DNC Platform
The Democratic National Convention released its policy platform this week. Inclusion of policies should be read more as a “wish-list” rather than something that ultimately will go into law should Vice President Harris win the election. Notable health care items included in the platform called for expanding the following:
- Medicare to include dental, vision, and hearing benefits
- Increase the number of drugs Medicare can negotiate on to 50 from the current number of 15
- Extend monthly out of pocket costs on insulin spending and total cap on drug spending to commercial insurance.
- Extend inflation rebates from Medicare to commercial insurance
- Use antitrust laws on hospitals, insurance, and pharmaceutical mergers
Employer Health Care Cost Trend
Average employer-sponsored coverage costs are expected to increase by about 9% in 2025 according to a new Aon report. The majority of the increase is due to rising medical costs. However, the increased usage of GLP-1 (weight-loss) drugs are contributing. Aon estimates that about 10% of the increase in case (1% of the 9%) is due to increased GLP-1 drug usage.
Economy Watch
Several data points were released this week showing a cooling labor market. Revised government data showed job growth was much smaller in spring of 2024 than initially announced (about 818,000 fewer). It should be noted that unemployment numbers have not increased by much during this time.
California Examines PE Acquisitions
California is considering a law that would block private equity acquisition of health care facilities and providers. The law would give the state the ability to block private equity or hedge funds acquisition of certain health care organizations with revenue in excess of $25 million. Oregon passed a law in 2022. The approval of the law in California could spur other states to adopt similar laws.
