US Drug Spending, Sanofi’s 340B Play, & A Letter To Dr. Oz

U.S. Prescription Drug Spending in Perspective (Peterson-KFF Health System Tracker)

A recent analysis shows that U.S. spending on prescription drugs represents 11% of total healthcare spending, below the comparable country average of 13.1%, with Japan leading at 20.7%. This challenges the narrative of uniquely high U.S. drug costs, highlighting that the country’s overall healthcare expenditures are driven more by hospital and physician payments. Such insights are critical for framing effective healthcare policy debates. Full Article.

Sanofi and Hospitals Clash Over 340B Discount Program (Stat News) 

Sanofi becomes the third drug maker, following Johnson & Johnson and Eli Lilly, to restrict drug discounts to hospitals participating in the 340B program using a rebate model, escalating tensions over program rules. Hospitals argue these limitations hinder their ability to provide affordable care to underserved populations, while drugmakers claim the program is being misused. This is increasingly likely to be settled by the courts unless congress steps in. Full Article.

Primary Care Shortage Likely to Continue (Employer Coverage)

The U.S. faces an ongoing shortage of primary care physicians, with projections indicating a worsening gap due to rising demand and insufficient medical school graduates entering the field. This shortage threatens to undermine preventive care access, strain healthcare systems, and exacerbate health disparities, particularly in underserved areas. Policymakers and healthcare leaders must prioritize strategies like loan forgiveness to address this critical issue. Full Article.

Letters To Dr. Oz (Frontier Psychiatrist) 

My friend Dr. Owen Muir has some ideas on improving outpatient and mental health care through CMS regulations. Owen suggests leveraging CMS payment levers to create novel pathways for breakthrough medical devices, including AI-powered tools. He believes this could lower long-term costs while improving patient outcomes. Proposals like the Breakthrough Treatments Act and expanded technology payment pathways (e.g., TCET) would enable rapid access to care and redirect investments toward treatments outside the purview of pharmacy benefits managers. Full Article.