ZorroCard Round Up (10/23/24)

Hey all,

Happy Wednesday! I was especially interested in todays Employer Coverage post pointing out how severe obesity has actually risen 26% in the past decade amidst articles about the US reaching ‘Peak Obesity’. Another example of how data can be deceiving.

Enjoy the rundown!

Jacob Brody (Co-Founder & CEO, ZorroCard)

340B Program’s Surge in 2023 (DrugChannels): Adam Fein does a great job of analyzing recent HRSA data releases on 340B. In 2023, the 340B Drug Pricing Program reached record-high purchases, totaling $66.3 billion, a 23.4% increase over 2022. Hospitals continued to dominate, accounting for 87% of all purchases, with Disproportionate Share Hospitals leading the way at 78.3%. The gap between list prices and discounted purchases reached $57.8 billion, further fueling debates about the program’s accountability and transparency. Full Article.

Has the US Passed “Peak Obesity” (Employer Coverage): Recent reports suggest that the U.S. may have reached “peak obesity” in 2020, with a slight decline in obesity rates in 2022 according to the CDC data. However, this decline is not statistically significant, and Class 3 obesity (BMI ≥40) has actually increased by 26% over the past decade. While GLP-1 medications (used for weight loss) are cited as potential factors in reducing overall obesity, their impact appears uneven, with more benefits seen in educated populations. Employers should note that despite this slight drop, severe obesity is rising, leading to worse health outcomes and higher medical costs. Full Article.

Senators Question Pfizer and Eli Lilly’s Telehealth Partnerships: Senators, led by Sen. Dick Durbin, are scrutinizing Pfizer and Eli Lilly over potential conflicts of interest in their partnerships with telehealth providers. The companies have launched websites directing patients to telehealth services that conveniently prescribe their branded medications. This raises concerns that these arrangements might violate the federal anti-kickback statute, which prohibits incentivizing Medicare or VA programs to buy certain drugs. While both companies claim these partnerships simply ease access to necessary care, critics worry that the setup encourages over-prescription of expensive drugs, potentially inflating healthcare costs. Full Article.