Today's News and Commentary

About health insurance/insurers

Cigna not pursuing Humana merger “Cigna directly confirmed that it is not pursuing a merger with Humana.”

About hospitals and healthcare systems

Half of US hospitals have enough IV fluids for 2 weeks “Three-fourths of respondents said Baxter is their facility's main supplier of large-volume fluids. The most common mitigation strategies included converting infused medications to injection or intramuscular administration (71% of respondents), rationing fluids for specific clinical indications (60%) and implementing oral hydration protocols (58%).”

Kaiser Permanente posts $608M operating loss in Q3 “The system said that it continues to experience ‘increased medical expenses due to higher-than-expected utilization of services, patient acuity and pharmacy costs.’ Kaiser also said that its third-quarter performance also included the ‘impact of Medicaid and other true-ups of annual contracts that normally occur earlier in the year.’”

About pharma

Drug at centre of AbbVie's $8.7B deal for Cerevel fails in key schizophrenia studies “The crown jewel in AbbVie's $8.7-billion acquisition of Cerevel Therapeutics failed to live up to expectations in a pair of Phase II studies for schizophrenia, putting the future of the selective M4 muscarinic modulator, dubbed emraclidine, in doubt.”

About the public’s health

RFK Jr. wants to change vaccine practices. Trump may empower him to do it. A good review of the issues.

About healthcare finance 

Astrana Health to acquire part of Prospect Health for $745M “Astrana will acquire Prospect Health Plan, Prospect Medical Groups, Prospect Medical Systems, RightRx and Tustin, Calif.-based Foothill Regional Medical Center under the agreement, according to a Nov. 8 news release.”

Cencora to buy Retina Consultants of America in $4.6B deal to expand specialty services “Drug distributor Cencora plans to buy Retina Consultants of America from Webster Equity Partners in a $4.6 billion deal. 
RCA is a management services organization that operates a network of retina specialists, and the deal will bolster Cencora's specialty drug business.”

Today's News and Commentary

About health insurance/insurers

Health Insurance Coverage: Early Release of Quarterly Estimates From the National Health Interview Survey, 2023–June 2024 FYI

Optum, Aetna agree to settle 'dummy code' lawsuit “Aetna and Optum have agreed to settle a class-action lawsuit that accused the companies of improperly charging administrative fees as medical expenses. 
The lawsuit, initially filed in 2015, claimed that Aetna and Optum used misleading billing practices — specifically, employing ‘dummy codes’ to disguise administrative fees for chiropractic services as medical charges — thereby causing plan participants and their employers to pay the fees unknowingly.”

Oscar Health’s Obamacare Business Continues To Grow As Trump’s Return Looms “Oscar Health Thursday reported a $54 million third quarter loss despite continued growth, heading into what could be an uncertain political period under Donald Trump and Republicans in Congress.
But those running the provider of individual coverage under the Affordable Care Act say they believe such health insurance, also known as Obamacare, is ‘positioned for long-term growth — appealing to GOP desires for consumer choice and a free market approach,’ Oscar said in a statement accompanying its third quarter earnings report.”

Millions at risk of losing health insurance after Trump's victory “Millions of Americans risk losing subsidies next year that help them pay for health insurance following President-elect Donald Trump’s election win and Republicans’ victory in the Senate.
The subsidies — which expire at the end of 2025 — came out of the 2021 American Rescue Plan, and increased the amount of assistance available to people who want to buy health insurance through the Affordable Care Act. The American Rescue Plan also broadened the number of people eligible for subsidies, extending them to many in the middle class.  
The looming expiration date means that the incoming Congress and next president will need to decide whether to extend them — something Trump and Republicans have already signaled they don’t support, said Chris Meekins, a health policy research analyst at the investment firm Raymond James.”

Payers ranked by Q3 MLRs FYI

About hospitals and healthcare systems

Characteristics of Health Systems Operating Medicare Advantage Plans “Nearly 1 in 7 MA beneficiaries are enrolled in system-operated MA plans, which remain a consistent source of Medicare enrollment. The findings of this study suggest that larger and church-affiliated health systems are associated with a higher likelihood of operating an MA plan. System-operated MA plans were associated with higher quality ratings and patient satisfaction than unaffiliated MA plans. This aligns with prior research suggesting system-operated plans may be more cost-effective, efficient, and of higher quality.” 

About pharma

Pharma giant GSK is quitting BIO in latest setback for the lobbying group GSK is the latest pharmaceutical company to quit this trade organization.

About healthcare IT

Primary Care Practice Telehealth Use and Low-Value Care Services “In this cohort study of Medicare fee-for-service beneficiaries who received care from primary care practices in Michigan, some low-value care services (ie, cervical cancer screening among women older than 65 years and low-value thyroid testing) were lower among practices with high telehealth use, and there was no association between practice-level telehealth use in rates of most other low-value care services not delivered in the office. As telehealth continues to be an important part of care delivery, evaluating how it may encourage or discourage low-value care services is critical to understanding its impact on quality of care.” 

Today's News and Commentary

About health insurance/insurers

Payers ranked by Q3 profits The nation's largest payers have filed their third-quarter earnings reports, revealing which recorded the largest profits.
Payers ranked by Q3 profits:
UnitedHealth Group: $6.1 billion, up 3.7%
Elevance Health: $1 billion, down 21%
Cigna Group: $739 million, down 47.5%
Centene: $713 million, up 52%
Humana: $480 million, down 42%
CVS Health: $87 million, down 96%”

About hospitals and healthcare systems

General Catalyst to acquire Summa Health for $485M “Summa Health comprises multiple hospitals, community medical centers, a health plan, an accountable care organization, a multi-specialty physician organization, research and the Summa Health Foundation.”
 Akron, Ohio-based Summa Health has reached a $485 million definitive agreement to join Health Assurance Transformation Corp.[HATCo], according to a Nov. 7 news release. ..
The parties shared plans for HATCo to purchase Summa Health in January, with plans to close the deal by the end of 2024. 
Under the agreement, the $485 million purchase amount will help Summa Health, which will transition into a for-profit structure, pay off $850 million in debt. Summa Health's remaining cash will fund a new, separately governed community foundation to support community investment in the Akron area.”

About pharma

GoodRx, PBMs accused of suppressing reimbursements “GoodRx and pharmacy benefit managers CVS Caremark, Express Scripts, MedImpact and Navitus Health Solutions are facing class-action lawsuits accusing them of colluding to suppress reimbursements to independent pharmacies for generic drug prescriptions. 
Three lawsuits were filed last week, with the first filed by Minnesota-based Keaveny Drug in federal court in California on Oct. 30. A second class-action lawsuit was filed Nov. 1 by Michigan's Community Care Pharmacy in the same court, and the third lawsuit was filed the same day by Pennsylvania's Old Baltimore Pike Apothecary and Smith's Pharmacy in federal court in Rhode Island. 
The lawsuits claim that starting in 2023, GoodRx partnered with PBMs to reroute patient prescriptions to whichever PBM offered the lowest price for generics, bypassing the patient's designated PBM. Pharmacies are charged a fee for these transactions, which is split among PBMs, but receive no reimbursements from dispensing the drugs, which result in financial losses for independent pharmacies…”

Acadia pockets $100M from paediatric voucher sale After scoring the first FDA approval for a Rett syndrome treatment last year, Acadia Pharmaceuticals has now sold the rare paediatric disease priority review voucher it gained along with the greenlight. Acadia said the voucher sold for $150 million, but did not disclose the buyer.  The drug developer will only profit $100 million off the sale, however, as Neuren Pharmaceuticals — from whom Acadia gained North American rights for Daybue — is entitled to one-third, or $50 million, of the proceeds.”

FDA Updates GLP-1 Label With Pulmonary Aspiration Warning “On November 5, the US Food and Drug Administration (FDA) updated the labels for all glucagon-like peptide 1 receptor agonists (GLP-1 RA) with a warning about pulmonary aspiration during general anesthesia or deep sedation. The affected drugs are semaglutide (Ozempic, Rybelsus, Wegovy); liraglutide (Saxenda, Victoza); and the dual glucose-dependent insulinotropic polypeptide (GIP)/GLP-1 tirzepatide (Mounjaro, Zepbound).”

About healthcare IT

CMS finalizes telehealth pay changes: 5 notes FYI 

About healthcare technology

VHA2024 STATE OF INNOVATION REPORT FYI- Annual update on innovation in the Veteran’s Health Administration. 

About healthcare personnel

Patient Travel Patterns and Concordance With Geographic Market Boundaries  Among physician visits, the median travel time was 12.7 minutes (IQR, 7.0 to 22.3 minutes) for primary care and 17.1 minutes (IQR, 9.5 to 30.8 minutes) for specialty care. Median travel time was longer for patients living outside metropolitan statistical areas (MSAs), especially for specialty care (15.9 minutes inside vs. 41.8 minutes outside MSAs). For ED visits, the median travel time was 13.6 minutes (IQR, 7.5 to 24.2 minutes).”

