Morning Consult Health Presented by the Coalition for Medicare Choices: Senators Blast Medicare Advantage Insurers for Lobbying Against Proposed Rate Cuts
 

Health

Essential health care industry news & intel to start your day.
March 23, 2023
Twitter Email
 

Today’s Top News

  • Sens. Elizabeth Warren (D-Mass.) and Jeff Merkley (D-Ore.) blasted seven top Medicare Advantage insurers for opposing proposed rate cuts despite the long history of “outsized profits” and “corporate profiteering” in the MA program. In letters to the companies — including UnitedHealthcare Group Inc., CVS Health Corp.’s Aetna, Humana Inc. and Cigna Corp. — the lawmakers requested information on whether the insurers would cut executives’ “exorbitant salaries” or “massive payouts” to shareholders to preserve seniors’ Medicare benefits, turning the industry’s arguments against itself. (Stat News)
  • In a Senate Help, Education, Labor and Pensions Committee hearing, Moderna Inc. Chief Executive Stéphane Bancel defended the company’s decision to roughly quadruple the price of its COVID-19 vaccine to $130 when it goes to the commercial market amid ongoing criticisms from lawmakers, with the executive blaming the price hike on the complexity of developing and delivering the shots and the product’s value. (Axios) Meanwhile, senators in a budget hearing questioned Health Human Services Secretary Xavier Becerra about Medicare’s decision to limit coverage on recent Alzheimer’s treatments from Biogen Inc. and Eisai Co. Ltd., with some Republican lawmakers using the line of questions as an opportunity to raise concerns about the potential efficacy of Medicare’s newly granted authority to negotiate prescription drug prices. (Stat News)
  • Independent advisers to the Food and Drug Administration voted against the effectiveness of Biogen’s investigational ALS drug to treat a rare form of the disease as the trial did not meet its primary and secondary endpoints, though the panel voted unanimously that the drug could have some clinical benefit in reducing a protein associated with disease severity. (CNBC) Meanwhile, Sanofi SA’s asthma drug Dupixent, developed with Regeneron Pharmaceuticals Inc., reduced moderate or severe acute exacerbations of chronic obstructive pulmonary disease by 30%, potentially opening up a multi-billion dollar growth opportunity for the company. (Reuters)
  • The White House will shut down its COVID-19 response team once the national and public health emergencies expire in May, and Dr. Ashish Jha, who leads the team, plans to leave the Biden administration once the group disbands, according to multiple current and former officials. A senior administration official said in a statement that while the pandemic is not over and will remain a priority for the administration, COVID-19 “no longer disrupts our lives because of investments and our efforts to mitigate its worst impacts.” (The Washington Post)

Worth watching today:

  • Axios event: “Improving American Public Health Preparedness.” Speakers include Dawn O’Connell, HHS’ assistant secretary for preparedness and response, and Tom Inglesby, director of Johns Hopkins Bloomberg School of Public Health’s Center for Health Security. 
  • Center for American Progress virtual event: “Medication Abortion and the Politicalization of Drug Safety: The Impact of Alliance for Hippocratic Medicine v. FDA.” The webinar features a conversation between CAP CEO Patrick Gaspard and Rep. Lizzie Fletcher (D-Texas).
 

Chart Review

 
 

What Else You Need to Know

Coronavirus
 

Viral roots: A look at how modern outbreaks began

Meagan Parrish, PharmaVoice

As experts wrestle with COVID-19’s lab leak versus animal market debate, here’s what experts say are the suspected origins for some of the worst viral outbreaks in the last century.

 

The Times Switches to C.D.C. Covid Data, Ending Daily Collection

Wilson Andrews and Lisa Waananen Jones, The New York Times

As local data sources become less reliable, The Times will instead report information collected by the C.D.C. on its virus tracking pages.

 
General
 

Elizabeth Warren Wants FTC to Crack Down on Health-Care Mergers

John Tozzi, Bloomberg

U.S. Senator Elizabeth Warren increased pressure on regulators to scrutinize CVS Health Corp.’s $9.5 billion deal to buy Oak Street Health Inc., as part of a broad critique of vertical consolidation in the industry that she says could increase costs and reduce quality.

 

Judge temporarily halts Wyoming abortion ban amid legal challenge

Andy Rose and Elizabeth Wolfe, CNN

Judge Melissa Owens of the Teton County District Court granted the restraining order Wednesday, blocking enforcement of the anti-abortion law while the court considers a legal challenge brought against the state by abortion providers.

 

Lawmakers say reliance on China exacerbates drug shortages

Ariel Cohen, Roll Call

Lawmakers say the worsening drug shortage in the United States is hurting the American health care system and called for shifting more manufacturing from China to the United States to help alleviate the problem during a Senate hearing Wednesday.

 

Federal Study Calls U.S. Stillbirth Rate “Unacceptably High” and Recommends Action

Duaa Eldeib, ProPublica

A National Institutes of Health report decried stillbirths as a “major public health concern” and said the nation needed to do more to address the problem through research and prevention.

