NCL urges the public to heed warnings about unregulated versions of GLP-1 weight loss drugs

/in , , , /by

Media Contact: Lisa McDonald, Vice President of Communications, 202-207-2829

Washington, DC — As an organization with a long history of helping the public avoid fakes and unregulated products, the National Consumers League (NCL) is urging consumers and health professionals to heed the warning from the Food and Drug Administration that compounded versions of GLP-1 (glucagon-like peptide-1 (GLP-1) receptor agonists) drugs now widely promoted on television and online are not FDA approved and may cause serious health problems.

Because studies show that FDA-approved anti-obesity medications (semaglutide and tirzepatide) can help individuals achieve significant weight loss, demand for GLP-1s has surged, prompting supply shortages and consumers to seek alternative ways to obtain these drugs because many health plans do not cover GLP-1s. This dynamic first opened the door for compounding pharmacies to sell non-identical versions of GLP-1 drugs under specific FDA regulations that apply when there is a shortage. Yet now, consumers are navigating a largely unregulated marketplace where numerous actors – telehealth companies, med-spas, illegal online pharmacies, and others – are marketing untested compounded GLP-1 drugs or actual counterfeits that, according to the FDA, may contain incorrect dosages, the wrong ingredients, too much, too little or none of the active ingredients, and possibly bacteria.

Underscoring the potential health consequences from dosing errors and exposure to the wrong ingredients, the FDA has received 607 adverse event reports related to compounded versions of semaglutide and tirzepatide as of November 24, 2024, many of which involve life-threatening and even deadly consequences. This includes approximately 10 deaths and over 100 hospitalizations from compounded semaglutide alone.

Besides the potential health risks, the National Association of Boards of Pharmacy (NABP) warns that illegal online pharmacies are selling substandard or falsified GLP-1 agonists without holding the required pharmacy licensure and without requiring a valid prescription. In fact, NABP has identified thousands of websites that promote the illegal sale of GLP-1 agonists, including sites that are connected to domain names that include GLP-1 drug’s brand names, including Ozempic and Wegovy. Additionally, NCL is aware of new research reported in the JAMA Health Forum, which finds that many websites for mass-produced compounded GLP-1 drugs do not include information about the drugs’ adverse effects, warnings, and contraindications, including hospitalizations, and use misleading language suggesting the compounded product is FDA-approved or equivalent to an FDA approved GLP-1 drug.

Recognizing that incorrect beliefs about obesity, misinformation about treatment options, and restrictive insurance policies keep Americans from getting quality obesity care, NCL and the National Council on Aging issued the first Obesity Bill of Rights for the nation, which establishes The Right to Accurate, Clear, Trusted, and Accessible Information as essential for informed decision-making. In furtherance of this right, NCL urges Americans to follow this advice from the FDA and obesity medicine specialists regarding compounded GLP-1 drugs:

  • Be aware that a compounded drug for obesity is not a copy of an FDA-approved GLP-1 drug. There are differences in how the different medicines are produced and often, the ingredients are different. Further, unapproved drugs have not gone through the FDA’s rigorous review process to ensure safety, effectiveness, and quality.
  • Before seeking treatment with an injectable GLP-1 drug, talk to your doctor or health provider to determine if you are a candidate for treatment with a GLP-1 based on your risk factors and degree of obesity. Also, ask questions about the differences between FDA-approved innovator drugs and off-brand compounded versions.
  • Because GLP-1 drugs are serious medicines that carry risks as well as benefits, it is best to obtain a prescription from your doctor or a health professional you know and fill the prescription at a state-licensed pharmacy.
  • In situations where you choose a telehealth option, beware of prescribing practitioners who do not take your personal history, do not diagnose the degree of obesity with appropriate evaluation measures, or prescribe a GLP-1 drug without ongoing monitoring.

Before ordering a compounded GLP-1 drug through an online pharmacy, follow the FDA’s tips to spot the warning signs that the website may be unsafe, such as the online pharmacy is not licensed in the US or by a state board of pharmacy and offers deep discounts that seem too good to be true.

### 

About the National Consumers League (NCL)   

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org. 