Today's News and Commentary

THE ELECTION

Unlike immigration and economic issues (like tariffs and taxes), healthcare per se is not at the top of Trump’s to-do list; whom he appoints is more likely to influence policy. That said, below are a few thoughts about likely changes in the next few years.
1.        Antitrust.
Efforts at controlling mergers and acquisitions will be minimized. We are more likely in the next 4 years to see more combinations of insurance companies and provider organizations.
2.        Medicare.
While Trump denies connections with Project 2025, I believe he will adopt its suggestion to expand private Medicare options, like Advantage Plans. Today, shares of companies in that space have already soared.
3.        Medicaid.
As with his last term, consideration again will be given to other payment forms, such as block grants or capitation. More likely will be a federal enactment of a work requirement as a condition to receive benefits.
4.        Pharma
While Trump has vowed to repeal the IRA, he will continue to address drug prices. Previously, he said he wanted to implement a “most favored nations” program for pricing. Other possibilities include market basket calculations or even methods the Biden administration is currently using.
5.        ACA
This issue is the biggest wildcard.  During his debate with Harris, he says he is working on a plan. In his last term, tried to repeal it.
However, since his last term, the provision of health insurance through the ACA has become more popular; 62% of the population have a favorable opinion. It is therefore difficult to imagine a major change that would upset the electorate. The next national election is in 2 years and healthcare could be a major issue if the ACA is repealed or changed in a significant way.
6.        Public health
As I mentioned in my Blog on Monday, the public health changes could be disastrous. Trump said he would let RFK, Jr “go wild.”
Deleterious changes could range from removal of fluoride in the water to weakening of vaccine policies.
7.        Abortion
Trump promised there would not be a national abortion policy; rather, he said decisions should be left to the states. Republicans believed that many states would choose very strict rules or outright prohibition. However, most states, even conservative ones, have chosen more liberal legalization provisions. These actions might cause Trump to change his mind- especially with a Republican-controlled Congress.
8.        The Supreme Court
While not strictly a healthcare topic, its decisions have significantly affected healthcare laws (even beyond Roe v. Wade). For example, yesterday the Court heard arguments concerning Disproportionate Share Hospital payments. In the next four years, it is unlikely any of the justices will retire. However, if there are health issues, a Republican Senate would approve a conservative justice to replace a more liberal one or a much younger conservative to replace Justices such as Thomas or Alito.

Here are a few ballot item updates: Which healthcare ballot measures passed?  

About hospitals and healthcare systems

Intensity of the IV Fluid Shortage at US Hospitals Remains Very High “Baxter is posting regular updates on its website as North Cove recovers gradually. The latest update, dated Oct. 31, says a key production line has restarted and that the earliest shipments from the facility will happen in late November — ahead of original estimates.”

Today's News and Commentary

About pharma

Survey: 50% of Active Drug Shortages in the United States Persist for 2 or More Years “Although the number of active shortages decreased to 277 in the second quarter of 2024 from an all-time high of 323 in the second quarter of 2023, 50% of the active shortages in the United States persisted for 2 or more years, as reported by the American Society of Health-System Pharmacists. Furthermore, the report shows that 95 new drug shortages, 48% of which are injectables, were identified in 2024.” 

Kroger Finalizes $1.37 Billion Opioid Crisis Settlement “Kroger finalized a $1.37 billion settlement in connection with the grocery chain’s role in the U.S. opioid crisis…
Kroger also agreed to injunctive relief that requires its pharmacies to monitor, report and share data about suspicious activity related to opioid prescriptions, according to the settlement.”

Walgreens to pay $100M to resolve lawsuit over generic drug pricing “Walgreens has agreed to pay $100 million to settle a proposed class action lawsuit accusing it of fraudulently overcharging customers for a decade when they bought generic drugs through private insurance, Medicare or Medicaid.
Walgreens was accused of wrongly requiring insured customers to pay more than members of its Prescription Savings Club, who for a low annual fee could buy more than 500 widely prescribed generic drugs for $5, $10 and $15 for 30-day prescriptions, and $10, $20 and $30 for 90-day prescriptions without using insurance.”

America’s Most Popular Drugs by Dollars Spent See the chart- Ozembic/WeGovy [semiglutide versions] are at the top.

Transparency Shocker: Biosimilars Are Getting Cheaper—But Hospitals and Insurers Can Make Them Expensive “We focused our analysis on Avastin (bevacizumab) and its two largest biosimilar competitors.” See the chart.

About the public’s health

Trump might target fluoride in tap water. Here’s what the science says. See yesterday’s Blog. This potential action is another assault on evidence-based public health practice.  

About healthcare IT

Majority of cyberattacks are through third-party vendors “ The vast majority of cybersecurity risks and breaches are from third-party vendors and other organizations, said experts John Riggi and Richard Staynings during the closing keynote of the HIMSS Healthcare Cybersecurity Forum on Friday.
The numbers have grown from 27 million people affected in 2020 to the 150 million affected by the Change Healthcare ransomware attack in February, according to Riggi, former FBI special agent and national advisor for Cybersecurity and Risk, American Hospital Association.” 

Today's News and Commentary

About health insurance/insurers

CMS finalizes 2.9% pay increase for outpatient facilities, ASCs, with new maternal health mandates “Under a final rule issued by the Centers for Medicare and Medicaid Services, hospital outpatient facilities and ambulatory surgical centers will get a 2.9% Medicare pay increase next year, up from the 2.6% boost in reimbursement that was floated in the draft rule.
 Here is access to the full “unpublished document (scheduled for release 11/29/24)
Here is the CMS Fact Sheet.

Doctors, facing another pay cut in 2025, call for permanent Medicare payment reform “The Centers for Medicare and Medicaid Services (CMS) is moving forward with a 2.9% cut to physician payments in 2025 despite protest from major industry groups.
CMS announced Friday it finalized the calendar year 2025 Medicare Physician Fee Schedule rule that sets payment rates for next year and also outlines new policies focused on primary care, preserved telehealth flexibilities and a strengthened Medicare Shared Savings Program (MSSP). A CMS fact sheet on the rule outlines the key provisions.”

As ACA sign ups start, more Americans have health insurance than ever. Will it last? “More than 21 million Americans buy their health insurance through the Affordable Care Act, and open enrollment for next year’s Obamacare plans started Friday, Nov. 1…
This year, premiums are still very affordable — for many people, premiums are $10 or less per month — and there are more plan options than ever…
One group that’s newly eligible for these subsidized marketplace plans is Deferred Action for Childhood Arrivals recipients, also known as Dreamers. Secretary Becerra says that an estimated 100,000 DACA recipients are expected to enroll…
Also new in 2025 is a rule that allows low income people to enroll in a marketplace health plan at any time of the year, not just during fall’s open enrollment period. That mirrors how enrollment works for Medicaid, the public health insurance program for people with low incomes.
Insurance companies will also have to follow new limits on how long patients should have to wait to get a doctor’s appointment.”

Maryland is the first state to sign into new federal health care program “Maryland became the first state on Friday to join a federal program designed to improve health care quality and equity while lowering costs for all health care payers, including Medicare, Medicaid and private insurers.
It builds on Maryland’s Total Cost of Care Model, which sets a per capita limit on Medicare’s total cost of care in Maryland and encompasses the state’s unique all-payer hospital payment system, which reduces per capita hospital expenditures and supports improved health outcomes, as encouraged by the Affordable Care Act.
This new federal framework, known as the AHEAD model, has been designed to deliver high-quality health care through greater coordination, with a focus on health equity and social needs to support underserved patients.”

Medicare Advantage Plans With High Numbers Of Veterans: Enrollment, Utilization, And Potential Wasteful Spending “Medicare Advantage (MA) plans are increasingly enrolling veterans. Because MA plans receive full capitated payments regardless of whether or not veterans use Medicare services, the federal government can incur substantial duplicative, wasteful spending if veterans in MA plans predominantly seek care through the Veterans Health Administration (VHA) system. The recent growth of MA plans that disproportionately enroll veterans could further exacerbate such wasteful spending. Using national data, we found that veterans increasingly enrolled in MA between 2016 and 2022, including in a growing number of MA plans in which 20 percent or more of the enrollees were veterans. Notably, about one in five VHA enrollees in these high-veteran MA plans did not incur any Medicare services paid by MA within a given year—a rate 2.5 times that of VHA enrollees in other MA plans and 5.7 times that of the general MA population. Meanwhile, VHA enrollees in high-veteran MA plans were significantly more likely to receive VHA-funded care. In 2020, the Centers for Medicare and Medicaid Services paid more than $1.32 billion to MA plans for VHA enrollees who did not use any Medicare services, with 19.1 percent going to high-veteran MA plans.[Emphasis added]

Expected Out-Of-Pocket Costs: Comparing Medicare Advantage With Fee-For-Service Medicare “We compared the generosity of Medicare plans in terms of out-of-pocket costs attributable to cost sharing and premiums, including both basic and supplemental services. From 2014 through 2019, projected out-of-pocket costs for a typical enrollee were 18–24 percent lower in Medicare Advantage than traditional fee-for-service Medicare.”

