July 11, 2024
Reporter, D.C. Diagnosis Writer

Hello, and happy Thursday! If you’re interested in learning more about site-neutral payments, I’m moderating a panel with top experts from both sides of the aisle on July 29. The event will feature former HHS Secretaries Alex Azar and Kathleen Sebelius, who wrote an op-ed on the issue here at STAT. Register here. As always, news tips welcome to rachel.cohrs@statnews.com.

biden administration

Elmo loves mental health advocacy!

The Biden administration is taking all the help it can get to raise awareness of the nation’s mental health crisis — including from Muppets, my co-author Sarah Owermohle writes. 

Despite their efforts, roughly 20 percent of American adults report living with mental illness; more than half are not receiving treatments. Childhood mental wellbeing is actually worsening.

Sarah has more on the lengths the administration is going to get their message across and how stubborn post-pandemic mental health issues are proving. 



business of health

Taxpayers foot the bill for “dietician-approved” cheeseburgers

State Medicaid programs pay millions of dollars to a private equity-backed company that is selling Jimmy Dean frozen sausage breakfast sandwiches, biscuits and gravy, and cheeseburgers as providing “medically tailored meals,” STAT’s Nicholas Florko reports

There are no universally accepted standards for what counts as a medically tailored meal, Homestyle Direct’s CEO pointed out. That means the company can bill Medicaid for meals loaded with sodium and saturated fat – some of which could be bought in the grocery store for much cheaper. 

Some advocates fear that companies like Homestyle Direct are trying to take advantage of the buzz around the Food Is Medicine movement. Read more, including why the company got kicked out of Oregon’s Medicaid program, here.


oversight

PBMs in the hot seat

Mark your calendars, as it’s finally time for executives from the largest pharmacy benefit managers to testify before the House Oversight Committee on July 23, the committee confirmed. 

I scooped that invitations had gone out back in May. UnitedHealth Group’s Optum Rx, CVS Caremark, and Express Scripts, owned by Cigna, will be testifying. A CVS spokesperson said that Caremark President David Joyner will be testifying.

The timing is especially convenient for the panel, which will be able to grill executives about a Federal Trade Commission report this week that laid out the scale of the influence of PBMs over the health care system, from what patients pay for drugs to how pharmacies are paid. The agency is also set to file a lawsuit against the largest PBMs over their negotiating tactics for various medicines including insulin, my colleague Ed Silverman confirmed



alzheimer's

Lilly gets a pair of lucky breaks for a single proposal

Medicare officials are proposing a policy that would likely increase payment to doctors for administering drugs paired with diagnostic scans that are used for, among other things, assessing patients’ eligibility for a new class of Alzheimer’s drugs, my colleague John Wilkerson reports. 

The proposal, included in an annual pay rule for hospital outpatient services, would pay for the drugs used with the scans separately, instead of bundling them with other services. Typically, when drugs are unbundled, doctors make more money from administering them, according to the nonpartisan investigative arm of Congress. The policy would benefit the makers of the radiopharmaceuticals, including Eli Lilly, and the makers of the Alzheimer’s treatments, like, well, also Lilly. Eisai and Biogen were the first to secure approval of a monoclonal antibody, Leqembi, that is approved to clear amyloid in the brain.

Last month, a bipartisan group of senators asked Medicare for the policy that Medicare is now proposing. The policy would build on the administration’s expanded coverage policy for brain scans that detect a brain plaque associated with Alzheimer’s. 


insurance

Sharp criticism emerges at MA conference

Critics and gadflies took the stage at the fifth National Medicare Advantage Summit Wednesday, to talk about MA’s longstanding coding problems, my colleague Bob Herman writes. “We’ve allowed the business side to lead rather than the clinical side. And I think risk adjustment is one area where that’s clearly the case,” said Rick Gilfillan, a former top Medicare official who is now an independent consultant.

“There is a whole cottage industry that has sprung up because of [Medicare] Advantage, where in order to stay even relevant in the business at all, you have to do multiple activities that really bring no patient value,” Rebecca Welling, the vice president of risk adjustment at Intermountain Health, said on the same panel. She then explained how in-home health exams and several types of technology function only as coding vehicles for insurance companies.

The industry has criticized the Biden administration’s recent and relatively modest changes to MA’s risk adjustment system, which pays insurers and other groups for enrolling and caring for sicker people. But for Zeke Emanuel, a health policy expert at the University of Pennsylvania who spoke during the summit Wednesday, changes have been long overdue. “It’s inaccurate,” he said of risk adjustment. “It’s just not terribly predictive.” 


regulations

Medicare doesn’t budge on hospital price transparency

Despite years of pressure from consumer advocacy groups including Cynthia Fisher’s Patients Rights Advocate, Medicare is refusing to modify its requirements for how hospitals have to report price data, my colleague Bob Herman reports.

Patient Rights Advocate has accused hospitals of not complying with government requirements, and of posting estimates instead of actual prices. 


science

The burning questions from Fauci’s memoir

Former NIAID Director Anthony Fauci sat down with STAT’s Rick Berke and Helen Branswell for our First Opinion podcast. Their wide-ranging conversation touches on Fauci’s favorite dinner parties, how he’s learned to deal with critics, and his decision to turn down a multimillion-dollar job.

Fauci called the recent presidential debate “disturbing,” and said the President Biden we all saw during the debate wasn’t the Biden he had come to know. He called Biden’s doctor, Kevin O’Connor, a “good guy” and a “good doc.”  


More around STAT
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Read premium in-depth biotech, pharma, policy, and life science coverage and analysis with all of our STAT+ articles.

What we’re reading

  • Free medical school tuition unlikely to have a major impact on the U.S. health care system, STAT
  • Insurers pocketed $50 billion from Medicare for diseases no doctor treated, The Wall Street Journal
  • The untold story of the Human Genome Project: How one man’s DNA became a pillar of genetics, STAT
  • Colorado dropped Medicaid enrollees as red states have, alarming advocates for the poor, USA Today/KFF Health News

Thanks for reading! More next week,


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