food fights
A masterclass in political spin
Grocers are backing a new bill entitled the “Food Traceability Enhancement Act,” which they say will help improve food safety. There’s just one problem: It would gut the policy that it is claiming to “enhance,” my colleague Nick Florko writes.
The bill would exempt grocers from key provisions of the FDA rule that requires grocers and others in the food supply chain to keep detailed records of how food was handled and stored during transportation and processing. It’s a brazen response to industry complaints that the FDA’s proposal is far too complicated and costly for most stores to implement in the timeframe the agency has proposed.
Why would any lawmaker agree to introduce a bill that does the exact opposite of what it purports to do – especially on a topic as life-or-death as food safety? A spokesperson for the sponsor of the bill, Rep. Scott Franklin, argued that the lawmaker “does not disagree with the intent” of the FDA’s policy, and that his legislation would help companies “comply with the mandate so measurable progress can be made.” Click here to find out more.
medicare money
Pharmacists attempt to turn up PBM heat
Express Scripts is squeezing independent pharmacies with unfair rates and untransparent “bonus pool” fees, the national pharmacy lobby alleges in a new letter to the PBM’s executives — that was also dispatched to CMS officials and leadership of all the major congressional committees on health policy.
It’s the latest shot in a battle over drug pricing reform that Congress has put off, for now. But while some of the problems cited by the National Community Pharmacy Association would be addressed by the two bills on the table, the lobby says Express Scripts is already running afoul of CMS regulations and independent pharmacies are shuttering as a result. And despite Congress’ hazy timeline for legislation, federal pressure on the PBM industry has been building. After all, White House officials heard last month that PBMs are “everything wrong with this industry.”
The PBM lobby are looking to fight back with a fly-in to congressional offices this week emphasizing their work with rural pharmacies, the very shops at the heart of the NCPA letter. One example they cite is the new arm of Express Scripts, or ESI, exploring independent pharmacy reimbursements.
"To comply with the new CMS rules, our approach is intended to keep pharmacy payments equivalent while maintaining our commitment to monitoring pharmacy quality," which includes a "value-based program," an ESI spokesperson said.
Those efforts don’t have pharmacists convinced: “Unfortunately, and ironically, business conditions dictated by ESI to independent pharmacies have only gotten worse since ESI’s announcements,” NCPA CEO Douglas Hoey wrote in his letter.
telehealth talk
FTC data crackdowns continue
Telehealth company Cerebral will limit the consumer health data it uses for advertising purposes — and pay a fine — under a new FTC order. The plan, which only applies to Cerebral, must still be approved by a federal court before it goes into effect — but the company has already agreed to it, Katie Palmer and Mohana Ravindranath report.
This is just the latest in a series of federal actions cracking down on health data privacy online. The current commissioners have pledged to shore up gaps between federal privacy laws governing providers and payers and those protecting consumer services.
Cerebral is a startup best known for dispensing counseling services and prescriptions for conditions like anxiety and depression. But it’s far from the only company that could find itself in hot water: An investigation by STAT and the Markup found that dozens of telehealth companies, including Cerebral, were leaking sensitive health data to third parties. More from Kate and Mohana.
