Industry Briefing #13

Healthcare media highlights

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The Briefing
Published date
June 24, 2024

The Briefing keeps consultants ahead by unpacking essential trends and emerging questions they can answer through market research.

On this week’s issue: A US Supreme Court ruling upholds access to the abortion pill mifepristone. Medical trends are shifting toward work-life balance and holistic health. The Center for Medicare and Medicaid Services faces lawsuits amid regulatory changes. Insurance companies are rethinking their approach to costly weight loss drugs. Efforts to boost cybersecurity in rural hospitals are being made by both the government and tech companies.

A new US Supreme Court ruling upholds access to abortion pill mifepristone. 

Both medical trends and public sentiment are shifting to a focus on work-life balance and holistic health. 

The Center for Medicare and Medicaid Services has recently been at the center of multiple lawsuits amid shifting regulations. 

Insurance companies are changing their approach to weight loss drugs due to high costs. 

Both the government and tech companies are working to increase access to cybersecurity tools for rural hospitals. 

The US Supreme Court votes to uphold access to mifepristone.

On June 10th, the US Supreme Court voted to uphold access to the abortion pill mifepristone. The FDA has approved the prescription of mifepristone via telehealth services and pharmacies, although access is limited in some states after Roe vs. Wade was overturned in June 2022. 

The Supreme Court has voted unanimously to protect access to abortion pill mifepristone in a new ruling. 

Despite varied attitudes regarding abortion access among the current justices, the Supreme Court voted unanimously in this case. The ruling found that the plaintiffs, the Alliance for Hippocratic Medicine, did not have the authority to challenge the FDA’s ruling. This decision comes a year and a half after the official lawsuit was filed, although some pro-life healthcare and advocacy groups have been fighting the FDA ruling since 2020. 

Many physicians’ groups applauded the Supreme Court’s ruling in this case, especially as many studies over the past two decades have found it to be safe. In addition to providing abortion care, mifepristone is also used to manage miscarriages safely

This ruling does not change the status of broader abortion access on a federal level, as abortion still remains illegal in many states. However, the ruling could be indicative of shifting public attitudes regarding abortion care.  

Recent medical research illustrates the benefits of work-life balance.

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Anecdotally, most people understand just how important work-life balance is for maintaining health and wellness. However, recent medical studies have explored this concept even further, highlighting just how effective and important a balanced lifestyle is to health outcomes. 

One recent study focused on the benefits of hybrid work schedules. With a hybrid work schedule, employees work from the office on some days and work from the office on other days. This approach has become very popular throughout North America and Europe, but some executives have been very resistant to it. 

The study followed over 1600 employees at a Chinese technology company over the course of a year as they followed a hybrid work schedule. The study found that the hybrid work model reduced quit rates by one-third and resulted in better job satisfaction, without any reduction in work performance. This study is unique in that it focused on some of the long-term benefits of adopting a more flexible hybrid work schedule. 

A recent study found that hybrid work models reduced quit rates by one-third and improved overall job satisfaction.

Since job satisfaction and health are linked, it’s possible that switching to hybrid work models could result in better health outcomes for future employees. However, more research would be necessary to explore this possibility. 

Hybrid work models are just one way that better work-life balance and a well-rounded life could improve your health. Recently, many American doctors have explored the concept of social prescribing, in which doctors prescribe exercise, cultural activities, or social gatherings as an alternative to traditional medicine. Proponents believe that these activities could help offset some of the stress that comes with a busy work schedule and family life, and potentially improve long-term health outcomes. 

Changes to Medicare Advantage legislation has resulted in multiple lawsuits against CMS.

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The Center for Medicare and Medicaid Services has been at the center of multiple lawsuits recently as a result of changes to Medicare Advantage. One lawsuit from Elevance Health centered around CMS’s methodology for calculating Medicare Advantage ratings. CMS gives plans ratings of one to five stars based on the quality of the plan and experiences from previous members. 

This lawsuit was filed after Elevance Health projected a $500 million loss in bonus payments on an earnings call, due in part to stagnating star ratings. The court ultimately found that CMS did not follow its own administrative rules when calculating star ratings for Elevance’s subsidiary plans. 

However, this hasn’t stopped Elevance Health from focusing on Medicare Advantage plans. In fact, the company has an opportunity to expand their MA offerings as other insurers like Aetna and Humana plan to cut back on their offerings. These cuts are due in part to slowing Medicare Advantage growth as a whole and stagnating profits for many insurers. 