 

The battle over abortion is boiling over with lawsuits, bans, and protections that come 9 months after the Supreme Court’s key ruling

Geoff Mulvihill, The Associated Press

It’s been a hectic week for abortion policy with Republican-dominated states seeking to tighten restrictions, Democratic lawmakers trying to protect abortion access — and court fights playing out on multiple fronts.

 

Former surgeon general Jerome Adams tries to outrun the shadow of the president he served

Usha Lee McFarling, Stat News

Anesthesiologist and former U.S. surgeon general Jerome Adams has emerged as a leading voice on public health and issues of equity in medicine from his new position as executive director of health equity initiatives at Purdue University, in his home state of Indiana.

 

Black, Hispanic adults are less likely to get statins for heart disease, study finds

Kyla Russell, CNN

For the study, published Wednesday in the journal JAMA Cardiology, the researchers analyzed data on more than 3,000 people ages 40 through 75 in the United States, broken down by their risk of developing atherosclerotic cardiovascular disease, also known as ASCVD, over a 10-year period. Just over 10.7% were in the highest-risk group, with a risk at or above 20%.

 

Two additional deaths linked to bacteria in recalled eye drops, CDC says

Janelle Chavez, CNN

As of March 21, the CDC has identified 68 people in 16 states with infections of a rare strain of drug-resistant Pseudomonas aeruginosa never before reported in the United States. Most of the patients reported using artificial tears, the CDC said, and EzriCare Artificial Tears was the brand most commonly reported.

 

Massachusetts governor: Pharmacies must stock abortion pills

Steve LeBlanc, The Associated Press

Democratic Gov. Maura Healey issued a written statement citing guidance from the state board overseeing pharmacies that says they must maintain “a continuous, sufficient supply of all family planning medications, including mifepristone, misoprostol, emergency contraception, and contraceptive prescriptions.”

 

A Lot of Thought, Little Action: Proposals About Mental Health Go Unheeded

Sam Ogozalek, Tampa Bay Times

A recent report detailing problems with Florida’s patchwork mental health system had reached conclusions nearly identical to those of a similar report from more than 20 years ago. The echoes between the findings are unmistakable. And Florida isn’t the only state struggling with the criminalization of mental illness, a lack of coordination between providers, and insufficient access to treatment.

 

Marburg fever outbreak in Equatorial Guinea widens, WHO reports

Helen Branswell, Stat News

The update, the first in nearly a month, shows that the number of confirmed and probable cases has grown from nine to 29, with cases having been reported in three different provinces over a range of about 90 miles. Some have links to known cases, others do not.

 
Payers
 

Senate panel advances bill to reform PBMs and bring more FTC scrutiny on industry

Robert King, Fierce Healthcare

The Senate Commerce Committee passed the PBM Transparency Act of 2023 by a vote of 18 to 9 on Wednesday, advancing the reform legislation to the full Senate. Lawmakers said the legislation is meant to address a source of unfair and deceptive practices that increase drug prices. 

 

Drugmakers push back on a clever tactic employers use to avoid paying for specialty medicines

Ed Silverman, Stat News

It works like this: a health plan sponsor excludes certain expensive specialty medicines from coverage and taps an outside vendor to help patients obtain the drugs for free from patient assistance programs run by drugmakers or foundations. By doing so, plan sponsors — usually employers that fund their own health coverage — no longer have to pay for the medicines.

 

Medicaid expansion clears North Carolina Legislature

Merdie Nzanga, Modern Healthcare

The bill, which passed the House 94-22 Wednesday after clearing the Senate 44-2 last week, garnered the support of all General Assembly Democrats and nearly all Republicans. The House must hold a final confirming vote, which is slated to occur Thursday, to complete the legislative process.

 

Senator slams HHS’ implementation of No Surprises Act as ‘big mess’ after legal battles

Robert King, Fierce Healthcare

Senators are calling for the Biden administration to do better to implement a law that bans surprise medical bills, lamenting hiccups with setting up an arbitration dispute process on out-of-network charges.

 

Bright Health’s financial troubles spread to Tennessee

Nona Tepper, Modern Healthcare

Tennessee regulators placed the struggling health insurance company under supervision in November, according to Tennessee Department of Commerce and Insurance filings. Bright Health has been prohibited from spending more than $10,000 at a time without approval from Tennessee. The state also reserved the right to initiate legal, liquidation or delinquency proceedings against the company.

 

Prescription for Housing? California Wants Medicaid to Cover 6 Months of Rent

Angela Hart, Kaiser Health News

Gov. Gavin Newsom is making a bold push for Medicaid health plans to provide more housing support. He argues it’s cheaper to pay for rent than to allow homeless people to fall into crisis, which requires costly care in hospitals, nursing homes, and jails.

