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Sinister Optum Layoffs And Closures Continue

UnitedHealth Group’s Optum services subsidiary continues its shedding of jobs. The layoffs have occurred quietly in many areas of the sprawling and amazingly profitable enterprise post the ChangeHealthcare pandemic. In conversations I have had with health plan executives, the layoffs seem to be impacting numerous areas, putting health plans and providers in tough situations. All systems and services are not up yet post the cyberattack and United seems to be abandoning without notice key health plan and provider functions without any reasonable notice or guidance to clients. This is meant to shed questionably profitable areas and assets in favor of the bottom line.

The fact that United is leaving major pieces of the healthcare system at risk is a travesty and should be investigated by the executive and legislative branches. Perhaps the class-action suits against United need to be expanded to cover these unseemly practices we are seeing.

I admire what United built over the years, but I think it got too big. United scaled its empire through acquisition and is now cavalierly exiting areas and blaming it on the cyberattack. As large as it is and as negligent as it was in the cyberattack, it has a moral duty to protect the healthcare system.

#unitedhealthcare #optum #changehealthcare #cyberattacks

https://www.fiercehealthcare.com/payers/optum-lays-more-employees-landmark-optuminsight

Elevance Beats The Street For Q2

Elevance Health beat The Street on both profit and revenue in Q2 2024. The insurer posted $2.3 billion in profit and $43.9 billion in revenue. It signaled it is seeing 5% enrollment declines in Medicaid due to redetermination. That should end later this year. Utilization could increase due to increased acuity in Medicaid. Carelon, its service entity, increased its financial position dramatically. With its win in a lawsuit on Star ratings, Elevance expects 56% of its Medicare Advantage (MA) members to be in 4 Star or greater plans. A huge boost to its MA program.

Additional articles: https://www.fiercehealthcare.com/payers/elevance-health-beats-street-q2-it-posts-23b-profit and https://www.healthcaredive.com/news/elevance-second-quarter-2024-medicaid-medicare-advantage/721551/ and https://www.beckerspayer.com/payer/medicaid-utilization-rising-elevance-health-warns.html and https://www.beckerspayer.com/payer/elevance-health-posts-2-3b-profit-in-q2.html

(Some articles may require a subscription.)

#elevancehealth #medicaid #medicareadvantage

https://www.modernhealthcare.com/insurance/elevance-health-profits-medicaid-medical-costs

Despite Conservatism, Vance Has Surprising Record On Healthcare

J.D. Vance is seen as a rightist Republican. But Donald Trump may have chosen a bit of a maverick on healthcare for his VP partner. In the past, Vance has criticized the Obamacare repeal because it would have impacted lower income people. In addition, he has signaled support on drug price reform, which is similar to Trump’s position. While he previously endorsed Medicare cuts, he has backed away from this position and has indicated that more should be spent on healthcare.

Additional article: https://insidehealthpolicy.com/daily-news/jd-vance-s-record-includes-drug-negotiation-support-mixed-record-medicare-abortion

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#election2024 #trump #vance

https://thehill.com/policy/healthcare/4775098-vance-healthcare-positions

What Will Health Policy Look Like Under A Trump 47 Administration?

As the Republican National Convention (RNC) begins this week, a Modern Healthcare article finds that the GOP platform is light on healthcare.  However, it points to Trump 45’s record, documents from the House Republican Study Committee, and the Heritage Foundation’s Project 2025 for possible insights into a Trump 47 healthcare agenda. Culling it all together, policy likely will be fundamentally different from the current administration.  Whether the Affordable Care Act (ACA) is repealed or not, coverage declines can be expected in the Exchanges and Medicaid.  Despite some reform proposals, Trump has distanced himself from radical changes in Medicare. It is unknown if Trump would pick up his previous stances on drug pricing, which are much closer to President Biden’s views.

(Article may require a subscription.)

