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Novo Nordisk boosts lobbying as it seeks Medicare coverage for obesity drugs on August 22, 2023 at 10:00 am Business News | The Hill

Published

1 year ago

August 22, 2023

Novo Nordisk, the maker of the weight loss drug Wegovy and diabetes medication Ozempic, went on a federal lobbying spending spree in the first six months of 2023.

The Danish drugmaker is pushing Congress to pass a bill that would nix Medicare restrictions on covering weight management treatments.

Novo Nordisk has hired three new lobbying firms over the past three months, all of which disclosed being solely focused on issues related to obesity and Medicare coverage of anti-obesity drugs.

A 2003 law excludes weight-loss drugs from coverage under Medicare, the federal program that provides health coverage for older Americans. But since the American Medical Association recognized obesity as a disease in 2013, momentum has been building to shift federal policy.

“When Congress created the Medicare Part D drug benefit in 2003 the medical community’s understanding of obesity was in its infancy,” Nicole Ferreira, senior manager of corporate communications at Novo Nordisk, told The Hill in a written statement.

“Since then, the science has advanced, and we have learned obesity is a chronic, treatable disease — not simply a behavioral issue,” Ferreira wrote.

Sens. Tom Carper (D-Del.) and Bill Cassidy (R-La.) and Reps. Raul Ruiz (D-Calif.) and Brad Wenstrup (R-Ohio) reintroduced the Treat and Reduce Obesity Act, which would expand coverage of weight management medication to qualifying Medicare beneficiaries, before the August recess.

Novo Nordisk lobbies up

While the Treat and Reduce Obesity Act has stalled each time it’s been reintroduced over the last decade, drugmakers are capitalizing on several new factors to plead their case.

Public demand for the weight-loss drug is high and initial clinical trials recently suggested Wegovy reduces the risk of serious heart problems.

Qualifying federal employees are also now eligible for anti-obesity medication coverage, the U.S. Office of Personnel Management clarified in January.

“We recognize the progress made in covering anti-obesity medications; our goal is to have all Carriers offer adequate coverage,” the guidance reads.

From January through June 2023, Novo Nordisk spent nearly $2.9 million on federal lobbying for a range of policy issues including obesity drug coverage and the Treat and Reduce Obesity Act, according to federal lobbying data analyzed by the money-in-politics group OpenSecrets.

There are more lobbyists than ever on the Novo Nordisk payroll.

Sixty-three lobbyists, 44 of whom have swung through the so-called “revolving door” between the private sector and the government, registered to lobby on behalf of the drug maker in the first half of 2023, according to OpenSecrets data.

Novo Nordisk had 50 total lobbyists in 2022 and 28 in 2019.

Since the end of June, two new lobbying firms registered three new lobbyists to work on issues related to obesity on behalf of Novo Nordisk.

One of the new lobbyists is Bill Ghent, a member of the Subject Matters government relations team and former chief of staff to Carper, the bill’s lead sponsor. Ghent was Carper’s legislative director when the senator first introduced the bill in 2012.

Ghent did not return The Hill’s request for comment.

Shortages, cost concerns could derail momentum

Questions of cost and supply constraints are clouding the hype surrounding these new drugs.

The demand has not only made it harder for people to access the anti-obesity drug, but also for patients with diabetes to access the medication they need.

Wegovy and Ozempic are both injections that contain semaglutide, although the dosage per pen and regulator-approved uses differentiate the drugs.

The Food and Drug Administration (FDA) approved Ozempic to treat type 2 diabetes in 2017 and the higher-dose Wegovy for weight loss in 2021.

Although Ozempic has not been approved for weight loss, it’s sometimes prescribed off-label — meaning for a purpose outside the one approved by the FDA — as demand for weight loss drugs soars. But off label usage is often not covered by insurers.

Demand for the drug has also outpaced supply, leading the FDA to note that Wegovy and Ozempic semaglutide injections are “currently in shortage.”

“We understand how frustrating this situation is for the communities we serve and appreciate everyone’s patience as we continue to navigate significant demand for Wegovy,” Ferreira said.

“Please know that our commitment to the obesity community is a long-term one and we are investing significantly to build capacity to meet this increasing demand.”