 
Providers
 

Congress members send letter to HCA about conditions at Florida hospital after NBC News report

Gretchen Morgenson, NBC News

Sen. Marco Rubio and Rep. Gus Bilirakis, both Florida Republicans, sent the letter to HCA on March 20, stating: “As a leading healthcare provider in the community and a recipient of American taxpayer dollars, it is critical that HCA Florida Bayonet Point prioritizes the health and safety of their patients and staff and is transparent about these standards with the public.” 

 

Hospitals re-evaluate masking, PPE as state mandates end

Mari Devereaux, Modern Healthcare

Only a handful of states have lingering mandates requiring the use of masks in hospitals, meaning most healthcare facilities are free to once again make their own rules on PPE.

 

Legal questions, inquiries intensify around Noble Health’s rural Missouri hospital closures

Sarah Jane Tribble, Kaiser Health News 

A year after Noble Health closed two rural Missouri hospitals, former employees and patients are asking for justice as they go without pay, face mounting medical bills, and struggle to move on with their lives.

 

Intermountain Health operating income plummets amid headwinds

Caroline Hudson, Modern Healthcare

Not counting the merger-related boost, Salt Lake City-based Intermountain Health recorded a net operating income of $121 million in 2022 — an 81.6% plunge from 2021. This reflects a challenging economic environment characterized by rising costs for labor, supplies and other priorities.

 
Pharma, Biotech and Devices
 

AbbVie’s blockbuster-to-be Parkinson’s combo hits a wall as FDA questions delivery pump

Angus Liu, Fierce Pharma

The FDA didn’t raise any questions about ABBV-951’s efficacy or safety, but it requested additional information about the combo’s subcutaneous pump device, AbbVie said. The Illinois pharma giant said it plans to resubmit the application as soon as possible.

 

J&J to seek U.S. Supreme Court review on unit’s bankruptcy

Dietrich Knauth, Reuters

J&J sought to use the bankruptcy of its subsidiary company, LTL Management, to halt more than 38,000 lawsuits alleging the company’s Baby Powder and other talc products are contaminated with asbestos, which J&J denies.

 

Novartis scraps UK heart attack prevention trial

Ludwig Burger and Kanjyik Ghosh, Reuters

Under the ORION-17 trial, planned to involve 40,000 patients, Novartis was trying to show that its Leqvio drug could prevent the first occurrence of major cardiovascular health problems in high-cholesterol patients, part of a broader collaboration with the British health system.

 

Novartis, Coherus PD-1 drugs finally set for FDA manufacturing inspections after COVID delays

Angus Liu, Fierce Pharma

The FDA has scheduled a manufacturing inspection for Novartis and BeiGene’s tislelizumab in the second quarter, a Novartis spokesperson told Fierce Pharma. Meanwhile, the pair is still awaiting confirmation of timing for a clinical site inspection, which is also required for an approval, the spokesperson added.

 

GSK, eyeing new blockbuster market, taps Magic Johnson to raise RSV awareness ahead of Pfizer faceoff

Nick Paul Taylor, Fierce Pharma

The campaign is designed to raise awareness, among both patients and healthcare professionals, about the risks RSV poses to older adults, particularly if they have certain underlying conditions.

 

Researchers devise new strategies to overcome a key CRISPR flaw

Jason Mast, Stat News

Gene editing treatments are devilishly complex to design. But one factor emerged repeatedly in discussions at the annual Muscular Dystrophy Association conference here: The potential for Cas9 to set off the body’s alarms.

 

At EpiBiologics, a pair of Genentech alumni wants to make next-gen protein degraders

Gwendolyn Wu, BioPharma Dive

Armed with $50 million, the startup is building off research from a lab run by protein engineering pioneer Jim Wells.

 

Novo Nordisk pens $745M biobucks pact with Dewpoint to tackle insulin resistance, diabetes complications

Gabrielle Masson, Fierce Biotech

Novo Nordisk and Dewpoint Therapeutics are partnering up in efforts to treat insulin resistance and diabetic complications, with the Danish Big Pharma offering up the possibility of $745 million in biobucks.

 

Biohaven strikes a deal to take TYK2 drugs in a new direction

Ned Pagliarulo, BioPharma Dive

Biohaven, a biotechnology company rebooted after a 2022 sale to Pfizer, aims to find out, announcing Wednesday a deal to license a so-called TYK2 inhibitor from Chinese drugmaker Hangzhou Highlightll Pharmaceutical.

 

Delays in reporting led FDA to late cancer warning on breast implants, advocates say

Elise Reuter, MedTech Dive

Cases should be better tracked and the cancer risks discussed with patients before surgery, patient advocates and physicians said.

 
Health Technology
 

Once a Silicon Valley darling, Mindstrong sells its mental health technology for parts

Mohana Ravindranath, Stat News

The deal caps a turbulent time for Mindstrong, which had drawn backing from heavyweight Silicon Valley investors like General Catalyst with its pitch to analyze people’s smartphone use for early signs of mental illness.

 
Morning Consult