Health Benefits In 2024: Higher Premiums Persist, Employer Strategies For GLP-1 Coverage And Family-Building Benefits “In 2024, the average annual premium for employer-sponsored family health coverage was $25,572, an increase of $1,604 (7 percent) from 2023. Over the course of the past five years, the average family premium has increased 24 percent, which is similar to growth seen in inflation (23 percent) and wages (28 percent). On average, covered workers contributed 16 percent ($1,368) of the cost of single coverage and 25 percent ($6,296) of the cost of family coverage. The average general annual deductible for single coverage for workers with a deductible was $1,787, similar to that in recent years but 47 percent higher than a decade ago. In 2024, 18 percent of large firms offering health benefits, including 28 percent of those with 5,000 or more employees, covered GLP-1 antagonists for weight loss. Large employers were more likely to perceive their overall provider networks as broader than their networks for mental health and substance use conditions.”

About hospitals and healthcare systems

US Nonprofit Hospitals Have Widely Varying Criteria To Decide Who Qualifies For Free And Discounted Charity Care Among hospitals that offered free care, income limits ranged from 41 percent to 600 percent of the federal poverty guideline. Many hospitals considered assets when determining eligibility for charity care, and a significant minority also had residency requirements and restrictions for insured patients. Hospitals generally allowed charity care in cases of hardship, with a median cutoff of a given hospital bill being 20 percent of the patient’s income. Hospitals in counties with lower levels of poverty and uninsurance had more generous eligibility policies. The wide variation in requirements for hospital financial assistance poses barriers to equitable access to care.”

Days of cash on hand at 35 health systems “Median days cash on hand dipped to a 10-year low for U.S. hospitals and health systems, according to an Aug. 7 S&P Global Ratings' report.
For the first time in the last decade, average days cash on hand dropped below 200 to 196.8, according to the report. The upper half of U.S.-based nonprofit acute healthcare providers reported an average of 292 days while the lower half reported 128 days on average.”

About pharma

What really happens to drug prices when patents expire  A great video explaining why prices do not come down when patents are expected to expire.

About the public’s health

COVID vaccine removed from Idaho district county health clinics: 5 things to know “The Southwest District Health Board voted 4-3 to remove COVID-19 vaccines from its facilities after receiving around 300 public comments urging the removal. The decision was followed by anti-vaccine presentations from multiple doctors widely accused of spreading misinformation, the outlet reported….
The removal marks the first instance in the U.S. where a health department is restricted from offering the COVID-19 vaccine.”
Comment: BELIEVE POLITICAL CANDIDATES WHEN THEY SAY THEY WILL REMOVE VACCINATIONS!

In a related article: Florida surgeon general who warned against vaccines may lead HHS under Trump “Florida’s top health official, whose tenure has been marked by his warnings against vaccines, threats to TV stations for running abortion ads and frequent clashes with public health experts, has emerged as a candidate to run the Department of Health and Human Services in a potential Trump administration, according to two people familiar with the process.”

Today's News and Commentary

About health insurance/insurers

Evaluation of Low-Value Services [LVS] Across Major Medicare Advantage Insurers and Traditional Medicare “In this cross-sectional study of nearly 6 million Medicare beneficiaries, utilization of LVS was on average lower among MA beneficiaries compared with TM beneficiaries, possibly owing to stronger financial incentives in MA to reduce LVS; however, meaningful differences existed across some of the largest MA insurers, suggesting that MA insurers may have variable ability to influence LVS reduction.” 
In a related article:
Higher MA enrollment linked to lower Medicare spending: report
“Medicare Advantage’s popularity is associated with lower total Medicare spending, a new report from Elevance Health finds.
Medicare spending was $431 billion less from 2010 to 2020 than the Congressional Budget Office predicted, and the overestimations were due to spending per enrollee. More than 32 million people, or 54% of the eligible Medicare population, are enrolled in an MA plan.
This trend is most noticeable geographically in midwestern and southern counties, researchers explained, but a weaker association is evident in northwest and western counties.
A 10% percent higher MA penetration in a county points to a 1.9% decrease in Medicare spending, correlating to a $204 decrease in per person spending. This resulted in up to $144 billion cumulative savings from 2012 to 2021.”

The Curious Persistence of Site-Dependent Payments Worth reading the entire article. “Despite the overwhelming bipartisan vote in the House (the bill passed with 320 votes to 71) and the US Congressional Budget Office’s estimate that site-neutral drug payments would save more than $3.7 billion over 10 years, the bill’s enactment by the US Senate remains uncertain because of aggressive lobbying from hospital interests…
Recent evidence, in fact, illustrates that the nation’s largest purchasers of health care—employers that purchase health insurance on behalf of employees (collectively, 178 million people or 54% of the US population and >80% of the privately insured)—are not exercising their preferences, intelligence, and purchasing power as much as rational models would estimate.”

About hospitals and healthcare systems

CMS' hospital capacity reporting rule takes effect “Beginning Nov. 1, CMS will require hospitals to report admission information related to respiratory illnesses, including capacity, to the CDC. The new rule reinstates some pandemic-era requirements that have been voluntary since May 1.” 

About pharma

Using Bayh-Dole Act March-In Rights to Lower US Drug Prices “In this cross-sectional study of drugs approved by the Food and Drug Administration (FDA) with patents listed in the FDA’s Orange Book from 1985 to 2023, the share of drugs where all patents were subject to march-in was 2% for new molecular entities approved between 1985 and 2022, 1% for all new drug applications (NDAs) ever listing a patent in the Orange Book, and 1% for all NDAs on patents in 2023.
Meaning  The findings suggest that few drugs have solely march-in–eligible patents, so the overall effect of march-in on removing patent barriers to competition would be limited.”

About the public’s health

Exposure to sugar rationing in the first 1000 days of life protected against chronic disease “We examined the impact of sugar exposure within 1000 days since conception on diabetes and hypertension, leveraging quasi-experimental variation from the end of the United Kingdom’s sugar rationing in September 1953. Rationing restricted sugar intake to levels within current dietary guidelines, yet consumption nearly doubled immediately post-rationing. Using an event study design with UK Biobank data comparing adults conceived just before or after rationing ended, we found that early-life rationing reduced diabetes and hypertension risk by about 35% and 20%, respectively, and delayed disease onset by 4 and 2 years. Protection was evident with in-utero exposure and increased with postnatal sugar restriction, especially after six months when solid foods likely began. In-utero sugar rationing alone accounted for about one third of the risk reduction.”

Extreme heat set records for health perils in 2023  “Heat-related deaths last year in people over age 65 increased by 167% globally above levels seen in the 1990s — nearly three times more than what would have been expected if temperatures had not changed.

  • People were also exposed to an average of 1,512 hours of high temperatures that posed at least a moderate risk of heat stress when doing light exercise such as walking or cycling — a 27.7% increase on the 1990-1999 yearly average.

  • Conditions were ripe for the spread of more deadly mosquito-borne infectious diseases, with dengue cases reaching an all-time high of over 5 million infections reported in more than 80 countries and territories in 2023.

  • On a more positive note, the report found deaths from fossil fuel-derived air pollution fell almost 7% from 2016 to 2021, with most of this decline due to efforts to reduce pollution from coal burning.

About healthcare technology

Baxter restarts IV solutions manufacturing line at hurricane-hit facility “Medical device maker Baxter International said on Thursday it has restarted the highest-throughput intravenous solutions manufacturing line at its North Carolina facility, which was impacted by hurricane-related flooding.
The North Cove facility was temporarily closed last month due to flooding caused by Hurricane Helene. The plant makes 60% of the United States' supply of IV fluids and peritoneal dialysis (PD) solutions, according to the American Hospital Association.

AI Colonoscopies: More Benign Lesion Removals, Potentially Higher Costs “Use of artificial intelligence (AI)-assisted colonoscopy led to a greater removal rate of exclusively benign lesions compared with colonoscopies that did not use AI, according to data analyzed from a previous single-center prospective study.
About a third more polypectomies were performed only for benign lesions in the AI-assisted colonoscopy group than in an unassisted historical cohort (12.4% vs 8.4%, P=0.04), reported Tessa Herman, MD, of the University of Minnesota and Minneapolis VA Health Care System, at the annual meeting of the American College of Gastroenterology in Philadelphia.”