#election2024 #healthcare #trump #biden

https://www.modernhealthcare.com/politics-policy/donald-trump-republicans-2024-election-medicare-medicaid-aca-abortion-project-2025

Price Transparency Hearing Shows More Needs To Be Done

A Senate hearing on price transparency shows much more needs to be done on price transparency despite progress during the Trump and Biden years.

#pricetransparency #healthcare #healthplans #hospitals

https://www.fiercehealthcare.com/regulatory/it-isnt-normal-senators-condemn-insurers-hospitals-resistance-price-transparency

Senate Passes Key Generic and Biosimilar Drug Competition Measure

The Senate unanimously passed a bill that would bar so-called “patent thickets” and similar measures that brand drug makers use to stop the swift entry of generics and biosimilars. Drug makers would be barred from using multiple patents and lawsuits to stop generic and biosimilar approval. As well, the companies could not essentially “re-patent” drugs by making cosmetic changes. The Federal Trade Commission (FTC) would also have power to impose limits on patent litigation on biologics.

(Article may require a subscription.)

#drugpricing #branddrugmakers #biosimilars #generics

https://insidehealthpolicy.com/inside-drug-pricing-daily-news/advocates-applaud-senate-passage-patent-thicket-reform-bill

FTC To Sue Big Three PBMs

The Wall Street Journal (WSJ) is reporting that the Federal Trade Commission (FTC) will sue the Big 3 pharmacy benefits managers (PBMs) – United’s Optum, Cigna’s Express Scripts, and CVS’ Caremark — over anti-competitive behavior.  The suits could center on the vertical integration with their sister health plans, which means the PBMs favor corporate-owned pharmacy assets at higher costs to the public. The suit may also challenge rebate deals with brand drug makers and concomitant formulary restrictions. The move likely means more pushes on Capitol Hill to reform PBMs.

While some of this may be true, I continue to believe that brand drug makers are the biggest problem in terms of high drug prices.

Additional article: https://www.fiercehealthcare.com/payers/wsj-ftc-sue-pbms-over-drug-pricing-tactics

#pbms #drugpricing #ftc #antitrust

https://www.healthcaredive.com/news/ftc-to-sue-pharmacy-benefit-managers-caremark-express-scripts-optumrx-wsj/72102

New FTC Investigation Report Targets PBMs

In its initial report on an antitrust investigation into the role of pharmacy benefits managers (PBMs), the competitiveness watchdog Federal Trade Commission (FTC) says PBMs have vast power that disadvantages consumers and independent pharmacies. It reports the following:

• Consolidation and vertical integration of health plans and PBMs have impacted price and accessibility and led to anti-competitive behavior.
• Independent pharmacies suffer broadly from the trends in the PBM industry.
• It criticized narrow and preferred network strategies, formulary and rebate arrangements, and specialty pharmacy arrangements.
• It noted that 80% of all PBM business is controlled by just three major entities – United’s Optum, CVS’ Caremark, and Cigna’s Express Scripts.
• Arrangements with owned entities, including retail pharmacies, mail-order pharmacies, and specialty pharmacies, hurt consumers.

The major PBM lobbying group pushed back on the findings vigorously.  While PBMs need reform and more transparent approaches, I feel the FTC has put the entire onus for high prices and anti-competitive behavior on PBMs and not brand drug makers. The FTC has adopted the same whipping boy mentality as Congress.

Additional articles: https://www.fiercehealthcare.com/payers/ftc-report-pbms-may-urgently-require-potential-regulation and https://www.modernhealthcare.com/politics-policy/pharmacy-benefit-managers-pbms-higher-prices-ftc-cvs-cigna-unitehealth and https://thehill.com/policy/healthcare/4762024-federal-trade-commission-report-pharmacy-middlemen-price-hikes/

(Some articles may require a subscription.)

#pbms #drugpricing

https://www.healthcaredive.com/news/ftc-pharmacy-benefit-manager-investigation-interim-report/720814