Morning Briefing
Summaries of health policy coverage from major news organizations
Worries Over Future Telehealth Costs, As It Struggles To Reach Rural Areas
Stat: Telehealth Companies Are Still Struggling To Reach Rural Populations
Despite the wide-ranging expansion of telehealth in the past year, there is still a broad swath of the U.S. population it has largely failed to reach: the 57 million people in rural parts of the country. Even now, as employers rush to add virtual care to their benefits, many telehealth companies have avoided rural areas. Several acknowledged to STAT that most of their users remain in urban and suburban areas, and they’ve made far less progress than they’d like to in reaching rural patients. (Brodwin, 9/30)
Philadelphia Inquirer: Telemedicine Is Here To Stay, But How Much You Pay For A Visit Could Change
Independence Blue Cross, the largest insurer in the Philadelphia area, is covering telemedicine appointments as it would in-person visits through the end of October. The deadline has already been extended several times, and may be pushed back further. Uncertain how they will be compensated for virtual visits in the future, some health systems have resorted to charging for telemedicine services — regardless of insurance coverage. “The continuous kicking the can down the road and paying for another few months doesn’t give health systems any confidence,” said Judd Hollander, senior vice president for health-care delivery innovation at Jefferson Health. (Gantz, 9/29)
In other health industry news —
Modern Healthcare: Blue Cross Antitrust Legal Woes Linger As Settlement Opt-Outs Seek Damages
More than 30 people who opted out of Blue Cross Blue Shield's $2.67 billion antitrust settlement sued the health plan's national association on Monday, alleging the insurers' monopolistic activities increased healthcare costs while decreasing quality of care. The suit, filed in the U.S. District Court of the Southern District of Florida, comes on behalf of 32 people living in five states and the District of Columbia who were at some point insured under one of 18 Blues plans issued by their employers. These plaintiffs chose not to participate in the preliminary settlement approved by federal Judge David Proctor of the northeastern district of Alabama last year. (Tepper, 9/29)
Bloomberg: Walgreens Said to Weigh Takeover of Evolent Health
Walgreens Boots Alliance Inc. is weighing an acquisition of Evolent Health Inc., the health-care group that has been under activist investor pressure to consider a sale, according to people familiar with the matter. Evolent rose as much as 18% on the news. The U.S. drugstore chain has discussed a deal with Arlington, Virginia-based Evolent, the people said, asking not to be identified discussing confidential information. Deliberations are ongoing and there is no certainty that Walgreens will decide to move forward with an offer to buy the company, the people added. (Hammond, Davis and Nair, 9/29)
Modern Healthcare: SAMHSA Distributes $825M To Mental Health Centers
The Substance Abuse and Mental Health Services Administration is investing $825 million in 231 community mental health centers nationwide to help curb the impact of mental illness during the COVID-19 pandemic. This funding is part of a $2.5 billion financial package from the Biden administration's Consolidated Appropriations Act of 2021 and Coronavirus Response and Relief Supplement Act of 2021 to help states and territories address the nation's mental illness and addiction crises. Of this sum, $1.65 billion is being put toward substance abuse prevention and treatment block grant funding. (Devereaux, 9/29)
