CVS Says It Will Cut Viagra, Weight Loss Remedy And Other Drugs From Insurance Coverage
The decision by the nation's second-biggest pharmacy benefit manager comes as insurers are challenging the steeply rising costs of new medications.
Reuters:
CVS Strips Viagra, Other Top Drugs, From Insurance Coverage
CVS Health Corp., which operates the nation's second-biggest pharmacy benefit manager, said that next year it will exclude an additional 31 prescription medicines from insurance coverage, including Viagra and widely used treatments for diabetes and multiple sclerosis. The 2016 excluded drugs, disclosed on Wednesday, also include Vivus Inc.'s weight loss treatment Qsymia, which last week was excluded from the 2016 formulary of CVS rival Express Scripts Holding Co. Vivus officials could not immediately be reached for comment. Pharmacy benefit managers, or PBMs, which administer drug benefits for employers and health plans and also run large mail-order pharmacies, have been challenging the rising cost of new medications. When drugs are knocked off their formularies, patients may have to pay full price for them. PBMs often keep or dump a product depending on whether they can obtain favorable pricing. (Pierson and Berkrot, 8/5)
Also in the news were earnings reports from HCA and WellCare.
The Wall Street Journal:
Hospital Operator HCA Reports Higher Profits, Admissions
HCA Holdings Inc. reported second-quarter earnings rose 5% and provided a more optimistic outlook for the year, as the hospital operator continues to benefit from increased admissions following the Affordable Care Act. Per-share profit for its latest quarter, excluding some one-time items, topped expectations. (Stynes, 8/5)
Reuters:
HCA Expects Obamacare Benefit To Taper Off For Rest Of 2015
Hospital operator HCA Holdings Inc, the largest U.S. for-profit hospital operator, suggested benefits from the Affordable Care Act (ACA) would taper off over the rest of the year, a warning that weighed on the stocks of hospital operators. The signature healthcare law, popularly called Obamacare, covers medical insurance for Americans and has helped in boosting business for various hospitals and insurers. (Shaji, 8/5)
Modern Healthcare:
WellCare Rises After Solid Quarter Of Medicaid Contract Wins
WellCare posted a second-quarter turnaround of almost $60 million after the Tampa, Fla.-based health insurer secured state Medicaid contracts and lowered the costs of its Medicare Part D drug plans. WellCare has struggled the past two years with stagnant health plan growth. The insurer predominantly treats Medicare and Medicaid populations, giving it little room for error to keep a profit. (Herman, 8/5)
