Senate unanimously passes bipartisan pharma patent bill

By Zachary Brennan - The Senate in a unanimous vote Thursday afternoon passed a bill that aims to tackle pharmaceutical patent abuses by limiting the number of patents that companies can assert on any one drug. Read Full Article…

HVBA Article Summary

1. Reduction of Federal Deficit: The bill is projected by the Congressional Budget Office (CBO) to potentially reduce the federal deficit by $1.8 billion over the next decade. This financial benefit is expected to result from curbing the practice of patent thickets, which pharmaceutical companies use to shield their products from competition, exemplified by AbbVie’s Humira.

2. Bipartisan Support and Provisions: Introduced as S.150 by Senators John Cornyn (R-TX) and Richard Blumenthal (D-CT), the bill has garnered bipartisan backing. Although the passed version on Thursday is a pared-down version of the original proposal, it aims to limit the number of certain patents that a brand-name biologic manufacturer can assert, specifically those filed more than four years after the reference product’s FDA approval, with certain exceptions and waivers.

3. Exclusion of "Product Hopping" and Advocacy Support: The current legislation does not address “product hopping,” where companies switch patients to a new product with a later-expiring patent. Nonetheless, it has received positive reactions from patient advocacy groups. Merith Basey, of Patients For Affordable Drugs Now, and Lauren Aronson, of the Campaign for Sustainable Rx Pricing, both praised the Senate's action and called for continued bipartisan efforts to ensure the bill's passage in both chambers of Congress.

US Health Care Now Unaffordable for Nearly Half of Americans

By Ian Randall - Nearly half of all Americans struggle to afford access to quality health care and prescription medications. This is the warning of the latest report from the Healthcare Affordability Index, which tracks how many in the U.S. have been forced to avoid medical care or haven't been able to fill their prescriptions in the last three months—and how many would struggle to pay for care if it was needed. Read Full Article…

HVBA Article Summary

1. Affordability Decline: Since 2022, health care affordability has significantly decreased, with the overall Healthcare Affordability Index falling six points to a record low of 55 percent. This decline is most pronounced among adults aged 50–64 and those 65 and older, both groups experiencing an eight-point drop in affordability.

2. Age Group Struggles: Adults under 50 are currently the most challenged in affording health care, with 53 percent unable to cover their medical bills—a five-point drop from 2022. This trend highlights the growing financial strain on younger populations compared to older age groups.

3. Disparities and Projections: The survey conducted by West Health and Gallup reveals significant disparities, with younger adults, women, and minority groups more likely to be classified as "cost desperate." The findings underscore the urgent need for health care reforms, such as those proposed in the Inflation Reduction Act, to stabilize and improve affordability across all demographics.

Roche Weighs In With Encouraging Early Clinical Data for Oral GLP-1 Drug

By Frank Vinluan - Roche is a relative latecomer to GLP-1 metabolic disorder drugs, but an oral drug candidate that came as part of a $2.7 billion acquisition last year now has preliminary early-stage clinical data that keep the pharmaceutical giant in contention to bring patients a pill to tap into this increasingly popular mechanism for weight loss. Read Full Article…

HVBA Article Summary

1. Promising Early Results for CT-996: Roche's CT-996, a once-daily pill designed to activate the GLP-1 receptor, showed a placebo-adjusted average weight loss of 6.1% in obese patients without type 2 diabetes within four weeks. While this weight loss is significant compared to other oral GLP-1 drugs, the study's small size raises questions about the reliability of these results.

2. Study Structure and Future Plans: The Phase 1 study of CT-996 includes three parts, with the first two already completed. The initial parts involved testing single and multiple ascending doses in a total of 65 participants who are overweight or obese. The third part, set to begin in the fourth quarter, will test the drug in 30 participants with obesity and type 2 diabetes. Roche plans to present full study data at an upcoming medical meeting.

3. Potential Advantages and Tolerability: CT-996, developed by Carmot Therapeutics (acquired by Roche), aims to enhance efficacy and tolerability through biased signaling technology. The drug showed mild to moderate gastrointestinal side effects, was well tolerated, and did not affect blood levels when taken with or without food, offering greater dosing flexibility. Roche anticipates that CT-996 could be used not only for blood sugar control and weight loss but also for weight maintenance post-injectable GLP-1 treatments.

Big three PBMs will testify before Congress next week, following FTC report

By Drew Armstrong - Pharmacy benefit manager executives from Cigna, CVS Health and UnitedHealth Group are scheduled to testify before Congress on July 23, giving lawmakers a chance to question the companies after a critical report from the Federal Trade Commission earlier this month. Read Full Article…

HVBA Article Summary

1. Key Executives Testify on PBM Industry: The House Committee on Oversight and Accountability is conducting a hearing where top executives from the three largest Pharmacy Benefit Managers (PBMs) will testify. These include Adam Kautzner of Cigna’s Express Scripts, David Joyner of CVS Caremark, and Patrick Conway of UnitedHealth’s Optum Rx. Together, these companies control 79% of the market, according to an FTC report.

