Why Forward Failed, IRA Fallout, Sen. Cassidy on 340B Warpath

Hey all,

Happy Monday! I think a lot about the negative effects of the IRA and ACA, I think a lot about potential harm when healthcare reform is passed. As I read about new reform efforts I hope legislatures listen to all stakeholders about the negative effects of reform legislation. Enjoy the rundown! 

Jacob Brody (Co-Founder & CEO, ZorroRX)

(Healthcare Huddle) Why Forward Health Failed

 Forward Health, a tech-enabled direct primary care startup, abruptly shut down despite raising over $660 million, due to an unsustainable business model, misaligned consumer expectations, and an overreliance on flashy technology like CarePods at the expense of true patient-physician connection. Maybe the reason for their failure was glaringly obvious—turns out young, healthy individuals aren't exactly lining up to pay premium prices for primary care they barely need. The company's failure underscores a critical lesson for healthcare innovators: successful primary care models must prioritize sustainable operations, human-centered care, and realistic market demand, rather than assuming tech alone can solve deeply rooted healthcare challenges. Full Article.

(Drug Channels) IRA Fallout & What It Mean for Patient Access and Market Strategy 

Scott Hughes from CareMetx details how the Inflation Reduction Act’s patient-friendly reforms are unintentionally creating major access challenges, with 2025 Medicare plans slashing formularies, increasing prior authorizations, and raising cost-sharing across immunology, oncology, and endocrinology. These disruptions are forcing millions of patients to navigate new hurdles for vital medications and pushing drug manufacturers to adapt to a much more complex and restrictive market environment—it's almost as if the Inflation Reduction Act actually managed to make medications more expensive for both patients and payers. Full Article.

(340B Report) Senator Bill Cassidy Releases Report Critical of 340B Program

Senator Bill Cassidy released a report on his investigation into the 340B drug pricing program, finding that pharmacies charge complex fees, hospitals generate millions without passing discounts to patients, and drugmakers are selling more to contract pharmacies. Stakeholders across healthcare defended their practices while expressing support for "transparency" reforms that would presumably apply to everyone else but themselves. If healthcare reform were a party game, this would be called "Pin the Blame on the Other Industry"! Full Article.