Axios

CVS Health is exploring a takeover of Chicago-based Oak Street Health, a Medicare-focused operator of a network of value-based primary care centers, per Bloomberg. A deal could be valued north of $10 billion, including assumed debt.

Why it matters: This news topped off a very busy Monday for America's largest pharmacist, as industry executives and investors descended on San Francisco for the annual JPM Healthcare Conference.

Missouri Rep. Jason Smith on Monday won a three-way race to serve as House Ways and Means chair for the 118th Congress and presides over Medicare.

Why it matters: It was arguably the most closely watched contested race for a chairmanship in the Republican-controlled chamber and gives Smith jurisdiction over a broad swath of health policy.

Driving the news: The GOP steering committee chose Smith over Reps. Vern Buchanan, who had once been considered the leading contender, and Adrian Smith. He succeeds retired Rep. Kevin Brady, who was the longtime Republican leader of the committee.

• Smith previously told Axios in an interview that if elected chair, he would focus on access to health care in rural America, telehealth, price transparency, health care security, innovation and “aggressive oversight.”
• He also wants to hold hearings on health care costs across the country.
• Smith hasn't said if he supports controversial Medicare policies, like raising the eligibility age, or whether he would vote to repeal the Inflation Reduction Act's drug pricing provisions.

A version of this item was published on Axios Pro. Get news like this by subscribing. Use code POLICY100, which gives you $100 off.

Editors note: This story has been corrected to reflect that the House Ways and Means Committee has jurisdiction over Medicare, but not Medicaid.

Expanding Medicaid coverage leads to fewer post-birth hospitalizations, according to a new study in Health Affairs.

Why it matters: Health experts have long recommended that states expand postpartum coverage and take other steps to improve maternal and child health in the U.S., which has the highest maternal mortality rates among developed nations.

Leqembi, a new Alzheimer's drug developed by Eisai and Biogen, may have passed muster with the FDA last week, but experts say it's still an open question how much it will improve the quality of patients' lives.

Why it matters: Patients, doctors and insurers still have to decide whether using the drug to slow the disease's progression is worth the associated hassle, cost and safety risks. These decisions will ultimately decide the overall uptake and commercial success.

A new study finds that drought and flood-causing rains are linked to increases in deadly diarrhea-related illnesses for young children in the Global South.

The big picture: This further demonstrates the role of climate-related impacts on the inequitable burden of disease.

AstraZeneca on Monday announced plans to buy CinCor Pharma, a Boston-based biopharma focused on hypertension and chronic kidney disease, for upwards of $1.8 billion.

Why it matters: This reflects the symbiotic mashup of falling biotech stock prices, and incumbent drugmakers needing to refresh portfolios as top-sellers fall off the patent cliff.

The dizzying spread of the newest Omicron variant XBB.1.5 — also nicknamed Kraken — has public health experts warning of yet another potential COVID wave in the U.S.

Why it matters: While the severity isn't clear yet, it's "the most transmissible form of Omicron to date," Maria Van Kerkhove, the WHO's technical lead on COVID-19, said, according to CNN.

The American Academy of Pediatrics on Monday released new guidelines for addressing childhood obesity, emphasizing a comprehensive and proactive approach to treatment.

Driving the news: "There is no evidence that ‘watchful waiting’ or delayed treatment is appropriate for children with obesity," Dr. Sandra Hassink, an author of the guideline and vice chair of the Clinical Practice Guideline Subcommittee on Obesity, said in a news release.

Nurses at two New York City hospitals began to strike on Monday after talks broke down between the union and hospital leaders overnight.

Driving the news: More than 7,000 nurses at Mount Sinai Hospital and Montefiore Bronx began striking at 6 a.m., an outcome city and state officials had pushed to avert.

With more than half of U.S. hospitals expected to lose money over the last year, some industry groups are pressing the Congress to decide which should be designated "essential" to qualify for more federal funds.

Why it matters: Billions of dollars could be on the line. But there's no standard definition of an essential hospital, and many facilities claim to be safety nets.

Seattle Public Schools is suing social media companies including TikTok and Meta, saying the tech giants' "misconduct has been a substantial factor in causing a youth mental health crisis."

Driving the news: "This mental health crisis is no accident. It is the result of the Defendants’ deliberate choices and affirmative actions to design and market their social media platforms to attract youth," the lawsuit states.