Another CMS lawsuit comes not from MA insurance providers, but from insurance brokers. CMS recently took steps to regulate marketing practices for Medicare Advantage and Part D plans, with the goal of eliminating predatory marketing practices. This new regulation will limit compensation for insurance brokers when promoting MA plans. However, brokers groups are suing CMS, stating that the changes could result in a significant loss of business. 

Both the Biden Administration and CMS have been focusing recently on making Medicare coverage more accessible and reducing predatory practices. However, these recent changes could shift the way that insurance providers do business. 

Insurers are reconsidering their approach to weight loss drugs.

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GLP-1 receptor agonists like Ozempic and Wegovy have been in high demand recently due to their effectiveness in promoting weight loss. Initially approved to manage blood sugar levels in patients with type 2 diabetes, these drugs have now become a popular treatment for patients with obesity. 

However, the high demand for these products has come with a high cost. As prices for these drugs increase, insurers are reconsidering their coverage options. Most notably, Blue Cross Blue Shield of Michigan recently announced that they will no longer be covering GLP-1 drugs in some of its plans starting in 2025. This is due in part to the drug’s high price tag, which can be over $1,000 per month, per user

Some insurers are reconsidering wight loss drug coverage due to high prices, which can total over $1,000 per month, per patient

At the recent AHIP 2024 conference, many healthcare and insurance experts discussed the financial challenges that come with covering GLP-1 drugs. With the current model, it’s often up to insurance providers to decide who can and can’t access these medications. One speaker proposed that doctors and clinicians should be more discerning when prescribing these drugs, rather than putting the onus on insurance providers. 

US congressional leaders are also scrutinizing the high prices of GLP-1 receptor agonists. Senator Bernie Sanders recently called a vote to subpoena Novo Nordisk’s chief of US operations as part of a broader investigation into the company’s pricing structure for Ozempic and Wegovy. The subpoena would come after failed attempts to schedule a voluntary hearing. 

Rural hospitals are beefing up their cybersecurity in the wake of recent data breaches.

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The healthcare industry has seen several devastating cyberattacks over the past few months. In February, the Change Healthcare cyberattack shocked the entire industry, with many organizations feeling the ripple effects for months afterward. More recently, private healthcare system Ascension confirmed that it had been targeted by a ransomware attack, leaving protected health information exposed

Rural hospitals and healthcare providers are often hit the hardest by these cyberattacks, as they don’t always have the technology in place to combat them. Combine that with often-limited staffing and financial resources, as well as a local population that doesn’t have many other options, and you get rural providers that aren’t properly equipped to operate in the wake of a cybersecurity incident. 

To address this problem, major tech companies and government agencies have partnered up to improve cybersecurity tools for over 1,800 rural hospitals across the country. Microsoft and Google will be working with the Biden Administration, the American Hospital Association, and the National Rural Health Association on this initiative. 

1,800 US government agencies are partnering with Microsoft and Google to offer cybersecurity solutions for more than 1,800 rural hospitals throughout the US.

Microsoft is launching an entirely new cybersecurity program designed for rural hospitals, which will include low- and no-cost cybersecurity products, free assessments, and free training for qualifying organizations. Google will be providing free endpoint security to these hospitals while providing support for necessary software migration. Google is also building a pilot program that would expand cybersecurity services for these rural hospitals. 

By expanding access to cybersecurity tools, rural hospitals will be able to respond more effectively when data breaches happen. Ideally, this will prevent cyberattacks from interfering with care for rural patients. 

Questions to Stay One Step Ahead

There are so many exciting changes and debates happening in the healthcare industry right now. As organizations work to expand access to new products, treatments, and healthcare coverage, keeping costs in check has become a significant concern. Both physical and digital security is also an important concern for healthcare providers navigating the complexities of new healthcare technology. Questions to consider include: 

  • Abortion pill access: How do consumers feel about the recent Supreme Court ruling? How does this decision shift their perspectives of the current political landscape in the United States? 
  • Work-life balance: Are consumers prioritizing work-life balance? Have consumers who do prioritize work-life balance seen a shift in their health status? 
  • Weight loss drugs: How does the price of weight loss drugs affect consumer perceptions of them? At what price would consumers be willing to pay out-of-pocket for them?  

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