2. FTC's Scrutiny and Potential Lawsuit: The Federal Trade Commission (FTC) has been investigating the PBM industry since 2022, highlighting the significant control these conglomerates have over the healthcare sector. While the recent report stopped short of recommending regulatory action or a breakup, it indicated that the FTC is planning a lawsuit against these companies.

3. Legislative Efforts and Hearing Series: This hearing is the third in a series by the committee on PBMs, which previously featured critics from smaller competitors, drugmakers, pharmacies, and academics. Lawmakers have proposed bills to regulate PBMs, including banning spread pricing and implementing flat fees in Medicare. However, legislative action faces time constraints with the approaching campaign season.

How Twin Health is helping employees combat diabetes and obesity

By Lee Hafner - For Crystal Pierre, a diagnosis of Type 2 diabetes last year was motivation to change her habits and get healthier. Precision health platform Twin Health, a benefit offered through Pierre's employer, is helping her achieve her goal. Read Full Article…

HVBA Article Summary

1. Joining Twin Health for Diabetes Management: Pierre, who had gestational diabetes with her two youngest children and experienced inconsistencies in her blood sugar levels, joined Twin Health three months ago after her employer, Dayforce, introduced it as a benefit. The platform uses AI to create a "digital twin" of a member's metabolism for personalized recommendations, and provides wearable devices to monitor progress, which has helped Pierre stabilize her blood sugar and improve her overall health.

2. Holistic Approach and Professional Support: Twin Health assigns a professional health team to each patient, which can coordinate with other providers for comprehensive care. Members receive education on nutrition, sleep, and exercise. Pierre appreciates the immediate support from her health coach, especially during times when she's feeling unwell, and values the combination of AI-driven insights and personal touch in her care.

3. Employer Investment in Employee Health: Dayforce's inclusion of Twin Health as an employee benefit aims to reduce reliance on high-cost medications and promote long-term health improvements. This approach not only enhances employee well-being but also reduces healthcare costs for employers. Pierre finds this investment motivating and feels it demonstrates Dayforce's commitment to her health and longevity, strengthening her loyalty to the company.

GLP-1s Don't Increase Neurologic, Psychiatric Risk

By Kerry Dooley Young - An analysis based on a massive database of US electronic health records (EHRs) adds to evidence favoring the safety of glucagon-like peptide 1 (GLP-1) medications, finding no increased risk for many neurologic and psychiatric ailments when semaglutide was compared with other diabetes drugs. Read Full Article…

HVBA Article Summary

1. Research and Findings: Riccardo De Giorgi, MD, DPhil, and colleagues conducted a retrospective cohort study using data from the TriNetX US Collaborative Network, analyzing the psychiatric and cognitive impacts of semaglutide (Ozempic) compared to other diabetes medications. Their findings suggest a significantly lower risk of cognitive deficits and dementia with semaglutide compared to sitagliptin and glipizide, and no significant increased risk of neurologic or psychiatric conditions compared to other diabetes drugs.

2. Regulatory Context and Safety Concerns: While the European Medicines Agency and the UK's Medicines and Healthcare products Regulatory Agency are reviewing reports of worsening mood and suicidal behavior with GLP-1 drugs, the US Food and Drug Administration (FDA) has found no evidence of harm in its preliminary investigation. De Giorgi's study provides data that could inform these regulatory reviews and public health guidelines, emphasizing the need for caution due to the observational nature of the study.

3. Expert Commentary and Implications: De Giorgi and other experts, such as Satya Dash, MD, PhD, highlight the importance of interpreting these findings cautiously and within context. Dash's research also supports the safety of semaglutide concerning neuropsychiatric outcomes, reinforcing its potential benefits in diabetes and weight management. Both experts underscore the necessity for further clinical trials to confirm these observational findings and to explore the role of semaglutide in treating cognitive deficits and substance misuse.

Group medical cost trend to hit 8% in 2025: PwC

By Allison Bell - The underlying medical cost trend for employers' group health coverage could stay high in 2025, according to PwC analysts. Read Full Article…

HVBA Article Summary

1. Medical Cost Trend Projections: Analysts are forecasting an 8% medical cost trend for 2025, aligning with PwC's estimates of 8% for 2023 and 7.5% for 2024. This trend, derived from interviews with health plan actuaries, reflects the expected increase in health plans' medical costs assuming benefits remain unchanged. Comparatively, the projected trend surpasses overall inflation, projected at less than 4%, and employee wage growth, estimated at under 5%.

2. Factors Driving the Increase: The anticipated rise in medical costs is attributed to two main factors: the deferred care demand from the COVID-19 pandemic years and the escalating use of costly GLP-1 agonists like Wegovy for obesity treatment. Although these drugs might reduce long-term health plan expenses by lowering care costs for diabetes, cancer, and heart disease, they currently contribute significantly to prescription spending, adding $23.16 per plan member per month in late 2023, up from $13.56 in 2022.

