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Trump administration clears way for Obamacare insurer program. The Trump administration is asking for input on how to improve an Obamacare program that earlier appeared to be on the chopping block. The risk adjustment program collects and pays out billions of dollars to health insurance companies. The administration had already announced it planned this year to authorize the program for 2017, after initially saying it was putting payments on hold due to a court ruling that challenged how the payments are calculated. Democrats and Obamacare allies charged that the pause was an act of sabotage. Now, in what appears to be an about-face, the Centers for Medicare and Medicaid Services is asking for comment about how to move forward in 2018 for the payments that will go out in 2019.

The roughly $10 billion in payments are intended to reduce incentives for health insurers to try to bring in only healthy customers and avoid customers with pre-existing medical conditions that need ongoing treatment, such as cancer or diabetes. Insurers who have healthier customers chip into a fund to alleviate costs for those whose customers need more expensive medical services. “Today’s proposed rule continues our effort to help stabilize the individual and small group markets,” Seema Verma, CMS administrator, said in a statement. “Our goal has been, and will continue to be, to stabilize the market and provide American consumers with more affordable health coverage options.”

Welcome to Philip Klein’s Daily on Healthcare, compiled by Washington Examiner Managing Editor Philip Klein (@philipaklein), Senior Healthcare Writer Kimberly Leonard (@LeonardKL) and Healthcare Reporter Robert King (@rking_19).  Email [email protected] for tips, suggestions, calendar items and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email and we’ll add you to our list.

Alexandria Ocasio-Cortez defends cost of Medicare for All by citing funeral expenses. Alexandria Ocasio-Cortez, the progressive darling who shocked the political world by toppling 10-term incumbent Joe Crowley earlier this year, defended the high price tag for expanding Medicare for all Americans. “People talk about the sticker shock of Medicare for all, but don’t talk about the sticker shock of the cost of our existing system,” she said on CNN’s Cuomo Prime Time on Wednesday. Ocasio-Cortez asked: Why aren’t “we incorporating the cost of all the funeral expenses of those who died because they can’t afford the cost of healthcare?” She added that there is also a cost of reduced productivity when someone with a chronic condition like diabetes cannot get healthcare. “At the end of the day we see that this is not a pipe dream,” she said.

Chris Collins calls insider trading charges ‘meritless.’ Rep. Chris Collins, R-N.Y., accused of insider trading by federal prosecutors, defended his actions on Wednesday during his first in-person remarks since being indicted. “The charges that have been levied against me are meritless, and I will mount a vigorous defense in court to clear my name,” Collins, the first sitting member of Congress to endorse President Trump, said at a Wednesday night press conference in Buffalo, N.Y., alongside his wife. “I look forward to being fully vindicated and exonerated, ending any and all questions relating to my affiliation with Innate.” Collins, who was the largest stockholder in Innate Immunotherapeutics Limited, said he was “proud” of his association with the Australia-based pharmaceutical company, which was developing a drug to combat secondary progressive multiple sclerosis. Federal prosecutors from the U.S. Attorney’s Office for the Southern District of New York allege Cameron Collins used the information to make timely trades and to share tips with others, including his soon-to-be father-in-law. The trades allowed them to avoid $786,000 in losses, according to the indictment.

Insurance giant UnitedHealthcare reportedly in talks to buy pharmacy company: Insurer giant UnitedHealthcare is close to a deal to buy pharmacy operator Genoa, becoming the latest insurer to expand into the pharmacy market, according to a report in Axios. The news comes as other insurance giants are making moves to buy or merge with either pharmacy chains or pharmacy benefit managers, which are middlemen that operate drug plans for insurers. Insurer Aetna is in talks to merge with CVS and insurer Cigna wants to buy pharmacy benefit manager Express Scripts.

Why are so many insurers buying or merging with pharmacies and PBMs? The short answer appears to be Amazon, which is looking to get into the healthcare market. Amazon bought the online pharmacy PillPack for $1 billion earlier this year. Amazon CEO Jeff Bezos is also looking to create a new healthcare entity, working alongside Berkshire Hathaway Chairman Warren Buffett and JP Morgan CEO Jamie Dimon.  But the insurer-pharmacy deals have gotten stiff opposition. The major doctor’s group American Medical Association opposes the CVS-Aetna merger on the grounds that it could hinder competition and lead to higher prices. The group asked the Department of Justice to block the merger. Activist investor Carl Icahn also urged Cigna investors to block the $60 billion purchase of Express Scripts because the insurer is “drastically overpaying.”

Planned Parenthood and progressive groups unveil #dearsenator campaign to fight Kavanaugh pick. Planned Parenthood’s political arm and a coalition of progressive groups are pushing senators to oppose Supreme Court pick Brett Kavanaugh by sharing stories from their constituents. The campaign, called #dearsenators, hopes to use personal stories from constituents on how Kavanaugh could affect their lives if he is confirmed to the Supreme Court.  

Record number of flu vaccines headed to the U.S. Health officials are already gearing up for the 2018-19 flu season. Glaxosmithkline has announced it will begin shipping its flu vaccine to healthcare providers and pharmacies now that it has received the green light from the Food and Drug Administration. Between 40 million to 45 million vaccines are expected to be shipped.

Argentina senate rejects measure to legalize abortion. Argentina’s Senate has rejected a bill that would legalize abortion up to 14 weeks. The bill, rejected 38 to 31 early Thursday morning, would have undone current restrictions on abortion that allow it only in cases of rape, incest, or when a woman’s pregnancy threatens her life. Argentina President Mauricio Macri had said he would sign the legislation, though he is a conservative and personally opposes abortion. Argentina, a predominantly Catholic nation that is the homeland of Pope Francis, would have become the most populous country in Latin America to legalize abortion.

Medical teams battle Ebola outbreak in Congo with experimental vaccine. Medical teams have started using an experimental vaccine to contain the latest Ebola outbreak in the Democratic Republic of the Congo. The same vaccine, known as rVSV-ZEBOV, helped to end the spread of Ebola in another part of the country just weeks earlier. The World Health Organization has 3,200 vaccines and is requesting more. The latest outbreak is in North Kivu province, a war-torn region that borders Uganda and Rwanda. At least 44 cases have been reported, and 36 people have died. “Ebola is aggressive,” said Dr. Tedros Adhanom Ghebreyesus, WHO’s director-general. “We must respond more aggressively. Beginning the vaccination so quickly is a key early step.”

RUNDOWN

Axios CVS Health’s rebate disclosure

The Hill Patient groups rattled by new Medicare power to negotiate lower drug prices

Forbes Rite Aid, Albertsons abort merger on eve of shareholders’ vote

Reuters U.S. joins lawsuit against Indivior, Reckitt over drug Subaxone

STAT News ‘How are these results even possible?’: inside Chris Collins’ painful biotech education

Kaiser Health News Pharmacy-made pain creams flagged on fears of Medicare fraud and risk

NPR States question cost of middlemen that manage Medicaid drug benefits