Top Stories

  • As tensions between Health and Human Services Secretary Alex Azar and Centers for Medicare and Medicaid Services Administrator Seema Verma escalated at the end of 2019, White House officials created a list of potential replacements for both Verma and Azar in the event either was forced to leave the administration, according to three people with knowledge of the short list. Though the names were not shared with President Donald Trump and the two top health officials are expected to stay with the administration at least through 2020, the list included former Food and Drug Administration Commissioner Scott Gottlieb, former CMS Innovation Center head Adam Boehler, White House domestic policy council chief Joe Grogan, deputy HHS secretary Eric Hargan and HHS deputy chief of staff Paul Mango. (Politico)
  • The Blue Cross Blue Shield Association and 18 of its member organizations are spending $55 million in a partnership with Civica Rx — a nonprofit that sells hospital medications to health systems nationwide — to develop more affordable versions of costly, low-competition generics. The insurers said some of the early products could come to market by early 2022, but did not provide any specifics about which products they will focus on beyond saying they expect to start with a slate of seven to 10 drugs. (The New York Times)
  • At the World Economic Forum in Davos, Switzerland, President Donald Trump indicated his administration will “take a look” at making cuts to entitlement programs like Medicare and Social Security if he is re-elected, calling it “the easiest of all things.” A spokesman for the White House said that Trump’s statements did not mean he is supportive of benefit cuts but rather eliminating wasteful and fraudulent spending, though the president’s previous budget proposals have sought reductions in federal spending on Medicare and Medicaid, in addition to proposed Social Security changes that haven’t yet affected benefits for seniors. (The Washington Post)

Chart Review

Events Calendar (All Times Local)

01/23/2020
Medicaid and CHIP Payment and Access Commission public meeting
4th Annual PREDiCT: Tumor Models San Francisco Summit
American Bar Association: Recent Antitrust Developments in Health Care and Pharmaceuticals Q4 2019 12:00 pm
Hudson Institute: America’s Global Leadership in Advancing Next-Generation Tools for First Responders 11:45 am
01/24/2020
Medicaid and CHIP Payment and Access Commission public meeting
4th Annual PREDiCT: Tumor Models San Francisco Summit
01/27/2020
DIA Pharmacovigilance and Risk Management Strategies Conference
01/28/2020
DIA Pharmacovigilance and Risk Management Strategies Conference
ABA: ART History 101 1:00 pm
View full calendar
SPONSORED BY BETTER MEDICARE ALLIANCE

Medicare Advantage beneficiaries in your state have a story to tell!

With a 94% satisfaction rate among beneficiaries, Medicare Advantage is delivering the lower costs, high quality, and improved outcomes that Americans deserve. Don’t take our word for it – check out Better Medicare Alliance’s new interactive “Your State, Your Stories” map to read firsthand MA beneficiary testimonials in all 50 states! Visit MedicareMyWay.com to see what seniors in your state have to say.

General

Congress calls Juul, four other vape companies to testify about youth vaping
Nicholas Florko, Stat News

Five leading e-cigarette companies will be dragged before Congress early next month, according to a Wednesday afternoon announcement from Rep. Diana DeGette (D-Colo.).

Federal Government May Tighten Restrictions On Service Animals On Planes
Merrit Kennedy, NPR News

The U.S. Department of Transportation is considering tightening the rules for taking service animals on planes after rising customer complaints and lobbying from the airlines who think current regulations are too lenient.

In Presidential First, Trump Will Attend Anti-Abortion March for Life
Michael Crowley, The New York Times

The first in-person presidential appearance at the annual event in its 47-year history is President Trump’s latest gesture of support for a cause dear to his evangelical base.

Obama cut women’s health money in Texas for the state’s targeting of Planned Parenthood. Trump just restored it.
Edgar Walters, The Texas Tribune

The Trump administration announcement reverses an Obama-era decision in 2012 to cut federal women’s health funding to Texas. That came as punishment after the Texas Legislature excluded Planned Parenthood from the Healthy Texas Women program in 2011.

The answer to America’s health care cost problem might be in Maryland
Tara Golshan, Vox

Maryland has a health care system unique in the United States: a global hospital budget. Here’s how it works.

Spreading Coronavirus Forces Lockdown of More Chinese Cities
Stephanie Yang, The Wall Street Journal

Two more Chinese cities were put on lockdown by government authorities, expanding an unprecedented experiment to try to contain a fast-spreading virus that has killed at least 17 people and infected more than 500.

