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October 2, 2024

Trump Won’t Reintroduce Drug Price Reform Donald Trump is backing away from his previous support for some form of drug price reform. In his first administration, Trump proposed drug price negotiations for Part B medical drugs in Medicare and the eventual cap of prices to international benchmarks. The U.S. would pay the lowest of other nations. He indicated he wanted to extend the concept to Part D retail drugs as well. The change is surprising given polls showing overwhelming support for drug price reform across Democrats, Independents, and Republicans. The reform was pulled back by the Biden administration due to rule-making issues and poor design. (Article may require a subscription.) #drugpricing #medicare #branddrugmakers https://insidehealthpolicy.com/daily-news/trump-campaign-trump-won-t-pursue-most-favored-nation-policy-drugs Democratic Senators Urge FTC To Investigate PBM Co-Manufacturing Finance Chair Sen. Ron Wyden, D-OR, and Sen. Sherrod Brown, D-OH, want the Federal Trade Commission to investigate pharmacy benefits managers (PBMs) who have co-manufacturing agreements with drug

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October 1, 2024

Hospital Consolidation Has Meant Little Competition In Many Markets A great Kaiser Family Foundation (KFF) analysis shows the impact of massive hospital consolidation over the past many years. Nearly half (47%) of metropolitan areas had only one or two hospitals or health systems providing inpatient hospital care in 2022. About one in five (19%) metropolitan areas have only one hospital or health system providing hospital care. More than a quarter (27%) are controlled by two hospitals or systems. Digging deeper, in 82% of metro areas, one or two hospitals or health systems were responsible for at least three quarters of all inpatient hospital discharges. This signifies these markets are highly concentrated under federal antitrust guidelines. We know that hospital consolidation has led to major price increases. As well, hospitals and healthcare systems have acquired physician practices, raising prices for physician care by changing practice patterns to more expensive hospital locations.

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September 30, 2024

Biden Administration Announced Q3 Drug Inflation Rebates The U.S. Department of Health and Human Services (HHS) and Centers for Medicare & Medicaid Services (CMS) announced that many Medicare enrollees will pay less for 54 drugs available through Medicare Part B. The drugs will have a lower Part B coinsurance rate from October 1, 2024 – December 31, 2024 because drug makers increased prices higher than applicable inflation. Over 822,000 people with Medicare use these drugs annually to treat conditions such as cancer, osteoporosis, and pneumonia. The inflation cap and rebate were passed as part of the Inflation Reduction Act (IRA), the same bill that has Medicare drug price negotiations. Savings on some drugs could be in the thousands. Additional articles: https://www.hhs.gov/about/news/2024/09/30/hhs-announces-cost-savings-for-prescription-drugs-thanks-to-medicare-inflation-rebate-program.html and https://www.fiercehealthcare.com/payers/hhs-releases-cost-savings-54-prescriptions-including-cancer-drug #ira #drugpricing #branddrugmakers https://thehill.com/policy/healthcare/4904127-medicare-savings-rebates-inflation-reduction-act CVS Facing Possible Activist Investor; To Layoff 2,900 Glenview Capital Management, a key hedge fund investor for CVS Health, will meet with the

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September 27, 2024

CMS Says Medicare Advantage and Part D Stable For 2025 Contrary to everything we hear on the street, the Centers for Medicare and Medicaid Services (CMS) is reporting that all is well in Medicare Advantage (MA) and the standalone Part D (PDP) program. It reports that the average monthly plan premium for all MA plans, which includes MA plans that provide prescription drug coverage and MA Special Needs Plans (SNPs), is projected to decrease from $18.23 in 2024 to $17.00 in 2025. It also says benefit options will remain stable. CMS says the average standalone Part D plan total premium is projected to decrease from $41.63 in 2024 to $40.00 in 2025 (a decrease of $1.63). This is largely due to the special demonstration program put in place by CMS when it saw standalone Part D premiums slated to skyrocket. It says approximately 99% of people with Medicare enrolled in a

