Morning Briefing
Summaries of health policy coverage from major news organizations
Perspectives: Medicare's Prescription Drug Program Premiums' Stability Belies The Increased Cost To Taxpayers
The New York Times: The Large Hidden Costs Of Medicare’s Prescription Drug Program
At a glance, Medicare’s prescription drug program — also called Medicare Part D — looks like the perfect example of a successful public-private partnership. Drug benefits are entirely provided by private insurance plans, with generous government subsidies. There are lots of plans to choose from. It’s a wildly popular voluntary program, with 73 percent of Medicare beneficiaries participating. Premiums have exhibited little to no growth since the program’s inception in 2006. (Austin Frakt, 8/13)
The Hill: New Medicare Drug Pricing Rule — A Small 'Step' In The Right Direction
The Trump administration’s most recent effort to fight high prices for prescription drugs takes a small step in the right direction. A recent new rule issued by Health and Human Services will use market-based competition to help lower the cost of prescription drugs for the more market- sensitive Medicare Advantage program. Medical care providers have a financial incentive to prescribe expensive medicines because they often earn a commission based on the value of the drugs they prescribe. Thus, the cheaper the drug, the less commission the care provider stands to earn. (Rea S. Hederman, 8/11)
Forbes: Why Medicare Can't Get The Lowest Drug Prices
When you're one of the biggest buyers of pharmaceuticals on the planet, you should have a big stick to negotiate the best prices.Medicare, which insures more than 60 million beneficiaries, doesn't have that power, mostly because Congress stopped it from getting the best drug prices years ago. But that could change. The anti-consumer poison pill was embedded in a law ironically called the Medicare Modernization Act. Among other things, it put corporate Pharmacy Benefit Managers (PBMs) in charge of acquiring drugs through Medicare's "Part D" plan. (John Wasik, 8/10)
USA Today: Insulin Is A Human Right For Me, All Diabetics
Perhaps it's time for Congress to introduce legislation that ends the needless inflation of medications like insulin — which people would die without — or to take it one step further and make all medication that is necessary to sustain a life free to those who need it. It is absolutely shameful that in America, a developed country that is capable of spending over half of its federal spending budget on the military and only a measly six percent on health care allows people to die slow, painful, preventable deaths because medical care is too expensive. (Victoria Gagliardo-Silver, 8/13)
Bloomberg: Icahn's Retreat May Hand Cigna A Pyrrhic Victory
Cigna Corp. won an unusual and very fast victory against Carl Icahn. The activist investor announced Monday night that he was dropping his nascent effort to block the health insurer’s $54 billion takeover of pharmacy benefit management giant Express Scripts Holding Co. Cigna may end up regretting its win, though. Icahn’s crusade was financially motivated, but he was right to point out the escalating risks of this deal. (Max Nisen, 8/14)
Stat: The Real Chris Collins Scandal: Lax Conflict-Of-Interest Rules In Congress
In the aftermath of Rep. Chris Collins’ (R-N.Y.) arrest last week on insider trading charges stemming from his involvement with an Australian biotech company, it is tempting to focus public attention and anger on his alleged crimes. But we should be far more concerned by what the episode reveals about Congress’ failure to regulate members’ financial conflicts of interest. (Matthew S. McCoy and Genevieve P. Kanter, 8/14)
Bloomberg: Trump Hurts U.S. Exports In The Marketplace Of Ideas
If you are a believer in free markets, you might be tempted to be pleased by some of the more positive policies of the Trump administration: lower corporate tax rates, more market-friendly judges, a greater emphasis on deregulation. Resist (the temptation, if not the administration). When it comes to ideas, the lifeblood of capitalism, the influence of President Donald Trump isn’t nearly so benign.In fact, even without considering its policy on free trade, advocates of dynamic capitalism should be especially suspicious of the Trump presidency. Consider one of the most prominent pro-market arguments, as it is applied to some other more general contexts. (Tyler Cowen, 8/14)
Stat: Transparent Pharmacy Benefits: A Path To Rational Drug Costs
Now that states are moving to block pharmacy benefit managers from imposing “gag orders” on pharmacists, industry insiders and policymakers are sounding off louder than ever about the tendency for pharmacy benefit managers to extract value from the health system rather than add value to it. A handful of these companies might be bucking that trend, and more could follow — with a push from business owners. (David Chase, 8/14)
