What We’re Reading: Unaffordable Health Care; Cyberattack Costs; Medicare Prescription Drug Cost Guidance

US Health Care Now Unaffordable for About Half of Americans

A recent report found that almost half of all Americans struggle to afford quality health care and prescription medications, according to Newsweek. By polling 5149 US adults through mail- and web-based surveys, the Healthcare Affordability Index tracks how many Americans have been either forced to avoid medical care or struggle to pay if care was necessary; it also tracks how many Americans have not been able to fill their prescriptions. Since 2022, affordability has fallen 6 points, down to a record low of 55%; this mainly affects those between the ages of 50 and 64 and those 65 and older. Conversely, adults under 50 are struggling the most to afford health care, with 53% unable to cover their bills. The researchers grouped participants into 1 of 3 categories: cost secure, cost insecure, or cost desperate. The survey found that 45% of US adults are either cost insecure or desperate, with younger adults more than 3 times more likely to be cost-desperate than those aged 65 and older (10% vs 3%).

UnitedHealth Group Cyberattack Costs Could Surpass $2.3 Billion This Year

UnitedHealth Group announced in its second quarter earnings report that the cyberattack on its Change Healthcare unit will cost the company between $2.3 billion and $2.45 billion in 2024, according to Forbes. This is more than $1 billion higher than their projection earlier this year. In the second quarter, UnitedHealth’s net income was $4.2 billion, down from $5.4 billion from last year, largely due to costs from the cyberattack; the total impacts of the cyberattack were $1.1 billion during this past quarter. However, UnitedHealth’s revenues were up to $98.9 billion, an improvement of nearly $6 billion due to the company’s diversified portfolio, which includes the UnitedHealthcare insurance company and several Optum health services units. Also, UnitedHealth announced that it has restored most of the affected Change Healthcare services and continues to provide financial support to the remaining health care providers impacted; it has provided over $9 billion in advance funding and interest-free loans to support care providers.

Biden Administration Releases Part 2 Guidance on Medicare Prescription Drug Cost Management

Yesterday, CMS released the final part 2 guidance for plan outreach and education for the Medicare Prescription Payment Plan, according to a press release. Beginning in 2025, the Medicare Prescription Payment Plan will give those with Medicare prescription drug coverage the option to spread the costs of their prescription drugs throughout the calendar year rather than paying in full each time they fill a prescription; people with Medicare must opt in to the Medicare Prescription Payment Plan to receive this benefit. This complements the final part 1 guidance released earlier this year, which focused on Part D plan sponsor operational requirements. More specifically, it provided an overview of how the Medicare Part D plan works, supplied regulatory parameters, and stated key rights and responsibilities for Part D sponsors, pharmacies, and enrollees.