoint also not only as a Member of Congress, but as a physician, it is important for me to ensure that our Medicaid or Medicare patients have access to high-quality providers and pharmacies, and that situation not to be restricted in a way that makes it difficult for people to access their pharmacies. Mr. Srivastava. It is all about the quality---- Mr. Bucshon. Yes. Mr. Srivastava [continuing]. And making sure there is a level there. Thank you. Mr. Bucshon. Fair enough. Thank you. I yield back, Mr. Chairman. Mr. Carter. The gentleman yields. The Chair recognizes the gentlelady from Indiana, Ms. Brooks. Mrs. Brooks. Thank you, Mr. Chairman. Mr. Douglas, in your testimony you mentioned the importance--and a few of you did as well, and so, I would like to hear more from others--but you mentioned specifically the importance of provider education as one way to reduce opioid use and abuse, and including educating providers about the risks of high-dose prescribing and best practices in the treatment of pain and addiction risk associated with prescribing opioids for pain. I would like to hear a little bit more about the outcomes that you have seen, and others have seen, about provider education policies and whether or not it has led to a reduction in opioids prescriptions, and whether, with those outcomes and since you have implemented policies like this for your providers, how has it impacted the numbers of patients actually using opioids? And has there been a noticeable decrease in patients seeking treatment for their addiction? A lot of different---- Mr. Douglas. Yes, a great question. What I would say, first of all, I have seen directly from Centene that, for example, we offer free continuing medical education as one way to make sure on alternatives--we have talked about alternative therapies and treatment and better ways of pain management. Too, there are different projects-- ECHO is going on--as ways to do this. And then, there is also, through 1115 waivers, a lot of work going on where you see collaborative models of the best and evidence-based approaches on pain management. What I would say in terms of outcomes is the hard thing to pinpoint on education is this is a continuum of prevention approaches, from what is going on out front, and we have talked about everything from very, very aggressive approaches around lock-in to really limiting prescription refills, to the length. So, we from Centene, and I have put it in my write-up, have seen significant reductions, in overall numbers. That being said, I can't tell you it is just about education. It is about the comprehensive nature and approach, that you need to create the right incentives for States and Medicaid managed care organizations to be looking comprehensively and not just thinking education is going to solve it, but around all of the different approaches. Mrs. Brooks. Oh, certainly. No, there is no question that it needs to have a lot of different approaches. Have your prescribers complained about prescriber education? Mr. Douglas. I would have to get back to you on it. I think this gets to a broader issue, and this is where you need to create the right investment. It is our providers, you know, we ask a lot of our providers. And so, we try to create the right platforms--and this gets to how, for example, CME, they already need to do it--ways that we are not just adding another additional burden without any payment. And so, it has got to be the balance between creating the right incentives and the right venues and right financing to ensure we are getting the high- performing providers who are paid adequately to provide the right access and the right types of treatment. Mrs. Brooks. Thank you. You brought up provider education, Mr. Botticelli. Can you expand on either Mr. Douglas' points or any additional of your own---- Mr. Botticelli. Sure. Mrs. Brooks [continuing]. With respect to prescriber education? And prescribers meaning physicians, nurse practitioners, dentists, everyone. Mr. Botticelli. One of the issues that we saw driving overprescribing was, quite honestly, misleading information. As you talk to many prescribers, they will tell you that they were trained that these were not addictive drugs, that these should be prescribed liberally. And while I agree with Mr. Douglas that you can't kind of pinpoint to one specific thing, I think it makes intuitive sense to give providers good, fact-based education as it relates to this issue. Again, while I do think we need to provide incentives, and I say this not to overexaggerate, but while we have seen some modest declines in prescribing, we are still prescribing at three times the level that we were in 1999. And I don't think it is unreasonable to ask a physician, kind of 15 years into this epidemic, to take some modicum of continuing medical education, either on safe prescribing or just on substance use issues in general. Mrs. Brooks. Thank you. Mr. Kravitz, or any of the others, comments? Mr. Kravitz. Yes, I would love to comment on that. So, I had mentioned in my testimony we have a provider dashboard. So, that tracks providers that are high prescribers for opioids. We use that as part of our continuous monitoring for our physicians who we have educated and trained on this. We will continuously go back and address issues if we still see a persistent level of prescriptions being prescribed--overusing that term--but by these particular providers. And they could be nurse practitioners, physician assistants, anyone who has a DEA license number in this case. So, we address it. We are very much concerned about the quality of care delivered to our patients, and that is one of the areas where we focus on very heavily with analytics. Mrs. Brooks. Thank you. I am out of time. I yield back. Thank you. Mr. Carter. The gentlelady yields. The Chair now will recognize the gentleman from New York, Mr. Tonko, for 5 minutes. Mr. Tonko. Thank you, Mr. Chair. I don't see Mr. Barton in the room, but I do want to address my colleague's concerns and I appreciate