At San Francisco Airport, Caution Around New Coronavirus Screenings
Lesley McClurg, NPR News

This week, five U.S. airports will be screening passengers from flights originating in China for the new coronavirus. In San Francisco, people say they are cautious but not worried.

How Baltimore Is Experimenting Its Way Out of the Food Desert
Erick Trickey, Politico

The city is fighting diet-related illnesses in its poorest neighborhoods one fresh tomato at a time.

U-Haul’s no-smokers hiring policy tests the boundaries of corporate wellness
Rachel Siegel, The Washington Post

Critics say the rule crosses squarely into employees’ private lives and could disproportionately target people lower on the socioeconomic ladder.

‘To Stop Now Would Be Foolish’: Doubling Down On Services For High-Cost Patients
Phil Galewitz and Anna Almendrala, Kaiser Health News

A highly publicized approach to lowering health costs failed to pass rigorous study this month, but hospitals, insurers and government health programs don’t intend to give up on the idea. It just needs to be modified, they say.

‘Medicare For All’ Has Real Trade-Offs. So Does The Public Option.
Jonathan Cohn, HuffPost

A user’s guide to the debate dividing the Democratic Party’s presidential field.

Republican state lawmakers push bills to restrict medical treatments for transgender youth
Emily Wax-Thibodeaux and Samantha Schmidt, The Washington Post

Doctors who provide treatment for minors’ gender expression would face as many as 10 years in prison.

Stocks Slip, Bonds Climb on Virus Fears; Oil Drops: Markets Wrap
Todd White, Bloomberg

Get all the latest updates on news that’s moving global markets.

Payers

GOP right looks to put own mark on Kansas Medicaid expansion
John Hanna, The Associated Press

Conservative Republican lawmakers are looking to modify a bipartisan plan for expanding Medicaid in Kansas by adding two provisions that Democratic Gov. Laura Kelly opposes.

Study: Medicare spent $2.6 billion in 2018 on undelivered post-op visits
Tara Bannow, Modern Healthcare

A new CMS-funded study suggests surgeons are overpaid for certain bundled procedures and proposes a solution it says could save the agency billions of dollars annually.

Providers

Coalition of conservative groups to air ads against bipartisan proposal to end ‘surprise’ medical bills
Jessie Hellmann, The Hill

Conservative groups launched a new coalition on Wednesday to sink a bipartisan proposal in Congress to end the “surprise” medical bills some patients get. 

Cardinal Health recalls 9.1 million surgical gowns
Alex Kacik, Modern Healthcare

Cardinal Health is voluntarily recalling 9.1 million potentially contaminated surgical gowns, 7.7 million of which were distributed to 2,807 facilities worldwide over the course of more than a year, the company shared exclusively with Modern Healthcare.

Pharma, Biotech and Devices

Drug Lobby Spends Record Amount in Fight Over Medicine Costs
Alexander Ruoff et al., Bloomberg Government

The main lobbying association for drug makers, the Pharmaceutical Research and Manufacturers of America, spent a record $28.9 million on lobbying last year as it pushed back on legislation meant to control the price of medicine.

 

Health IT

Epic’s CEO is urging hospital customers to oppose rules that would make it easier to share medical info
Christina Farr, CNBC

Epic Systems, one of the largest medical records companies, emailed the chief executives of some of the largest hospitals in the U.S. on Wednesday, urging them to oppose proposed regulation designed to make it easier to share medical information.

A Message from Better Medicare Alliance:

With a 94% satisfaction rate among beneficiaries, Medicare Advantage is delivering the lower costs, high quality, and improved outcomes that Americans deserve. Don’t take our word for it – check out Better Medicare Alliance’s new interactive “Your State, Your Stories” map to read firsthand MA beneficiary testimonials in all 50 states! Visit MedicareMyWay.com to see what seniors in your state have to say.

Opinions, Editorials and Perspectives

SCOTUS Can Rein in Middlemen Who Are Gaming Local Pharmacies, Patients
Douglas Hoey, Morning Consult

Very few people know what pharmacy benefit managers do. The three biggest rival the largest corporations in the world in terms of market capitalization, revenue and profits. The CVS Health pharmacy service segment, for example, reported $134 billion in revenue last year.

Research Reports

The Economic Consequences of Being Denied an Abortion
Sarah Miller et al., The National Bureau of Economic Research

Restrictions on abortion are pervasive, yet relatively little is known about the financial and economic impact of being denied an abortion on pregnant women who seek one. This paper evaluates the economic consequences of being denied an abortion on the basis of the gestational age of the pregnancy.

 

Morning Consult