Morning Briefing
Summaries of health policy coverage from major news organizations
Costco Partnering With Nonprofit Insurer SCAN To Provide Medicare Plans
The Wall Street Journal: Costco Sells Vacations, Gas And, Soon, Medicare Plans
Costco sells its dedicated members everything from travel packages to gasoline. Now the retail giant is gearing up to enter a huge new market: Medicare. The warehouse chain plans a limited rollout of Costco-branded Medicare plans, working with SCAN Group, a nonprofit insurer. Nationally, Medicare is a more than $600 billion business for insurers, but the two companies said they would start by selling their jointly named Medicare Advantage products in two states, and a Medicare supplement in a third. (Wilde Mathews, 8/18)
Insurance industry updates —
Modern Healthcare: Aetna To Cut Medicare Advantage Commissions In 33 States In 2027
Aetna’s Medicare Advantage strategy for next year is beginning to take shape. The CVS Health subsidiary will not pay commissions to marketers for selling 123 Medicare Advantage plans in 33 states for the 2027 plan year, according to a notice Aetna distributed to third-party marketing organizations last week. The freeze affects policies in nearly 780 counties, about one-fifth of which are located in Georgia. Open enrollment runs from Oct. 15-Dec. 7. Aetna also will not compensate agents and brokers for new enrollments into standalone Medicare Part D prescription drug plans, the notice says. (Tepper, 8/17)
AP: Luigi Mangione’s State Murder Trial Postponed After Federal Guilty Plea
Luigi Mangione’s state murder trial in the killing of UnitedHealthcare CEO Brian Thompson, which was slated to begin Sept. 8, has been postponed indefinitely as his lawyers seek to have the case thrown out on double jeopardy grounds following his guilty plea last week to federal charges. Judge Gregory Carro issued an order Monday canceling the trial and giving the Manhattan District Attorney’s office, which is prosecuting the state case, until Oct. 9 to respond to the defense’s double jeopardy claims. (Sisak, 8/17)
In other health sector news —
Modern Healthcare: Universal Health Services Acquires Talkspace For $835M
Universal Health Services has acquired virtual behavioral healthcare company Talkspace in an $835 million deal. The transaction, which closed Monday, gives UHS the opportunity to offer a more comprehensive set of services, as the company continues to grow its behavioral health segment, UHS President and CEO Marc Miller said. Talkspace brings a nationwide network of approximately 6,000 licensed providers. (Hudson, 8/17)
Modern Healthcare: Health Systems Ramp Up Capital Spending On Facilities, Technology
Health systems are pouring money into capital projects at the highest rate in more than 15 years. Shifting patient demographics are driving increased demand, and health systems are responding with investments in facility expansions, equipment upgrades and new technological capabilities. Viewed as a long-term play, capital spending can strengthen operations and keep systems competitive, even as financial challenges loom. (Hudson, 8/17)
KFF Health News: What Geriatric Emergency Departments Do Differently
It had been a rough few months. Cynthia Tompkins was hospitalized in May for osteomyelitis — a bone infection — then spent six weeks in a rehabilitation facility. “It was a struggle,” she said. “I didn’t bounce back too well.” Tompkins returned to her home in San Diego, but she was still taking antibiotics, along with a host of other drugs for diabetes, pain, and blood clots. The deaths of her husband the previous year and her closest friend more recently had sapped her spirits. (Span, 8/18)
Stat: Data For Eyepoint Vision Treatment Disappoint, But Company Sees Promise
Eyepoint said Monday that patients administered its experimental treatment for a common cause of age-related blindness failed to maintain vision with less frequent injections compared to a standard treatment — meaning a Phase 3 clinical trial had fallen short of its primary goal. The study setback imperiled Eyepoint’s plans to seek regulatory approval for the drug, Duravyu, and caused its stock price to plummet. Shares of Ocular Therapeutix, the maker of a competing eye treatment that will be submitted to the Food and Drug Administration later this year, rose in reaction. (Feuerstein, 8/17)
MedPage Today: FDA-Approved Peanut Allergy Immunotherapy Exits Market
Not many allergists are mourning the exit of the first and only FDA-approved oral immunotherapy (OIT) product -- peanut allergy treatment Palforzia -- from the market. The standardized peanut protein product had been approved for treating peanut allergy in kids ages 4 to 17 years in 2020 but was discontinued in July. Manufacturer Stallergenes Greer said that safety, quality, and effectiveness weren't to blame for the business decision. (Phend, 8/17)
