Policy & Compliance
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March 10, 2025
CVS PBM Caused Up To $330M In Part D Damages, Judge Told
A CVS-owned pharmacy benefits manager caused anywhere from $240 million to $330 million in damages by overbilling the government for Medicare Part D sponsored drugs, counsel for a whistleblower told a Pennsylvania federal judge at the beginning of a False Claims Act bench trial on Monday.
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March 10, 2025
AFL-CIO, Unions Defend Fight Against DOGE Access
The AFL-CIO and a group of unions sought to keep alive their claims that Elon Musk's Department of Government Efficiency can't legally access data from the U.S. Department of Labor and other federal agencies, telling a D.C. federal judge they have standing to file their suit.
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March 10, 2025
DOJ Defends Musk's Influence Against States' Challenge
The U.S. Department of Justice is defending Elon Musk's influence in the federal government against a constitutional challenge brought by 14 states, telling D.C. federal court that the "special government employee" does not occupy an official office that would be subject to the Constitution's appointments clause.
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March 10, 2025
High Court Will Review Colo.'s Conversion Therapy Ban
The U.S. Supreme Court announced Monday that it will review a challenge to Colorado's ban on licensed therapists providing conversion therapy to transgender minors, in a case that asks whether the state's law is a permissible regulation of professional conduct or an unconstitutional restriction of speech.
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March 10, 2025
Ex-Magellan CEO Pleads Guilty Over Faulty Lead Tests
The former CEO of Magellan Diagnostics Inc. admitted Monday to selling faulty devices that tested blood lead levels, the final of three defendants to plead guilty ahead of a jury trial scheduled for April.
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March 10, 2025
Justices To Weigh If Del. Expert Law Applies In Federal Court
The U.S. Supreme Court on Monday agreed to review whether federal courts must apply a Delaware state law requiring an expert affidavit for all medical malpractice complaints.
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March 07, 2025
AGs Say Anti-Trans Admin Puts $367M Hospital Grants At Risk
Attorneys general from Washington and three other states told a federal court that the Trump administration has canceled thousands of dollars in grant funding for gender-affirming care — and threatened to strip up to nearly $370 million more — in violation of court injunctions.
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March 07, 2025
Hints Of A New High Court Majority Emerge In Trump Cases
The U.S. Supreme Court's recent rejection of President Donald Trump's bid to keep frozen nearly $2 billion in foreign aid funding gave court watchers a glimpse of a coalition majority that could end up thwarting some of the president's more aggressive and novel attempts to expand executive power.
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March 07, 2025
New Bellwethers Score Cert. In Generic Drug Price-Fixing MDL
The Pennsylvania federal court overseeing sprawling multidistrict litigation springing from claims that pharmaceutical giants worked together to hike the cost of off-brand drugs has certified several sets of classes for the cases for the MDL's latest bellwethers.
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March 06, 2025
FTC Challenges PE Firm's Medical Device Coatings Deal
The Federal Trade Commission moved Thursday to block private equity firm GTCR BC Holdings LLC's planned $627 million acquisition of Surmodics Inc. over concerns about competition for medical device coatings.
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March 06, 2025
9th Circ. Nixes Challenge To Wash. Abortion Coverage Law
A split Ninth Circuit panel on Thursday rejected a Christian church's challenge to a Washington state law requiring employer health plans to cover abortion services, saying the church could invoke its religious beliefs to skirt the challenged obligations.
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March 06, 2025
FDA Nominee Hedges On Job Cuts, Abortion Drug In Hearing
The nominee to lead the U.S. Food and Drug Administration, Dr. Marty Makary, repeatedly hedged about whether he would reconvene a flu vaccine committee, maintain access to the abortion drug mifepristone or control future job cuts during his confirmation hearing in front of a Senate panel on Thursday.
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March 06, 2025
DC Judge Won't Block USAID From Firing Contractors
A D.C. federal judge on Thursday declined to temporarily block the termination of personal services contractors working for the U.S. Agency for International Development, concluding their challenge to the dismantling of the agency is likely ill-suited for federal court.
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March 05, 2025
Arizona's 15-Week Abortion Ban Blocked As Unconstitutional
An Arizona state judge on Wednesday ruled that the state's abortion ban after 15 weeks of pregnancy is "unconstitutional" and cannot be enforced.