About healthcare finance

Francisco Partners plans to buy medical software company AdvancedMD for $1.1B “Private equity firm Francisco Partners plans to buy medical software company AdvancedMD from Global Payments for $1.125 billion dollars, the companies announced Wednesday.
Global Payments, which sells payment technology and software solutions, bought the health tech company from investment firm Marlin Equity Partners in 2018 in a transaction valued at $700 million.
The company reported in a filing with the U.S. Securities and Exchange Commission that the transaction is valued at $1.125 billion and is expected to close this quarter.”

Today's News and Commentary

About health insurance/insurers

States ranked by average ACA benchmark premium FYI.
Comment: In addition to differing out-of-pocket exmpnses, yhese figures help explain the different opinions about the affordability of ACA plans.

About pharma

CVS is expanding its MinuteClinics into primary care. Here's why “In a bid to ease access challenges, CVS Health will offer in-network primary care to Aetna members in certain markets through its MinuteClinics.
The services are available to certain individual plan and commercial members in Houston, San Antonio and greater Atlanta, with an eye on future expansion. There are about 1,100 MinuteClinics across the country, with the walk-in retail health clinics located at CVS pharmacies.”
Comment: How is this program different from the failing VillageMD and OakStreet ventures?
In a related article: Cigna posts $739M in Q3 profit despite taking a $1B hit from VillageMD investment

Teva fined $503 million for disparaging a rival and using patents to thwart competition “Teva Pharmaceutical, the world’s largest generic drugmaker, was fined $503 million by European antitrust regulators for delaying competition to a blockbuster multiple sclerosis medicine.
The European Commission found the company had artificially extended the patent protection of Copaxone and systematically spread misleading information about a rival product. The decision follows an investigation opened three years ago, which marked the first time the EC probed potential antitrust abuses stemming from patent procedures as well as disparaging competing products.”

About the public’s health

N95 Filtering Facepiece Respirator Reuse, Extended Use, and Filtration Efficiency “We found the number of shifts of reuse and respirator model were associated with reduced FE. While associated with minimal reduction in FE after 1 shift, after 3 shifts almost one-third of respirators did not filter 95% of particles. This reduction in FE differed by filtering facepiece respirator model.”

You may not need to throw out those ‘expired’ Covid-19 home tests “t may be tempting to throw away those tests or other Covid-19 home test kits that are labeled near their expiration dates, but the US Food and Drug Administration is encouraging people to check its website for extensions before possibly throwing away perfectly good tests.”

About healthcare IT

Teladoc CEO emphasizes course corrections as Q3 revenue, earnings beat the Street “In the Q3 earnings call, Teladoc executives stressed the stability of the U.S. virtual care segment, which has gained millions of users since last year. It called BetterHelp a "company in transition," as the company pivots hard to offset the cost of a $790 million impairment charge in the second quarter.
BetterHelp, Teladoc's virtual mental health solution, continue to drag down its performance as the segment's revenue fell 10% year-over-year, coming in at $256.8 million in Q3.”

Large Language Model Influence on Diagnostic Reasoning “In a randomized clinical trial including 50 physicians, the use of an LLM did not significantly enhance diagnostic reasoning performance compared with the availability of only conventional resources.”

Today's News and Commentary

About health insurance/insurers

MSSP ACOs save Medicare $2.1B in 2023, the largest savings in program history “Accountable care organizations saved Medicare $2.1 billion, the largest yearly savings in program history, in 2023, the Centers for Medicare & Medicaid Services (CMS) revealed Tuesday.
The results come from the Medicare Shared Savings Program (MSSP), which saved a net $1.8 billion in 2022, at the time the second-highest annual savings.”

What 10 Medicare Advantage insurers earn from health risk assessments FYI

.Humana updates guidance as it beats on revenue, profit in Q3 “The company said in the second quarter that it anticipated full-year earnings per share of ‘approximately $16’ but now expects ‘at least $16,’ a slight bump amid a year of significant challenges in the Medicare Advantage space. Humana also reaffirmed that it expects a full-year medical loss ratio of about 90%, according to its earnings report released Wednesday.”

Mike Johnson vows major changes to Affordable Care Act if Trump wins election ““No Obamacare?” an attendee asked the speaker, invoking the term popularized by Republicans to describe the health law.
’No Obamacare,’ Johnson responded. ‘The ACA is so deeply ingrained, we need massive reform to make this work, and we got a lot of ideas on how to do that.’”

About hospitals and healthcare systems

Hospital service prices have surged at twice the rate of inflation since 2000 “Hospital service prices increased by more than 220% between 2000 and 2022, which was more than twice the rate of inflation and that of other medical services. “

About the public’s health

Extreme heat set records for health perils in 2023Heat-related deaths last year in people over age 65 increased by 167% globally above levels seen in the 1990s — nearly three times more than what would have been expected if temperatures had not changed.
People were also exposed to an average of 1,512 hours of high temperatures that posed at least a moderate risk of heat stress when doing light exercise such as walking or cycling — a 27.7% increase on the 1990-1999 yearly average.
Conditions were ripe for the spread of more deadly mosquito-borne infectious diseases, with dengue cases reaching an all-time high of over 5 million infections reported in more than 80 countries and territories in 2023.
On a more positive note, the report found deaths from fossil fuel-derived air pollution fell almost 7% from 2016 to 2021, with most of this decline due to efforts to reduce pollution from coal burning.”

Discrimination may cause gut inflammation, digestive woes, study says “Discrimination -- prejudiced actions toward people based on their identity -- may cause stress that impairs gut health and lead to the growth of unhealthy bacteria that promote inflammation, a new study has found.
The study was published… in Frontiers in Microbiology.”

WHO report shows global tuberculosis cases are rising “Tuberculosis (TB) is on the rise and has once again overtaken COVID-19 as the world's leading infectious disease killer, according to the latest report from the World Health Organization (WHO).
The Global Tuberculosis Report 2024, released today, shows 8.2 million people were newly diagnosed with TB in 2023, a figure that represents the highest number of TB cases recorded by the WHO since it began global TB monitoring in 1995. It also marks a significant increase from the 7.5 million new TB cases reported in 2022.”

Comparing Deaths from Gun Violence in the U.S. with Other Countries 
“Highlights

  • Globally, the U.S. ranks at the 93rd percentile for overall firearm mortality, 92nd percentile for children and teens, and 96th percentile for women.

  • The U.S. has among the highest overall firearm mortality rates, as well as among the highest firearm mortality rates for children, adolescents, and women, both globally and among high-income countries.

  • Nearly all U.S. states have a higher firearm mortality rate than most other countries. Death rates due to physical violence by firearm in U.S. states are closer to rates seen in countries experiencing active conflict.

  • Black and American Indian and Alaska Native (AIAN) people have the highest firearm mortality rates of any racial or ethnic group. “

 About healthcare IT

Large Language Model Influence on Diagnostic Reasoning “In a randomized clinical trial including 50 physicians, the use of an LLM did not significantly enhance diagnostic reasoning performance compared with the availability of only conventional resources.”

About healthcare personnel

A quiet driver of the nurse shortage, explained “In a nutshell, the average age of nursing faculty is between 48.6 and 62.5 years old, and one-third of nursing faculty who teach are expected to retire by 2025. Add in the stress of COVID-19 and the lack of clinical opportunities during that time, and a crisis is intensifying. 
In surveys conducted by nurse organizations, nurse faculty cite these three things as reasons not to teach:

  1. Salary gap. Educators in the field are required to have advanced degrees yet typically take pay cuts of as much as $40,000 when leaving clinical practice to teach full-time.

  2. Burnout left over from the pandemic. One academic study showed the highest contributing factor to burnout for nurse educators is high workload levels and lack of work-life balance. 

  3. Requirement for doctoral degrees. Experienced nurses may be reluctant to invest additional years and resources into advanced education while simultaneously accepting lower compensation.

Compounding the problem is it is proving difficult to find new faculty to replace the large number of Baby Boomers retiring.”  

About health technology  

37 best healthcare inventions of '24, per Time FYI. This article is a curated healthcare list from all categories in a Time report of best inventions of 2024.

National Academies calls to change how biomedical research uses race and ethnicity “Race and ethnicity are applied in inappropriate and even harmful ways in biomedical research, the National Academies of Science, Engineering, and Medicine said in a report issued Wednesday, calling on scientists, research funders, and publishers to transform the way they use — and don’t use — the categories in research.”

Today's News and Commentary

6 races to watch that could shape health care policy FYI

About health insurance/insurers

Healthcare billing fraud: 10 recent cases Note the preponderance of federal programs being defrauded.

