Hospitals Win 340B Ruling, FTC Investigates Telehealth Company Cerebral
The US Supreme Court has sided with hospitals on a 340B Drug Pricing Program decision, and Federal Trade Commission (FTC) officials are investigating telehealth brand Cerebral for its marketing tactics.
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By - Hospitals got a big win last week after the Supreme Court reversed a cut to the 340B Drug Pricing Program that netted several hospitals increased revenues. Justices agreed with the American Hospital Association (AHA) and found that HHS did not conduct proper surveys before changing reimbursement rates. Also at the federal level, the FTC is investigating the beleaguered telehealth company Cerebral for its marketing practices.
Meanwhile, a bill proposed by progressive senators would ban the sale of health and location data to protect consumers.
Bill Would Ban Sale of Health Data
Senators Elizabeth Warren (D-MA), Sheldon Whitehouse (D-WA), Patty Murray (D-WA), Ron Wyden (D-OR), and Bernie Sanders (I-VT) introduced the Health and Location Data Protection Act, which would ban the sale of some types of personal information by data brokers. The lawmakers cited the importance of protecting these types of information as Roe v. Wade may be overturned shortly. If passed, the Federal Trade Commission (FTC) would implement rules for managing data brokers within 180 days. READ MORE.
FTC Investigates Telehealth Brand Cerebral
The FTC initiated an investigation into the telehealth startup Cerebral this month for deceptive advertising or marketing practices. Cerebral provides treatment for mental health conditions and has been accused of overprescribing certain Schedule II narcotics to treat ADHD. After receiving a grand jury subpoena in early May of this year, the company announced that it would stop prescribing controlled substances except to treat opioid use disorder. Around the same time, the co-founder and CEO both decided to leave the company. READ MORE.
Hospitals Win 340B Reimbursement Decision
The US Supreme Court ruled in favor of AHA, finding that 340B Medicare reimbursement cuts were unlawful. Hospital groups petitioned SCOTUS to overturn the 340B payment reductions in February 2021 after a Department of Health and Human Services (HHS) decision cut reimbursements by 30 percent. Research conducted by HHS at the time found that some hospitals were generating massive revenues through their misuse of the program. READ MORE.
States Choose to Extend Medicaid Postpartum Coverage
Three states and the District of Columbia received approval to extend Medicaid postpartum coverage to parents for an entire year after the birth of their child.
“Postpartum coverage not only improves health outcomes but also saves lives,” said HHS Secretary Xavier Becerra. “Thanks to the American Rescue Plan, new parents will now have access to the ongoing care they need during the most crucial time after giving birth. I applaud Maine, Minnesota, New Mexico, and Washington, D.C, for taking action to join the Administration’s efforts to strengthen maternal health and support safe healthy families.” READ MORE.
Medicare Race and Ethnicity Data Inadequate for Health Equity
An Office of the Inspector General (OIG) report reviewed Medicare’s race and ethnicity data and found that it was less accurate for minority groups, possibly creating implications for the pursuit of health equity. The OIG investigation looked at Medicare’s enrollment database and compared results to beneficiaries' self-reported data, finding that data sets contained excessive inaccuracies pushing the information out of compliance with federal standards. READ MORE.
