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Friday, June 28, 2019

Unnecessary Ambulance Calls in NYC Spiked After Obamacare

Use of ambulances for non-emergency situations soared in New York City after the Affordable Care Act (ACA), a new study finds.
With the advent of Obamacare — and expanded access to Medicaid — out-of-pocket costs for an ambulance dropped sharply for many people, making them more likely to ask for one in non-emergency situations, the researchers said.
In some cases, it’s cheaper to call an ambulance than to use Uber, they explained.
“Medicaid patients in particular have incredibly low out-of-pocket responsibility for ambulances,” said study author Andrew Friedson, an assistant professor of economics at the University of Colorado. “The most an ambulance ride covered under Medicaid costs the patient [is] three dollars. If there’s a low-cost alternative to Uber to get to the hospital, you’re going to take it.”
For the study, his team analyzed data from all 911 ambulance dispatches in the city’s 31 dispatch zones between Jan. 1, 2013 and July 31, 2016.
The investigators found that ambulance dispatches for more severe complaints (such as chest pain, compound fractures and unconsciousness) were similar before and after the expansion of the ACA, also known as Obamacare.
But dispatches for minor injuries, such as abrasions, minor burns and muscle sprains, rose 37% — from a monthly average of about 21 dispatches per zone before ACA to 28 after, the findings showed.
That works out to 239 additional dispatches a month (or 2,868 per year) for minor injuries, according to the research team.
“I was expecting to find an increase under 5%. The size of the association was surprising,” Friedson said.
“Policymakers were operating under the assumption that the expansion was going to get people out of emergency rooms,” he said in a university news release. “Few people thought a larger enrollment would lead to a larger utilization of emergency care, because an emergency is an emergency. Insurance shouldn’t make anything more of an emergency.”
The study was published online June 28 in JAMA Network Open.
In response, some large U.S. cities are creating 911 nurse triage call centers to handle non-emergency calls and redirect those patients away from ambulances, the researchers said.
More information
The American Ambulance Association explains when to call an ambulance.

Democratic presidential debates slightly dampen insurer stocks

Stock prices of major insurers dipped slightly after two nights of debates by the 20 Democratic presidential candidates where despite the buzz around Medicare for All the rhetoric about health insurance remained mostly benign.
UnitedHealth Group, which also just announced some leadership changes, saw a decline of about 2.4% Friday morning. Anthem was down nearly 2%. Humana fell by about 1%, and Centene, WellCare Health Plans, Molina Healthcare and Cigna saw small dips of less than 1%. The broader market and hospital stocks were trading slightly up on Friday.
Despite the momentum among Democratic progressives for Medicare for All, or single payer, only two candidates each night raised their hand when asked whether they supported eliminating private health insurance. These were New York City Mayor Bill De Blasio and Sen. Elizabeth Warren (D-Mass.) the first night, and Sens. Bernie Sanders (I-Vt.) and Kamala Harris (D-Calif.) on the second night.
This position is a familiar stance for Sanders and Harris modified her assertion Friday morning during an interview with MSNBC’s “Morning Joe” when she said she interpreted the question as whether she would “give up private insurance” for Medicare for All.
At one point former Vice President Joe Biden suggested jailing insurance executives, but he appeared to be referring to pharmaceutical executives as he then referred to “misleading advertising” on opioids and paying doctors to prescribe them.
Other candidates such as Pete Buttigieg, mayor of South Bend, Ind., and Sens. Amy Klobuchar (D-Minn.) and Michael Bennet (D-Colo.) are pushing for a public option — an idea that has far more momentum among the Democratic contenders.
One potential volume boon for insurers was signaled by all 10 candidates who debated Thursday night supporting extending coverage to undocumented immigrants, or roughly 10 million to 11 million people. Ipsita Smolinski, managing director of the Capitol Street consulting firm, highlighted this position as “a striking change from the candidates of four years ago versus now.”
“Not that any of this could happen overnight, but that was an interesting pivot,” Smolinski said.
The candidates barely addressed an issue that Congress is trying to deal with this summer through legislation: the high costs of healthcare.
When they did touch on the issue, it was largely to decry the profits of the healthcare industry.
Warren claimed that last year insurers “sucked $23 billion in profits out of the healthcare system” and that the money went to executives and lobbyists. This was a reference to the 2018 report by the National Association of Insurance Commissioners that showed insurers netted $23.4 billion, up from $16.1 billion the prior year.
Warren, as well as Sanders, voted against the Senate health committee’s legislation this week that takes aim at healthcare costs. They were the only Democrats on the panel to do so.
Former Vice President Joe Biden and Klobuchar both talked about letting Medicare negotiate prices with drug companies, although pharmaceutical prices — another hot topic in Washington — got little airtime during the debates.