About hospitals and healthcare systems

23 systems delaying surgeries amid the IV shortage FYI 

About pharma

Walgreens expands virtual healthcare services to 30 states, adds lab test orders and virtual STD treatments “Walgreens Virtual Healthcare is available in 30 states, up from its initial launch in nine states. This expansion aims to increase access to fast, reliable and affordable healthcare from the comfort of home by allowing patients to connect with doctors and nurse practitioners via virtual consultations, either through chat or video.”
Comment: This expansion is despite retrenchment of its VillageMD business. 

Wegovy users drop $80,000 on plastic surgery to shed extra skin “Patients taking Wegovy, Zepbound and other new weight-loss drugs are finding that after losing 50 pounds, their skin sags over their stomachs, arms and buttocks. In the face and chest, the loss of elasticity can make someone look much older than they actually are or give a hollowed-out appearance that’s been dubbed “Ozempic face.”
This has turned into a gold mine for plastic surgeons.”

About the public’s health

Digital Hypertension Management Solutions “The solutions reviewed in this report were grouped on the basis of their approach to guiding clinician and patient actions:
1 Blood Pressure Monitoring solutions extend existing hypertension care beyond the clinical office by supporting patients’ home monitoring and delivering data back to the healthcare provider. Companies with solutions in this approach include AMC Health, Health Recovery Solutions (HRS), and VitalSight (Omron Healthcare).
2Medication Management solutions employ dedicated, virtual care teams to coordinate patients’ medication adjustments as a supplement to the patient’s main primary care team. Companies with solutions in this approach include Cadence, Ochsner Digital Medicine, and Story Health.
3 Behavior Change solutions deliver educational content, alerts, reminders, and virtual interactions with coaches (digital or human) or care teams to improvepatient’s self-management of their hypertension. Companies with solutions in this approach include DarioHealth, Hello Heart, Lark, Omada Health, and Teladoc Health (Livongo)…
Medication Management: Creating dedicated care teams to help adjust prescribing, the Medication Management approach has the highest quality evidence showing clinically meaningful improvements in SBP that are achieved more rapidly than with usual care. The review concluded that these solutions increase net health spending in the initial three-year budget window, but — because hypertension risks accrue over the long term — they have the potential to offset costs over a decade because of savings from avoided cardiovascular events…
Behavior Change approach provides limited incremental benefit in SBP compared with usual care.”

Mortality Rates From Early-Onset CRC Have Risen Considerably Over Last Two Decades “The mortality rate of early-onset colorectal cancer (EO-CRC) has increased considerably across the United States over the past two decades, with the effects most pronounced in those aged 20-44 years, according to a new analysis of the two largest US mortality databases…
Furthermore, the researchers reported that increased mortality occurred across all patients included in the study (aged 20-54) regardless of tumor stage at diagnosis.”

Health Literacy: How Well Can Older Adults Find, Understand, and Use Health Information?Key Findings
20% of older adults are not confident they can identify health / medical misinformation.
—74% of adults age 50 and over would have very little or no trust in health information generated by artificial intelligence (AI)”

Today's News and Commentary

 About pharma

Greater Access to New Weight Loss Meds Could Save More Than 40,000 Lives Per Year “Making the drugs available to all obese people and overweight type 2 diabetics could save more than 42,000 American lives annually.”
About 45% of the U.S. adult population is eligible to take the weight-loss drugs by those standards.”

Why Does an $84,000 Drug in the U.S. Cost Less Than $1,000 in India An excellent article in Forbes reviews the relevant issues.

About healthcare IT

100M people impacted by massive Change Healthcare cyberattack: OCR “UnitedHealth Group has officially disclosed that 100 million people were affected by the massive cyberattack on Change Healthcare earlier this year.” 

About healthcare finance

AbbVie inks $1.4B Aliada buyout, landing ex-J&J Alzheimer's drug to leap the blood-brain barrier “AbbVie has agreed to pay $1.4 billion to buy Aliada Therapeutics. The acquisition will give AbbVie control of an Alzheimer’s disease drug candidate Aliada in-licensed from Johnson & Johnson to try to improve on the first generation of anti-amyloid-beta antibodies.
Aliada is developing an antibody that binds to pyroglutamate amyloid beta, a form of the peptide found in the brains of people with Alzheimer’s.”

Today's News and Commentary

About health insurance/insurers

1 million+ patients lose coverage as insurers, hospitals drop Medicare Advantage “…this year, as Medicare’s open enrollment season kicks off, more than 1 million patients will have to shop for new health insurance. Facing financial and federal regulatory pressures, many insurers are pulling their Medicare Advantage plans from counties and states they’ve deemed unprofitable. Meanwhile, large health systems in states including Alabama, Minnesota and Vermont have cut ties with some Medicare Advantage plans.”

Doc groups target alleged center of insurers' price-fixing 'cartel' in lawsuit “The American Medical Association and the Illinois State Medical Society say MultiPlan, a data analytics agency for health plans, is at the center of a price-fixing "cartel" with commercial health insurers.
In a lawsuit filed yesterday in U.S. District Court for the Northern District of Illinois, the Chicago-based associations say New York-based MultiPlan has undercut fair payment for out-of-network health care services and eliminated market competition.”

About hospitals and healthcare systems

The only 17 hospitals to earn Magnet's top honor FYI

  About health technology

Baxter International to restart highest-throughput IV solutions manufacturing line next week “Initial batches will be manufactured concurrently with ongoing quality activities and would only be released in accordance with applicable regulatory requirements to ensure the quality and safety of the products, the company said on its hurricane update page Thursday.” 

Today's News and Commentary

About health insurance/insurers

Medicare Advantage: Questionable Use of Health Risk Assessments [HRA] Continues To Drive Up Payments to Plans by Billions What OIG Found
Diagnoses reported only on enrollees’ HRAs and HRA-linked chart reviews, and not on any other 2022 service records, resulted in an estimated $7.5 billion in MA risk-adjusted payments for 2023.
The lack of any other followup visits, procedures, tests, or supplies for these diagnoses in the MA encounter data for 1.7 million MA enrollees raises concerns that either: (1) the diagnoses are inaccurate and thus the payments are improper or (2) enrollees did not receive needed care for serious conditions reported only on HRAs or HRA-linked chart reviews.
In-home HRAs and HRA-linked chart reviews generated almost two-thirds of the estimated $7.5 billion in risk-adjusted payments. In-home HRAs and HRA-linked chart reviews may be more vulnerable to misuse because these tools are often administered by MA companies or their third-party vendors and not enrollees’ own providers. Diagnoses reported only on these types of records heighten concerns about the validity of the diagnoses or the coordination of care for MA enrollees.
Just 20 MA companies drove 80 percent of the estimated $7.5 billion in payments. Also, these MA companies generated a substantially greater share of payments resulting from HRAs or HRA-linked chart reviews for certain health conditions, including serious and chronic illnesses, such as diabetes and congestive heart failure.”
UnitedHealth Group accounted for $3.7 billion of the questionable payments. See the full report as well.

CMS lifts enrollment suspension on UnitedHealthcare Medicare Advantage plan “CMS has lifted an enrollment suspension on a UnitedHealthcare subsidiary's Medicare Advantage plan following three years of not meeting the required 85% medical loss ratio.”

Results from an Annual Medicaid Budget Survey for State Fiscal Years 2024 and 2025 Exerpted highlights from this KFF report:
”PROVIDER RATES AND MANAGED CARE
--States had implemented (in FY 2024) and were planning (in FY 2025) a wide range of fee-for-service (FFS) rate increases across provider types and very few states were implementing rate restrictions. More than half of states (26 states) reported increasing both inpatient and outpatient hospital FFS base rates in FY 2024, and many states reported increases in both hospital FFS base rates and total non-DSH supplemental payments.
--About two-thirds of responding MCO states (25 of 41) reported seeking CMS approval for a capitation rate amendment to address shifts in the average risk profile (or “acuity”) of MCO members in FY 2024 and/or FY 2025.
BENEFITS AND PRESCRIPTION DRUGS
--Most states continue to implement benefit enhancements, particularly for mental health and/or substance use disorder (SUD) services.  and mortality and addressing racial/ethnic health disparities.
--Twelve state Medicaid programs reported covering GLP-1s (glucagon-like peptide-1s) when prescribed for the treatment of obesity, under FFS as of July 1, 2024.
SOCIAL DETERMINANTS OF HEALTH AND REDUCING HEALTH DISPARITIES
--A number of states are expanding or enhancing Medicaid coverage to help address enrollee social determinants of health (SDOH) or associated health-related social needs (HRSN). 
--States are implementing strategies to reduce racial and ethnic health disparities, including through changes in managed care contracts. 
--States may also tie MCO financial quality incentives to reducing health disparities. About one-third of states reported at least one MCO financial incentive tied to reducing racial/ethnic disparities in place in FY 2024, most commonly linking capitation withholds or pay for performance incentives to improving health disparities.”

