Morning Briefing
Summaries of health policy coverage from major news organizations
First Edition: December 11, 2014
The Washington Post's Wonkblog: Obamacare Paradox: Medicaid Is Expanding, But Doctors Are Facing A Huge Pay Cut
Obamacare's Medicaid expansion is facing a new threat from an unlikely source: the law itself. An additional 9.1 million Americans have been added to the Medicaid rolls in the year since the program expanded under Obamacare. But a scheduled cut in Medicaid payments — built into the law — could steer doctors away from taking new patients covered the program. (Millman, 12/10)
Los Angeles Times: New Obamacare Enrollment In California Nears 49,000
California's insurance exchange said 48,950 new people signed up for Obamacare coverage during the first three weeks of open enrollment. The latest figures span Nov. 15 to Dec. 3, and state officials said about 160,000 people have also applied for Medi-Cal, the state's Medicaid program for low-income residents. (Terhune, 12/10)
The Associated Press: Md. Emphasizes Need To Re-Enroll In Health Plans
About a quarter of Maryland residents who need to re-enroll in the state’s health insurance marketplace to get their correct subsidies by Jan. 1 have done so, Maryland officials said Wednesday. Now, they are urging the rest of roughly 66,000 individuals who enrolled earlier to sign up again before next week’s deadline to get coverage by the first of the year. (12/10)
Politico: GOP Approves David Vitter’s Obamacare Amendment
Sen. David Vitter finally got a win on his eponymous amendment — sort of. The Louisiana Republican’s proposal to force members of Congress and their staffs onto the Obamacare health exchanges was approved by the Senate Republican Conference during a closed-door meeting Wednesday afternoon. Earlier Wednesday, Vitter said he was unsure whether the controversial measure would be approved, but the toothless provision easily passed by voice vote, drawing little opposition. ... Privately, congressional aides have fumed about Vitter’s proposal every time it comes up, because leaving the subsidized federal health insurance program might require them to pay more and change their doctors. It’s unclear if Vitter’s amendment will force GOP senators to change their aides’ insurance plans, but at least one colleague said even before the vote that he would take Vitter’s cue. (Kim and Everett, 12/10)
The Wall Street Journal: Gilead Faces Suit Over Hepatitis Drug’s Price
Philadelphia’s transit agency has sued Gilead Sciences Inc., accusing the company of “price-gouging” on the sale of its $1,000-per-pill hepatitis C drug Sovaldi, the latest salvo in a battle between health-care payers and the pharmaceutical industry over prices. (Loftus, 12/10)
The Wall Street Journal: Aetna Offers Disappointing Earnings View For Next Year
Aetna Inc. on Wednesday issued a weaker-than-expected profit forecast for next year, a day ahead of an investor conference. The Hartford, Conn., insurer said it expects to make at least $6.90 a share on revenue of at least $62 billion in 2015, compared with estimates of $7.17 a share on $61.7 billion in revenue, according to Thomson Reuters. (Armental, 12/10)
The Associated Press: November Budget Deficit Drops To $56.8 Billion
After this year, the CBO is forecasting that deficits will resume rising for the rest of the decade as baby boomers retire and Social Security and Medicare costs rise. The CBO and other budget experts have warned that the current trajectory for the deficit is unsustainable and eventually could lead to a fiscal crisis. (12/10)
The New York Times: Insurers In New York Must Cover Gender Reassignment Surgery, Cuomo Says
In a letter being sent to insurance companies this week, the governor said that because state law requires insurance coverage for the diagnosis and treatment of psychological disorders, people who are found to have a mismatch between their birth sex and their internal sense of gender are entitled to insurance coverage for treatments related to that condition, called gender dysphoria. (Hartocollis, 12/10)
The Wall Street Journal: VA Hospital Project Grinds To A Halt Amid Budget Overruns
A Department of Veterans Affairs hospital project near Denver came to a standstill this week after federal judges ruled the VA was in breach of contract, hundreds of millions of dollars over budget and devoid of a plan to adequately fund the facility. The billion-dollar project is one of four large VA construction plans that in recent years have faced cost and schedule overruns, as well as scrutiny by legislators and government auditors. The agency is moving to upgrade its facilities amid the growing number of veterans returning from more than a decade of war. (Kesling, 12/10)
The Wall Street Journal's Pharmalot: Biotechs And Generic Drug Makers Compromise On Biosimilar Lobbying
Two years ago, a coterie of biotechs began lobbying state legislatures to pass laws that would make it more difficult to substitute lower-cost biosimilars for brand-name biologic medicines. The plan was to require pharmacists to notify doctors when substituting one drug for the other, which would act as a deterrent by slowing the process. Generic drug makers responded with a counterattack. (Silverman, 12/10)
