About health insurance/insurers
FTC urges 21 healthcare marketers to review protocols to avoid misleading claims “The Federal Trade Commission (FTC) has sent warning letters to 21 companies that conduct marketing outreach or generate sales leads for health plans amid a busy window for open enrollment.
The letters do not accuse the recipients of any wrongdoing but warn against practices that could get them into trouble. For example, they cannot misrepresent the benefits included in a plan or misrepresent the costs associated with a certain plan.”
Warren, Hawley introduce bill requiring insurers to offload PBM businesses “Democratic and Republican lawmakers are calling on insurers to divest their pharmacy benefit manager (PBM) businesses in bills introduced to Congress Dec. 11.
While PBM reform has been a widely supported but largely fruitless endeavor so far, mandating insurers sell their PBM businesses is the most sweeping change suggested to date.
The mirrored bills were introduced by Senators Elizabeth Warren, D-Massachusetts, and Josh Hawley, R-Missouri and House representatives Jake Auchincloss, D-Massachusetts, and Diana Harshbarger, R-Tennessee.”
Paying More for Primary Care—A New Approach by Medicare “CMS recently announced a new prospective payment model through the agency’s Innovation Center that supports primary care for ACOs in the MSSP. The ACO Primary Care (ACO PC) Flex model aims to strengthen primary care with one of Medicare’s most substantial increases in payments for primary care services to date. Although a stated goal of ACO PC Flex remains to achieve savings for Medicare, the new model will also direct millions of additional dollars to participating primary care organizations. The model will serve as a time-limited test running from January 2025 through December 2029 and include up to 130 MSSP ACO participants…
ACO PC Flex is open only to ‘low-revenue’ ACOs, or those with patients who generate a small portion of revenue for the ACO compared with their overall costs to Medicare. Low-revenue ACOs, which include less than a third of existing ACOs and involve smaller groups of independent physicians rather than hospitals, are often less resourced. They serve more rural and diverse populations and have demonstrated greater savings for Medicare relative to their high-revenue counterparts.”
Comment: These “less resourced” groups may not only have lack of needed infrastructure, but, more importantly, they will probably not have the expertise to manage this model. Further, if they do not have significant numbers of enrollees in the program, they will not be able to achieve the program’s goals (or if they do, it will be by chance). It would have been better if the plan was rolled out to the larger, more experienced, ACOs.
About hospitals and healthcare systems
Divided court tosses rule boosting rural hospitals’ Medicare payments “The U.S. Department of Health and Human Services overstepped its authority when it boosted Medicare reimbursements to hospitals in low-wage areas to help them recruit and retain staff, a divided federal appeals court ruled on Wednesday.
A 2-1 panel of the San Francisco-based 9th U.S. Circuit Court of Appeals found that HHS's 2020 policy shift ran afoul of the law governing Medicare, the federal health insurance program for seniors and some people with disabilities.”
Hospitals' 'credit split' to widen in 2025: Fitch “Elevated inflation, Medicaid expansion, the reinstatement of Medicare sequestration and significant waves of M&A all have intensified a long-term trend of credit divergence, splitting hospitals into stronger and weaker segments, Fitch Ratings said in a Dec. 9 report.”
About pharma
Unsupported Price Increases Occurring in 2023 From ICER: “We continue to see list price increases that are far above the rate of inflation for many of the costliest drugs. These price hikes resulted in over $800 million in excess costs to the US health care system in just one year alone. This impacts everyone in the country, especially patients and their families… Since launching this report in 2019, we have noticed a decrease in the number of drugs that have significant price hikes without any new clinical evidence. In this report, half of the drugs we assessed had price increases in the setting of new evidence of additional benefits or reduced harm, while the other half lacked such evidence to support their higher price tag.”
About the public’s health
Overdose deaths in the U.S. fell 17% in 1-year period, CDC says “Drug overdose deaths in the United States fell 17% between July 2023 and July 2024, the Centers for Disease Control and Prevention said in a new report released Wednesday.
Since 2021, over 100,000 people have died of overdoses each year in the United States. A record number of overdose deaths — over 108,000 — were recorded in 2022. The numbers dipped in 2023 and have continued to drop monthly throughout 2024.”
Montana Supreme Court upholds lower court ruling that allows gender-affirming care for minors “A Montana law banning gender-affirming medical care for transgender minors will remain temporarily blocked, the state Supreme Court ruled Wednesday, after justices unanimously agreed with a lower court judge who found the law likely violates the state's constitutional right to privacy.
The case against the Montana law now goes to trial before District Court Judge Jason Marks in Missoula.”
Infant RSV vaccine trials on hold: FDA “The FDA has placed a hold on all clinical studies of vaccines for respiratory syncytial virus in infants due to safety concerns following a trial involving two mRNA-based vaccine candidates from Moderna.
A briefing document released by the FDA ahead of the Vaccine and Related Biological Products Advisory Committee revealed that a phase 1 trial evaluating two RSV vaccines in infants aged 5 to 8 months was paused in July after five severe cases of RSV-related illness were reported among infants receiving the vaccine candidates.”