About hospitals and healthcare systems

Celebrating Excellence: Healthgrades Names Leading Hospitals for Specialty Care in 2025  FYI.

Sanford, Marshfield Clinic to create 56-hospital system “The integration is expected to close by the end of 2024, with the parties remaining separate, independent organizations ahead of closing.” 

About pharma

Thousands of bottles of popular antidepressant recalled “Thousands of bottles of a popular antidepressant medication are being recalled due to the presence of what the National Library of Medicine describes as a toxic chemical, according to a notice from the U.S. Food and Drug Administration.
The recall involves the medication duloxetine, which is sold under the brand name Cymbalta, according to the FDA's notice of the voluntary recall, which began Oct. 10.”

About the public’s health

In boon for Pfizer and Merck, CDC panel backs expanded use of pneumococcal vaccines “In a 14-1 vote, the panel moved to expand its usage recommendation for both Pfizer’s Prevnar 20 and Merck’s Capvaxive to include all adults aged 50 and older as well as adults between 19 and 49 years of age with certain risk factors. Previously, the broad recommendation for PCV shots was for those older than 65.” 

About healthcare finance

General Catalyst:Announcing Fund XII “Today, we are announcing that we have raised approximately $8B of new capital, including around $4.5B for our core VC funds focused on seed and growth equity (across our Ignition, Endurance, and Health Assurance strategies), $1.5B for our Creation strategy, and $2B of separately managed accounts. As a global investment company that seeks to partner with the world’s most ambitious entrepreneurs to drive transformation, resilience, and applied AI, we believe this capital will turbocharge our investment theses across AI, Defense & Intelligence, Climate & Energy, Industrials, Healthcare and Fintech.” 

Today's News and Commentary

About health insurance/insurers

Social Determinants of Health [SDoH] and US Health Care Expenditures by Insurer “This cross-sectional study found individual-level SDOH to be significantly associated with US health care expenditures, potentially incentivizing health insurers to utilize SDOH in their decision-making practices to identify and control expenditures. Health insurers may use HRSN [health-related social needs]to identify beneficiaries at greater risk for high expenditures to target interventions by prioritizing SDOH domains found to be significant in our analysis. Addressing structural SDOH may require insurers to engage with multisectoral stakeholders with shared funding mechanisms and for public policymakers to adopt a health-in-all policies approach. While addressing HRSN may be more feasible in the short term, targeting structural SDOH through multisectoral partnerships may address the root cause to achieve a more equitable and sustainable health care system.”

Medicaid Enrollment & Spending Growth: FY 2024 & 2025 Key survey findings include the following:

  • Following years of significant growth, Medicaid enrollment declined by -7.5% in FY 2024 and state Medicaid officials expect enrollment to continue to decline by -4.4% in FY 2025. These growth rates reflect the net Medicaid enrollment change from year to year including new enrollments, coverage losses due to unwinding, and some “churn” when those who lose coverage re-enroll within a short period of time. The unwinding of the continuous enrollment provision was the largest driver of enrollment declines. [Emphasis added]

  • Total Medicaid spending growth slowed to 5.5% in FY 2024 and is expected to slow further to 3.9% in FY 2025. While state Medicaid officials identified unwinding-related enrollment declines as the most significant factor driving changes in total Medicaid spending, they also noted a number of upward pressures on total spending. This included enrollment increases from eligibility changes such as 12-month continuous eligibility for children or overall state or Medicaid eligible population growth, the higher health care needs of enrollees that retained coverage during unwinding, and rate increases.

  • As anticipated, state Medicaid spending growth increased sharply in FY 2024 (19.2%) as the enhanced FMAP phased down and expired (after declining earlier in the pandemic despite high enrollment growth). State Medicaid spending growth is projected to slow to 7.0% in FY 2025, only slightly higher than total spending growth as the shifts caused by the enhanced FMAP expiration end.” 

About pharma

Walmart plans to deliver prescriptions nationwide in as little as 30 minute “Walmart's new service includes new prescriptions and refills, which customers can receive along with groceries and other products, the Bentonville, Arkansas-based company announced on Tuesday. Prescriptions will be delivered in as little as 30 minutes and should be available for over 86% of American households, according to Walmart.”
In a related article:  Walmart and Amazon threaten US drugstores in prescription delivery 

About the public’s health

FDA approves 1st RSV vaccine for adults under 60 “The FDA approved Pfizer's Abrysvo, the first and only RSV vaccine for adults aged 18 to 59 who are at increased risk of severe respiratory illness caused by RSV.” 

About healthcare IT

Transparency has led to uniformity in healthcare costs—but not necessarily lower prices: study “Price transparency regulations are leveling the cost landscape for consumers, but that doesn’t always lead to lower prices, according to a new report from Turquoise Health…
 Since the regulations were established, and adjusting for inflation, the top 25% of prices fell by 6.3%. However, the bottom 25% of prices increased by 3.4%. Meanwhile, the middle 50% of prices decreased just 1.1%. Turquoise analyzed prices at 232 hospitals across the 10 largest U.S. metro areas to track changes across market segments, from December 2021 to June 2024.” 

About healthcare personnel

Clinician Staffing and Quality of Care in US Health Centers “In this cross-sectional study of health centers, physician FTE ratio was associated with higher performance in cancer screening, infant vaccinations, and HIV testing; APRN FTE ratio was associated with higher performance in preventative health assessments; and PA FTE ratio was associated with higher performance in infant vaccination. These findings suggest that targeted staffing strategies may be associated with quality of care in certain domains and that tailored approaches to health center staffing based on community-specific needs are warranted.”  

Today's News and Commentary

About health insurance/insurers

More kids lacked health insurance in 2023, Census Bureau finds “Ninety-two percent of U.S. adults were insured in 2023, according to ‘Health Insurance Coverage in the United States: 2023,’ one in a series of bureau reports released in September. The rate of adults who lacked insurance held steady at about 8% —approximately 26.4 million people.
The uninsured rate for children rose, however, jumping from 5.4% in 2022 to 5.8%, with about 4.4 million children lacking coverage in 2023. Coverage fell for children of all races and ethnicities, but dropped the most among Hispanic children, 9.4% of whom lacked insurance last year. About 4.8% of Black children were uninsured, as were 4.4% of white children and 4.2% of Asian children.
Kids in states that had not expanded Medicaid eligibility were uninsured at about twice the rate of those that had expanded.”

Biden-Harris Administration’s Inflation Reduction Act Saves Medicare Enrollees Nearly $1 Billion in Just the First Half of 2024 “Today , the Department of Health and Human Services (HHS), through the Office of Assistant Secretary for Planning and Evaluation (ASPE), released new data showing that nearly 1.5 million people with Medicare Part D saved nearly  $1 billion in out-of-pocket prescription drugs costs in the first half of 2024 because of the Biden-Harris Administration’s Inflation Reduction Act. Thanks to the Inflation Reduction Act, some people with high drug costs have their out-of-pocket drug costs capped at around $3,500 in 2024. Next year that cap lowers to $2,000 for everyone with Medicare Part D. The report shows that if the $2,000 cap had been in effect this year, 4.6 million enrollees would have hit the cap by June 30 and would not have to pay any more out-of-pocket costs for the rest of the year.” 

About pharma

2023 340B Covered Entity Purchases “In calendar year 2023, 340B covered entities purchased $66.3 billion in covered outpatient drugs under the 340B Program.”
See the document for a breakdown of where the money went by institutional type.

Amid backlash, FDA changes course over shortage of weight-loss drugs “The U.S. Food and Drug Administration, after intense public pressure and a lawsuit, is reconsidering its declaration barely two weeks ago that a shortage of the appetite-suppressing drugs Mounjaro and Zepbound is over, a temporary about-face that will allow pharmacies to keep selling unbranded copies.”

Vertex details non-opioid drug data from acute pain trials ahead of FDA verdict “Vertex Pharmaceuticals' experimental acute pain drug suzetrigine (VX-548) demonstrated fewer adverse events (AEs) than both placebo and standard opioid therapy, possibly setting a new benchmark for non-opioid pain management as the company nears its January 30 FDA decision date.”

About the public’s health

National Trends in Infant Mortality in the US After Dobbs “Infant mortality was higher than expected, overall and among those with congenital anomalies, for several months after the Dobbs decision in the US. No post-Dobbs months (ie, no months after June 2022) showed lower than expected infant mortality. These findings are consistent with the increase in infant mortality found in Texas following the state’s abortion ban.” 

