Tuesday's health stories

Congress probing Allergan's new patent scheme
Drug maker Allergan is under growing congressional scrutiny for transferring the patents of its blockbuster eye drug, Restasis, to a Native American tribe and paying the tribe millions of dollars to fend off patent challenges.
Who's fired up: House Reps. Trey Gowdy and Elijah Cummings on Tuesday demanded information on the deal, arguing Allergan's "unconventional maneuver" could "impair competition across the pharmaceutical industry." Sen. Claire McCaskill said Allergan's deal is "one of the most brazen and absurd loopholes" and should be illegal. Other senators are calling for a review of the patent system.
Déjà vu: Members of Congress have frequently chided the drug industry for its pricing and patent practices, but almost nothing has come from the hearings that occurred.

Medicare officially kills controversial drug payment model
The Centers for Medicare and Medicaid Services has officially withdrawn the Obama administration's proposed rule that would have reduced Medicare payments for drugs administered in outpatient offices. The so-called Part B demonstration has effectively been dead for a while after the health care industry rallied against it, which led to political scorn from both sides of the aisle.
Between the lines: Pharmaceutical companies and doctors hated the idea because it directly threatened to lower how much money they make from lucrative drugs. Don't expect any similar price-cutting proposals to resurface under the Trump administration.