Nancy Glick

A New CMS Rule Could Be a Gamechanger for Adults with Obesity

/in , , , /by

Nancy GlickBy Nancy Glick, Director of Food and Nutrition Policy

If the story of combatting the nation’s obesity epidemic were a movie, it would be Groundhog Day.

Year in and year out, for over a decade, advocates and obesity specialists worked to get changes in federal policy. They pressed to get bills passed in Congress, drafted white papers, published research findings in medical journals, held roundtables and briefings, and sent letters and emails to policymakers over and over. But, using the Groundhog Day metaphor, the same day would start again.

Until now. Just as the protagonist in Groundhog Day changed his way of thinking and got the girl, the Centers for Medicare & Medicaid Services (CMS) changed its thinking to recognize obesity as a distinct and serious chronic disease requiring treatment. Based on this reinterpretation, CMS published a potentially game-changing proposed rule to establish the treatment of obesity as a medically necessary service under Medicare and Medicaid and allow Part D coverage of FDA-approved anti-obesity medications (AOMs), including new injectable drugs called GLP-1s (glucagon-like peptide-1 receptor agonists), as a result.

However, better obesity care is not a movie, and the proposed rule, while a major development, is not a final action. Before Medicare and Medicaid beneficiaries can get treated with new anti-obesity medicines, the agency must go through a formal rulemaking process to finalize the proposed rule, including receiving and analyzing comments from individuals and organizations concerned about obesity. This process is now underway, and the obesity community is coming out in force to urge CMS to update its Medicare and Medicaid coverage policy for AOMs based on medical evidence that obesity medications treat the disease of obesity and are not merely agents for “weight loss.”

As the organization that partnered with the National Council on Aging (NCOA) and leading obesity specialists across the country to develop and issue the first Obesity Bill of Rights for the nation, NCL submitted comments as the voice of the nation’s consumers and urged CMS to finalize the proposed rules for these reasons:

There Is a Widespread Scientific Consensus That Obesity Is a Distinct Chronic Disease – CMS’s reinterpretation of Medicare Part D policy is grounded in extensive medical evidence that obesity is not a cosmetic condition but a distinct and serious chronic disease requiring treatment. Reinforcing this recognition of obesity as a distinct disease state, major medical organizations now consider obesity a chronic disease due to its complex biological mechanisms and potential for significant health complications. This includes the American Medical Association, American Association of Clinical Endocrinologists, American College of Endocrinology, and all the leading obesity and nutrition organizations.

Obesity Is the Nation’s Most Prevalent Chronic Disease and Is Directly Linked to Numerous Chronic Diseases –Today, obesity affects 41.9 percent of US adults – more than 100 million people – which makes obesity the most prevalent chronic disease affecting Americans, significantly eclipsing the other most prevalent chronic diseases: heart disease, diabetes, chronic kidney disease, cancer, chronic lung disease, Alzheimer’s Disease, and stroke. Even more significantly, more than 230 medical conditions are directly linked to overweight and obesity, meaning these diseases worsen as the degree of obesity increases. Thus, obesity today is responsible for an estimated 400,000 deaths a year.

The Cost of Obesity Is Too High and Everyone Is Paying the Price – Obesity, due to its role in causing or worsening chronic disease, accounted for 47.1 percent of the total direct and indirect costs of treating chronic conditions in 2016. Accordingly, some estimates put the national cost of obesity at $1.7 trillion a year –more than what Social Security paid in retirement benefits in 2022.

Compared to Other Serious Chronic Diseases, Obesity Goes Largely Undiagnosed and Untreated – The Obesity Bill of Rights was issued to transform obesity care in the US at a time when obesity remains largely undertreated with costly repercussions in high rates of obesity-related diseases and preventable deaths. Reflecting this reality, only 30 million of the more than 100 million Americans living with obesity in 2022 received a diagnosis of obesity, and only around 2 percent of those eligible for anti-obesity medications were prescribed these drugs. Although multiple factors are responsible for this pervasive gap in obesity care, the most pernicious are access barriers that keep people with obesity from getting the care they need, whether through the exclusion of obesity treatments in many insurance plans, restrictive insurance practices that delay or deny treatment, or out-of-date government policies.