Today's News and Commentary

About health insurance/insurers

Cigna Resumes Merger Discussions with Humana After Talks Ended Last Year “The two health insurance giants, with a combined market value of more than $125 billion, have held informal discussions recently about a potential deal, said the people who asked to not be identified because the talks aren’t public. The discussions are in early stages, they added.
Shares of Humana were up 5.6% after the close of regular trading Friday, while Cigna fell about 5.3%…
Cigna is looking to close the sale of its Medicare Advantage business in the coming weeks before committing to any other transactions, one of the people said. That exit could help pave the way for a deal with Humana by removing areas of overlap that would draw scrutiny from antitrust regulators.”

Why Do Health Insurers Keep Getting Slammed With Higher Costs? “The surge in Medicaid costs may go beyond just a mismatch between reimbursement rates and patient health. As is already the case in Medicare, we could be seeing the start of a broader rise in healthcare expenses as more low-income Americans seek treatment for a variety of conditions, many worsened by the pandemic. For example, both UnitedHealth and Elevance have reported higher behavioral health costs in their Medicaid programs. It has been well documented that low-income Americans experience higher rates of mental-health issues, and the pandemic likely exacerbated this trend.”

Refusal of Recovery: How Medicare Advantage Insurers Have Denied Patients Access to Post-Acute Care “On May 17, 2023, the Permanent Subcommittee on Investigations (“PSI” or “the Subcommittee”) launched an inquiry into the barriers facing seniors enrolled in Medicare Advantage in accessing care…
Among the Subcommittee’s new findings:

• Between 2019 and 2022, UnitedHealthcare, Humana, and CVS each denied prior authorization requests for post-acute care at far higher rates than they did for other types of care, resulting in diminished access to post-acute care for Medicare Advantage beneficiaries.
o In 2022, both UnitedHealthcare and CVS denied prior authorization requests for post- acute care at rates that were approximately three times higher than the companies’ overall denial rates for prior authorization requests. In that same year, Humana’s prior authorization denial rate for post-acute care was over 16 times higher than its overall rate of denial.
PSI also obtained internal documents that provide insight into each company’s use of the prior authorization, including the role of automation and predictive technologies.”
Comment: Read the entire summary and look at Figure 1 on page 19.

About pharma

The Powerful Companies Driving Local Drugstores Out of Business “Obscure but powerful health care middlemen — companies known as pharmacy benefit managers, or P.B.M.s — [have destroyed local pharmacy businesses].”
This has been happening all over the country, a New York Times investigation found. P.B.M.s, which employers and government programs hire to oversee prescription drug benefits, have been systematically underpaying small pharmacies, helping to drive hundreds out of business.
The pattern is benefiting the largest P.B.M.s, whose parent companies run their own competing pharmacies. When local drugstores fold, the benefit managers often scoop up their customers, according to dozens of patients and pharmacists.”

Biden's proposed rule change for over-the-counter birth control coverage “The Biden administration is proposing rules that would require insurers to cover the costs of over-the-counter contraceptives without a prescription.”

About the public’s health

Tobacco Product Use Among Middle and High School Students — National Youth Tobacco Survey, United States, 2024 “From 2023 to 2024, current (previous 30-day) use of any tobacco product declined among high school students from 12.6% to 10.1%, largely driven by the decline in high school e-cigarette use (from 10.0% to 7.8%). During 2024, e-cigarettes remained the most commonly used tobacco product among U.S. youths; nicotine pouches were the second most commonly used tobacco product.” 

About health technology

Baxter aims to import 18K tons of product: 6 IV shortage updates “Baxter International is responding to critical IV supply shortages affecting patients after Hurricane Helene disrupted its North Cove manufacturing facility, which produces 60% of the U.S. IV fluid market's supply. 
With the situation growing urgent, Baxter is importing 18,000 tons of essential products to alleviate these shortages by the end of the year, according to an Oct. 17 news release from the company.”  

Today's News and Commentary

 About pharma

Weight loss surgery more cost effective than GLP-1s: Study “The long-term cost-effectiveness of GLP-1s versus bariatric surgery has been a looming unknown in the healthcare industry. Gastric bypass and sleeve gastrectomy operations typically cost between $17,400 and $22,850. In contrast, the average annual cost of GLP-1s is between $9,360 and $16,200, but the ideal duration of GLP-1 regimens has not been established. 
After analyzing the costs of these treatments until death (up to 50 years) and clinical trial efficacy findings for thousands of patients, the researchers uncovered two main findings. 
First, bariatric surgery added two quality-adjusted life years and saved patients about $9,000 more each year compared to GLP-1s. Second, combining surgery and GLP-1s led to more benefits, with average savings of about $7,200 a year and five additional quality-adjusted life years compared to surgery alone. 
For GLP-1s alone to achieve similar cost-effectiveness, their prices need to drop by about 75%, according to Joseph Sanchez, MD, the study's lead author. “

About the public’s health

Tobacco Product Use Among Middle and High School Students — National Youth Tobacco Survey, United States, 2024 “From 2023 to 2024, current (previous 30-day) use of any tobacco product declined among high school students from 12.6% to 10.1%, largely driven by the decline in high school e-cigarette use (from 10.0% to 7.8%). During 2024, e-cigarettes remained the most commonly used tobacco product among U.S. youths; nicotine pouches were the second most commonly used tobacco product.” 

About healthcare IT

UnitedHealth, CVS and Humana increasingly deploy AI and deny post-acute care claims, Senate report finds “The country’s three largest Medicare Advantage (MA) insurers obstruct seniors’ ability to receive post-acute care, a scathing report from the U.S. Senate Permanent Subcommittee on Investigations shows.
It outlines attempts from UnitedHealthcare, CVS and Humana—which collectively cover nearly 60% of all MA enrollees—to use technology to reject prior authorization claims, all while reaping profit.
Between 2019 and 2022, the three insurers denied claims for post-acute care at “far higher” rates than for other types of care, and, in 2022, Humana denials in post-acute care were 16 times higher than the companies’ overall denial rates, the report (PDF) says. UnitedHealthcare and CVS denials were three times higher in the same year.”

Solera Health Study Suggests Virtual Healthcare Networks Can Reduce the Cost of Care by up to 3.1% “Conducted in conjunction with healthcare machine-learning company Health at Scale, the research demonstrated that strategically shifting site of care from in-person care to virtual creates a potential 2.3-3.1% reduction in total medical claims spend. Based on Centers for Medicare & Medicaid Services (CMS) estimates of private insurer expenditures in 2022, that could yield a U.S. cost savings of $37 billion to over $50 billion annually.”

Today's News and Commentary

About health insurance/insurers

Elevance posts $1B profit in Q3, lowers earnings forecast “Elevance Health posted $1 billion in net income during the third quarter, a 21% decrease compared to the same period last year, according to the company's earnings report published Oct. 17.
The company lowered its full-year earnings outlook from $37.20 in net income per diluted share to $33.”

About hospitals and healthcare systems

Is Hospital Market Concentration Related to Medical Debt? While medical debt on credit reports declined across most US counties between 2012 and 2022, increases in hospital market concentration prevented such improvements in many areas of the country.
We find that counties that experienced larger increases in hospital market concentration, as measured by the Herfindahl-Hirschman Index (HHI), experienced smaller declines in the share of residents with medical debt. The correlation between a county’s change in medical debt and its HHI is 0.2. For comparison, this correlation is similar in magnitude to that observed between a county’s medical debt and its racial and ethnic makeup but is a weaker correlation than that between a county’s medical debt and its health insurance coverage rates and chronic disease prevalence.” 

About pharma

Wave Clinical Trial Shows First Successful RNA Editing in Humans “Wave Life Sciences said today its alpha-1 antitrypsin deficiency (AATD) candidate WVE-006 succeeded in the first-ever clinical demonstration of RNA editing in humans by achieving positive proof-of-mechanism in an early-phase clinical trial.” 

Why hundreds of US pharmacies are closing Changing consumer trends and market dynamics are leading to hundreds of pharmacy store closures in the U.S.
Brick-and-mortar locations are losing to mail-order and digital options, according to a J.D. Power study of pharmacy customers. Between 2023 and 2024, overall customer satisfaction in physical drug stores declined 10 points on a 1,000-point scale, and satisfaction scores for mail-order pharmacies increased six points.”

About healthcare IT

Early Warning Scores With and Without Artificial Intelligence Findings  In this cohort study that compared 6 early warning scores across 362 926 patient encounters, eCARTv5, a machine learning model, identified clinical deterioration best with an area under the receiver operating characteristics curve (AUROC) of 0.895 and the highest positive predictive values at both the moderate- and high-risk matched thresholds. The National Early Warning Score, a non–artificial intelligence score with an AUROC of 0.831, was the second-best performer at both thresholds, while the Epic Deterioration Index was one of the worst, with an AUROC of 0.808 and the lowest positive predictive values.
Meaning  Given the wide variation in accuracy, these findings suggest that additional transparency and oversight of early warning tools may be warranted.”

