ZorroCard Round Up (11/13/24)

Hey all,

Lot’s of stories about government’s involvement in healthcare. Enjoy the rundown!

Jacob Brody (Co-Founder & CEO, ZorroCard)

Johnson & Johnson Sues Over 340B Drug Pricing Program Dispute (STAT News) 

Johnson & Johnson has filed a lawsuit against the U.S. Health Resources and Services Administration (HRSA), arguing the agency misinterpreted federal law regarding payment methods for drugs under the 340B Drug Pricing Program, which supports low-income and rural healthcare. J&J’s proposed rebate model for Xarelto and Stelara aimed to address alleged program abuses and avoid conflicts with Medicare price negotiation rules but was deemed unlawful by HRSA, prompting bipartisan Congressional objections and potential penalties. This case underscores escalating tensions over the program’s transparency and use, with critics citing hospital profiteering and supporters defending its role in patient care. Full Article

Vermont’s Paradox: Low Uninsured Rate but High Costs and Long Waits (KFF Health News)

Vermont boasts one of the lowest uninsured rates in the U.S., with only 2% of residents lacking health coverage, but the state faces challenges with high healthcare costs and long wait times for medical services. While its extensive Medicaid expansion and robust insurance marketplaces are praised, systemic workforce shortages and rising costs strain the system, leaving many residents unable to access timely care. Vermont’s situation highlights the complexity of achieving both affordability and accessibility in healthcare. Full Article

DOJ Sues to Block UnitedHealth’s $3.3B Acquisition of Amedisys (Fierce Healthcare)

The Department of Justice (DOJ) has filed a lawsuit to stop UnitedHealth Group from acquiring home health provider Amedisys, citing concerns the $3.3 billion deal would harm competition and lead to higher costs for Medicare Advantage patients. The DOJ argues that combining Amedisys with UnitedHealth’s Optum division would reduce competition in home healthcare services, consolidating market power in a sector critical to aging populations. This lawsuit reflects the DOJ’s broader efforts to curb healthcare consolidation and protect consumer access to affordable care. Full Article