3. Additional Cost Pressures: The burden on employer-sponsored health plans may intensify as healthcare providers seek to mitigate the financial impacts of the pandemic, face stringent Medicare and Medicaid reimbursement policies, and address health care workers' demands for higher wages and increased staffing. These factors could exacerbate the already substantial cost pressures faced by employers in maintaining health benefits for their employees.

Ameritas lawsuit: $5M New Jersey policy hid a STOLI connection

By Russ O’Reilly - Ameritas Life Insurance Co. is challenging another life insurance policy under New Jersey’s ban on stranger-originated life insurance (STOLI). Read Full Article…

HVBA Article Summary

1. Background and Allegations: In March, an insurer filed a federal lawsuit claiming that a $5 million life insurance policy from 2008 resembles an illegal stranger-originated life insurance (STOLI) scheme. STOLI involves investors purchasing policies on individuals with whom they have no existing relationship. Most states, including New Jersey, have laws banning STOLI practices. Ameritas, the insurer, has faced multiple lawsuits regarding STOLI allegations. They argue that STOLI schemes aim to provide investors with a financial interest in the insured person's death, which lacks an insurable interest.

2. Legal and Policy Details: The disputed policy was issued in 2008 by Union Central Life Insurance Co., now part of Ameritas, insuring Alexander Bienenstock. The "Alexander Bienenstock Life Insurance Trust" was designated as the owner and beneficiary. The trust's trustee, Michael S. Mosberg, and the policy's producer, Abraham Leifer, signed a statement asserting no intent to sell the policy. However, in 2011, the policy's ownership was transferred to Wilmington Savings Fund Society, a securities intermediary. Following Bienenstock's death in January 2024, Ameritas investigated, claiming the premiums were funded by investors without an insurable interest, thereby constituting an illegal wagering contract.

3. Defendant’s Defense and Ongoing Litigation: The Wilmington Savings Fund Society, current owner of the policy, denies it is a STOLI and claims the policy was intended to benefit a nonprofit Jewish organization, The Kolel. They argue that Ameritas has always known the policy was for a nonprofit, supported by two decades of premium payments from the nonprofit. The defendants contend the policy was legally transferred and not sold, maintaining that the death benefit is intended for The Kolel. The motion to dismiss filed by Wilmington Savings was withdrawn, and both parties are proceeding to the discovery phase of the lawsuit.

Health care dominates Gen Z career aspirations, benefits preferences

By Kristen Beckman - Gen Z workers – those born after 1997 – are developing some distinct ideas about where they want to work and what they want from their employers. Read Full Article…

HVBA Article Summary

1. Compensation and Career Choices: According to a survey by the National Society of High School Scholars (NSHSS), 63% of Gen Z students are concerned that pursuing their passion careers may not provide sufficient income, primarily due to anticipated student debt. Despite this, healthcare and medicine are top career choices, with many aspiring to work at prestigious institutions like St. Jude Children's Research Hospital, the Mayo Clinic, and Healthcare Service Corps. Engineering and tech roles at companies like Google, Amazon, and Apple also attract significant interest.

2. Valued Compensation Benefits: Health benefits are the most valued compensation benefit for Gen Z, with 72% prioritizing them over flexible work schedules (61%) and work-life balance (25%). This generation also highly values fair treatment of all employees (28%), corporate social responsibility (14%), in-person training, clear health and safety guidelines, an easy commute, and modern office amenities.

3. Top Issues and Political Concerns: Health care and health-related issues are the most important concerns for Gen Z students, influenced by their personal experiences. In the 2024 presidential election, they indicated that the economy, social justice and civil rights, and government corruption are the top issues they care about, reflecting their broader societal concerns.

Gen Zers Most Confident About Retirement, but Still Worry About Outliving Savings

By Remy Samuels - Across all generations of savers surveyed in BlackRock’s 2024 “Read on Retirement” survey, employees expressed confusion about how much to save for retirement, worries about outliving their savings and uncertainty about how much income they will need in retirement. Read Full Article…

HVBA Article Summary

1. Generation Z's Retirement Confidence and Concerns: Generation Z employees have expressed the highest level of retirement confidence among all generations, with 77% feeling on track to retire with the desired lifestyle. Despite this confidence, 69% of Gen Z workers worry about outliving their retirement savings. Their reliance on employers for appropriate investment options is significant, with 25% trusting their employer's choice of investment as the primary reason for using a target-date fund.

2. Millennials and Financial Pressures: Millennials are facing substantial financial pressures, with 62% carrying credit card debt and 56% worried about outliving their retirement savings. Notably, 72% of Millennials would remain with their current employer if student loan payments were matched with retirement contributions, a benefit allowed under the SECURE 2.0 Act of 2022. These pressures highlight the financial strain and priorities of Millennials as they navigate their retirement planning.

3. Gen X Retirement Challenges: Generation X workers are experiencing significant challenges as they approach retirement, being the most likely to save consistently yet the least likely to feel on track. Over half of Gen Xers who feel behind believe they should save more, but only 31% reported making catch-up contributions. Gen X also carries the highest volume of debt on a dollar basis and has the lowest usage of financial advisers among all generations, impacting their retirement confidence and savings strategies.