First, control health care costs

Last month, a group of 12 Senate Democrats proposed a framework for rebuilding the health care system. The idea was to spur input from others ahead of when Democrats might get a chance to act on those plans.

This week, an influential progressive think tank answered the call with a report aimed at lowering private insurance costs.

The report by the Center for American Progress is noteworthy for its focus on lowering costs for the insured, instead of recommending a move toward Medicare for All or a single payer system. Health care costs have gotten so bad that CAP believes Congress should prioritize getting them under control.

“The public is clamoring for lower costs now,” the report states.

Read more to learn about CAP’s recommendations.

drug industry

PhRMA’s longest serving CEO steps down

Steve Ubl is stepping down as CEO of the Pharmaceutical Research and Manufacturers Association after more than a decade leading the group.

His departure, which will come by the end of the year, provides an opportunity to reflect on the unusual string of challenges industry has faced over the past decade, including the Covid-19 pandemic and aggressive political attacks on drug prices from both parties.

Life will not be any easier for the next head of PhRMA. The Trump administration is trying to codify voluntary most-favored nation drug pricing agreements into law, while threatening 100% tariffs on companies that don’t strike similar deals. And Democrats have plans to incorporate international prices into their Medicare price negotiation program while expanding the number of drugs subject to negotiation.

Researchers win, at least for now

The Trump administration has dropped its court fight to slash National Institutes of Health funding for basic operating costs at research facilities, Megan Molteni reports.

The legal battle lasted more than a year, with courts ultimately ruling that the effort to cap payments for research overhead at 15% was illegal. Trump’s Department of Justice missed the April 6 deadline to petition the Supreme Court to review the case.

Read more to find out how the administration might still try to cut overhead funding through other avenues.

insurance industry

Crackdown, or handout?

Bob Herman chronicles the Trump administration’s policies that have benefitted health insurers, despite repeated threats from top officials to do the opposite.

The latest example is a payment rule that funnels $13 billion to industry while abandoning a reform that would have led to more accurate, and lower, payments.

Trump officials are adamant that they’re prioritizing Medicare beneficiaries and taxpayers. Read more for why those assertions ring hollow.

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@john_wilkerson