New Anti-obesity Medications Are Safe and Effective and Result in Savings From Improved Health Outcomes – As noted in the CMS proposed rule, there have been major advances in understanding and treatment of the disease of obesity since the Medicare Part D program went into effect in 2006, resulting in new therapeutic agents, such as GLP-1 drugs that can help people lose up to 20 percent of their weight in 26 months. Calculating the potential savings resulting from better health outcomes when obesity is treated, studies are beginning to project the potential savings to the economy from covering obesity medications. One recent study published December 5, 2024, in JAMA Network Open estimated that a 10 percent weight loss resulting from obesity treatment saved $2,430 in reduced medical expenditures, and for a 25 percent weight loss, the reduction in health expenditures is $5,444 per person.

The comment period for the CMS proposed rule closes soon, and then it will be up to the new Trump Administration to finalize this important rulemaking. It is our hope that the new team at CMS will make this a priority. Simply put, this important change in CMS policy will make a significant difference in the lives of millions of Americans.

Statement on the need for the CMS Rule on Coverage of Obesity Medications

/in , , , , /by

Media contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

Washington, DC – We, the undersigned organizations, are enthusiastically supportive of the proposed rule by the Centers for Medicare & Medicaid Services (CMS) to align coverage policy to reflect the prevailing medical consensus that obesity is a chronic disease. We urge the incoming administration to finalize this policy through the rulemaking process. By extending access to obesity medications for people living with obesity who lack access to comprehensive evidence-based care in Medicare and Medicaid, the proposed CMS rule would address an urgent health crisis and leading contributor to the “Unhealth” of Americans. If action is not taken, the total number of adults with overweight or obesity will reach 213 million. To achieve making America healthier, obesity must be addressed, treated and managed effectively.

Medicare Part D’s prohibition of coverage for “weight loss” medications is a major barrier for older Americans and those living with disabilities, and many dual eligible beneficiaries, to receiving medically necessary, safe, and effective FDA-approved pharmacotherapy to treat obesity. Medicare’s current categorization and restriction is outdated. It does not align with current medical evidence, standards of care or the understanding of the disease.

The CMS proposed rule would require coverage for obesity medications under Medicare and Medicaid by acknowledging obesity as a chronic condition. We wholeheartedly agree with the rule’s proposal to reinterpret these medications for the treatment of obesity, that would provide coverage under Medicare and Medicaid.

Obesity is a treatable chronic disease that plays a major factor in many other conditions such as type 2 diabetes, hypertension, heart disease, fatty liver disease, kidney disease, lipid disorders, certain cancers, sleep apnea, arthritis, and mental illness. The treatment of obesity requires a comprehensive approach including administering intensive behavioral therapy (IBT) and bariatric surgery under Medicare Part B and providing Medicare Part D coverage for Food and Drug Administration (FDA) approved obesity medications.

The obesity epidemic has had a negative impact on our nation’s health and economy. Among older adults (aged 60+), the prevalence of obesity is 42.8 percent, similar to the level among younger and middle-aged adults. More than 20 percent of the population will be 65 years of age or older by 2030, up from 15 percent today, highlighting the importance of addressing obesity among older Americans. Among Medicaid beneficiaries, the prevalence of obesity is 38 percent, while the prevalence of overweight and obesity is 70 percent among Medicaid adults.

Without treatment Medicare and Medicaid beneficiaries with obesity risk further health deterioration and an increased likelihood in the onset of complications including obesityrelated cancers, type 2 diabetes, and end stage renal disease. Additionally, people with
severe obesity have a 48 percent higher risk of physical injury including falls which lead to higher costs and mortality rates.

The new administration must take action to address this crisis, by allowing Medicare and Medicaid to offer comprehensive obesity care for the millions of Americans who need these services and treatments. This action would improve the health of individuals before they enter the Medicare program, thereby supporting better health and reducing long-term costs.

