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Pharma keeps losing Washington friends

July 9, 2024
Reporter, D.C. Diagnosis Writer

Hello and happy Tuesday, D.C. Diagnosis readers! I'll be off later this week, heading to Burlington, Vermont (send suggestions, first time!). Of course, D.C.D. will be in great hands with Rachel as usual. Send news and tips to sarah.owermohle@statnews.com.

drug policy

Pharma's dwindling alliances

Sen-Pharma

The pharmaceutical industry didn't have many friends that stuck up for it when Democrats passed a historic drug pricing law in 2022. By the beginning of 2025, even many of the industry's remaining allies will have left Congress, Rachel Cohrs Zhang reports.

Six of the industry's closest friends on Capitol Hill that have served a collective 160 years in Congress have either already left or will likely leave this election cycle. Many have important positions on committees with jurisdiction over health care, and knowledge bases that will be difficult to replace.

STAT breaks down the six big losses for the industry, and also analyzes the candidates who are vying to replace them. The perfect case study is playing out in New Jersey, where pharma stands to lose a longtime friend who could be replaced by a progressive who's refused corporate donations. Read more.


2024 WATCH

Trump's 2024 platform backs off earlier health care fights 

Former President Trump says he "will not cut one penny" from Medicare and Social Security programs and steps back from calls for broad national abortion restrictions, according to the Republican election platform released Monday ahead of the party's national convention.

The new policy platform seems to reflect growing concerns that Republicans could raise retirement ages and alter benefits, as the Republican Study Committee recommended in a proposal this year. 

Yet while the party is scaling back from some of its less popular stances, the platform also signaled a plan to dramatically intensify a battle against transgender peoples' health care, promising to bar federal funds from supporting gender affirming surgeries, regardless of age. Read more on how the party's health care platform has shifted.


stat investigation

Investigation: For-profits' stealth psychiatric care takeover 

When an Ohio police officer lodged a formal complaint against a local psychiatric hospital, he knew it was an unusual move. But the 911 calls, and reports of violence and rape at the Mount Carmel clinic had been mounting. 

The facility is one of dozens of investor-owned psychiatric hospitals, part of a larger trend of for-profit operators teaming up with nonprofit health systems to open new facilities to manage the surging number of adolescents and adults experiencing mental health emergencies, Tara Bannow reports.

This fast-spreading model is putting more unsuspecting patients and staff in dangerous environments, Tara found in a deep investigation. Dozens of interviews and lengthy court documents show that these joint ventures have the same fatal flaw as all other investor-owned hospitals: a focus on generating profit for shareholders, at the expense of patients and staff. 

Read Tara's probe of the little-known business model and the devastating impact these operators have made on patients.



drug pricing policy

Court deals drug companies another loss in Medicare suit

A federal judge ruled Wednesday against Boehringer Ingelheim's challenge to the new Medicare drug price negotiation program, handing the pharmaceutical industry its latest in a string of legal losses, Rachel Cohrs Zhang reports. 

The latest blow came from a Connecticut district court. Boehringer — which makes one of the first drugs chosen for negotiation, Jardiance — argued that the drug pricing law is unconstitutional and Medicare also violated procedural laws.

So far, federal judges have ruled against the pharmaceutical industry in lockstep. However, a recent Supreme Court ruling that has implications for the latitude agencies have to interpret laws could create openings for the industry to bring other challenges. More from Rachel.


on the hill

Budget watchdogs talks premium tax credits 

Chairs of the House Budget and Ways and Means committees asked CBO and tax committee staff to break down the costs of permanently boosting Obamacare premium tax credits, a hot-button topic as we head for a coverage cliff in 2026, when the extra subsidies would end. 

The analysts came back recently with some top-line figures projecting ballooning costs, but millions more people covered by marketplace plans, Medicaid, and CHIP. The highlights:

  • The budget deficit would increase by an eye-popping $335 billion over ten years. Any offset could take a serious bite out of the health care industry. For context, Democrats' controversial Medicare drug price negotiation program was only estimated to save $101 billion over a decade. 
  • However, for that price, as many as 3.4 million additional people would have health insurance of some sort.

Read the letter here.


industry intel

AbbVie dramatically spends to promote its drugs to doctors

AbbVie spent roughly $145.7 million last year to promote its drugs to health care providers, according to an analysis of newly released government data from STAT's Nick Florko and J. Emory Parker. 

The massive sum spent by AbbVie, the maker of the mega blockbuster anti-inflammatory drug Humira, is the most a pharmaceutical company has spent on marketing to doctors since data on these payments became available in 2017.

The payments, made public by CMS, provide an insight into AbbVie's marketing in the immediate aftermath of the company losing its monopoly on Humira, which dominated the company's balance sheets for the better part of the last two decades. They show the company being far more aggressive in targeting doctors than competitors of comparable size. More from Nick and Emory.


More around STAT
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What we're reading

  • After Biden debate performance, experts reflect on difference between 'normal aging' and something more, STAT
  • Trump proposes scaled-back platform that softens language on abortion, same-sex marriage, The Washington Post
  • New study sparks debate about whether H5N1 virus in cows is adapted to better infect humans, STAT
  • Parkinson's expert visited the White House eight times in eight months, The New York Times
  • Is Biden fit for duty? The answer depends on little-known White House doctor, The Washington Post

Thanks for reading! More on Tuesday,


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