STAT+: Online care is caught in the crossfire as states crack down on corporate medicine

In less than a decade, telehealth has expanded from a sideshow of health care to an industry worth tens of billions of dollars. Companies like Hims & Hers and Teladoc have become household names, their ads interrupting streaming TV and flooding social media feeds with the promise of quick, convenient care.

Despite their popularity, few patients understand who’s actually taking care of them when they click through a telehealth site. 

National telehealth brands present a unified front to patients across the country. But in more than 30 states, it’s illegal for corporations to practice medicine. So behind the scenes, telehealth companies work with distinct, independent medical groups. Owned by physicians — who often hold 50 state licenses at once — those practices are meant to act as a firewall, making sure that clinical decisions are driven by patients’ needs, not the profits of the corporations they deal with. 

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STAT+: Trump administration releases rules for new Medicaid work requirements

WASHINGTON — The Trump administration on Monday published a highly anticipated document that lays out the rules for sweeping new requirements that many adult Medicaid beneficiaries work or attend school in order to qualify for coverage.

The rule, from the Centers for Medicare and Medicaid Services, establishes standards states must use to implement Medicaid work requirements, including who is exempt from the requirements, how to verify exemptions, and state reporting requirements. The work requirements, created as part of President Trump’s 2025 tax cut bill, are popular among Republican politicians, but generally opposed by Democrats and advocates for people who are seriously ill or have lower incomes.

According to initial estimates, the work requirement policy was expected to reduce federal Medicaid spending by $326 billion and cost 5.3 million people their Medicaid coverage. On Monday, a division of the federal Department of Health and Human Services published a research brief contending that the rules may push more people to work, reducing poverty by 1.6 million to 2.9 million people. 

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STAT+: Eli Lilly warns hospitals to submit claims data in the next five days or lose their 340B drug discounts

Eli Lilly has told about 50 hospitals participating in a federal drug discount program to submit comprehensive claims data over the next five days or they will no longer receive the mandated price breaks.

The move comes after the company announced a policy last January demanding such data in a bid to reduce what it calls duplicate discounts paid to participating hospitals. The issue has riled the pharmaceutical industry and contributed to a long-standing clash with hospitals over the 340B drug discount program.

For the past few years, more than 2,300 hospitals have complied with the demand, but some of the larger hospitals systems around the U.S. have refused to do so, despite recent follow-up letters regarding the policy that went into effect on Feb. 1, according to Derek Asay, senior vice president for government strategy and federal accounts at Lilly. Up to 1,000 have so far not complied.

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STAT+: Global coalition to fast-track three vaccines targeting Ebola outbreak with $62 million in funding

With no licensed vaccines available to protect against the Ebola virus currently spreading in Democratic Republic of Congo, efforts are underway to fast-track development of at least three vaccines. But even with infusions of cash to help fund the work, it is likely to be months before clinical trials of vaccines that specifically target the Bundibugyo ebolavirus can begin.

The Coalition for Epidemic Preparedness Innovations (CEPI) announced Monday that it is providing three entities with roughly $62 million in funding to help manufacture and test Bundibugyo vaccines. The only licensed Ebola vaccine, Merck’s Ervebo, targets the Zaire ebolavirus.

Bundibugyo virus has rarely caused outbreaks in the past; only two previous epidemics, in 2007 and 2012, have been recorded. Because it has been so infrequently seen, work to develop vaccines and therapeutics to use against this particular form of Ebola has trailed development of tools to combat other filoviruses — the family to which Ebola belongs — such as Sudan ebolavirus or Marburg, a separate virus that triggers disease similar to that caused by Ebola viruses.

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STAT+: Abivax ulcerative colitis drug shows strong efficacy, but cases of cancer raise concerns

Abivax said Monday that its experimental treatment for ulcerative colitis showed significant efficacy in a closely watched maintenance trial, but shares of the company tanked in post-market trading as it reported a few cases of cancer among treated patients.

The Phase 3 trial enrolled 580 patients who had responded in a pair of earlier, shorter trials. The participants were then followed for 44 weeks, and 50.8% of those taking the 25-milligram dose of the daily pill, called obefazimod, experienced clinical remission, while 51.3% of those taking the 50-mg dose did, compared with 10.4% of those on placebo.

The study appears to have posted the highest placebo-adjusted clinical remission rates observed in a long-term ulcerative colitis trial, Leerink analyst Thomas Smith wrote.

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STAT+: At ASCO, talk of barriers to cancer care, new treatments, and other big takeaways

We asked Brian Wolpin, the presenter for yesterday’s plenary on the daraxonrasib pancreatic cancer study, about the sustained standing ovation that interrupted his remarks.

“Honestly, it was tough to hold it together in that moment and then keep going. It felt like 20 years of work all rolled into 12 minutes,” he told us.

It was a truly memorable ASCO meeting. With this newsletter, we say goodbye from Chicago. Thanks again for spending time with us. You can still join our virtual recap on Wednesday!

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