state policy
California's PBM reform killed
California Gov. Gavin Newsom this weekend vetoed a bill that would have required price transparency from pharmacy benefit managers, axing reforms passed by several other states. He also rejected legislation that would make it easier for the state to block health care deals involving private equity and hedge funds.
In a message about the PBM veto, Newsom said changes to bring down drug costs are needed, but he's "not convinced" that this legislation would do it. The state needs "more granular information to fully understand the cost drivers," he added.
Separately, Newsom did sign IVF protections into law and took a shot at Republicans for blocking IVF access, echoing Senate Democrats and VP Harris' attacks. Republican lawmakers have said they support IVF but won't back broad protection bills because there is no threat to access.
hospital policy
Senator open to site-neutral tweaks to pass
Sen. Maggie Hassan (D-N.H.) is pushing to reform Medicare payments to ensure the program pays the same amount for the same services, no matter where patients get care — and she might be willing to cut a deal with Republicans to do it, she told STAT's Rachel Cohrs Zhang during our Thursday STAT in DC event.
One of the hospital lobby's talking points on so-called site-neutral payments is that a broad policy could hurt rural hospitals. Hassan said she's been in talks with a key Republican, Sen. Bill Cassidy (R-La.), about this very thing and "there are ways, I think, that we can get at the needs of rural hospitals." More on Sen. Hassan's conversation with Rachel.
preparedness & response
Emergency response chief responds to GOP backlash
I sat down with Dawn O'Connell, HHS assistant secretary for preparedness and response, on Thursday morning to discuss the myriad health threats the agency is navigating, from H5N1 outbreaks in cattle to the ongoing Covid and mpox responses.
O'Connell forcefully defended her office from Republican criticisms and said ASPR is trying to cut through the red tape that can keep officials from replenishing stockpiles quickly and being nimble for the next threat — or a "polycrisis" of multiple outbreaks and disasters pulling the federal response in different directions.
One potential polycrisis trigger, a devastating hurricane, hit the southeast this week and left swathes of the Carolinas and Appalachia without power and resources. HHS declared a public health emergency in North Carolina on Sunday, following similar declarations for Florida and Georgia. The response efforts — which include ensuring Medicare beneficiaries with electronic health equipment can keep using them in an outage — come as another potential hurricane, Tropical Storm Kirk, brews in the Atlantic.
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