Breaking News

PBM reform efforts stall, again

March 19, 2024
Reporter, D.C. Diagnosis Writer

Hello and happy Tuesday, D.C. Diagnosis readers! This week, HHS Sec. Xavier Becerra has rounds two and three of budget testimonies. What are you hoping to hear more about? Send news, tips and hill happenings to sarah.owermohle@statnews.com.

budget battles

PBM reform efforts are over, and over again

Committee heads in the House and Senate came close to an agreement on an impressive health care package over the weekend that was destined for an annual government spending bill. That deal seems to have unraveled since, two congressional aides told John Wilkerson. 

This dispatch might sound familiar to DC Diagnosis regulars. Three weeks ago, STAT reported that Congress had abandoned PBM reform in an earlier spending package — a first tranche. 

As it worked on the second tranche, congressional committee negotiators found agreement on PBM reforms, including some in the commercial market — long a sticking point. Those pharmacy benefit manager reforms were supposed to pay for other priorities, including funding for community health centers and other health care programs. There was also agreement on a hospital price transparency measure, a five year extension of an opioid-addiction treatment program and an extension of pandemic-preparedness policies. 

There was some disagreement over whether to require off-campus hospital outpatient departments to include a national provider identifier on Medicare claims. That disagreement might've come from Senate Majority Leader Chuck Schumer (D), whose state of New York includes many hospitals that oppose the policy. Schumer's office didn't respond to questions about that measure. 

Instead, Schumer blamed House Speaker Mike Johnson for opposing any health care package. Johnson's office didn't respond for this item.


in the courts 

SCOTUS wary of curbing govt efforts to limit misinformation 

Most of the Supreme Court's justices on Monday seemed to question states' arguments, in Murthy v. Missouri, that the Biden administration coerced social media giants to regulate Covid-19 content and thereby violated Americans' freedom of speech.

Biden's lawyers argue they were well within their rights to flag misinformation and use the White House's "bully pulpit" to press social platforms to regulate false or harmful information. The lawyer arguing for plaintiffs, Louisiana Solicitor General J. Benjamin Aguiñaga, said that amounted to coercion and censorship of Americans.

Yet several of the justices, including conservative appointees, seemed to poke holes in that assertion. They also questioned whether those social media users were directly harmed by officials encouraging those restrictions — and drew some comparisons to regular government contact (and sometimes disputes) with media outlets. More from me.


War on Recovery 

Mapping the evolving business of methadone clinics

Screenshot 2024-03-18 at 2.30.25 PM

Private equity firms have acquired stakes in nearly one third of all methadone clinics in recent years, gaining outsize control of the U.S. addiction treatment industry even as the country's opioid epidemic has developed into a full-fledged public health crisis, Lev Facher reports in the third installment of his yearlong investigation into barriers to addiction medications.

Private equity's surging interest in the methadone treatment industry adds a new layer to the fraught and fast-shifting debate over access to addiction medications. While a broad coalition of patients, lawmakers and some doctor groups are calling for methadone access that bypasses clinics, the providers are pushing back forcefully, citing safety concerns. Critics say it's actually about their bottom lines.

It's like trying to negotiate with a "cartel," Rep. Donald Norcross (D-N.J.) told Lev. Norcross and Sen. Ed Markey (D-Mass.) co-authored a bill that would let trained physicians prescribe methadone, bypassing the clinics. A campaign against the bill, called "Program, Not a Pill," is backed by PE-run clinics.

In 21 states, at least 50% of all methadone clinics are owned either by private equity firms or by Acadia Healthcare, founded by a private equity group. In some states, 100% of the clinic options are owned by private equity or Acadia, according to a first-of-its-kind analysis of the national clinic landscape. Read more on what that means for patients.

 



2024 watch 

Biden amps up abortion messaging as Trump circles compromise

President Biden heads to battleground states Nevada and Arizona today to pump his message of reproductive rights alongside other swing voter issues. Advocates in both states — which Biden won in 2020 — are pushing for ballot initiatives that would codify abortion rights in their constitutions. The visit corresponds with a ramped-up effort to put campaign staffers on the ground in the southwest, the campaign said. It's also days after VP Kamala Harris visited a Minnesota abortion clinic, the visit marking a first for any president or vice president.

Trump, meanwhile, has yet to take a firm stance on an issue that has become an albatross for some Republican lawmakers, though he said he'll announce a plan 'soon'. In comments to Fox News this weekend, he seems sharply aware of this distance that's put between candidates and voters, many of whom oppose a national ban: "If the Republicans spoke about it correctly — it never hurt me from the standpoint of elections. It did hurt a lot of Republicans."

The former president didn't refute reports that he's floated a 16-week ban (supported by 42% of voters, 63% of Republicans, in recent polling) but said he'd "like to see if we could make both sides happy" with a national ban past at least 7 months that includes exceptions for rape, incest and danger to a mother's health. While a 16-week limit isn't as unpopular as other GOP proposals, most Americans still oppose national bans.


Eye on NIH 

Inside the fight for a new NIH initiative 

A growing number of patient advocacy groups are calling for a new NIH body to study chronic conditions that spring from infections, STAT's Isabella Cueto reports. 

It's a tall order, considering Biden's proposed budget requests virtually flat funding for the Bethesda campus and Republicans have vented about its infectious disease work in particular. (And, critics argue that NIH hasn't shown much progress in a $1 billion Long Covide project already underway). 

But advocates appear undeterred. A group of scientists on Friday issued a white paper arguing that patients with Long Covid, chronic Lyme, chronic fatigue and other lingering conditions ignited by infections don't fit into one of the existing 27 institutes and centers right now. Similarly, they say, researchers struggle to secure funding to find answers for these illnesses because symptoms, treatments and origins cut across an array of areas. More on the effort from Isa.


More around STAT
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What we're reading

  • EPA bans asbestos, a deadly carcinogen still in use decades after partial ban, AP News
  • Online orders begin for first over-the-counter birth control pill in the US, CNN
  • EPA restricts cancer-causing chemical used to sterilize medical devices, STAT
  • Opinion: Why is it still so difficult to get life-saving addiction medications? The Boston Globe
  • The Ozempic pushers, The Cut

Thanks for reading! More on Thursday,


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