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March 05, 2025
Contractors Claim Constitutional Injury In USAID Cuts
A group representing U.S. citizen personal services contractors working for the U.S. Agency for International Development insisted before a D.C. federal judge on Wednesday that their challenge to the Trump administration's dismantling of the humanitarian agency differs from another brought by workers employed directly by USAID.
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March 05, 2025
SEC Asks To Toss Subpoena Suit Against Telehealth Co.
The U.S. Securities and Exchange Commission asked a New York federal judge Wednesday to dismiss its suit aimed at forcing a weight-loss-focused telehealth company to comply with a subpoena, saying the company has since provided the requested documents and otherwise complied with the subpoena.
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March 05, 2025
Pfizer Beats Claims Of Copay Aid Scheme For Good
Litigation firms accusing Pfizer of a scheme to inflate drug prices for Medicare and Medicaid plans saw their suit dismissed permanently, with a Washington, D.C., federal judge ruling they had been given "enough chances" to remedy pleading deficiencies in their claims.
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March 05, 2025
Nationwide Block Of Trump Trans Healthcare Orders Extended
A Maryland federal judge has extended a nationwide injunction that was set to expire this week prohibiting the Trump administration from enforcing executive orders banning federal funding for gender-affirming care for people under the age of 19, finding the harm inflicted by the orders is "non-speculative, concrete, and potentially catastrophic."
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March 05, 2025
SuperValu Wins FCA Case That Went To High Court
An Illinois federal jury cleared SuperValu of liability Tuesday on whistleblower claims that it billed the government higher-than-customary prices for millions of prescriptions, marking the end to an important test of a 2023 U.S. Supreme Court ruling reviving the case.
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March 05, 2025
Senators Press Trump's NIH Nominee On Grant Cuts, Vaccines
Dr. Jay Bhattacharya vowed to support research into chronic diseases but repeatedly refused Wednesday to express an opinion on cost-cutting efforts at the National Institutes of Health, sidestepping bipartisan questions during a hearing on his nomination to run the biomedical research agency.
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March 04, 2025
Planned Parenthood Win, Aetna Deal And Trans Care Rulings
The Trump administration has been barred from enforcing portions of executive orders targeting funding for gender-affirming care. Here, Law360 Healthcare Authority looks at these and other significant cases and decisions that shaped the healthcare industry over the last week.
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March 04, 2025
Health Providers Fight To Keep MultiPlan Pricing MDL Alive
Healthcare providers targeting MultiPlan and several major insurers with horizontal price-fixing claims argued Monday an Illinois federal judge should let their multidistrict litigation proceed because the defendants simply constructed a "strawman" to convince him to toss it.
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March 04, 2025
Trump To Drop Biden-Era Suit Against Idaho Abortion Ban
The Trump administration has said it plans to drop a federal lawsuit alleging that Idaho's strict abortion ban conflicts with a federal emergency stabilization law, a reversal from the Biden administration's legal efforts that fought the ban up to the U.S. Supreme Court.
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March 04, 2025
Calif. PBM Opioid Suit Belongs In Federal Court, 9th Circ. Told
Pharmacy benefit managers Express Scripts Inc. and OptumRx Inc. urged the Ninth Circuit on Tuesday to require California to litigate its public nuisance claims over their opioid dispensing practices in federal court, arguing that allowing the state to litigate in state court would create a circuit split.
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March 04, 2025
Special Master Recommends Win For UnitedHealth In FCA Suit
A massive False Claims Act case targeting Medicare Advantage plans operated by UnitedHealth relies on "speculation and assumptions," according to a special master's report that recommends ruling in the company's favor and ending the lawsuit.
Expert Analysis
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A Changing Regulatory Landscape For Weight Loss Drugs
As drugs originally approved to treat diabetes become increasingly popular for weight loss purposes, federal and state regulators and payors are increasing their focus on how these drugs are prescribed, and industry participants should pay close attention to rapidly evolving compliance requirements, say attorneys at Goodwin.