Canaccord Genuity Bullish On Zynerba Ahead Of CBD Gel Trial Data

Investors continue to show interest in the medical possibilities of cannabis-derived cannabidiol, or CBD, eagerly watching Zynerba Pharmaceuticals Inc ZYNE 6.14% as it begins patient trials on a CBD-infused skin gel aimed at treating Fragile X syndrome.
Canaccord Genuity reiterated a bullish stance on the stock Thursday after meeting with Zynerba CEO Armando Anido.

The Analyst

Sumant Kulkarni reiterated a Buy rating on Zynerba with an $18 price target.

The Thesis

“We believe the stock presents a significant opportunity for risk-tolerant investors,” Kulkarni said in the note. (See his track record here.)
The 14-week trial for the Fragile X transdermal skin gel, Zygel, is on track for a data readout in the second half of 2019, the analyst said.
If the results show some success, Zynerba hopes to gain approval in 2021.
Canaccord Genuity is modeling a 50% probability of approval for the FXS treatment.
The company is also expecting open-label data on the use of the drug for developmental and epileptic encephalopathies in the third quarter of 2019, but the trial for Fragile X treatment is the bigger inflection point, Kulkarni said.

Walgreens Analyst’s Takeaways From Q3 Earnings

Walgreens Boots Alliance Inc WBA 0.02% on Thursday reported fiscal third-quarter results, which prompted Wells Fargo to reaffirm a bullish stance.

The Analyst

Wells Fargo’s Peter Costa maintains an Outperform rating on Walgreens with a $65 price target.

The Thesis

Walgreens reported an EPS beat at $1.47 versus Wells Fargo’s estimate of $1.38. Costa said the beat can be attributed to strong performance in the U.S. Retail Pharmacy business where pharmacy sales accelerated from 1.9% in the prior quarter to 6%, while retail sales improved sequentially from down 3.8% to down 1.1%. To a smaller extent, the Pharmacy Wholesale business also contributed to the earnings beat.
Costa said the company benefited from two separate one-time events in the quarter, including the timing of payer contracts and from the acceleration of real estate savings. The original timing of these events was expected to come in the fiscal fourth quarter, which creates a difficult year-over-year comparison.
The company also ramped up investments in store labor and digital/development expenses in the quarter. Management discussed on the conference call some of its strategic initiatives, including key partnerships, store optimization and digitization. The company remains on track to realize $1.5 billion in annual cost savings by fiscal 2022.

Sol-Gel in new deal with Perrigo for antibiotic foams

Sol-Gel Technologies (SLGL +1.6%) has consummated its seventh collaboration agreement with Perrigo (PRGO +1.7%), this one aimed at the development, manufacture and commercialization of two new generic antibiotic foams.
Consistent with earlier deals, SLGL will pursue regulatory approval in the U.S. If successful, PRGO will commercialize. The companies will share development costs and gross profits.
Specific financial terms are not disclosed.

