Fireworks At Senate Finance Hearing On Healthcare
Fireworks erupted at the Senate Finance hearing on various healthcare issues. Supporters of the Inflation Reduction Act’s (IRA) Medicare drug price negotiations say it is a good first step and will reduce drug costs in the country. Opponents argue it will impact innovation and Part D changes will increase premiums.
Others attacked GOP VP candidate J.D. Vance’s explanation of what a Trump Obamacare repeal may look like – principally setting up risk pools for those who are sick. On enhanced premiums, many support their extension, but the GOP discussed the huge price tag.
Both parties seemed to favor pharmacy benefit manager reform.
#healthcare #election2024 #healthcarereform
https://www.fiercehealthcare.com/payers/lawmakers-policy-experts-spar-over-inflation-reduction-act
Trump and GOP At Odds Over Medicare Drug Price Negotiations
Interesting article from Axios on the divide between Donald Trump and GOP members of Congress on the Medicare drug price negotiations law. The lawmakers are doing the bidding of Big Pharma and argue the law should be repealed. In his first term, Trump proposed drug price controls for Medicare Part B drugs and said he would expand the proposal to Part D retail drugs later. He continues to say he would take on Big Pharma, but that he might be open to repealing. While some GOPers in Congress are firmly on the side of repeal, others see higher priorities.
#ira #drugpricing #branddrugmakers
https://www.axios.com/2024/09/17/trump-drug-prices-gop-concerns
Cigna Sues FTC Over PBM Report
In a bizarre move, The Cigna Group’s Express Scripts is suing the Federal Trade Commission, demanding that the agency retract its report on the pharmacy benefit managers (PBMs). Cigna alleges that the report had “false and misleading claims” about the industry and that it supplied millions of pages of documents that came to a different conclusion than the FTC. Cigna takes the position that the report violates the Commission’s duty to follow due process and serve the public interest. It also complains that the report has led to congressional action and other lawsuits. Cigna claims the PBM passes on 95% of rebates and fees to clients and saved them $38 billion last year.
I have never heard of a company suing the government over a report. While I defend PBMs in many ways, it is fair to say that some or much of what the FTC wrote is accurate involving the Big 3s’ dominance (and how that is anticompetitive), the perverse effect of rebate agreements with brand drugmakers, and about transactions that favor their vertically integrated corporate entities at the expense of the public, employers, and the healthcare system as a whole.
Cigna also risks further alienating both sides of the aisle on PBM reform. It also will mean very little focus on the major culprits – brand drug makers.
Additional articles: https://www.modernhealthcare.com/legal/express-scripts-ftc-pbm-report-lawsuit-cigna and https://www.healthcaredive.com/news/express-scripts-sues-ftc-pbm-interim-report/727193/ and https://thehill.com/policy/healthcare/4884456-express-scripts-ftc-lawsuit/ and https://www.managedhealthcareexecutive.com/view/express-scripts-sues-ftc-to-withdraw-its-pbm-report
(Some articles may require a subscription.)
#pbms #drugpricing #ftc
— Marc S. Ryan
