Friday, March 22, 2024

Medicare to cover some Wegovy prescriptions

Presented by CVS Health: Delivered every Tuesday and Friday by 12 p.m., Prescription Pulse examines the latest pharmaceutical news and policy.
Mar 22, 2024 View in browser
 
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By David Lim and Lauren Gardner

Presented by

CVS Health

With Robert King

Driving The Day

An employee sits next to a door bearing the logo of Novo Nordisk.

Novo Nordisk got a significant boost from CMS after the agency said Medicare will cover its weight-loss drug Wegovy for certain patients. | Sergei Gapon/AFP via Getty Images

WEGOVY GETS MEDICARE COVERAGE — CMS gave a big boost to Novo Nordisk’s weight-loss drug Wegovy on Thursday, announcing that older Americans can get its cost reimbursed by Medicare.

But there is a major caveat: Medicare beneficiaries can get the drug covered only if it is prescribed to reduce heart attack or stroke risk in adults with heart disease, not solely for obesity.

“It’s a bit too soon to know what the spending impact will be since that will depend on how many Part D plans add coverage for Wegovy and how many people who qualify to take the drug are able to access it,” Juliette Cubanski, deputy director of KFF’s Program on Medicare Policy, said. “But these drugs are expensive, and if plans expect higher costs as a result of covering Wegovy, that could translate to higher premiums for coverage next year.”

Why it matters: The CMS decision represents a major opportunity for Novo Nordisk to grow the market for its blockbuster drug, which the FDA approved just a few weeks ago for reducing the risk of major cardiovascular events in patients with heart disease. The FDA approved Wegovy for the treatment of obesity last year.

The CMS decision Thursday signals to Eli Lilly that it could also get Part D coverage if its weight-loss drug Zepbound gains a similar indication.

On the Hill: Efforts have been made to lift the 20-year prohibition on Medicare coverage of weight-loss drugs. As a provision of the 2003 Medicare Modernization Act, Medicare Part D is barred from covering weight-loss drugs.

Legislation proposed by Reps. Raul Ruiz (D-Calif.) and Brad Wenstrup (R-Ohio) last year would have lifted the ban. The bill, however, has gone nowhere in the House.

The cost: One stumbling block to congressional action could be the high cost of the drugs. A monthly prescription of Wegovy has a list price of about $1,350. An official with the Congressional Budget Office said Wednesday that covering such drugs would cost the federal government more than any offsets in other health spending if prices remain at current levels.

Of course, the cost could be reduced if the drugs were selected for price negotiations under the Inflation Reduction Act in the coming years — something the CBO expects to happen.

IT’S FRIDAY. WELCOME BACK TO PRESCRIPTION PULSE. How are those March Madness brackets holding up?

Send news and tips to Lauren Gardner (lgardner@politico.com or @Gardner_LM) or David Lim (dlim@politico.com or @davidalim).

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In Congress

Hand of a laboratory technician picking up a test tube with a human blood sample

A House health subcommittee has expressed interest in legislating laboratory-developed tests. | David Silverman/Getty Images

NO CONSENSUS ON LDT REGULATION — Lawmakers on the House Energy and Commerce Health Subcommittee suggested on Thursday that they are open to legislating rules of the road for laboratory-developed tests with the FDA moving forward with regulations.

But there is no agreement on what approach to take if a health care package emerges later this year. Meanwhile, the FDA is working to finalize rules that would regulate the tests as medical devices.

The Biden administration wants to publish the final rule in April, a move that would shield it from being clawed back if Republicans control the presidency and Congress next year. Several groups — including the American Clinical Laboratory Association, the Children's Hospital Association and the Center for Science in the Public Interest — are scheduled to meet with the Office of Management and Budget to discuss the rule in the coming weeks.

VALID Act: The FDA moved forward with its rule in October because a legislative effort to overhaul how all medical tests are regulated fell apart in late 2022 after E&C Chair Cathy McMorris Rodgers (R-Wash.) blocked the bill.

The industry perspective: Susan Van Meter, president of the ACLA, testified that the FDA rule, if finalized as proposed, would slow test innovation, create a review bottleneck at the FDA and raise legal questions.

“An exemption for academic medical centers is not the answer to these problems,” Van Meter said, referring to an idea floated in 2022 after academic medical centers opposed the Verifying Accurate Leading-edge IVCT Development Act.

HEALTH BILLS ADVANCED — The House Energy and Commerce Committee on Wednesday approved more than a dozen health care bills, many of which reauthorize programs scheduled to expire at the end of the fiscal year on Sept. 30.

Bills to extend the National Alzheimer’s Project, reauthorize a public health network for Alzheimer’s patients, continue programs for traumatic brain injuries and boost funding for Down syndrome research were unanimously advanced.

VACCINE SAFETY EXAMINED — The House Oversight Select Subcommittee on the Coronavirus Pandemic is investigating U.S. vaccine safety systems, with a focus on compensation programs that experts say weren’t designed to handle what has become an onslaught of claims from adults. The Thursday hearing was the second on the issue.

The National Vaccine Injury Compensation Program and a separate program for medical products developed during health emergencies — like the Covid-19 vaccines when they were available under FDA emergency use authorization — have been slow to process claims.

“The assurance of adequate and timely compensation of vaccine-related injuries in exchange for legal liability protection for vaccine manufacturers is a cornerstone of routine and pandemic immunization programs,” said Renée Gentry, director of the George Washington University Vaccine Injury Litigation Clinic. “The success of these programs relies on public confidence in vaccines.”

Rep. Lloyd Doggett (D-Texas) for years has pushed legislation to overhaul the VICP by adding special masters to the court that hears vaccine injury claims and by transferring Covid-related claims to that program. But Republicans have raised concerns about the measures’ cost.

 

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In the Courts

MILITARY CHAPLAINS SEEK SCOTUS REVIEW — A nonprofit connected to Sidney Powell, a former attorney to former President Donald Trump, filed an emergency application Thursday to the Supreme Court, seeking a stay to any military promotion denials or discharges of chaplains who objected to the Pentagon’s Covid-19 vaccine mandate.

Thirty-eight military chaplains said they filed religious accommodation requests to be released from the Defense Department’s pandemic-era vaccine requirement and experienced “retaliatory actions.” The group asked the high court in December to review the Fourth Circuit’s dismissal of their appeal.

 

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WHAT WE'RE READING

Richard Pazdur, the FDA’s top oncology regulator, said he hopes agency advisory committees continue to vote on recommendations, Inside Health Policy’s Jessica Karins reports.

Congress’ fiscal 2024 funding deal contains a small bump for HHS, POLITICO’s Ben Leonard reports.

Life expectancy in the U.S. increased following a two-year dip, according to a new CDC report, POLITICO’s Chelsea Cirruzzo reports.

The pharmaceutical industry is lobbying to shield orphan drugs from state prescription drug affordability boards, STAT's Ed Silverman reports.

 

Easily connect with the right N.Y. State influencers and foster the right relationships to champion your policy priorities. POLITICO Pro. Inside New York. Learn more.

 
 
Document Drawer

The FDA said quality issues with certain plastic syringes made in China are more widespread than initially thought.

A recall of the instructions for the Impella Left-Sided Blood Pump was classified as the FDA’s most serious after 129 reports of serious injuries, including 49 deaths.

A message from CVS Health:

CVS Health is leading the way with new programs that are transforming the pharmacy experience for those who pay for medicine. By bringing greater transparency and simplicity to the system, we are delivering more reliable access to medicine at the pharmacy counter for millions of Americans.

CVS Health is reshaping the future of drug pricing at pharmacy counters across America. Learn more.

 
 

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