For Tax Purposes 23andMe Genetic Testing Is Medical Care, IRS Rules
23andMe says the decision means consumers can claim up to $117.74 of the $199 cost of a health-and-ancestry kit as medical care for tax purposes. The agency made no ruling on ancestry testing from the same saliva sample. Other news out of the agencies focuses on a pricey nerve pain drug, the battle against "superbugs," and Medicare's "hospital-centric payment model."
The Wall Street Journal:
IRS Greenlights Tax Breaks For Buyers Of 23andMe Genetic Tests
Buyers of 23andMe Inc.’s genetic-testing kits will now have an easier time paying for the service with tax-advantaged health accounts after a favorable IRS ruling. The decision offers more clarity to consumers and reduces the cost of the company’s service. It also highlights differences between the tax law’s permissive definition of medical care and health regulators’ more restrictive approach to direct-to-consumer testing products. The Internal Revenue Service made the ruling in May and will release a redacted version next month. The Wall Street Journal reviewed the document before 23andMe disclosed it Monday. (Rubin and Marcus, 7/22)
The Associated Press:
FDA Approves 9 Generic Versions Of Nerve Pain Drug Lyrica
The U.S. Food and Drug Administration has approved the first generic copies of a popular, pricey pill for nerve pain. The agency on Monday said it approved nine generic versions of Pfizer Inc.’s Lyrica. It is also used for seizures and fibromyalgia, a condition that causes chronic, widespread pain. Lyrica, approved in 2004, is Pfizer’s second bestseller, with sales last year of $4.6 billion. The heavily advertised drug costs about $460 to $720 per month without insurance, depending on the pharmacy. Prices can vary widely. (Johnson, 7/22)
Modern Healthcare:
Antibiotic Battle Against ‘Superbugs' Taken Up By Defense Department, HHS
Federal health officials will invest nearly $100 million to develop a new antibiotic that can treat drug-resistant "superbugs" for which there are currently few or no treatment options. HHS will collaborate with the Defense Department and Malvern, Pa.-based drugmaker VenatoRx Pharmaceuticals on the company's compound VNRX-5133. When combined with the intravenous antibiotic cefepime, the compound might combat bacteria that is resistant to currently available antibiotics, the agencies said Monday. (Johnson, 7/22)
Modern Healthcare:
Medicare Chief Verma Touts Site-Neutral Pay, Blasts Hospital Consolidation
CMS Administrator Seema Verma on Monday took swings at Medicare's "hospital-centric payment model," touting the Trump administration's recent site-neutral payment policy and decrying provider consolidation. Verma condemned Democratic proposals for a public insurance option at a policy summit for the Better Medicare Alliance, which represents Medicare Advantage plans. Medicare or Medicaid buy-in proposals are rapidly gaining momentum among leading Democratic presidential candidates and lawmakers as the next step to cover uninsured Americans or offer cheaper plans. (Luthi, 7/22)
