Healthcare Roundup: Major Healthcare Implications of Inflation Reduction Act, FTC Says No to State COPA Laws & More

Biden Signs Medicare Drug Pricing Changes into Law

Last Tuesday President Biden signed the $700 billion climate change and health care bill passed by congressional Democrats along party lines over the preceding week. In addition to providing $375 billion over the next decade to battle climate change, the Inflation Reduction Act (HR 5376) also caps out-of-pocket prescription drug costs for Medicare recipients at $2,000 per year and extends health insurance subsidies provided during the COVID-19 pandemic for an estimated 13 million Americans. (ASSOCIATED PRESS, KAISER HEALTH NEWS, STATE NET)

Judge Orders CVS, Walgreens, and Walmart to Pay $650M in Opioid Case

A federal judge has ordered CVS, Walgreens, and Walmart to pay $650.5 million to two Ohio counties for their part in the opioid epidemic. The decision by Judge Dan A. Polster of U.S. District Court in northern Ohio, marks the first by a federal judge to place a specific dollar amount on the pharmacy chains’ financial responsibility, in this case a third of the amount that Ohio’s Lake and Trumbull counties need to address ongoing damage from the epidemic. (NEW YORK TIMES)

FTC Warns States Away from COPA Laws

The Federal Trade Commission issued a policy paper last week warning states about the downside of certificates of public advantage (COPA) legislation, which shield hospital mergers from federal antitrust enforcement if the involved hospitals demonstrate the benefits of the merger outweigh the negative impacts of reduced market competition.

The agency said it had seen a “resurgence” of such laws in recent years, but research showed that recent hospital mergers allowed under COPA laws resulted in “substantial” price increases and lower quality of care, despite protections in the laws aimed at mitigating those effects.

The paper also referenced a study showing that increased hospital concentration slowed wage growth for nurses and other healthcare workers.

“Despite hospital claims that COPAs will result in lower costs and improved population health outcomes, we are not aware of any proven benefits of COPAs,” said FTC Director of Policy Planning Elizabeth Wilkins. “We urge state lawmakers to consult local health insurers, employers, and workers regarding the potential impact of COPA legislation.” (FIERCE HEALTHCARE, FEDERAL TRADE COMMISSION)

COVID-19 Hospitalization Data Coming Back under CDC Supervision The U.S. government isn’t going to renew its contract with TeleTracking Technologies Inc. for managing COVID-19 hospitalization data collection. That task will revert back to the Centers for Disease Control and Prevention in mid-December, ahead of the TeleTracking contract’s expiration on Dec. 31. The private company took over the hospitalization data collection from the CDC in the summer of 2020, after health officials pressed for the change due to the CDC’s slow pandemic response. (BLOOMBERG)

Old Federal Rule Limiting Mental Health Access in WA

A federal rule dating back to 1965 is now one of the biggest obstacles to adding psychiatric beds in the state of Washington. The Institutions for Mental Disease Exclusion prohibits the federal government from paying for inpatient care at mental health facilities with more than 16 beds.

Although experts say repealing the rule wouldn’t be easy, that idea has the support of the state’s largest hospital association, the Washington State Hospital Association, and its largest mental health advocacy organization, the National Alliance on Mental Illness (NAMI) Washington (SEATTLE TIMES)

Pandemic-Related Patient Acuity Increases Driving Up Hospital Spending

Rising patient acuity over the past two years has driven up hospital spending and demonstrates the need for additional federal support, the American Hospital Association said in a new report. The report cited data showing a 9.9 percent increase in average length of stay from 2019 to 2021. AHA said the increases are “likely” the result of people delaying or avoiding care during the COVID-19 pandemic. (FIERCE HEALTHCARE, AMERICAN HOSPITAL ASSOCIATION)

AK Healthcare Workforce Development Effort Gets $10M Boost

The Alaska Primary Care Association, a nonprofit that seeks to improve access to healthcare in the state has received $9.7 million in federal funding to shore up the state’s medical workforce. The nonprofit was one of just 32 recipients of the federal grant, funded through the American Rescue Plan Act, out of 509 applicants nationwide. (ANCHORAGE DAILY NEWS)

-- Compiled by KOREY CLARK