The sudden resignation of Scott Gottlieb, the commissioner of the Food and Drug Administration, leaves a giant hole atop an agency that oversees a quarter of the U.S. economy. Which, of course, leads to an equally big question: Who will replace him? Top contenders include Amy Abernethy, formerly the chief medical officer at health data firm Flatiron Health, who became Gottlieb’s principal deputy commissioner early this year. Another contender is Ned Sharpless, director of the National Cancer Institute since October 2017, who would bring a deep knowledge of biotech to an FDA stint. And another is Brett Giroir, the current HHS assistant secretary for health, with experience in government, academia, and industry.
As centrist Republicans contemplated an Obamacare repeal-and-replace plan, the CBO warned that doing so would boost the number of uninsured by 22 million. That scared enough Republicans away to kill the bill. The intrepid Philip Klein at the Washington Examiner noticed that, buried in a footnote, was a stunning rebuke of those CBO forecasts. Turns out, the CBO’s forecasts off by a factor of six. The report says that the mandate repeal will result in only 1.5 million dropping out of the individual insurance market, and 1 million from employer plans, with Medicaid enrollment unaffected. These forecasting errors don’t even rise to the “good enough for government work” level. But they were good enough to get Obamacare on the books, and then keep it there.
Today, Type 1 diabetes patients pay twice as much for insulin as they did in 2012. This is outrageous — but drug companies aren’t to blame. The problem is a dysfunctional supply chain that benefits everyone except patients.
In today’s system, insurers hire third-party firms, known as pharmacy benefit managers, to manage drug plans. These PBMs negotiate with drugmakers and have the power to decide which drugs are covered by each plan. Each year, manufacturers dole out $150 billion in rebates and discounts as a result of these negotiations. But patients rarely see these savings at the pharmacy counter.
A new report from government actuaries has revealed that the Congressional Budget Office was scandalously off in its estimates of the impact of Obamacare’s individual mandate, a miscalculation that has had significant ramifications for healthcare and tax policy over the past decade.
Expert witness Grace-Marie Turner of the Galen Institute said policies like the new Section 1332 guidelines aren’t meant to drive a stake into the Affordable Care Act, but rather give more discretion to states to tailor health care needs specifically for their own citizens. “Cost relief” is the driving force behind state discretion, Turner said.
GOP lawmakers balk at the rising costs of Obamacare premiums for constituents who fall into middle-range tax brackets. And putting healthy people in the pool with the chronically ill, some say, just adds to the premium hike.
Democrats and Republicans on the House Energy and Commerce Committee on Wednesday signaled they could band together to slap clear consumer warnings on short-term limited-duration health plans.
Rep. Morgan Griffith (R-Va.) and Grace-Marie Turner, president of the conservative Galen Institute who defended the Trump administration’s expansion of short-term plans as a needed low-cost alternative to ACA coverage, agreed the limited coverage of short-term plans warranted advisories.
We examined trends in per capita spending for Medicare beneficiaries ages sixty-five and older in the United States in the period 1999–2012 to determine why spending growth has been declining since around 2005. Decomposing spending by condition, we found that half of the spending slowdown was attributable to slower growth in spending for cardiovascular diseases. Spending growth also slowed for dementia, renal and genitourinary diseases, and aftercare for people with acute illnesses. Using estimates from the medical literature of the impact of pharmaceuticals on acute disease, we found that roughly half of the reduction in major cardiovascular events was attributable to medications controlling cardiovascular risk factors. Despite this substantial cost-saving improvement in cardiovascular health, additional opportunities remain to lower spending through disease prevention and control.
Litigation continues in Texas v. Azar, a lawsuit over the constitutionality of the individual mandate and, with it, the entire Affordable Care Act (ACA). This post provides a brief update on the status of the case in the district court and the Fifth Circuit Court of Appeals, as well as some new positions taken by states in the lawsuit following the midterm elections. For now, the Texas litigation is on hold pending the end of the partial government shutdown, after which the case will proceed in the Fifth Circuit.
Writer and editor Robert Verbruggen presents in this National Review Magazine piece perhaps the best overview of the Obamacare battles and experience that we have seen. And he sees a silver lining in the current legislative stalemate: Though two simple changes—Congress ending the individual mandate and President Trump expanding other options through regulatory changes—both individuals and states now have more freedom without denying Obamacare to anyone who wants it. There will be some downsides, for sure, and conservatives shouldn’t be happy that so much of the law remains in place. But maybe, just maybe, the GOP might have bungled its way into something that works.
Gov. Jay Inslee and Democratic lawmakers Tuesday announced proposed legislation for a new “public option” health care plan under Washington’s health insurance exchange. “We are proposing to the state Legislature that we have a public option that is available throughout the state of Washington so that we can increase the ability to move forward on the road to universal health care in the state of Washington,” said the governor, who is considering a run for president in 2020.