New Study Shows Medicare Could Save Billions If It Was Allowed To Negotiate Insulin Drug Prices

Stat: If Medicare Negotiated Insulin Prices Like The VA, It Could Save Billions
As insulin becomes a poster child for the growing outcry over the cost of medicines, a new analysis suggests that Medicare could have saved $4.4 billion in 2017 for the diabetes treatment if the program negotiated the same prices as the Department of Veterans Affairs, which already bargains for discounts. For more than two dozen different insulin products covered by Medicare Part D that year, spending was $7.8 billion, based on estimated rebates of 41% received from drug makers. However, if the federal health care program had negotiated as the VA does — and used the same formulary, or list, of covered medicines — spending would have dropped to nearly $3.4 billion. (Silverman, 2/3)

Stat: Employers Shoulder Plenty Of Drug Costs, But Haven’t Lobbied Much To Lower Them — Until Now
The new group called EmployersRx, a joint project of the National Alliance of Healthcare Purchaser Coalitions, the Pacific Business Group on Health, the ERISA Industry Committee, and the Silicon Valley Employers Forum, is hoping to push lawmakers to start thinking about drug pricing policies that will affect the broadest number of Americans, not just changes to federal programs.And it’s going further than you’d expect: it’s “intrigued by” the progressive package of reforms being pushed by Speaker Nancy Pelosi, in part because the current version would give employers the chance to buy drugs at prices that Medicare had negotiated. The group hasn’t formally endorsed the bill, but its coy position on it is a startling departure from the rest of the business community, which has blasted the bill as socialist and bad for business. (Florko, 2/3) 

The Hill: Democrats Slam GOP On Drug Prices In Bilingual Digital Ads
The House Democrats' campaign arm Tuesday released a batch of digital ads in English and Spanish slamming Republicans for blocking drug pricing legislation while taking contributions from big pharma. The Democratic Congressional Campaign Committee (DCCC) ads, timed for release with the State of the Union address, will hit vulnerable Republicans in eight districts. The ads, which will run on Facebook, will tie House Republicans to President Trump and Senate Majority Leader Mitch McConnell (R-Ky.). “As President Trump prepares to peddle empty promises and sweet nothings in his State of the Union address, House Democrats will remind voters that Trump, McConnell, and Washington Republicans are blocking bipartisan House-passed legislation to bring down drug prices,” said DCCC Spokesperson Robyn Patterson. (Bernal, 2/4)

Bloomberg Law: State Drug-Pricing Laws Hampered By Resistance, Lack Of Teeth
State laws aimed at forcing the pharmaceutical industry to account for rising prescription-drug costs have done little to dampen price increases, in part because the companies skirt robust disclosure with relative impunity. At least 11 states have laws requiring manufacturers to provide data on drugs’ costs, warnings before some prices increase, and justifications for changes. But many companies are complying only partly or not at all, saying the information is confidential under federal law, and some of the laws have few or no enforcement powers, Bloomberg Law found. (Goth and Lee, 2/3)

Stat: A Former Taro Pharma Executive Is Indicted In Generic Price-Fixing Probe
Aformer senior executive at Taro Pharmaceuticals USA was indicted for his role in a wide-ranging conspiracy to fix prices for generic drugs, the third time that a high-ranking drug company official has been charged since federal authorities began their investigation several years ago. Ara Aprahamian, a former vice president of sales and marketing at Taro, was indicted for working with executives at another drug maker to increase prices and allocate customers for numerous drugs, including medicines used to treat and manage arthritis, seizures, pain, various skin conditions, and blood clots, according to the indictment that was filed in federal court in Philadelphia. (Silverman, 2/4)

The Wall Street Journal: Takeda Pharmaceutical Swung To Net Loss In 3Q, Raises Guidance
Takeda Pharmaceutical Co. (4502.TO) said Tuesday it swung to net loss in its third quarter due to greater amortization costs and other expenses, as it continues to integrate the European company Shire which it bought last year. Net loss for the quarter ended Dec. 31 was 35.9 billion yen ($330.3 million), compared with Y37.8 billion in net profit a year earlier. That missed the estimate for a net loss of Y27.3 billion from a poll of analysts by Visible Alpha. (Narioka, 2/4)

Modern Healthcare: CVS: Insurers Can Cover Out-Of-Pocket Drug Costs And Still Save Money
CVS Health said it has worked out a way for employers and insurers to cover the out-of-pocket costs of their members' diabetes medications while also saving money. Despite shouldering the added cost of their members' drugs, CVS' pharmacy benefit manager, CVS Caremark, said its clients will ultimately save money through its new plan, called RxZERO. CVS claimed the savings will come from a combination of adopting its formulary that steers patients toward generic drugs as well as simply having less expensive members. (Bannow, 1/29)

Modern Healthcare: Drug Price Inflation Slows, But Problems Persist
Drug prices will rise an estimated 3.59% through next year, continuing a recent trend of moderate increases, although the high cost of some pharmaceuticals still rankle health systems and patients, according to research by one group purchasing organization. Advocacy and awareness as well as a more competitive market have contributed to more modest price increases over recent years, according to Vizient's outlook from July 2019 through June 2021. (Kacik, 1/29)

Stat: U.S. Officials Will Let Novartis Pay Expenses For Some Kymriah Patients Who Must Travel For Treatment
In an unexpected move, the U.S. Department of Health and Human Services will allow Novartis (NVS) to pay for travel, lodging, and meal expenses for Medicare and Medicaid beneficiaries who must leave home to be administered the Kymriah gene therapy. The HHS OIG issued a so-called advisory opinion in response to a request from the drug maker, which wanted to avoid sanctions that would normally be levied against a pharmaceutical company that sought to reimburse Medicare and Medicaid patients. Under federal law, such payments would normally be considered the equivalent of a kickback. (Silverman, 1/30)

Kaiser Health News: Warren Is Right. Presidents Have The Power To Bypass Congress On Drug Pricing.
On the presidential primary campaign trail in Iowa, Sen. Elizabeth Warren (D-Mass.) brought out a favorite talking point: ways the president can bring down drug prices without waiting for Congress. It’s not the first time Warren and other candidates have referenced this alleged power. In this case, she pointed to insulin, EpiPens and HIV/AIDS drugs as possible targets. (Luthra and Knight, 1/31)