Morning Briefing
Summaries of health policy coverage from major news organizations
First Edition: June 16, 2015
Kaiser Health News: Most Americans Say Drug Costs Are ‘Unreasonable,’ Although They Can Still Afford To Buy Them
Nearly three in four Americans say the costs of prescription drugs are 'unreasonable,' with most putting the blame on drugmakers, according to a poll released Tuesday. The survey by the Kaiser Family Foundation found 74 percent of those taking prescription drugs find the costs unreasonable, as do 72 percent of those not taking such drugs. (KHN is an editorially independent program of the foundation.) (Galewitz, 6/16)
Kaiser Health News: Although Smoking Has Declined, Its Consequences Haven’t, Study Finds
Smoking has long been associated with increased risks of cancer, but a research team has now estimated the number of deaths from a wide variety of cancers that are linked to cigarette use. According to a study published Monday in the journal JAMA Internal Medicine, almost half of the 346,000 deaths from 12 different types of cancers in individuals 35 years of age or older in 2011 were attributable to smoking cigarettes. (Pockros, 6/15)
The Washington Post: If Court Upends Health Law, Sides Gird For Next Act
With a Supreme Court decision looming that could lead to the loss of health insurance for millions of Americans, supporters and opponents of President Obama’s health-care law already are mobilizing for the next stage of the battle: influencing policy alternatives if the court upends a key component of the law. (Sun, 6/15)
Politico: GOP Rife With Tensions Over Obamacare-SCOTUS Response
Senior Republicans who are worried they’ll be blamed for killing health insurance for millions of Americans have been busy assembling a range of options if the Supreme Court strikes down the law’s subsidies in 34 states. But the GOP senators running for president — starting but not ending with firebrand Ted Cruz — threaten to stymie their leaders’ carefully hatched plans. Any whiff that the GOP’s Plan B is a continuation of Obamacare is bound to spark furious protests from the conservative base, putting pressure on the presidential hopefuls to respond. Cruz, for one, would press for a wholesale repeal of the law — or to allow states to opt out of Obamacare — if the high court provides the opening. (Raju and Everett, 6/16)
Los Angeles Times: Majority In U.S. Wants Congress To Ensure Obamacare Subsidies, Poll Finds
Asked whether lawmakers should pass a law "so that people in all states can be eligible for financial help," just one-quarter of those surveyed said no, according to the poll by the nonprofit Kaiser Family Foundation. The legal challenge, brought by conservative activists, argues that a strict reading of the health statute makes subsidies available only in states that established their own insurance marketplaces through the law, something that just 13 states and the District of Columbia did. (Levey, 6/16)
The Associated Press: 3 States Gets Feds' OK For Health Insurance Marketplaces
The Obama administration gave conditional approval Monday to Arkansas, Delaware and Pennsylvania to expand their roles in the insurance marketplaces created under the 2010 health care law, ahead of a high court decision that could wipe out federal health insurance subsidies for millions. Letters from U.S. Health and Human Services Secretary Sylvia Burwell to Pennsylvania Gov. Tom Wolf and Delaware Gov. Jack Markell, both Democrats, and Arkansas Republican Gov. Asa Hutchinson say the approval reflects the expectation that the states' roles in the marketplaces will expand beginning in the 2016 policy year. (Levy and Alonso-Zaldivar, 6/15)
The Associated Press: Hospital Group Says Illinois Could Lease Healthcare.gov
A hospital group in cash-strapped Illinois says the state might be able to set up a health insurance exchange at a lower cost by "leasing" the federal government's technology, an option that could appeal to as many as 34 states where subsides could be jeopardized by an unfavorable U.S. Supreme Court decision. In a memo written for Gov. Bruce Rauner and state lawmakers and released to The Associated Press, the Illinois Hospital Association says it anticipates the federal government "will be developing a leasing fee" for states to use HealthCare.gov as the backbone for their own insurance exchanges. It also lists an alternate possibility of renting an exchange system from another state that has its own, such as Connecticut or Kentucky. (Johnson, 5/15)
The Associated Press: Delaware Gets Conditional Approval For State Health Exchange
While receiving approval Monday, officials cautioned that a final decision on moving to a state-run exchange has not been made. Delaware currently is one of seven states that operate exchanges with the help of the federal government, including using the federal web portal to enroll people. (Chase, 6/15)
The Wall Street Journal's Washington Wire: Bush Health Policy Team Urges States To Weigh Own Health Exchanges
The Bush administration health policy band is getting back together — to tell states they will probably have to think about setting up their own insurance exchanges under the health law if the Supreme Court rules that is a condition of their residents continuing to get tax credits to help pay premiums. Former Health and Human Services Secretary Mike Leavitt, acting general counsel Thomas Barker, chief of staff Rich McKeown, assistant secretary for legislation Vince Ventimiglia, deputy secretary Tevi Troy and the former acting Centers for Medicare and Medicaid Services administrator Kerry Weems have signed an open letter to governors telling them there’s a good chance this will fall to the states to decide, and that they should get ready. (Radnofsky, 6/15)
