U.S. Senate Confirms Seema Verma As CMS Administrator As Health Reforms Loom
By Jof Enriquez,
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The Republican-led Senate has voted 55-43 to confirm Seema Verma, President Donald Trump's nominee to head the Centers for Medicare and Medicaid Services (CMS), the federal agency that administers major healthcare programs to over 130 million Americans.
Verma is president and founder of national health policy consulting firm SVC, and has worked with Vice President Mike Pence, formerly governor of Indiana, on Medicaid reform in that state. She also helped develop similar programs in six other states. Verma has a master’s degree in public health, with concentration in health policy and management, from Johns Hopkins University, and a bachelor’s degree in life sciences from the University of Maryland.
She takes the helm at CMS as the agency is set to implement a number of reforms under the American Health Care Act (AHCA), the Republicans' bill to replace the Affordable Care Act (ACA). The AHCA would roll back key elements of Obamacare provisions, including Medicaid expansion for low-income people, and would limit overall federal financing for Medicaid in the future, according to USA Today. It also seeks to permanently repeal the medical device tax.
"Today, our healthcare stands at a crossroads, and we have no choice but to fix our healthcare system. Under President Trump's leadership and vision, we finally have an incredible opportunity to move our healthcare system into one that puts Americans in charge of their healthcare, and we'll ensure that all Americans have access to quality healthcare that they can afford. I am honored to be part of this critical effort. We have so much work to be done, and I can't wait to begin," Verma said after she was sworn in by VP Pence.
Considering the potential changes that could happen to Medicaid, Medicare, and the individual mandate for private health insurance, the biggest impact on the medtech industry would come from a switch to a block grant system – where states get a set amount of funds, less than is currently provided by the federal government – and a reduction in Medicaid funding overall, according to Jason Lau, a Principal Analyst at Decision Resources Group.
"One obvious impact is a decrease in service and procedure volume compared to the levels seen under expanded Medicaid, which will reduce demand for medical devices, especially those used in procedures to treat the elderly and poor," added Lau.
A potential benefit is a suspension of bundled payments and a return to a fee-for-service approach which would boost joint implant sales in the short term.
Medtech industry groups say they look forward to working with Verma as the U.S. healthcare landscape changes.
In a statement, Mark Leahey, president and CEO of the Medical Device Manufacturers Association (MDMA), said that the group looks forward to "working with her to ensure that medical technologies are covered in a timely manner and reimbursed adequately so that patients and providers can benefit from the cures and therapies of tomorrow. The medical device industry continues to develop solutions to the challenges facing the health care ecosystem, and it is critical that these innovations are accessible to those who need them most in a timely manner."
Scott Whitaker, president and CEO of the Advanced Medical Technology Association (AdvaMed), said "Ms. Verma's wide-ranging experience working with state Medicaid, health, and insurance departments demonstrates her ability to lead CMS through the challenges of the next several years. We welcome the opportunity to work closely with Administrator Verma and her team in order to improve patient access to innovative medical technologies."
President Trump is rounding out his healthcare team, which is tasked with implementing his reform agenda. Verma’s confirmation follows Trump’s nomination this week of Dr. Scott Gottlieb as head the Food and Drug Administration. Tom Price was confirmed as secretary of the Department of Health and Human Services last month.