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Opioid Suits Offer Case Study In Abatement Expert Testimony
Settlements in the opioid multidistrict litigation provide useful insight into leveraging expert discovery on abatement in public nuisance cases, and would not have been successful without testimony on the costs necessary to lessen the harms of the opioid crisis, says David Burnett at DiCello Levitt.
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How HHS Discrimination Rule Affects Gender-Affirming Care
The U.S. Department of Health and Human Services' new final rule, which reinterprets the Affordable Care Act's anti-discrimination provision, greatly clarifies protections for gender-affirming care and will require compliance considerations from sponsors and administrators of most group health plans, say attorneys at McDermott.
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FTC Noncompete Rule's Impact On Healthcare Nonprofits
Healthcare entities that are nonprofit or tax-exempt and thus outside of the pending Federal Trade Commission noncompete rule's reach should evaluate a number of potential risk factors and impacts, starting by assessing their own status, say Ben Shook and Tania Archer at Moore & Van Allen.
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Key Takeaways From FDA Final Rule On Lab-Developed Tests
Michele Buenafe and Dennis Gucciardo at Morgan Lewis discuss potential consequences of the U.S. Food and Drug Administration's recently finalized rule regulating lab-developed tests as medical devices, and explain the rule's phaseout policy for enforcement discretion.
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Assessing HHS' Stance On Rare Disease Patient Assistance
The U.S. Department of Health and Human Services' recent advisory opinion, temporarily blessing manufacturer-supported copay funds for rare disease patients, carves a narrow path for single-donor funds, but charities and their donors may require additional assistance to navigate programs for such patients, says Mary Kohler at Kohler Health Law.
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Are Concessions In FDA's Lab-Developed Tests Rule Enough?
Although the U.S. Food and Drug Administration's new policy for laboratory-developed tests included major strategic concessions to help balance patient safety, access and diagnostic innovation, the new rule may well face significant legal challenges in court, say Dominick DiSabatino and Audrey Mercer at Sheppard Mullin.
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8 Questions To Ask Before Final CISA Breach Reporting Rule
The Cybersecurity and Infrastructure Security Agency’s recently proposed cyber incident reporting requirements for critical infrastructure entities represent the overall approach CISA will take in its final rule, so companies should be asking key compliance questions now and preparing for a more complicated reporting regime, say Arianna Evers and Shannon Mercer at WilmerHale.
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Mid-2024 FCA Enforcement And Litigation Trends To Watch
Reviewing notable False Claims Act trends and enforcement efforts in the last year and a half reveals that healthcare is a key enforcement priority for the U.S. Department of Justice, and the road ahead may bring clarification on Anti-Kickback Statute causation and willfulness standards, along with increased focus on private equity, cybersecurity and self-disclosure, say attorneys at Epstein Becker.
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Online Portal Helps Fortify Feds' Unfair Health Practices Fight
The Federal Trade Commission, U.S. Justice Department and the U.S. Department of Health and Human Services recently launched an online portal where the public can report potentially unfair healthcare practices, effectively maximizing enforcers' abilities to police anti-competitive actions that can drive up healthcare costs and chill innovation, say attorneys at Seyfarth.
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McKesson May Change How AKS-Based FCA Claims Are Pled
The Second Circuit’s analysis in U.S. v. McKesson, an Anti-Kickback Statute-based False Claims Act case, provides guidance for both relators and defendants parsing scienter-related allegations, say Li Yu at Dicello Levitt, Ellen London at London & Stout, and Erica Hitchings at Whistleblower Law.
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9th Circ. Ruling Puts Teeth Into Mental Health Parity Claims
In its recent finding that UnitedHealth applied an excessively strict review process for substance use disorder treatment claims, the Ninth Circuit provided guidance on how to plead a Mental Health Parity and Addiction Equity Act violation and took a step toward achieving mental health parity in healthcare, says Mark DeBofsky at DeBofsky Law.
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Breaking Down DOJ's Individual Self-Disclosure Pilot Program
The U.S. Department of Justice’s recently announced pilot program aims to incentivize individuals to voluntarily self-disclose corporate misconduct they were personally involved in, complementing a new whistleblower pilot program for individuals not involved in misconduct as well as the government's broader corporate enforcement approach, say attorneys at Paul Weiss.