The Wall Street Journal: U.S. Payments To Health Insurers Still Lack Verification
The Obama administration has been making billions of dollars in payments to insurance companies under the health law without being able to confirm just how much it owes each insurer, according to an inspector general’s report to be released Tuesday. The federal government has paid subsidies for many enrollees’ premiums and deductibles directly to insurers since January 2014 ... But the back-end system for the Centers for Medicare and Medicaid Services to determine the exact amounts the government owes for each enrollee still hasn’t been completed. (Radnofsky, 6/16)
The Associated Press: Vast Data Warehouse Raises Healthcare.gov Privacy Concerns
A government data warehouse that stores personal information on millions of HealthCare.gov customers is raising privacy concerns at a time when major breaches have become distressingly common. A government privacy assessment dated Jan. 15 says data "is maintained indefinitely at this time," but the administration said Monday no final time frame has been decided, and the National Archives has recommended a 10-year retention period. (Alonso-Zaldivar, 6/15)
Los Angeles Times: Anthem, Other Health Insurers Are Eyeing Consolidation
Another consolidation wave may be coming to the health insurance industry with Anthem Inc. playing a major role. Analysts have pegged Anthem as one of three potential bidders for Humana Inc., which is prized for its big presence in the Medicare Advantage program. (Terhune, 6/15)
The Wall Street Journal: UnitedHealth, Anthem Seek To Buy Smaller Rivals
The two biggest U.S. health insurers by revenue, UnitedHealth Group Inc. and Anthem Inc., are seeking to buy smaller rivals in a merger scramble aimed at cutting costs as the companies cope with the federal health-care overhaul. UnitedHealth made a preliminary takeover approach to Aetna Inc. in the last few days, people familiar with the matter said. Given Aetna’s market value of about $42 billion, any deal for the company would likely be valued at least that high. UnitedHealth has a market value of more than $110 billion. Aetna has been eyeing Humana Inc., which is exploring a sale. Meanwhile, Anthem and Cigna Corp. have been in discussions about a deal for months, though Cigna has rebuffed Anthem’s advances, according to people familiar with the matter. (Cimilluca, Mattioli and Wilde Mathews, 6/15)
The Wall Street Journal: UnitedHealth Has Approached Aetna About A Takeover
UnitedHealth Group Inc. has approached Aetna Inc. about a takeover deal that would likely be valued at more than $40 billion, according to people familiar with the matter, the latest move in a frenzy of merger talks in the health-insurance industry. The approach, in the form of a letter, came within the past few days, according to one of the people. It isn’t clear what, if any, the response was, and it is far from certain there will be any deal between the companies. (Mattioli and Hoffman, 6/15)
USA Today: Cigna Surges On Anthem Takeover Report
Shares of Cigna surged Monday following a report the health insurance giant has been approached by rival Anthem in a potential takeover overture. Cigna shares closed up 11.74% at $153.43 following a report in The Wall Street Journal that Anthem had made two recent acquisition bids, the most recent in the range of $175 a share. (McCoy, 6/15)
The New York Times: CVS To Buy 1,600 Drugstores From Target For $1.9 Billion
The voracious CVS Health is already a dominant player in nearly every corner of the health care world — it is the nation’s largest dispenser of prescription drugs, the biggest operator of health care clinics and the second-largest pharmacy-benefits manager. And with the news Monday that it had agreed to buy Target’s pharmacy and clinic businesses in a deal worth about $1.9 billion, it demonstrated that its appetite shows no signs of abating. (Thomas, Bray and Tabuchi, 6/15)
USA Today: CVS Buys Target Pharm Biz For $1.9B
The deal comes a little less than a month after CVS entered into an agreement to acquire Omnicare, for about $12.7 billion, in a move to expand its presence in the senior care market. More than 1,660 Target pharmacies in 47 states will be rebranded as CVS/pharmacy. Target's clinics, nearly 80 in total, will be renamed MinuteClinic. (Bomey, 6/15)
The Washington Post: CVS To Acquire Target’s Pharmacy Business For $1.9 Billion
CVS executives said the deal would allow them to reach a broader base of customers. They will enter metropolitan areas where they don’t currently have a strong presence, such as Seattle, Portland and Denver, and perhaps capture a different kind of shopper: While CVS’s 7,800 drugstores are often a destination for a “fill-in trip,” in which you grab two or three items, Target’s massive merchandise assortment makes it a logical destination for a bigger shopping trip. (Halzack, 6/15)
The Associated Press: Target Selling Pharmacy, Clinic Businesses To CVS Health
Target will sell its pharmacy and clinic businesses to the drugstore chain CVS Health for about $1.9 billion in a deal that combines the resources of two retailers seeking to polish their health care reputations. (6/15)
The Washington Post: CVS’s Purchase Of Target’s Pharmacy Business: The Good And Bad For Consumers
