Morning Briefing
Summaries of health policy coverage from major news organizations
Insurer Restrictions On Hep C Drug Coverage Probed By New York Attorney General
The Wall Street Journal: Insurers Probed On Hepatitis C Drug Coverage
New York’s attorney general is investigating state health-insurance companies for allegedly restricting coverage of drugs that can cure hepatitis C, saying that the firms have inappropriately rationed care by denying patients expensive but effective medication. Some of the drugs have been the subject of consumer lawsuits, a continuing inquiry by the Massachusetts attorney general and a warning by federal officials that state Medicaid programs may be violating federal law by denying patients the medication. Pharmaceutical companies say the drugs are worth the cost because they result in long-term savings in care. (Ramey, 3/2)
Bloomberg: New York Said To Investigate Insurers Over Hepatitis C Drugs
The New York state attorney general has asked 16 health insurance companies for information on their coverage of hepatitis C treatments, amid concerns that some companies are restricting coverage of the expensive medications, according to a person familiar with the investigation. (Tracer and Chen, 3/2)
In other pharmaceutical industry news —
The Wall Street Journal: Cancer-Care Giant To Pay $35 Million To Settle Radiation-Therapy Allegations
Cancer-care giant 21st Century Oncology Holdings Inc. agreed to pay $35 million to settle civil allegations that it billed Medicare for an unnecessary radiation procedure, according to a person familiar with the matter. The civil settlement is the second 21st Century Oncology has reached with the Justice Department in less than three months. In December, the Fort Myers, Fla., firm agreed to pay $19.75 million to resolve federal allegations that it performed an expensive bladder-cancer test on Medicare patients more often than medically necessary. (Carreyrou, 3/2)
Bloomberg: Member Of Valeant’s Senior Management Team Leaves Drugmaker
Valeant Pharmaceuticals International Inc.’s company group chairman and head of U.S. dermatology products Deb Jorn has left the drugmaker, according to the company. Jorn resigned effective immediately, Valeant said in a statement Wednesday. She was in charge of all major U.S. product launches and was also general manager of the U.S. dermatology business, according to the company’s website. She will be replaced by Eric Abramson, who had served as the company’s vice president of dermatology and immunology marketing, Valeant said. (Koons, 3/2)
Reuters: Pricing Pressures Weigh On Drug Industry Growth - Moody's
The pharmaceutical industry faces growing pressure on prices and is struggling to get some new products adopted by cost-conscious healthcare providers, pointing to slower profit growth for the sector. That's the verdict of Moody's Investors Service, which said on Thursday it expected annual growth of 3-4 percent in earnings before interest, tax, depreciation and amortization for the next 12-18 months, down from 4-5 percent seen previously. (Hirschler, 3/3)
