Thursday, June 17, 2021

Axios Vitals: The end of states of emergency

Plus: A single drug's could balloon U.S. health care spending | Thursday, June 17, 2021
 
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Axios Vitals
By Tina Reed ·Jun 17, 2021

Good morning. Today's newsletter is 749 words, or a 3-minute read.

The headline of the day: "One receipt's worth of CVS Health records were exposed online." That was the headline in Gizmodo on Wednesday, for a story about a massive data leak by the retail pharmacy giant.

 
 
1 big thing: The end of states of emergency
New York celebrates with fireworks.

Fireworks explode in the sky as New York celebrates 70% of adults having at least one COVID-19 vaccine dose on June 15. Photo: Liao Pan-China News Service via Getty Images

 

Vermont, Massachusetts and Maryland are lifting their pandemic emergency orders, with more expected to follow suit — and it could have ripple effects across the country.

Why it matters: Certain safety nets, like expanded food and housing assistance, as well as eviction protections, will end as well.

Data: National Academy for State Health Policy and various governor declarations; Chart: Sara Wise/Axios
  • Kansas Gov. Laura Kelly said Friday that about 63,000 households are at risk of food insecurity after the state legislature voted to end its emergency declaration.
  • Several states including Alaska, Iowa and Missouri already ended COVID unemployment expansions, even though the American Rescue Plan extended state unemployment benefits through Labor Day.

In Massachusetts and Maryland, health industry leaders have raised concerns about telehealth coverage losses and are pushing for their legislatures to address the issue.

  • Yes, but: Both states extended some of those policies, including leeway for providers to continue working with expired licenses or with expanded scopes of practice.
  • "We'll be talking to the state partners about how to make sure even when August 15 comes along, we don't drop off any cliffs," Bob Atlas, president and CEO of the Maryland Hospital Association told Axios.

Go deeper.

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2. Aduhelm will balloon spending
Reproduced from Altarum; Chart: Axios Visuals

Aduhelm, the Alzheimer's treatment controversially approved by the FDA, could single-handedly represent one percentage point of all health care spending by next year, according to an analysis from Altarum.

Why it matters: Americans already pay more for health care than any other country, Bob Herman writes.

  • But since Aduhelm is not close to being a cure — and not even proven to halt the progression of Alzheimer's — "the resultant growth in spending will therefore be sustained for the foreseeable future," Altarum researchers wrote.

By the numbers: Aduhelm, an IV medication administered in hospitals and infusion centers, will raise spending on all prescription drugs by 8% in the next few years, Altarum forecasts.

Flashback: Drug spending shot up by 12% in 2014 after Gilead's pricey hepatitis C pills, Sovaldi and Harvoni, hit the market.

  • But sales of hepatitis C medicines have declined since most people are cured after one round of treatment. That wouldn't be the case with Aduhelm.

Worth noting: The analysis doesn't factor in additional spending on PET scans, MRIs, facility fees, and other procedures and tests associated with administering Aduhelm.

Go deeper: The drug that could break American health care

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3. Device makers pay $3.1B in kickbacks
Illustration of a giant health plus on top of a pile of cash, the ground underneath is cracking

Illustration: Aïda Amer/Axios

 

Medical device makers paid more than $3.1 billion to surgeons who used their products, according to a Kaiser Health News investigation.

  • The payments come from royalties for helping to design implants, speakers' fees for promoting devices at medical meetings, and stock holdings in exchange for consulting work.
  • An ambitious medical device maker can generate tens of millions of dollars in profits by developing relationships with just a handful of surgeons, KHN reports. Meanwhile, some patients are left feeling worse than they did before surgery.
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A message from Blue Cross Blue Shield Association

Making health coverage more affordable
 
 

Enhanced premium assistance that makes health care coverage more affordable will end in 2022.

See how Congress can help millions of middle class families by expanding access, reducing costs and making health care more equitable for everyone.

 
 
4. States don't want to tackle hospital costs
Data: Center on Health Insurance Reforms report; Chart: Axios Visuals

If anyone's incentivized to drive down hospital costs, it should be state employee health plans. But that's often not where they're focused, per a new study by Georgetown's Center on Health Insurance Reforms.

Why it matters: Hospital prices are cited most frequently by state plans as their top cost driver, but they're more likely to target other forms of health care spending when it comes to curbing costs, Axios' Caitlin Owens writes.

  • Plan administrators say it's hard to go after these prices because of a lack of competition among hospitals, hospitals' political clout, and employee pressure to keep broad provider networks.
  • Among the top five cost containment measures reported by states, only one — using "centers of excellence" — could potentially affect hospital pricing.
  • Many plans "focus instead on constraining enrollees' use of health care services through deductibles and other benefit design strategies," per the report.
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5. AMA wants long-COVID research
Illustration of a doctor wearing a red tie, with his arms crossed over his chest his stethoscope tied in knots

Illustration: Sarah Grillo/Axios

 

The nation's top physician's group on Wednesday called for policies to better diagnose and treat long-haul COVID-19 and endorsed guidelines for guiding any future vaccine mandates and credentials.

Driving the news: The American Medical Association's House of Delegates, which represent the nation's doctors, called for tools to improve the assessment, diagnosis, and awareness of post-viral syndromes.

  • They also called for the careful use of mandates and credentials. For instance, they said full FDA approval should be in place before vaccine mandates are enforced.

The AMA also voted to call for the HHS' Office for Civil Rights to revise the definition of harm to include mental and emotional harm.

  • Delegates also voted this week to oppose legislation aimed at restricting health care for transgender youth, and to urge social media companies to further strengthen content moderation policies related to public health misinformation.
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A message from Blue Cross Blue Shield Association

Connecting the vulnerable with vaccines
 
 

Blue Cross and Blue Shield companies nationwide are using data and local relationships to help vaccinate millions of at-risk Americans living in underserved and vulnerable communities where COVID-19 vaccininations are most inequitable.

See how.

 
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