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What We're Reading: FDA's Generic Push Pays Off; Medi-Cal Cut Ruling; Anthem Reduces ACA Plans


Push to Increase Generic Competition

The FDA is determined to bring generics to the market sooner, and it’s already paying off. A new competitor for Valeant’s heart medication Isuprel has been approved, reported FiercePharma. Isuprel is part of a federal investigation into its pricing after Valeant purchased the drug and increased the price more than 300%. The new generic should be available within the month.

Medi-Cal Cuts to Hospitals Were Not Legal

A federal appeals court has decided that California’s request to cut Medi-Cal reimbursement to hospitals for outpatient care was inappropriate. The cuts came during the recession. According to the Los Angeles Times, the state cut reimbursement by 10% from July 2008 to February 2009, and if the ruling stands California hospitals will be owed hundreds of millions of dollars. The law requires that there is evidence that beneficiaries of care will have access to the same services as the rest of the population, but the government could not have been able to show that, the lawyer for the hospitals argued.

Anthem Will Scale Back ACA Participation More

Nevada’s Affordable Care Act exchange is losing Anthem’s plans, as are nearly half of the counties in Georgia. Reuters reported that Anthem’s decision to leave Nevada won’t actually increase the number of counties where residents do not have access to plans on the exchange. Anthem will still offer catastrophic plans outside of the exchange that are available to people who are under the age of 30 or have low income. The Georgia counties where Anthem is remaining are mostly rural counties that would have no other insurance coverage if Anthem left.

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