Could Medicare coverage help pricing?

It’s unclear how expanded Medicare coverage would impact already-high demand.

There’s also an ongoing debate on the cost of covering anti-obesity treatments, as the Congressional Budget Office has yet to officially score the Treat and Reduce Obesity Act.

Researchers at Vanderbilt University Medical Center estimated that covering new anti-obesity medications for just 10 percent of Medicare beneficiaries could cost the federal program up to $26.8 billion per year and drive up premiums for drug plans.

But a study by the USC Schaeffer Center for Health Policy and Economics found Medicare coverage for obesity treatments could generate up to $245 billion in savings in the first 10 years, in part due to reducing co-morbidities associated with obesity, including heart attack and stroke.

“We’ve had to talk about things as so black and white, as either don’t cover it at all or give it to everybody, and I think that there is a middle ground,” Alison Sexton Ward, a research scientist with a doctorate in applied economics who worked on the study, told The Hill in an interview.

“A lot of this conversation is being lost by the list price,” Ward added.

Wegovy is prohibitively expensive without insurance, with the list price topping $1,300 per month. While most patients won’t pay the full list price after rebates or insurance, prices are up to 10 times higher in the U.S. than in other peer nations, a recent analysis by KFF found.

Many rebates also only apply to users who actually have diabetes.

“Novo Nordisk believes the most effective way for the millions of Americans who need anti-obesity medicines to be able to access and afford them is to ensure these medicines are covered by government and commercial insurance plans,” Ferreira said.

Health trade groups rally behind bill

A constellation of organizations including the American Diabetes Association (ADA), Weight Watchers and the Obesity Action Coalition are backing the bill.

“The ADA urges swift Congressional passage of this legislation so older Americans can access the services and treatment to reduce their risk for obesity and diabetes and improve their health,” said Lisa Murdock, the ADA’s chief advocacy officer, in a written statement.

The National Kidney Foundation, American Gastroenterological Association (AGA) and Academy of Nutrition and Dietetics are among the bill’s supporters that reported lobbying work on the bill during the first half of 2023, ahead of its reintroduction.

“Because many private insurance companies model their health benefits to reflect Medicare, the passage of the bipartisan TROA could lead to improved obesity care options for all Americans,” Dr. Rotonya Carr, chair of the AGA Government Affairs Committee, told The Hill in a written statement.

“The AGA fully supports this legislation and has no reservations about expanding obesity care coverage to the millions of Americans who suffer with obesity and its complications,” Carr wrote.

Notably, the pharmaceutical industry association PhRMA has not taken a position or lobbied on the bill.

“We appreciate the focus on helping seniors access the medicines they need. As the treatment paradigm for diseases and conditions advance, it’s critical to ensure Medicare coverage policies evolve as well,” PhRMA spokesperson Nicole Longo told The Hill.

Business, Health Care, Lobbying, Novo Nordisk, ozempic, Tom Carper, wegovy Novo Nordisk, the maker of the weight loss drug Wegovy and diabetes medication Ozempic, went on a federal lobbying spending spree in the first six months of 2023. The Danish drugmaker is pushing Congress to pass a bill that would nix Medicare restrictions on covering weight management treatments. Novo Nordisk has hired three new lobbying…

Business

The Cities Bracing for Trump’s Immigration Crackdown

Published

7 days ago

November 8, 2024

Bolanle Media Staff

In the wake of Donald Trump’s recent election victory and his promise of “the largest deportation operation in American history,” several major U.S. cities are bracing for potentially seismic shifts in their economic and social landscapes. As the nation grapples with the implications of this proposed policy, urban centers that have long been havens for immigrant communities find themselves at the epicenter of a looming storm.

Los Angeles, often dubbed the “City of Angels,” stands to lose more than its celestial nickname suggests. As a primary gateway for immigrants, the city’s vibrant tapestry of cultures and its economic engine could face significant disruption. From the bustling streets of Koreatown to the sun-drenched orchards of the Central Valley, the absence of undocumented workers could leave gaping holes in the city’s workforce and cultural identity.

