This Week in Policy and Medicine – February 16, 2025

This Week in Policy and Medicine – February 16, 2025

Welcome to This Week in Policy and Medicine, where we cover key regulatory and policy developments impacting healthcare, life sciences, and medical education. Here’s what you need to know:

NIH Caps Indirect Cost Rates at 15%

The National Institutes of Health (NIH) has set a cap of 15% on indirect cost reimbursement rates for new research grants. The move is aimed at reallocating more funding toward direct research activities but has sparked pushback from academic institutions relying on indirect cost support. Read more: NIH Caps Indirect Cost Rates at 15%

CMS Is Discontinuing the MA Value-Based Insurance Design Model

The Centers for Medicare & Medicaid Services (CMS) announced that the Medicare Advantage (MA) Value-Based Insurance Design (VBID) model will not be extended beyond 2025. The program, which aimed to enhance care coordination and reduce costs, faced challenges in scaling its impact. Read more: CMS Is Discontinuing the MA Value-Based Insurance Design Model

OIG Report Finds That CMS Made Additional Risk-Adjusted Payments Related to Health Risk Assessments

A new report from the Office of Inspector General (OIG) reveals that CMS made additional risk-adjusted payments linked to health risk assessments without sufficient data validation. The findings raise concerns about potential overpayments and the need for stronger oversight in Medicare Advantage. Read more: OIG Report Finds That CMS Made Additional Risk-Adjusted Payments Related to Health Risk Assessments

DEA and HHS Extend Telehealth Prescribing Flexibilities

In response to ongoing concerns from healthcare providers, the Drug Enforcement Administration (DEA) and the Department of Health and Human Services (HHS) have extended temporary telehealth prescribing flexibilities. This extension ensures that patients continue to access critical medications remotely while regulators work on permanent policy solutions. Read more: DEA and HHS Extend Telehealth Prescribing Flexibilities

MGMA Asks Congress to Take Action on Medicare Conversion Factor Cut

The Medical Group Management Association (MGMA) is urging Congress to intervene in the latest Medicare Conversion Factor cut, which is set to reduce physician reimbursements. MGMA argues that these reductions will strain medical practices and limit patient access to care. Read more: MGMA Asks Congress to Take Action on Medicare Conversion Factor Cut

Compounder Runs Misleading Super Bowl Ad

A controversial Super Bowl advertisement by a compounding pharmacy has drawn scrutiny for allegedly misleading consumers about the safety and efficacy of its compounded medications. Regulatory agencies and industry groups are calling for increased oversight of direct-to-consumer advertising by compounders. Read more: Compounder Runs Misleading Super Bowl Ad

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CMS updatesCompounding PharmacyDEA regulationsdrug advertisinghealthcare compliancehealthcare newshealthcare podcasthealthcare policyHHS policieslife sciencesMedical EducationMedical RegulationsMedicare AdvantageMedicare reimbursementMGMA advocacyNEWNIH fundingPolicy and Medicinerisk adjustmentTelehealth
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