Morning Briefing
Summaries of health policy coverage from major news organizations
Hospital Groups Heap Criticism On GOP's Plan: 'Go Back To The Drawing Board'
Stat: Hospital Groups Slam Health Care Bill Released By Senate
Hospitals panned the Senate’s latest health reform efforts on Thursday, blasting the chamber’s newly released draft legislation as a draconian and devastating contraction of funds that support health care for low-income Americans and children. Every major hospital association criticized the draft, including the American Hospital Association, the Federation of American Hospitals, and America’s Essential Hospitals. AHA and FAH both called for the Senate to scrap its draft and start over. (Mershon and Blau, 6/22)
Bloomberg: Hospital Groups On Senate Health Bill: Go Back To Drawing Board
Hospital trade groups had one message to the small group of Senate Republicans who released their health bill after two months of closed-door meetings: “Go back to the drawing board. ”While U.S. hospital and other health-care stocks rallied Thursday, with a sense of relief that the spending reductions contained in the plan weren’t as deep, or fast, as investors anticipated, the biggest hospital associations in the country lambasted the proposal. The Better Care Reconciliation Act, which would replace Obamacare, puts the health of millions of poor, elderly, disabled and chronically ill patients at risk, said Rick Pollack, chief executive officer of the American Hospital Association. (Mattingly and Lauerman, 6/22)
The Hill: Healthcare Groups Issue Scathing Criticism Of Senate Bill
Leading healthcare advocacy groups are urging the Senate to make substantial changes to its healthcare plan released Thursday, warning it could have negative consequences for people across the country. The proposal includes deep cuts to Medicaid and fundamentally reshapes the program from an open-ended government commitment to a system of capped federal payments that limit spending. (Roubein and Hellmann, 6/22)
The Washington Post: Republicans’ New Obamacare Repeal Bill Has A Lot For Insurers To Like And For Hospitals To Hate
Major health care industry groups largely fell into two camps on Thursday when Republicans released their Affordable Care Act repeal: There were those groups that criticized the bill, and those that preferred to say nothing at all. For the health insurance industry, the bill is a mixed bag. The major trade association for health insurers, America's Health Insurance Plans, declined to issue a specific response to the bill, saying they were still evaluating it. But the proposed legislation contains several provisions that the industry has been fighting for, including a tax repeal worth $145 billion over 10 years to the industry and a guarantee that billions of dollars of federal subsidies would be paid in 2018 and 2019 to stabilize plans in the Affordable Care Act's marketplaces before they are phased out. There are also two funds, adding up to $112 billion over a decade, to stabilize the market and make insurance more affordable. (Johnson, 6/22)
The Wall Street Journal: Senate Bill Poses Risks To Health-Care Companies
Senate Republicans’ health overhaul carries big risks for many health-care companies because of its cutbacks to federal Medicaid funding and the uncertain impact of its broad changes to individual health-insurance markets. The bill contains elements that will immediately be seen as wins for some companies—particularly the repeal of a tax on health-insurance plans and of a levy on medical devices, both of which have been strongly opposed by those businesses. But the proposed changes to Medicaid will be bad news, particularly over the long term, for hospitals and other health-care providers, as well as for insurers that manage Medicaid business, as those funds are curtailed, analysts and industry executives said. (Wilde Mathews and Evans, 6/22)
The Wall Street Journal: Big Pharma Plays It Safe On Senate Health Bill
The branded-drug industry, which was pilloried by conservatives for supporting then-President Barack Obama’s health-care overhaul, is playing it safe as Republicans move to undo the measure. The Pharmaceutical Research and Manufacturers of America, the trade association for brand-name drug companies also known as PhRMA, has avoided taking a position on the Republican bill released Thursday. (Rockoff, 6/22)
Reuters: U.S. Health Sector Hits Record High On Senate Bill, Biotech Rally
U.S. healthcare stocks posted sharp gains on Thursday, with hospitals and insurers climbing after Senate Republicans released a draft bill to replace Obamacare, while a recent surge in biotechnology shares showed no signs of slowing. (Krauskopf, 6/22)
Modern Healthcare: Hospital Stocks Rally On Senate Reform Bill
Hospital stock prices jumped on Thursday as investors reacted to the Senate's proposal for repealing and replacing the Affordable Care Act. Shares of Tenet Healthcare Corp. were up 7%, or $1.22, to $18.90 on the day. Community Health Systems' shares rose 5% to $9.27. Shares in HCA, the nation's largest investor-owned hospital chain, were up 2% to $86.14. And Universal Health Services and LifePoint Health advanced 2% and 3%, respectively. (Barkholz, 6/22)
