What We’re Reading: Biden May Cut MA Funding; Historic Drug Shortages; Health System Changes Anticipated at PHE End

Proposal to Cut Medicare Advantage by Billions Spurs Lobbying Frenzy

A contentious campaign by the private health insurance industry and their allies is under way to stop a Biden administration proposal that would significantly lower payments to Medicare Advantage (MA) by billions of dollars a year, reported The New York Times. MA comprises the private plans that cover about 50% of Medicare beneficiaries. Biden administration officials say that the change in payment formulas is an attempt to fight widespread abuses and fraud in the private program growing in popularity. A final decision is expected soon and is one of many of new reforming rules with the goal of reining in the industry, fitting into a wider effort by the White House to shore up the Medicare trust fund.

Drug Shortages Rose Almost 30% in 2022, says Senate Report

New US drug shortages grew almost 30% between 2021 and 2022, according to a report commissioned by the Senate published Wednesday. According to CNN Health, at the close of 2022, drug shortages hit a record 5-year high of 295 active drug shortages, the report found. Although the average drug shortage lasts about 1.5 years, more than 15 vital drug products have experienced a shortage for over 10 years. Experts said that additional demand can cause shortages, but the way drugs are manufactured and sold for the US market is also a big part of the issue. Even cancer drugs are not exempt from shortages and have put doctors in the difficult position of deciding who receives the drugs.

COVID-19 PHE Conclusion Will Bring Health System Changes

The Biden administration’s decision to conclude the COVID-19 public health emergency (PHE) in May will implement widespread changes across the health care system, reported Kaiser Health News. The federal government’s response to how health care is delivered following the start of the COVID-19 pandemic in 2020 suspended multiple health care delivery rules, some of which will be reversing at the end of the PHE. Aspects like stricter nursing home staff training rules, threatened access for addiction medication, the erasure of hospital capacity exceptions, and the way state and local public health departments monitor disease spread are just some of the anticipated changes that might come when the PHE ends.