Healthcare Roundup: CA to Manufacture Own Insulin, Lukewarm Response to Rural Hospital Program & More

CA to Start Manufacturing Insulin

In an effort to make insulin more affordable, California plans to start making its own. The state budget signed by Gov. Gavin Newsom (D) last month allocates $50 million for the development of low-cost insulin products and another $50 million for the construction of an insulin manufacturing facility in the state.

“Many Americans experience out-of-pocket costs anywhere from $300 to $500 per month for this life-saving drug,” the governor said in a video posted on Twitter. “California is now taking matters into our own hands.” (NBC BAY AREA)

Federal Rural Hospital Program Receives Tepid Initial Response

A new federal program set to launch in January will pay small, rural hospitals to stop providing inpatient care and focus exclusively on emergency and outpatient care. The Rural Emergency Hospital Program is aimed at stemming the tide of rural hospital closures that have only been accelerating the past decade.

But the initial response to the program from rural hospitals has been lukewarm. In Kansas, not a single hospital has expressed interest in signing up for it, according to Jennifer Findley, vice president of education and special projects for the Kansas Hospital Association.

The problem appears to be that although the program would increase payments for hospitals’ Medicare patients, as well as provide additional flat “facility payments,” exactly how big those payments will be and whether they’ll be sufficient to save struggling hospitals still isn’t clear, even since the U.S. Centers for Medicare & Medicaid Services issued an initial proposed rule this month. A final rule isn’t expected until the fall. (KAISER HEALTH NEWS)

CO to Try COVID-19 Wastewater Surveillance in Individual Healthcare Facilities

Since the summer of 2020 Colorado has been testing municipal wastewater systems for COVID-19.

While such testing - which aggregates waste from all the homes and businesses in a given sewer service area - can’t identify specifically who has the virus and who doesn’t, it can provide a more accurate picture of how much of the population is actually infected than testing with nasal swabs because the virus is shed in the stools of the tested and untested alike. The testing can also allow public health officials to determine which variants are dominant.

This fall the state plans to start doing such testing at individual buildings, including schools, hospitals, and other healthcare facilities, in an effort to provide the participating facilities with more precise information about virus activity. (DENVER POST)

FBI Recovers $500K in ‘Maui’ Healthcare Ransomware Payments

The FBI has recovered $500,000 in ransoms paid by healthcare providers to a state-sponsored group in North Korea and money launderers in China, thanks to the decision of one of the victims, a medical center in Kansas, to notify the FBI about its attack. The attacks involved a new strain of malware known as “Maui.” (TOPEKA CAPITAL-JOURNAL)

NY Increasing Abortion Funding on Reports of Higher Demand from Out-of-State Residents

New York Gov. Kathy Hochul (D) announced the state would be providing an additional $25 million in funding for abortion clinics in the state, due to an increase in the number of patients from other states like Ohio and Pennsylvania, where there are more restrictions on abortion. Hochul’s office later clarified that the evidence of higher out-of-state demand was only anecdotal and not based on actual data. (ALBANY TIMES UNION)

Feds Charge 36 with Telehealth Fraud

Federal prosecutors have charged 36 defendants with $1.2 billion in medical fraud. Much of that alleged activity involved fake telehealth claims for advanced genetic tests and unnecessary medical equipment. (FIERCE HEALTHCARE)

Some Health Insurers Seeking Double-Digit ACA Premium Hikes

Some insurers are seeking to increase their Affordable Care Act plan premiums by an average of 10 percent - with requests ranging from 5 percent to 14 percent - next year, according to analysis of early rate submissions by the Kaiser Family Foundation. KFF said the major drivers of the premium hikes were inflation and greater healthcare utilization, along with the potential loss of enhanced ACA subsidies. (FIERCE HEALTHCARE)

CA Public Health Tax Ballot Measure Dead for Now

A ballot measure that would have raised taxes on wealthy California residents to pay for public health programs and pandemic prevention is dead for the year. The tech executives backing the measure said declining economic conditions and the lack of support from Gov. Gavin Newsom (D) had complicated the effort. (KAISER HEALTH NEWS)

ME to Pool Small Group, Individual Health Insurance Markets

Maine has received federal approval to combine its individual and small group insurance markets in an effort to keep premiums down. Premium increases were expected to rise by an average of 3.5 percent for the small group market and 15 percent for the individual market, but Gov. Janet Mills’ (D) administration said merging the markets could reduce premiums by an average of 6 to 8 percent. (MAINE PUBLIC)

New Rural Health Program in ME

Maine Gov. Janet Mills (D) announced a new state grant program aimed at training health care professionals in rural areas of the state. Mills said up to $1.6 million in funds would be available for grants to provide for clinical supervisors and new or expanded graduate medical education programs. (MAINE PUBLIC)

FL Bill Aimed at Nursing Shortage

A bill introduced in Florida (HB 131) would provide a pathway into nursing for veterans and medics in the armed forces. The state is expected to face a shortage of 60,000 nurses by 2035, up sharply from the deficit of 17,000 reported in 2019. (FLORIDA POLITICS)

Drones to Deliver Medical Supplies in WA

Drones will start transporting medical supplies around Tacoma, Washington, in 2024, according to two companies behind that plan. Drone maker Zipline and healthcare provider MultiCare said the drones will ferry lab samples, medicines, and test kits between Multicare facilities. (CNET)

-- Compiled by KOREY CLARK