his kind comments. But I want to make it abundantly clear, my bill does not expand Medicaid eligibility in any way. It simply would allow States the flexibility to provide for existing Medicaid beneficiaries who are returning into the community in less than a month. Vast bodies of evidence confirm that individuals engaged in addiction treatment have lower rates of recidivism and lower healthcare costs, and we have undone many, many situations where they would have overdosed and died. That is what my bill does, straightforward. It is about being smart on crime and effective for the taxpayer. In trying to address the opioid epidemic, one of the populations I have the greatest concerns about is individuals who have had involvement with the criminal justice system. As I mentioned during the first panel, for individuals reentering society after a stay in jail or prison, the risk of overdose is as high as 129 times that of the general population during the first 2 weeks of post-release. In States that have specifically collected data on this population, such as Rhode Island, we have seen that justice- involved individuals can account for at least 15 percent of the total overdose deaths. If we extrapolated that figure nationwide, we are talking about 10,000 deaths a year among individuals less than a year removed from correctional settings. Mr. Botticelli, let me welcome you back to this committee and direct the question your way. Drawing on your previous role at ONDCP or your current position at BMC, what are some of the unique challenges that this justice-involved population faces in accessing effective addiction treatment, and how can we do a better job of meeting the needs of this population? Mr. Botticelli. Thank you for the opportunity to address you again. Our data in Massachusetts underscores some data that you've already said, and we see people who are coming out of our jails and prisons overdose and die at one hundred and twenty times the rate of the general population. And while we've made success with many populations, that is one area where we need to have concern. And I will tell you that, very interestingly, Boston Medical Center is right across from the Suffolk County Jail, and we actually try to make sure that we are getting people as they come out of prison into our services. But it often can be challenging. And even though we do a good job of trying to get people on insurance, being able to have that seamless coverage, actually start people on treatment while they are in jail becomes important. And the last point that I will make is we have a significant number of sheriffs in Massachusetts who operate county houses of correction, who I think would have greater uptake of medication-assisted treatment while people are in jail. But part of the predicament that they run into is cost. To your point, with already Medicaid-eligible folks, if we have some modicum of transition services to be able to make sure that folks have that seamless bridge back to the community, that, to your point, not only can we reduce overdose deaths, but we would reduce costs and we would reduce recidivism. Mr. Tonko. That is a smarter use of the taxpayer dollar. Mr. Botticelli. It is. Mr. Tonko. Thank you, Mr. Botticelli. In an attempt to address some of the challenges you spoke about, I introduced the Medicaid Reentry Act, which would provide States with new flexibility to draw Federal matching funds for care provided to Medicaid- eligible, already Medicaid-eligible incarcerated individuals in the 30-day period prior to release, rather than waiting until the day of release itself. Mr. Douglas, as a former State Medicaid director, would this type of increased flexibility have been useful to you as you crafted a response to the opioid epidemic? Mr. Douglas. Absolutely. What we see, we have innovative programs now. I can see, and I mentioned earlier, in Ohio, where there is a lot of work going on between the correctional system and the managed care organizations where there is a pre- release program in place, that we do a lot of work. Mr. Tonko. I am going to cut you short because I only have about 35 seconds left. Mr. Douglas. OK, fine. Mr. Tonko. But I appreciate it. Mr. Douglas. Yes. Mr. Tonko. For the rest of the panel, do you agree that initiating addiction treatment and care coordination services for reentering Medicaid beneficiaries before they leave a correction setting would improve their health outcomes, including overdose deaths for these individuals upon reentry, yes or no? Mr. Kravitz. Yes. Mr. Douglas. Yes, sir. Mr. Guth. Yes. Mr. Srivastava. We have experience in three States. Yes. Mr. Tonko. OK. Mr. Douglas, coming back to you, your company has done some innovative work in the reentry space with subsidiary Buckeye Health Plan, a Medicaid managed care organization operating in Ohio. Buckeye participates in Ohio's Medicaid Pre-Release Enrollment Program under which managed care organizations provide care coordination services through videoconferencing to certain high-risk incarcerated individuals prior to release from prison. Beneficiaries are provided an insurance card and a care plan the moment they walk out of a corrections facility. I was hoping you could briefly describe Buckeye's participation in this program and share any data that you believe are significant for the previously-incarcerated beneficiaries who have enrolled with Buckeye. Mr. Douglas. Yes, and I am happy afterwards to provide for the record--we have a flyer that gives more detail on this-- knowing that we are out of time. But, just in a nutshell, we work 90 to 120 days before release getting them, making sure they are going to be enrolled in Medicaid, so that they are actually Medicaid-eligible. We develop a transition plan. We, through a videoconference, review that with their care manager. We schedule post-release appointments. Then, we make sure that pre-release that they are getting a 30-day supply of medicine, especially for those with behavioral health needs. And then, we do