Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Axios on your phone

Get breaking news and scoops on the go with the Axios app.

Download for free.

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Shoshana Gordon/Axios

Prescription drugs — which represent just 10% of national health spending — have remained a persistent issue on Capitol Hill for a reason.

The big picture: The 10% number doesn’t tell the full story. Retail drug spending represents 18% of health benefit costs for large employers, even after taking rebates from drug manufacturers into account.

  • They also represent 19% of out-of-pocket costs for Medicare beneficiaries and 17% of out-of-pocket costs for workers.
  • Especially hard hit are people in fair or poor health who use more drugs. Nearly half (49%) of that group say they have difficulty paying for their drugs.

There’s been much focus in Washington on how much Medicare negotiation of drug prices could save the federal budget, and what those savings could be used to pay for.

  • Yet, what makes drug price negotiation a powerful idea — with bipartisan support from more than 80% of the public — is not the budgetary savings policymakers covet. It’s the potential to lower costs for patients and businesses paying for health benefits.

Driving the news: HR 3 and the principles for drug cost legislation recently released by Senator Wyden would give employer plans and privately insured people access to government negotiated prices, in addition to Medicare and its beneficiaries.

  • Polling shows that criticisms made by industry that drug price negotiation could reduce the availability of drugs and research and development on new drugs could erode support. But those criticisms have been made for years and have not sunk in.
  • The staying power of the idea and the number of people who would benefit continues to drive many Democrats to try to get drug price negotiations passed.
  • That’s also why PhRMA will oppose these proposals with everything at its disposal.

Meanwhile, there is one incidental winner from the current debate about drug costs, America’s hospitals. They represent 31.4% of health spending and the focus on drug costs keeps them out of the crosshairs.

Go deeper

Updated Jul 29, 2021 - Axios Events

Watch: A conversation on social determinants of health

On Thursday, July 29 at 12:30pm ET, Axios senior editor Sam Baker and health care reporter Caitlin Owens hosted a virtual conversation on the social determinants of health, featuring Rep. Cheri Bustos (D-Ill.) and Mary T. Bassett, director of Harvard University's FXB Center for Health and Human Rights.

Rep. Cheri Bustos discussed how Congress is working to address inequities in social determinants of health and how the pandemic exacerbated inequities in resources for care.

  • On empowering local communities to address social determinants of health: “We now are advancing [the Social Determinants Accelerator Act] in the House with the idea being, let's investigate what the social determinants are. Let's let local communities apply for that money and then have the money in that program to actually do something about it once those negative social determinants are discovered through investigation.”
  • On the pandemic’s influence on health care: “We're living in a whole new health world because of this pandemic. What we've learned is that telehealth can be an important part of somebody's health. That all of a sudden you don't have access to mass transit because you can't leave your house. It is a problem to be able to get that health care.”

Mary T. Bassett unpacked these issues from the public health perspective, focusing on equity in access to healthy living, and the current challenge of the pandemic.

  • On unequal access to care: “The 20th century saw the biggest advancements in life expectancy that have been documented in human history, but they weren't experienced equally. And that's a problem. And it wasn't just a problem of access to health care, although we all have the right to access to health care. In my view, it's also just about access to all the things that make up a healthy life.”
  • On the vaccine and mask mandates: “It is truly a case of the challenge of public health, which is the need to protect the many and the need to protect individual rights, they have to be balanced. And on that scale, public health always puts the protection of the majority of people as carrying more weight.”

Axios chief people officer Dominique Taylor hosted a View from the Top Segment with EVP & Chief Medical Officer Employer & Individual at United Healthcare Dr. Rhonda Randall where they discussed how to address health disparities through tools and initiatives.

  • On building a more sustainable, equitable health system: “Research has shown that in addition to that, there are many factors contributing to and driving our health outcomes. And ultimately, it's where we're spending our time. It's not in the doctor's offices, in our communities, in our homes and in our places of work. So things like housing, education, food insecurity and transplant, transportation and access to care are important. And those social determinants of health and advancing health equity is really integral to building that future sustainable, modern, high performing health system.”

Thank you UnitedHealth Group for sponsoring this event.

Manhattan, Westchester prosecutors request evidence from Cuomo investigation

Gov. Cuomo during a press conference in New York City on Aug. 2. Photo: Lev Radin/Pacific Press/LightRocket via Getty Images

The district attorneys for Manhattan and Westchester County on Wednesday requested evidence related to New York Attorney General Letitia James' investigation into sexual harassment allegations against Gov. Andrew Cuomo (D), according to a letter obtained by NBC News.

Why it matters: The district attorneys are investigating if alleged conduct highlighted in an independent report published by James' office that occurred in their jurisdictions was criminal in nature.

Scoop: Buzzy media startup Puck launches in beta

Puck.news

Puck, a splashy new digital media company, is coming out of stealth mode, Axios has learned. The company debuted its landing page, puck.news, on Wednesday, and will officially launch its website in September.

Why it matters: The company has been quietly building a roster of top talent, but hadn't confirmed its branding or exact business plans up until now.