CHART OF THE WEEK
CONGRESS.
Sequester Relief. As expected, the House passed the Senate’s version of sequestration relief that extends the moratorium on reimbursement cuts until Jan. 1, 2022. Yet to be decided is whether Congress will waive required pay-fors for the very expensive American Rescue Plan Act as contemplated by an earlier version of the bill. Offsets for that very expensive legislation could focus on Medicare or drugs. (AMED, LHCG)
Hospital Transparency Rule. Enforcement of the hospital price transparency rules developed during the Trump administration are finding bipartisan support. Last week the Chairman and the Ranking Member of the powerful House Energy and Commerce Committee called on HHS to step up enforcement as various news organizations identified low levels of compliance. There had been some concern that the hospital associates would convince the Biden administration to walk back the rule. It does not appear that will be the case. Cue the VC ideas!
THE WHITE HOUSE.
More Money for Sequencing. The White House discussed the $1.7B in appropriations made available in the American Rescue Plan Act for genomic sequencing of COVID-19 strains today. Those efforts will include expanding genomic sequencing, establishing new centers of excellence, and creating a national infrastructure for sharing and analyzing genomic data. The move recognizes that the US had to rely on private institutions for genetic sequencing data throughout the pandemic. Expect additional news to include funding for academic labs especially non-traditional grant recipients like HBCUs. FLGT's contract with the CDC would bode well for additional involvement with this effort especially given their minority contractor status. (FLGT, ILMN)
Direct Contracting Model. As we mentioned last week, CMS released the list of Direct Contracting Entities. A few of the original contractors had fallen off and anticipated simply delaying participation until 2022. In announcing the list of initial participants, CMS indicated they would not take new DCEs in 2022. This delay came as a surprise and America’s Physicians Group, a trade organization, is urging reconsideration. (JWS, DFHT, CLOV)
Vaccine Nationalism. The World Trade Organization is battling "vaccine nationalism" and calling for a temporary waiver of patent rights so production of COVID-19 vaccines can ramp up in less developed nations. It is a difficult needle to thread for the Biden administration. On one hand, the president has made a point of being more user friendly, globally. On the other, the taxpayers that made COVID-19 vaccines possible will want assurance there will be no shortages in the US. Suspending patent rights seems like a precedent too far and another solution may be offered as a compromise. (PFE, MRNA, JNJ)
OTHER STUFF.
Vaccine News. The CDC’s Advisory Committee on Vaccine Practices decided not to make any recommendations on the JNJ vaccine after the FDA and CDC placed a pause on its administration. More data will be gathered and recommendations on administration protocols will need to be developed (i.e. administer to men) but the delay seems unlikely to alter the near-term circumstances in which America will be swimming in vaccines. The Committee plans to reconvene on April 23.
One of the six women with the reported adverse event and I share a mutual friend. Here is an account from the local press.
Medicare Advantage Enrollment. CMS released MA enrollment data for March which marks the end of the Special Enrollment Period. CLOV clocked in at 66,395. They should pick up 0.20-0.50% growth per month. Depending on how they do picking up newly eligible beneficiaries, they should end the year around 68,000 which is the lower end of their guidance. More on this on 28th when we present Part II of Managing Managed Care in the Post-COVID.
Drug Price Policy. The pharmaceutical lobby appears to be relenting on some of its opposition to reforms. Their legislative agenda, passed around this week, suggests ending certain evergreen practices like the patent thicket made famous by ABBV. Our bet is on reforms to Medicare Part D benefit which, after almost 20 years, needs a good shave and a haircut.
SPAC AND S-1 CORNER.
Things are slowing down as the regulatory environment gets a bit murky. You can access the updated SPAC spreadsheet here.
Traditional S-1s worth noting:
The Bountiful Company. Dietary supplement company that sells under the well known brand ‘Nature’s Bounty,” among others.
If you are investing in SPACs but not super familiar with health care, hit and we can help.
UPCOMING EVENTS.
April 28 @ 12:30 PM Managing Managed Care Part II. Look for invite next week.
Tom Tobin and the Health Care team will be hosting a call April 29 @2 pm on one of those SPACs we like, FAII. Invite here.
RECENT EVENTS.
Replay | The Persistence of COVID-19 Testing, DGX, LH, OPK, EXAS. We covered our thesis on why COVID-19 testing will not just disappear; the components of which include vaccination rates that probably won't top 75% among the young; demands from employers; poor documentation and the amazing sums of money being allocated for testing.
TWEET OF THE WEEK
Testing just won't stop:
Have a great weekend.