a care outreach 5 days after release to make sure they are connected to both integrated behavioral health services as well as social services. Across not just with Buckeye, our plan, but all of Ohio has had 20,000 former inmates enrolled in this program. Mr. Tonko. Thank you, Mr. Douglas. Finally, I will just state--and I know my time is out--but I will state that, if with this human health crisis, this opioid epidemic, our goal is to save lives, I challenge this committee to say no to addressing those who are incarcerated. It should not be a caste system here. Many people find themselves incarcerated because of this illness, and we need to be compassionate and I think effective with the taxpayers' dollars. With that, I yield back, Mr. Chair. Mr. Carter. The gentleman yields. The Chair now will recognize himself for 5 minutes. I would like to ask unanimous consent to submit two letters for the record supporting the Pharmacy and Medically Underserved Areas Enhancement Act. Without objection. [The information appears at the conclusion of the hearing.] Mr. Carter. Mr. Guth, I am going to start with you. I wanted to ask you, the recommendations that have been put forth by the President's Commission on Combating Drug Addiction and the Opioid Crisis stated that, ``There is a great need to ensure that healthcare providers are screening for SUDs and know how to appropriately counsel or refer to a patient.'' It would appear to me that this is an opportunity for Congress to direct CMS that CPT codes be expanded or added to, and that we identify patients at risk for opioid use disorders. Mr. Guth. Absolutely. Mr. Carter. Would you agree with that? Mr. Guth. Absolutely. Mr. Carter. Should we be looking at creating or amending CPT codes? As I understand it, it is done in other areas. In fact, it is done for chronic care with alcohol and substance abuse, and other areas as well. Mr. Guth. Absolutely. I am very much supportive of that. Mr. Carter. OK. Should we be encouraging the use of OUD tapering strategies that have been proven to work? Mr. Guth. Yes, and I think those go back to the fact that you have very different presentations for folks. You have individuals with very different recovery capital themselves. So, not everybody needs to be on medication-assisted therapy for the duration. I think this gets back to one size doesn't fit all. Mr. Carter. Right, right. Mr. Guth. So, the short answer to your question is, yes, we ought to be including in the continuum of care tapering strategies. Mr. Carter. OK. I want to talk real quickly about one of the bills that is under consideration. That is the Partnership Act, and that is the use of the PDMPs, and specifically as it relates to pharmacists. And full disclosure is, I suspect you know, currently, I am the only pharmacist serving in Congress. I have over 30 years of experience in a retail setting. And I acknowledge the responsibility of pharmacists. We have an important responsibility, a very important responsibility, as possibly the last line of defense in the opioid crisis. But, having said that, I will tell you we are not policemen. And to require pharmacists to be the only ones to be looking at a PDMP, and to be policing physicians who are writing the prescriptions, I think is somewhat unfair. I have often said the only thing worse for me, as a practicing pharmacist, to fill a prescription for someone who is going to be abusing it, would be to not fill a prescription for someone who truly needs it. It is unfair to expect a pharmacist to profile a patient and say, no, that patient doesn't need that medication. That is unfair. Now I get it. I understand a PDMP is different. I have sponsored the legislation creating the PDMP in the State of Georgia back in 2009. But, at the same time, I just want to get your thoughts on this. Without having the prescriber have to look at the PDMP, why are we having the pharmacist to look at it? To police the doctors? Anyone want to jump on that? Yes, sir, Mr. Kravitz? Mr. Kravitz. I think it is imperative that the provider be held accountable, prior to providing the prescription, that they must check the PDMP. And they are the source of this process. I think the pharmacist, which I have a daughter who is a pharmacist as well, and I think they are a checkpoint in the process. They should not be held accountable as the policing act. Mr. Carter. Thank you. Any other comments? OK, and let me go back to you, Mr. Guth, because I thought it was interesting. In your opening statement, you said that the number of programs that are out there--and this is something that I have been very concerned about, the fact that I look at the opioid crisis and I look at two different components of it. First of all, there is that tangible part, if you will, that I feel like we can get our arms around. How do we control the number of prescriptions, the pills that are going out? And what are those things that we do to limit the access to them? But, then, there is the second component that is more challenging in my mind, and that is, how do we treat those people who are already addicted? You said that, quite often, it depends on what program you enter into. Mr. Guth. Yes. And let me give you an example close to home of how we have addressed this. So, Centerstone has a five-state primary footprint for our services, and we are the result of an affiliation of nonprofit providers who are all mission-driven organizations. As we brought these organizations together, we realized that the systems of care in each of these states vary dramatically, not only in the area of substance use treatment-- -- Mr. Carter. Right. Mr. Guth [continuing]. But across the board, not based on the science of care, but based on how services evolved in those areas, access to human capital, state regulations, and, more often than not, funding, access to funding. And so, what happens today is, let's take this shortage of services for the 30 million people in rural communities. We can quickly go to a solution that says let's give them