Morning Briefing
Summaries of health policy coverage from major news organizations
Drug Makers Sue Government Over Discount Cards And Coupons
After months of controversy, the pharmaceutical industry鈥檚 biggest trade group has filed a lawsuit accusing the federal government of issuing an 鈥渋nvalid鈥 rule that it argues would penalize drug makers for providing financial assistance to patients. At issue are widely used promotional tools such as co-pay coupons and discount cards, and whether these should be included when calculating the so-called 鈥榖est price鈥 that drug makers must offer the government to participate in the Medicaid program. (Silverman, 5/26)
Amazon is contemplating opening physical pharmacy stores, including within its Whole Foods locations, Business Insider reports. Amazon still isn't disrupting the prescription drug industry. Amazon is maybe, possibly considering a way to capture a marginally bigger piece of the extremely small slice it has. (Herman, 5/27)
Alphabet Inc.鈥檚 Google and national hospital chain HCA Healthcare Inc. have struck a deal to develop healthcare algorithms using patient records, the latest foray by a tech giant into the $3 trillion healthcare sector. HCA, which operates across about 2,000 locations in 21 states, would consolidate and store with Google data from digital health records and internet-connected medical devices under the multiyear agreement. Google and HCA engineers will work to develop algorithms to help improve operating efficiency, monitor patients and guide doctors鈥 decisions, according to the companies. (Evans, 5/26)
A federal bankruptcy judge in New York indicated Wednesday that he would permit Purdue Pharma鈥檚 proposal to remake itself as a nonprofit company to be put to a vote by thousands of plaintiffs, who have sued to compel the maker of OxyContin to help pay for the terrible costs of the opioid epidemic. The restructuring plan is at the centerpiece of an intensely negotiated blueprint for a collective settlement with more than 600,000 claimants who contend that for two decades the company falsely and aggressively marketed its prescription opioid OxyContin as a nonaddictive painkiller, and as a result contributed to hundreds of thousands of opioid-related overdoses and deaths. (Hoffman and Williams Walsh, 5/26)
During years when the prescription opioid epidemic was spiraling out of control, corporate executives at the drug wholesaler McKesson sent at least two memos ordering employees to "refrain from using the word 'suspicious'" to describe escalating opioid orders from pharmacy chains. The documents were disclosed this week as part of a landmark federal opioid trial now underway in West Virginia, one of the states hit hardest by opioid deaths. (Mann, 5/26)
Other health industry news 鈥
The Food and Drug Administration (FDA) and the Federal Trade Commission (FTC) announced Wednesday that they sent warning letters to five companies accusing them of illegally selling dietary supplements that allegedly treat infertility and reproductive health disorders.聽The agencies issued the cautionary letters聽to the companies last week, saying that they violated federal laws by selling their products without FDA approval and by advertising the products鈥 abilities without evidence.聽The five companies that received the warnings were LeRoche Benicoeur/ConceiveEasy, Eu Natural Inc., Fertility Nutraceuticals LLC, SAL NATURE LLC/FertilHerb and NS Products Inc. (Coleman, 5/26)
Bayer AG said it will evaluate whether to continue using the active ingredient in its popular Roundup weedkiller in the residential U.S. market, in the wake of a court setback Wednesday in the company鈥檚 efforts to limit future liability over whether the product causes cancer. Bayer has said it would pay up to $9.6 billion to settle existing Roundup cases that tie the glyphosate-based product to non-Hodgkin lymphoma and another $2 billion toward future claims. The German company lost three trials between 2018 and 2019 brought by Roundup users who said the product caused their cancer and is working to resolve around 125,000 similar claims. (Randazzo and Bender, 5/26)
And on medical costs 鈥
KHN: Enough To Wreck Their Rest: $10,322 For A Sleep Study
Jos茅 Mendoza鈥檚 snoring was bad 鈥 but the silence when he stopped breathing was even worse for his wife, Nancy. The sudden quiet would wake her and she waited anxiously for him to take another breath. If too many seconds ticked by, she pushed him hard so that he moved and started breathing again. This happened several times a week. Diagnosed with severe sleep apnea 15 years ago, Mendoza was prescribed a continuous positive airway pressure (CPAP) device to help him breathe easier. But the machine was noisy and uncomfortable. After a month, he stopped using it. (Andrews, 5/27)
When TJ Farnsworth, founder of Inception Fertility, embarked on his family鈥檚 fertility journey in 2012, he had no idea it would take him and his wife two years and multiple rounds of in-vitro fertilization (IVF) to become parents. Fortunately, Farnsworth and his wife had the means to pay for doctor鈥檚 visits and fertility treatments, but cost can be an insurmountable barrier for many hopeful families. (DeMatteo, 5/26)