The announcement Monday by CVS Health Corp. that it would purchase Target's pharmacies and clinics for $1.9 billion represents a major acceleration in the retail clinic revolution. Since the concept of having a small, walk-in doctor's office inside a store made its debut in the American market in 2000, millions of consumers have taken advantage of the convenience of being able to get a flu shot, refills for prescriptions, and treatment for things like ankle sprains or a cough at the same time they are shopping. (Cha, 6/15)
The Associated Press: Medicare Panel: Ease Rehab Coverage For Seniors
A panel that advises Congress on Medicare policy says the government should make it easier for seniors to get covered for rehab after a short hospital stay. MedPAC said in a report Monday that Congress should revamp a rule that says to qualify for rehabilitation at a nursing facility, beneficiaries first must be hospitalized for three days as inpatients. (6/15)
The Washington Post: Patients Themselves Could Help FDA Flag Drug Safety Problems
The Food and Drug Administration has long had gaps in data about how people are reacting to medicines that have hit the market. The agency must rely on doctors, patients and drug manufacturers to report troubling side effects, or "adverse events." But it is, at best, an imperfect system. (Gebelhoff, 6/15)
The Washington Post: The Mysterious Case Of $54 Million VA Spent On Prosthetics In $24,999 Payments
The payments couldn’t help but catch the attention of the top procurement official at the Department of Veterans Affairs. Employees in the purchasing department of a VA hospital in the Bronx, N.Y., had used government purchase cards like credit cards at least 2,000 times to buy prosthetic legs and arms for veterans. (Rein, 6/16)
The Washington Post: Death Toll From Cigarettes Much Higher Than Previously Estimated
Smoking cigarettes may lead to a whole lot more than just lung cancer, according to a new study that linked the habit to cancers of the esophagus, colon, bladder and eight other regions of the body. The research, published in the JAMA Internal Medicine Monday, estimates that nearly half of U.S. deaths to cancer of people 35 and older in 2011 -- 167,805 out of 345,962 -- were associated with smoking. (Cha, 6/16)
The New York Times: Supreme Court Refuses To Hear Case On Pre-Abortion Ultrasounds
The Supreme Court’s one-sentence order, as is the custom, gave no reasons. Justice Antonin Scalia noted a dissent, also without saying why. The order left in place an appeals court ruling that had held the law unconstitutional as a violation of the First Amendment. (Liptak, 6/15)
NPR: Supreme Court Denies N.C. Appeal On State's Ultrasound Abortion Law
A North Carolina law that would require women who want an abortion to have an ultrasound scan prior to the procedure suffered a final defeat Monday, when the Supreme Court refused to review the case. A federal judge declared the law illegal in early 2014. The controversial law had been placed under an injunction soon after it took effect back in 2011. It was struck down on the grounds that it reflected ideological, rather than medical, priorities and violated doctors' right of free speech. (Chappell, 6/15)
The New York Times: New York Comptroller, Taking Aim At ‘Three-Quarter’ Homes, Urges City Agencies To End Referrals
The office of the New York City comptroller plans to send letters on Tuesday to City Hall and various agencies demanding that they take steps to ensure that people in need of housing are not sent to illegal boarding homes, known as “three-quarter” houses, and to provide information that will help the office compile a list of such homes. The actions by the comptroller, Scott M. Stringer, who is responsible for auditing city agencies, follow an article published by The New York Times last month on three-quarter homes, flophouses paid for with government money that cater to addicts and those with nowhere else to go. The article examined the practices of the operator of some of the most troubled homes, Yury Baumblit, a felon accused of taking kickbacks on Medicaid fees for drug treatment while forcing people to live in squalor. (Barker, 6/15)
Los Angeles Times: In Reversal, Sacramento County Wants To Restore Clinic Access To Immigrants
Facing a $55-million deficit during the Great Recession, Sacramento County officials made a choice: To save money, they would close their free health clinics to people who entered the country illegally. Six years later, they want to reverse that decision. (Karlamangla, 6/15)
The Washington Post: Children’s National Medical Center To Pay $12.9 Million To Settle Fraud Suit
Children’s National Medical Center has agreed to pay $12.9 million to settle a suit claiming the hospital submitted false information to receive Medicaid and federal funding, the U.S. Justice Department announced Monday. (Zauzmer, 6/15)
Los Angeles Times: Doctor Linked To Drug Deaths Allowed To Practice On Probation
An Orange County doctor accused of gross negligence in the care of two patients who fatally overdosed on drugs he prescribed has been placed on probation by the Medical Board of California. Van H. Vu, who owns a busy pain clinic in Huntington Beach, agreed not to contest the board's accusation, to take classes in prescribing and record keeping and to submit to an outside practice monitor for five years. In exchange, the board allowed Vu to keep his license and continue prescribing potent painkillers. (Girion, 6/15)