Across the country, New York City, with its iconic skyline and melting pot reputation, faces its own reckoning. The Big Apple’s 5.9 million immigrants, many of whom are undocumented, form the backbone of industries ranging from construction to healthcare. The potential exodus could transform neighborhoods like Jackson Heights and Flushing, altering the very essence of what makes New York a global city.In the Sunshine State, Miami’s tropical allure belies the turbulent times ahead. Home to 2.5 million immigrants, the city’s economy relies heavily on sectors like tourism and hospitality – industries where undocumented workers often fill crucial roles. The potential deportation of these workers could send shockwaves through Miami’s economic ecosystem, from South Beach’s glitzy hotels to the agricultural heartlands of South Florida.

Chicago, the “City of Big Shoulders,” may find those shoulders significantly weakened. With 1.7 million immigrants in its metropolitan area, the Windy City’s diverse neighborhoods and industries face an uncertain future. From the meatpacking plants to the tech startups, Chicago’s economic resilience could be tested like never before.

In the Lone Star State, Houston and Dallas stand as twin testaments to the complexities of immigration policy. These Texas titans, each home to large immigrant populations, could see their booming economies stumble. The construction sites that dot their ever-expanding skylines and the service industries that keep these cities humming could face unprecedented labor shortages.

Out West, the San Francisco Bay Area’s reputation as a bastion of innovation and progress could be challenged. The region’s tech industry, often reliant on immigrant talent, might find itself grappling with a new reality. From Silicon Valley’s coding campuses to the agricultural expanses of the Central Valley, California’s economic powerhouse could face a reckoning. Phoenix, rising from the Sonoran Desert, could see its growth trajectory altered. As Arizona’s urban center, it stands at the forefront of the immigration debate, potentially facing not just economic impacts but social and political upheaval as well.

These cities, along with others like San Diego and Las Vegas, are not just facing potential economic disruptions. They are staring down the barrel of profound social change. Family separations, community fragmentation, and the erosion of cultural enclaves built over generations are all possible consequences of mass deportations. Moreover, the fiscal implications are staggering. Undocumented immigrants contribute billions in taxes annually, often without receiving the full benefits of their contributions. Their sudden absence could leave gaping holes in city budgets, potentially affecting public services and infrastructure projects.

As these urban centers brace for impact, the debate rages on. Supporters of stricter immigration policies argue for the need to enforce laws and protect American jobs. Critics warn of economic devastation and the unraveling of America’s urban fabric. What’s clear is that America’s cities stand at a crossroads. The coming months and years will likely reshape urban landscapes in ways both visible and invisible. From the foods we eat to the services we rely on, from the neighborhoods we call home to the very character of our cities, the impacts of this proposed immigration crackdown could be far-reaching and long-lasting. As the nation watches and waits, these cities – vibrant, diverse, and economically vital – find themselves on the front lines of a policy that could redefine what it means to be an American city in the 21st century.

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Business

How Trump’s Deportation Plans Could Reshape Major Cities

Published

7 days ago

November 8, 2024

Bolanle Media Staff

In the wake of Donald Trump’s recent election victory, his ambitious plans for mass deportations have thrust America’s urban centers into the spotlight. As the nation grapples with the potential implications of what Trump calls “the largest deportation operation in American history,” cities across the country are bracing for significant changes that could reshape their economic, social, and cultural landscapes.

The stakes are particularly high for metropolitan areas like New York, Los Angeles, Houston, Dallas, and Miami, which host the largest populations of unauthorized immigrants. These cities, along with other major urban hubs such as Chicago, Washington D.C., and San Francisco, stand at the forefront of a looming transformation that could reverberate throughout the nation.

Economic Tremors

Economists warn that the proposed deportations could send shockwaves through urban economies. Mark Zandi, chief economist at Moody’s, cautions that businesses would face “significant challenges” if a substantial number of immigrants were removed. Industries such as construction, hospitality, and healthcare—pillars of urban economies—could face severe labor shortages.

Joe Brusuelas, chief economist at RSM, emphasizes the potential ripple effects: “The native-born workforce cannot meet current labor demands.” This labor gap could lead to increased wages, potentially rekindling inflation—a concern that looms large over city planners and policymakers alike.