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September 19, 2024

Paragon Institute Sees Fraud In Enhanced Premium Subsidies As Democrats are calling for the extension or permanent adoption of enhanced premium subsidies in the Exchange, the conservative Paragon Institute is arguing that the enhanced premium subsidies are creating fraud as enrollees and/or brokers misrepresent income to get better subsidies. They say this is occurring very much in the 100% to 150% of the federal poverty level (FPL) income group, where free premiums are offered under the enhancement. Paragon says the original subsidies should be put back in place to lessen fraud. In addition, Paragon says small business coverage has eroded since the enhanced subsidies have been in effect. There is fraud going on in the program, with brokers illegally signing people up or changing their plans. But Paragon is now raising a different issue of fraud – the true misrepresentation of income. Paragon also raised a possible compromise. While it

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September 18, 2024

Near Final Medicaid Redetermination Data In The Kaiser Family Foundation (KFF) has done a great public service tracking and explaining the fallout over the reintroduction of Medicaid redeterminations. While some states will carry out remaining redeterminations into 2025, we are nearing the end of the journey. About 25 million people were disenrolled for some period of time since redeterminations began again in April 2023. There is some good news and bad news to the near-end of this redetermination story. The pause in redeterminations during the pandemic allowed rolls to grow in Medicaid and children’s health insurance to 94 million. Even with losses, almost 10 million more people are covered now than before the pandemic. At the same time, 13 million have lost Medicaid coverage since the peak. Many but not all have gained coverage in other ways. Kaiser Family Foundation press release: https://www.kff.org/medicaid/press-release/as-medicaid-unwinding-concludes-in-most-states-kff-finds-25-million-lost-medicaid-coverage-but-enrollment-is-10-million-higher-than-pre-pandemic-levels/ #medicareadvantage #walmart #humana #primarycare https://www.beckerspayer.com/leadership/why-centerwell-is-moving-into-walmart.html?utm_medium=email&utm_content=newsletter HRSA Notifies

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September 17, 2024

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

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September 16, 2024

JD Vance Seemingly Flips on Obamacare And Says Trump Has A Repeal Plan As a senatorial candidate and even as a senator, GOP VP nominee JD Vance poo-pooed the idea of repealing the popular Affordable Care Act (ACA). He argued the program was helping many working Americans. It was a compassionate argument that many viewed as novel in the GOP. But on a Sunday news show, Vance said that Trump has a repeal plan and its cornerstone appears to be the old conservative policy of removing sicker populations from most insurance and putting them in high-risk pools. Despite Vance saying people would be protected, it certainly raises the issue of what happens to people with pre-existing conditions – both from a coverage and affordability standpoint. Such high-risk pools rarely worked as they did not protect patients with pre-existing conditions, were not funded correctly, and had exorbitant premiums. The GOP argues

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September 13, 2024

Medicare Drugs Prices Analyzed A good article in Health Affairs Forefront analyzes the final prices of the ten drugs subject to Medicare drug price negotiations for 2026. The analysis shows that savings are indeed achieved on a net basis when taking into account Part D rebates. However, the data also show that the new prices are far above net prices in other developed countries. As I have argued, Medicare drug price negotiations amount to a cautious start. As the authors also note, the best prices CMS can negotiate are for those drugs that have close therapeutic alternatives or substitutes. The authors also suggest that an ancillary benefit of the negotiation law is the publication of net prices.  This could now drive changes in other lines of business. (Article may require a subscription.) #drugpricing #ira #branddrugmakers https://www.healthaffairs.org/content/forefront/medicare-negotiation-tells-us-drug-pricing-u-s Tracking Poll Shows Widespread Support For Drug Price Negotiations A new Kaiser Family Foundation

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September 12, 2024

Key Republican Dismisses Idea ACA Could Be Repealed At the recent presidential debate, Donald Trump declared that he was still open to repealing the Affordable Care Act (ACA). Admittedly, he is much more measured in his views on the ACA now. He tries to stress that the ACA would only be repealed if a plan were developed to make coverage better. He as of yet has not unveiled a plan. But prominent congressional Republicans again are throwing cold water on the prospect of any repeal.  Sen. Bill Cassidy, R-LA and currently ranking member on the Senate HELP Committee, dismissed the idea that the ACA would be repealed by Congress. And Republicans are likely to take control of the Senate. Cassidy would lead the HELP committee. Along with the Finance Committee, HELP is a committee of cognizance over healthcare matters. Cassidy stressed that comprehensive healthcare reform would have to be bipartisan.

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