access to medication-assisted therapy, light on the therapy, without all the continuum-of-care services. And we can turn around and say, hey, 30 million people now have access to substance abuse care. But that is not a single solution that addresses all the people that present. Think about the fact that, if you or I present with an opioid disorder, we have got a lot of human capital support around us in our family, in our friends, or networks. We have got jobs. We have got a safe place to live. But, if that is not our situation, which is the case for many people that are battling this disorder, we need to make sure they have got access to---- Mr. Carter. Right, right. Mr. Guth [continuing]. A sober living community, that they have got access to peer support. Mr. Carter. Well, and it is one concern that I have because a lot of my colleagues--and I am not being critical; I just don't think they understand--think all we have got to do is throw money at it, and if we can get to a certain point, then that is where we need to be. But my point is that not all programs are going to work for all people. Mr. Guth. That is right. Mr. Carter. That is difficult for us in Congress to disseminate. How do we know which programs work and which ones don't? Mr. Guth. I think you start by looking at whether the provider has access to, either directly or through strong referral relationships, a continuum of care. Mr. Carter. A continuum of care is extremely important. Mr. Guth. If anybody comes to you today and says, look, we have got the one solution, we have got the one program, the one protocol that is going to work for everybody, I think you ought to be looking very closely at that. Mr. Carter. Right. Let me ask one more thing. Mr. Douglas, or any of you, did I hear you say that only one out of five people in treatment are getting medication-assisted treatment? Are most of the patients who are under treatment for opioid addiction, are they getting medication-assisted treatment or are they just getting therapy? Almost all of them getting medication-assisted therapy? Yes, I'm sorry? Mr. Botticelli. So, despite the fact that I think all the data support that people on medication, as long as they are getting all the other behavioral and recovery supports, do far better on a medication versus treatment without the medications. But only a very small percentage of people are getting on it. And we still have a small percentage of our treatment programs who are even offering it. But, while I agree with you that there are multiple pathways to treatment, I do think that every licensed substance use treatment provider who is getting a Federal dollar should be offering access to medication-assisted treatment. And I think it is really important because the data are pretty clear that people get into long-term recovery when they are on a medication versus when they are not. And again, this is not saying ``either/or''. People need all the other recovery supports. Mr. Carter. Right, right. Mr. Botticelli. They need behavioral therapy. They need peer support services. But it is very clear, and again, I go back to Secretary Azar who said treating substance use disorders and treating opioid addiction without a medication is like treating an infection without an antibiotic. Mr. Carter. Right. Mr. Guth. And for the record, I absolutely agree with that. So, it is a point about having the other constellation services available. Mr. Carter. Right. But you see what a difficult situation it puts us in. I mean, all of you know that this is a lifelong challenge. I mean, and you have to continue it, and it is expensive and everything else. But I want to thank all of you for being here. This is extremely important. This is part of what, as I said earlier, the second component that I consider to be so very challenging for us, but so very necessary for those who need help. And we need them. We need them back to being productive members of our society. So, I will yield back the remainder of my time. Seeing there are no further members wishing to ask questions, I would like to thank all of our witnesses again for being here today. I would like to submit statements from the following for the record: the American Association of Oral and Maxillofacial Surgeons, the Association for Behavioral Health and Wellness, AdvaMed, the American Hospital Association, the American Psychological Association, the American Society of Health System Pharmacists, the Association for Community Affiliated Plans, the College of Healthcare Information Management Executives, ePrescribing Coalition, the National Association for Behavioral Healthcare, the National Association of Chain Drug Stores, the National Association of Medical Directors, the National Indian Health Board, the Oregon Community Health Information Network, the Partnership to Amend Part 2, the Pharmaceutical Care Management Association, Property Casualty Insurance Association of America, Shatterproof, Imprivata, the Pharmacy Coalition, Express Scripts, the National Association of Counties, and Trinity Health. [The information appears at the conclusion of the hearing.] Mr. Carter. I would also like to submit a joint statement from the Infectious Disease Society of America, the HIV Medicine Association, and the Pediatric Infectious Disease Society; a study entitled, ``States With Prescription Drug Monitoring Mandates Saw a Reduction in Opioids Prescribed to Medicaid Enrollees,'' published in Health Affairs, and the Center for Medicare and Medicaid Services 2016 Medicaid Drug Utilization Review Annual Report. [The information appears at the conclusion of the hearing.] Mr. Carter. Pursuant to committee rules, I remind members that they have 10 business days to submit additional questions for the record, and I ask that witnesses submit their responses within 10 business days upon receipt of the questions. Without objection, the subcommittee is adjourned. [Whereupon, at 12:37 p.m., the subcommittee was adjourned.] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]