Community Fabric Under Strain

Beyond economic considerations, the social fabric of cities hangs in the balance. Elena, a Nicaraguan immigrant in Houston, voices a fear echoed in immigrant communities across the nation: “I’m scared… This is my home.” The threat of family separations, particularly in mixed-status households, casts a long shadow over urban neighborhoods.

Immigrant advocacy groups like FIEL are mobilizing, advising clients to prepare for “anything that can happen.” This atmosphere of uncertainty could lead to decreased community engagement and cooperation with local authorities, potentially impacting public safety and community cohesion.

Cities at a Crossroads

As the debate intensifies, cities find themselves at a crossroads. Some, like New York and Los Angeles, have historically positioned themselves as “sanctuary cities,” often at odds with federal immigration enforcement. The impending clash between federal policy and local governance promises to be a defining feature of this new political landscape.

Meanwhile, the logistical challenges of implementing such a massive deportation operation remain daunting. Questions abound regarding detention facilities, transportation networks, and the sheer manpower required to carry out Trump’s vision.

Looking Ahead

As America’s urban centers brace for potential change, the full impact of Trump’s deportation plans remains to be seen. Legal challenges are all but certain, and the resilience of America’s cities will be put to the test.

What is clear is that the coming months and years will be pivotal for urban America. As Jason Miller, a senior Trump adviser, puts it, the plan is to “immediately reinstate” immigration policies from Trump’s first term. For America’s cities, this could mean a period of unprecedented change, challenge, and, potentially, transformation.

As the nation watches and waits, the story of America’s cities in the face of this ambitious deportation plan is just beginning to unfold. The outcome will undoubtedly shape the future of urban life in America for years to come.

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Business

Donald Trump Wins 2024 USA Election

Published

1 week ago

November 6, 2024

Bolanle Media Staff

Based on the election results, Donald Trump has indeed won the 2024 U.S. presidential election, defeating Vice President Kamala Harris. Here’s an analysis of the key statistics and implications:

Electoral College Victory

Donald Trump has secured the presidency by winning crucial battleground states and flipping some key states that were previously held by Democrats. The final Electoral College tally is still being determined, but Trump has surpassed the 270 electoral votes needed to win.

Battleground State Performance

Trump’s victory was largely secured by winning several critical swing states:

Wisconsin: Trump’s win here was pivotal in securing his path to victory.
Pennsylvania: This state flipped back to Republican control.
Georgia: Another key state that Trump managed to win back.
Michigan: Trump successfully flipped this traditionally Democratic stronghold.

Popular Vote and Voter Priorities

While the final popular vote tally is still being calculated, exit polls provide insight into voter priorities:

Economy and democracy were top concerns for voters.
Abortion and immigration also played significant roles in voter decision-making.

Congressional Control

The election results extend beyond the presidency:

Republicans are set to take back the Senate majority, securing at least 51 seats.
Control of the House of Representatives remains undetermined.

Media Implications

The outcome of this election could be seen as a challenge to mainstream media narratives for several reasons:

Polling Discrepancies: Many pre-election polls suggested a tight race or even a slight Harris advantage in key states. Trump’s victory, particularly in battleground states, may indicate that polls underestimated his support.
Narrative Shifts: Throughout the campaign, much of the mainstream media focused on Trump’s legal challenges and controversies. His victory suggests that these issues may not have resonated with voters as much as economic and policy concerns.
Voter Priorities: The emphasis on issues like the economy and immigration in voter decision-making may indicate a disconnect between media focus and voter concerns.
Electoral Predictions: Many mainstream outlets were cautious about predicting a Trump victory, even as results began to favor him. This hesitancy could be seen as a reflection of broader media skepticism about Trump’s chances.
Underestimation of Trump’s Base: The results suggest that Trump’s core support remained strong and potentially grew, despite negative coverage in much of the mainstream media.

It’s important to note that while the election outcome may challenge some media narratives, it doesn’t necessarily invalidate all mainstream reporting. The complex factors influencing voter behavior and the challenges of accurate political forecasting remain subjects of ongoing analysis and debate.

As the dust settles on this historic election, both the media and political analysts will likely engage in extensive reflection on the factors that led to Trump’s victory and the implications for future political coverage and analysis.