Change Healthcare cyberattack costs to reach $2.87B “UnitedHealth estimated the company would absorb about an additional 10 cents a share in costs for the February ransomware attack that disrupted claims processing and breached patient data across the nation, bringing the total to 75 cents a share, according to a third-quarter earnings report.
The healthcare conglomerate now estimates it will take a $2.87 billion hit from the cyberattack in 2024, after originally anticipating $1.6 billion in costs.”

Today's News and Commentary

About health insurance/insurers

Best Insurance Companies for Medicare Advantage in 2025 FYI from US News.

About hospitals and healthcare systems

Hospital operating margins to stay low in 2025: Moody's “‘Hospital labor costs rocketed over the last four years, hitting margins and cash flow hard, according to Moody's. And the problem isn't going away any time soon.
‘The steep rise in healthcare wages over the last three years remains a structural problem and credit risk for the hospital industry,’ states Moody's Oct. 15 report on hospital financial performance. ‘While the wage growth rate will remain low in 2025, average hourly earnings will continue to top prior years. Reimbursement increases from payors, particularly government ones will not keep up with higher wages.’
Moody's noted the median operating cash flow margin was 8.5% for nonprofit hospitals in 2019, before the pandemic, and dropped since then to 5.3% in 2023. Growing expenses in labor and supply costs are driving the change, with salaries and benefits comprising 53% of nonprofit hospitals' expenses, according to Moody's. Supply costs comprise 21% of the expenses, based on 2023 medians.”

About pharma

As IV shortage continues after hurricane, U.S. invokes wartime power to speed recovery “The Biden administration says it has invoked the wartime powers of the Defense Production Act to speed rebuilding of a major American factory of intravenous fluids that was wrecked by Hurricane Helene last month. Damage to the plant in North Carolina has worsened a nationwide shortage of IV fluids, and hospitals say they are still postponing some surgeries and other procedures as a result. 
Some 60% of the nation's IV supplies had relied on production from the plant, run by medical supplier Baxter, before it was damaged by the storm.”

Teva adopts biotech ethos as it leans into innovative drug development, exec says “Amid a reorganization campaign that’s breathed new life into hybrid generic and innovative medicines player Teva, the company is leaning into novel medicines and formulations more than ever and adopting a biotech mindset as it pushes a range of assets through the clinic.”
Comment: Over the years, Teva has changed from a generic manufacturer to developer of innovative drugs. This history is unusual in the field. 

Independent Pharmacies Reluctant to Stock Drugs in Medicare Negotiation Program, New Survey Shows “A new national survey shows more than 90 percent of independent pharmacists may not sell drugs for which the Medicare Part D program is trying to negotiate lower prices.”

About healthcare IT

Why health systems are reducing virtual visits “While 8 in 10 health systems offer at least the same amount of virtual care as two years ago, the rest either stopped or are providing fewer virtual visits, according to the Deloitte Center for Health Solutions.
Here are the top reasons health systems reduced or discontinued virtual care, according to the consultant's survey of 51 healthcare executives released Oct. 16.
1. Physician and clinician team preference for using virtual health appears low: 60%   
2. Don't need to take COVID-19 precautions anymore: 60%
3. Interest in virtual care among patients appears low or most patients want to be in person: 40%
4. Changes to payment incentives or lack of adequate reimbursement to organizations: 30%”

Today's News and Commentary

About health insurance/insurers

Medicare annual enrollment begins “The Medicare annual enrollment period has begun, marked by significant changes in the Medicare Advantage market.
Among these changes are increased government scrutiny, tighter CMS regulations, reduced base payments, and rising healthcare costs among older adults.
In response to these market shifts, many MA carriers are prioritizing their margins over membership by reducing certain benefits and exiting unprofitable markets. As margins tighten and negotiations with providers become more strained, some providers are choosing to no longeraccept some or all MA plans.”
See, also: Changes in store for Medicare Advantage as open enrollment starts

Healthcare Premiums Are Soaring Even as Inflation Eases, in Charts “The cost of employer health insurance rose 7% for a second straight year, maintaining a growth rate not seen in more than a decade, according to an annual survey by the healthcare nonprofit KFF. The back-to-back years of rapid increases have added more than $3,000 to the average family premium, which reached roughly $25,500 this year.
Employers spent about $1,880 more this year, bringing their average cost for family premiums to $19,276. Workers’ share of the average family premium dropped by roughly $280 from last year, to $6,296.”

Blue Cross antitrust lawsuit reaches $2.8B tentative settlement “The Blue Cross Blue Shield Association and its 33 member companies will pay $2.8 billion and change the way they operate under a tentative settlement reached with a collection of providers.
The multipronged settlement would end a 12-year legal battle concerning allegations that the companies and the Chicago-based nonprofit association violated the Sherman Antitrust Act of 1890 by colluding to suppress competition and lower reimbursements. It also would change the companies’ BlueCard Program system for dealing with out-of-network patients.”

UnitedHealth beats the Street with $6B in Q3 profit “UnitedHealth Group kicked off another round of earnings calls for major health insurance companies Tuesday morning, when it reported $6.06 billion in profit for the third quarter of 2024.
That's up slightly from the $5.8 billion the company posted in the third quarter of 2023. However, UnitedHealth has brought in $8.9 billion in profit through the first three quarters of the year, down by close to half from the $16.9 billion reported through the first nine months of 2023…
UHG said that its Optum Health and Optum Rx units led the charge on growth in the third quarter.”

About hospitals and healthcare systems

National Hospital Flash Report “Key Takeaways
1. August data show relatively stable margins. Patient volume has increased, but once adjusted for volume, revenue and expenses have also declined.
2. Average length of stay is trending down. This development indicates less severe patient acuity and efficient care transition pathways.
3. On a volume-adjusted basis, expenses show a slight decline. While expenses are still high compared to previous years, the growth rate is slowing down.”

About pharma

Walgreens to close 1,200 stores: 6 things to know “Walgreens will close around 1,200 retail stores over three years, including around 500 closures in fiscal year 2025, according to its earnings report for the 2024 fiscal year ended Aug. 31.
The company shared plans in June to close ‘a significant portion’ of its underperforming stores in late June due to financial difficulties and ongoing environmental pressures.”

Pharmacist gets up to 15 years in prison for Michigan meningitis outbreak deaths “A Massachusetts pharmacist was sentenced Friday in Michigan to 7 1/2 to 15 years in prison for his role in a 2012 national meningitis outbreak that killed dozens of people…
He already is serving a 10 1/2-year federal sentence for racketeering, fraud and other crimes connected to the outbreak, following a 2017 trial in Boston. The Michigan sentence also will be served in federal prison. He will get more than 6 1/2 years of credit for time already served.
Chin supervised production at the New England Compounding Center in Framingham, Massachusetts, which shipped steroids for pain relief to clinics across the country. Investigators said the lab was rife with mold and insects.”

Recent Trends in Medicaid Outpatient Prescription Drugs and Spending “Key findings include:

  • The number of Medicaid prescriptions each year was on the decline until FY 2020 when the trend reversed; however, the number of prescriptions only increased by 3% overall from FY 2017 to FY 2023 and the number of prescriptions per enrollee declined.

  • At the same time, net spending (spending after rebates) on Medicaid prescription drugs is estimated to have increased by 72%, from $30 billion in FY 2017 to $51 billion in FY 2023, likely driven by the emergence of new high-cost specialty drugs.

  • Rebates reduce Medicaid spending on prescription drugs by over half, but the decrease is larger for fee-for-service (FFS) drug spending.”


About the public’s health

US COVID levels drop, with few flu detections “For COVID, test positivity has declined to 7.7% nationally, but is a little higher in the Western region that includes the Dakotas, Montana, Wyoming, Colorado, and Utah. Emergency department visits for COVID continue to decline. Hospitalizations remain on a downward trend. Deaths also declined, though CDC provisional data show 424 people died from their COVID infections last week…
For flu, activity is still at the low level, and of the few viruses reported by public health labs last week, 55.8% were the 2009 H1N1 strain and 42.2% were H3N2, the CDC in its latest weekly FluView report.”

About health technology

Deep learning AI model scans 'dark matter' of genomic data to find 70,000 never-before-seen RNA viruses “Some of the 161,979 viruses the team sequenced were so different from other RNA viruses that they could form 180 new separate supergroups. Holmes said finding a new supergroup is similar to finding a new phylum of animals—meaning some of these viruses are as different from each other as crabs are to earthworms or cats are to jellyfish.”