28 Jul 2021

Health Care Roundup: Opioids, Hospital Prices, Pregnant Prisoners, Nursing Home Vaccinations, Health Worker Burnout

$26B Opioid Settlement Awaits Approval by States, Municipalities:

A group of state AGs unveiled a $26 billion proposed settlement with major drug makers over their alleged role in the national opioid epidemic. Under the terms of the deal - the second-largest ever, after the $246 billion tobacco settlement agreement in 1998 - the nation’s three biggest drug distributors, McKesson Corp., Cardinal Health Inc. and AmerisourceBergen Corp., would pay a combined $21 billion, and Johnson & Johnson would pay $5 billion.

The settlement money would go toward addiction treatment, education, and other programs.

“There’s not enough money in the world, frankly, to address the pain and suffering,” said Connecticut Attorney General William Tong. But he added that the money would “help where help is needed.”

To achieve the full $26 billion payouts, however, at least 48 states, 98 percent of local governments that have filed lawsuits related to the opioid crisis, and 97 percent of the jurisdictions that haven’t yet filed such litigation, will have to agree to the deal within 30 days. That will require state and local governments to drop the vast majority of the more than 3,000 opioid-related lawsuits that have been filed to date.

In regard to states, North Carolina Attorney General Josh Stein (D) said it’s likely that “well north of 40 will sign on.”

About half of the states have already passed legislation or secured agreements with local governments concerning distribution of the settlement money, according to Christine Minhee, who heads an opioid litigation watchdog project called the Opioid Settlement Tracker.

But the legislation and agreements don’t guarantee approval. Cities and counties making up more than half of the state population in Indiana opted out of the settlement deal after a law there limited their share of the proceeds to 15 percent. And communities in West Virginia opted out after being offered under 1 percent of the settlement money. (INSURANCE JOURNAL)

Employers Don’t Wield Enough Power to Negotiate Lower Hospital Prices:

Large self-insured employers provide health coverage for 55 percent of Americans under the age of 65. But they still lack the market power to effectively negotiate with hospitals for lower prices, according to a study published this month in the American Journal of Managed Care.

The study found that employer market power was low in most metropolitan statistical areas (MSAs), possibly helping to explain why the amount over Medicare rates that employers pay for hospital services increased from 10 percent to over 100 percent between 2005 and 2015.

One option for employers, the study suggested, is to build coalitions with other employers, although it noted that “a considerable number of employers” would have to be enrolled “to have a sufficient market power to negotiate with hospitals.” Another alternative is to form “purchase alliances with state and local government employee groups.” (BECKER’S HOSPITAL REVIEW, AMERICAN JOURNAL OF MANAGED CARE)

CO Lawmakers Focus on Maternal Health:

Three new Colorado laws dealing with maternal health will take effect in September. SB 193, signed by Gov. Jared Polis (D) on July 6, adds protections for pregnant and postpartum women who are incarcerated.

SB 194, also signed on July 6, requires insurers to reimburse hospitals for labor and delivery costs and expands postpartum Medicaid coverage from 60 days to 12 months.

SB 101, enacted in May, extends the state’s midwife program and allows midwives to administer more medications.

Supporters of the legislation believe it will help reduce racial disparities in maternal healthcare and lower the number of women who die during or within a year of childbirth. (DENVER POST, STATE NET)

IA Falls to 27^th in Nursing Home Worker Vaccinations:

Only 59 percent of nursing home workers in Iowa are fully vaccinated against COVID-19, placing the state roughly at the middle of the pack, 27^th, among COVID-19 vaccination rates nationwide, and down substantially from its ranking of 17^th in June. But the state’s vaccination rate for nursing home residents and staff combined is 90 percent, the fifth highest rate in the nation. (IOWA CAPITAL DISPATCH [DES MOINES])

HHS to Direct $103M toward Healthcare Worker Mental Health:

The U.S. Department of Health and Human Services said it will make about $103 million in American Rescue Plan funds available to address worker burnout and mental health in the healthcare industry. The money will be distributed to healthcare organizations in rural and medically underserved communities over a three-year period. (MODERN HEALTHCARE)