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Morning Briefing

Summaries of health policy coverage from major news organizations

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Wednesday, Jun 25 2025

Full Issue

Oz Signals Administration Looking To End Complicated Drug Rebate System

In a comment made Tuesday, CMS chief Mehmet Oz pushed for the elimination of the payments drugmakers send to pharmacy benefit managers after prescriptions are filled. Other industry news is about a sutureless peripheral nerve repair device, medical device recalls, and more.

Prescription drug middlemen should end the complicated system of drug rebates before the government steps in to change it, Medicare and Medicaid chief Mehmet Oz said Tuesday. The remarks signal the Trump administration may revive attempts to eliminate the payments drugmakers send to pharmacy benefit managers after prescriptions are filled. In his first term in 2019, President Donald Trump considered regulations that would have eliminated that system, but officials abandoned them before they went into effect. (Cohrs Zhang and Tozzi, 6/24)

More on the high costs of prescription drugs

Louisiana filed several lawsuits accusing pharmaceutical giant CVS of abusing customer information and using its dominant market position to drive up drug costs and unfairly undermine independent pharmacies, the states attorney general said Tuesday. Attorney General Liz Murrill began investigating CVS after the company sent out mass text messages to thousands of residents on June 11 to lobby against legislation that took aim at its business structure. The texts warned that medication costs could go up and all CVS pharmacies in the state would close. (Brook, 6/24)

In other pharma and tech news

A sutureless device for peripheral nerve repair could be available on the market in the coming months. The Food and Drug Administration has authorized a polymer-based device developed by medical technology company Tissium. The authorization, announced Tuesday, will give physicians a new method for treating peripheral nerve injuries. (Paulus, 6/24)

The Food and Drug Administration issued an early alert Tuesday regarding Medtronics recall of its Bravo CF capsule delivery device. Due to adhesive being incorrectly applied during the manufacturing process, the capsule might not attach to the patients esophagus or detach from the delivery device, according to the agency. Medtronic reported there were 33 serious injuries and no deaths tied to the issue. This defect puts patients at risk of aspiration or inhalation, esophagus perforation or laceration, airway obstruction, bleeding, foreign bodies remaining inside them and delayed diagnoses. (Dubinsky, 6/24)

A drug for a rare blood disorder that instead is prescribed to amp up mental clarity. A peptide approved for growth hormone deficiency that may boost muscle lost to Ozempic. A full-body MRI administered not for symptoms, but for prevention, to detect any incipient cancer. These are just a few of the tests and treatments being marketed by a growing class of health and wellness companies selling a message aligned with the Make America Healthy Again movement. (Palmer, 6/25)

In health care industry developments

Best Buy Co.s health arm is offloading the Current Health business that it bought in 2021 for $400 million. Current Health, an at-home care technology company, was one of several acquisitions Best Buy Health made as it consolidated smaller operations in the space to build its home-care segment. It still owns the Lively and PERS+ businesses. (Meier, 6/24)

Advocate Health Care may proceed with a plan to replace Advocate Trinity Hospital with a new, much smaller hospital on the South Side of Chicago, state regulators decided Tuesday, after more than a dozen community members and leaders spoke out in support of the project. (Schencker, 6/24)

The University of California San Diego Health eliminated an estimated 230 positions system-wide on Monday due to mounting financial pressure. The cuts affect an estimated 1.5% of UC San Diego Healths more than 14,000 employees, the system said in a statement Tuesday. It did not specify what types of positions were affected, whether all eliminated positions were filled, or if affected employees would have the opportunity to work elsewhere within the organization. (DeSilva, 6/24)

Ascension CEO Joseph Impicciche will retire at the end of the year after six years at the helm, the health system said Tuesday. President Eduardo Conrado will become CEO Jan. 1, according to a news release. Impicciche will help with the six-month transition period leading to his retirement. (Hudson, 6/24)

The health insurance industrys promise to cut red tape for providers and patients isnt likely to cost them very much, financial analysts said. Wall Street, which has hammered companies such as UnitedHealth Group in recent months over lackluster earnings, reacted with a shrug. That suggests investors dont expect the new practices insurers pledged to adopt will significantly increase spending on medical care, even if they help repair contentious relationships with providers and members. (Tepper, 6/24)

窪蹋勛圖厙 News: 5 Takeaways From Health Insurers New Pledge To Improve Prior Authorization

Nearly seven months after the fatal shooting of an insurance CEO in New York drew widespread attention to health insurers practice of denying or delaying doctor-ordered care, the largest U.S. insurers agreed Monday to streamline their often cumbersome preapproval system. Dozens of insurance companies, including Cigna, Aetna, Humana, and UnitedHealthcare, agreed to several measures, which include making fewer medical procedures subject to prior authorization and speeding up the review process. (Sausser and Galewitz, 6/24)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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