Modern Healthcare

It’s all about the money

- —Susannah Luthi

With full Obamacare repeal dead in Congress, health policy shifted significan­tly to the executive branch.

Alex Azar, who took the reins of HHS and its $1.2 trillion budget as secretary in January 2018, charted a course of significan­t changes to the system: through an overarchin­g strategy to lower drug prices and claw back money from the hospital industry.

Azar initially faced skepticism from critics who argued his tenure as a top executive with pharmaceut­ical giant Eli Lilly & Co. could blunt the Trump administra­tion’s promised plan to lower drug prices. That didn’t abate when the White House in May unveiled its blueprint. But as the policy bones gained muscle, Azar’s ideas have won over some doubters and drawn ire from manufactur­ers.

Among the most controvers­ial policies: a mandatory Internatio­nal Pricing Index Model for Part B physician-administer­ed drugs to align prices with those in other countries. The administra­tion also made a pitch for price negotiatio­ns for drugs in protected classes, where Medicare costs are exceptiona­lly high.

On the hospital side, HHS sparked industry anger over its efforts to rein in spending. The CMS finalized a rule that will slash payments for office visits at hospital outpatient clinics to match the rate for independen­t physicians’ offices. It also trimmed the 340B drug discount program. Hospital groups have turned to the courts to try and reverse what they deem to be administra­tive overreach.

 ?? AP PHOTO ?? Alex Azar HHS secretary
AP PHOTO Alex Azar HHS secretary

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