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May 3, 2011

Today’s issue is brought to you by AIS’s Health Reform Week, the nation’s leading publication on the business implications of the massive changes for the health industry mandated by reform.

Today's Featured Story

Hospitals Fear That Device Makers May Pass Along Reform Tax to Them
Reprinted from AIS’s Health Reform Week

Hospital trade groups late last month urged the IRS to prohibit medical device companies from passing through a 2.3% excise tax — imposed by the health reform law on a vast array of devices starting in 2013 — to their customers, including hospitals. The hospital groups warn that unless the IRS takes action, device makers could see a financial “windfall” because of their ability to “double dip”: deducting the levy for federal corporate income tax purposes while also passing the tax along to customers. Yet device makers, and their congressional supporters, who have tried unsuccessfully for the past year to repeal the tax, insist that manufacturers more likely will face a double hit: continuing reimbursement cuts for their products, plus the excise tax itself .... Read Full Story


From the AIS Blogs

Strong Finances Could Lead to Increased Tensions

In a report released by Citigroup Global Markets securities analyst Carl McDonald concludes that non-profit Blues plans had their most profitable year ever in 2010, with more than $5.3 billion in net income ... Read more


Quote of the Day

The shortages of medications now being reported are “an episodic problem for hospitals over many years, but has gotten more acute across more drugs. As the manufacturing and supply chain has become global, problems in other parts of the world create downstream issues for product availability.”

— Randy Vogenberg, Ph.D., a principal with the Institute for Integrated Healthcare, told AIS’s Drug Benefit News.

Click here to read the DRUG BENEFIT NEWS article in which this quote appeared. (Free for DBN subscribers; $17 for non-subscribers).


Today's Datapoint

52% … of all adults in the U.S. will have either diabetes or pre-diabetes by 2020, according to Christopher Porter, senior director of government affairs at Novo Nordisk.

Click here to read the AIS's HEALTH REFORM WEEK article in which this datapoint appeared. (Free for HRW subscribers; $17 for non-subscribers).


FierceHealthPayer News from our partner FierceMarkets

Bill Requiring Rate Increase Approval Advances in California

A bill allowing California state regulators to prohibit excessive health insurance rate increases moved one step closer to passage after clearing a key legislative committee, despite strong opposition from major insurers and the California Association of Health Plans ... Read more


Today from Washington

People on the Move

Medco Health Solutions, Inc. named Frank Sheehy president of Accredo Health Group, the PBM’s specialty pharmacy unit. Sheehy, who has been with Medco for 13 years, replaces Keith Fitzpatrick, who will retire effective July 1....CoDa Therapeutics, Inc. named David Eisenbud, M.D., chief medical officer. Eisenbud was medical director at the Overlook Hospital Wound Healing Program in Summit, N.J.


Today's Featured Health Business Job Opening

Blue Shield of California
Regional Medical Director - Northern California
San Francisco

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Upcoming Webinars

New ACO Regulations: Discover the Opportunities and Pitfalls Ahead
Thursday, May 5, 2011

Click here for details.

Medicare Advantage Marketing for 2012: Steps to Take Now to Succeed Amid Reform-Driven Changes
Tuesday, May 10, 2011

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Payer Strategies to Manage High-Cost Specialty Drugs That Will Hit the Market Soon
Thursday, May 12, 2011

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Optimizing Drug Benefit Plan Designs for the Coming Wave of Generic Competition
Tuesday, May 17, 2011

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Strategies for Managing Part D Specialty Formulary Tiers
Wednesday, June 15, 2011

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Insurance Exchanges: How Health Plans and Employers Should Prepare for the Radical Changes Ahead
Tuesday, June 21, 2011

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Medical Loss Ratio Regs: What 2010 Data Suggest About Potentially Huge Rebates in 2011
Thursday, June 23, 2011

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