Barriers Remain High for Opioid Use Disorder Treatment

A group of researchers recently conducted a telltale survey: posing as heroin users with opioid use disorder (OUD), they called clinics to schedule an appointment for a buprenorphine prescription, claiming to be either Medicaid patients or uninsured.
The research team placed 1,092 calls to buprenorphine prescribers in areas with high rates of opioid deaths — Massachusetts, Maryland, New Hampshire, Ohio, West Virginia, and Washington, D.C.
About half (46%) of the “secret shoppers” who said they were on Medicaid and 38% who said they were uninsured were unable to get an appointment. Only 27% of Medicaid and 41% of uninsured contacts were offered an appointment with the possibility of buprenorphine prescription at the first visit.
The study, published in the Annals of Internal Medicine in June, illustrates how difficult it can be to get OUD treatment. “We were surprised to find roadblocks at every step of the process of getting buprenorphine, from finding a clinic with any prescribed, to finding one that will take public insurance,” senior author Michael Barnett, MD, of Harvard T.H. Chan School of Public Health in Boston, said in a statement.
While improving OUD treatment is a national priority, barriers remain high. Prior authorization requirements and treatment restrictions disrupt and delay access to OUD therapy, experts said during a Medicaid and CHIP Payment Access Commission (MACPAC) meeting earlier this year.
Another hurdle is stigma, for both patients and providers. And patient stigma raises privacy questions: making patients’ drug addiction treatment records more easily available is “a very thorny issue,” observed Peter Kaufman, MD, of Bethesda, Maryland, at the American Medical Association meeting earlier this month. “You’d definitely want to know what drugs the patient is on at any time, but on the other hand, you don’t want people with a substance abuse problem to have any inhibition … to get substance abuse treatment … I challenge you to come up with a good solution for that.”
In other countries, opioid overuse is handled much differently, noted Charles Reznikoff, MD, of the University of Minnesota in Minneapolis, at the American College of Physicians annual meeting in April.
In the U.S., only specially certified prescribers can provide buprenorphine, a key component of medication-assisted treatment (MAT). But in 1995, France began allowing any doctor to prescribe buprenorphine for OUD. “Now the majority of patients [there] with OUD are receiving buprenorphine from their primary care physicians,” Reznikoff explained. These changes led to a 10-fold increase in buprenorphine prescribing in France “and the overdose death rate dropped by 80%,” he added, noting that half of all people with OUD in France are on addiction medications, compared with 15% in the U.S.
Of all the specialty treatment facilities in the U.S., only 36% provide any type of FDA-approved medications for opioid use disorder, Rep. Elijah Cummings (D-Md.), pointed out at a House Committee on Oversight and Reform hearing last week. Citing a National Academies of Sciences, Engineering, and Medicine report, he said the opioid problem was not being addressed adequately because evidence-based medications were “not being deployed to maximum impact.”
Overall efforts to stem the opioid epidemic have been “woefully inadequate,” Cummings continued, pointing to the Trump administration’s 2-year delay in issuing a formal National Drug Control Strategy. He also criticized its goal of reducing overdose deaths by “only 15%” over 5 years.
The Comprehensive Addiction Resources Emergency (CARE) Act, reintroduced this year by Cummings and Sen. Elizabeth Warren (D-Mass.), could help build a “robust treatment infrastructure,” increase MAT, and support “wrap-around” services, he suggested. The bill, which provides $100 billion over 10 years, is modeled on the Ryan White Comprehensive AIDS Resources Emergency Act that helped curb the HIV/AIDS epidemic.
More solutions may come from a new study by the Helping to End Addiction Long-Term (HEAL) initiative that aims to cut opioid overdose deaths by 40% in select Kentucky, Ohio, New York, and Massachusetts communities within 3 years.
HEAL awarded grants to academic institutions in the four states; each will partner with at least 15 communities to assess the effect of integrating evidence-based prevention, treatment, and recovery interventions in primary care, behavioral health, justice, and other settings.
“We’ve been doing it in isolation, but we’ve never done something as ambitious as this” with an integrated effort, said Nora Volkow, MD, director of the National Institute on Drug Abuse. “The communities themselves are going to be the laboratory that is going to allow us to learn how to address the crisis.”
In the meantime, the FDA is working to expand naloxone access by making it easier for companies to make over-the-counter versions of the opioid overdose treatment. In April, the agency approved the first generic version of naloxone nasal spray to halt or reverse suspected opioid overdose. And scientists continue to test new ways to curb addiction: a preliminary study this year showed cannabidiol may have the potential to diminish cravings and anxiety in people with heroin use disorder.

ISS Backs Call for Vote Against Progenics Pharmaceuticals Directors

Velan Capital, L.P. (together with the other participants in its solicitation, “Velan” or “we”), one of the largest stockholders of Progenics Pharmaceuticals, Inc. (“Progenics” or the “Company”)(NASDAQ: PGNX), comprised of successful specialty pharmaceutical operators and financial services experts, today announced that Institutional Shareholder Services Inc. (“ISS”), a leading independent proxy advisory firm, has endorsed its call for change on the Progenics Board of Directors (the “Board”), highlighting the Board’s seeming unwillingness to recognize the underperformance of the Company under its guidance and noting the Board’s failure to hold management accountable for numerous operational and strategic missteps. In its report issued on June 28, 2019ISS recommended that stockholders support Velan’s call for change by voting AGAINST the election of Progenics directors Peter Crowley and Michael Kishbauch at the Company’s upcoming Annual Meeting of Stockholders scheduled to be held on July 11, 2019 (the “Annual Meeting”).
ISS’ overwhelming show of support and recommendation that stockholders vote in accordance with Velan’s campaign for change signifies that change on the Board is needed to ensure that stockholder alignment is established, accountability is instilled, and the Company creates long-term value for its stockholders.
“We are pleased that ISS, like Velan and many other stockholders, recognizes the need for change at Progenics,” said Bala Venkataraman of Velan Capital. “Given the poor performance of the Company under the incumbent Board, exemplified by its lack of urgency to provide products to cancer patients in a timely manner, and the Board’s proclivity to put its interests above those of true stockholders, we urge stockholders to support real change by VOTING TODAY as recommended by ISSAGAINST Messrs. Crowley and Kishbauch. Without real change, there can be little hope that Progenics will realize its full potential.”