A Philip Randolph Institute
Academy of Nutrition and Dietetics
Alliance for Aging Research
Alliance for Patient Access
Alliance for Women’s Health and Prevention
American Academy of Physician Associates
American Association of Clinical Endocrinology
American College of Occupational and Environmental Medicine
American Diabetes Association
American Gastroenterological Association
American Kidney Fund
American Liver Foundation
American Medical Women’s Association
American Psychological Association Services
American Society for Metabolic and Bariatric Surgery
American Society for Nutrition
Association of Diabetes Care & Education Specialists
Bone Health & Osteoporosis Foundation
California Black Health Network
California Chronic Care Coalition
CancerCare
Caregiver Action Network
Center for Patient Advocacy Leaders (CPALs)
Choose Healthy Life
Chronic Care Policy Alliance
Color of Gastrointestinal Illnesses
ConscienHealth
Crohn’s & Colitis Foundation
DCM Foundation
Diabetes Leadership Council
Diabetes Patient Advocacy Coalition
Endocrine Society
Fatty Liver Foundation
Gerontological Society of America
Global Liver Institute
HealthyWomen
ICAN, International Cancer Advocacy Network
League of United Latin American Citizens (LULAC)
Liver Coalition of San Diego
Looms For Lupus
Lupus and Allied Diseases Association, Inc.
Lupus Foundation of America
MacDonald Center for Nutrition Education and Research
MANA, A National Latina Organization
Michigan Academy of Nutrition and Dietetics
Missouri Chapter of the American Academy of Pediatrics
Missouri Psychological Association
Movement is Life
National Alliance for Caregiving
National Asian Pacific Center on Aging (NAPCA)
National Association of Hispanic Nurses
National Black Nurses Association, Inc
National Caucus and Center on Black Aging
National Consumers League
National Council on Aging
National Hispanic Council on Aging
National Hispanic Health Foundation
National Hispanic Medical Association
National Kidney Foundation
National Psoriasis Foundation
Nevada Chronic Care Collaborative
Obesity Action Coalition
Obesity Care Advocacy Network
Obesity Medicine Association
PAs in Obesity Medicine
RetireSafe
Society for Women’s Health Research
Society of Behavioral Medicine
STOP Obesity Alliance
The American Society for Preventive Cardiology
The Mended Hearts, Inc.
The Obesity Society
WomenHeart
YMCA of the USA

###

About the National Consumers League (NCL) 

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL commends CFPB’s rule to eliminate medical debt from credit reports

/in , , /by

The National Consumer Law Center and a coalition of other leading consumer-focused organizations, including the National Consumers League, released the following press statement on January 7, 2025.

Sally Greenberg, NCL’s CEO, said “The magnitude of medical debt in America is crippling:100 million Americans carry medical debt that is not caused by profligate spending, but often by medical emergencies. Thus, punishing Americans who carry this debt by harming their credit scores, forcing them to turn to predatory lending if they need a car or home loan multiplies the harm. The CFPB’s rule stopping credit reporting agencies from sharing medical debt with lenders will prevent adding to the burden of the 15 million Americans with lowered credit scores due to medical debt. NCL supports this important rule.”

CFPB Rule Removes Medical Debts from Credit Reports

January 7, 2025 — Press Release

15 Million Americans Will See Credit Scores Improve 

Washington, DC– Today, the Consumer Financial Protection Bureau (CFPB) finalized a rule to stop the harmful impact of medical debt on consumers’ credit scores. The rule will stop credit reporting companies from sharing medical debts with lenders and prohibit lenders from making lending decisions based on existing medical debt.

“Medical debt has damaged the financial record of tens of millions for far too long, causing credit rejections and pushing costs even higher for Americans struggling financially,” said Chi Chi Wu, senior attorney at the National Consumer Law Center. “The CFPB continues with its impressive record of protecting consumers, providing critical relief to the 15 million Americans with unjustly lowered credit scores due to medical debt.”

Even though medical debt has minimal predictive value in forecasting about whether people will pay their loan payments, vast amounts of medical debt information remains in the credit reporting system. Medical debt unjustly damages the credit scores of millions, limiting their ability to obtain affordable credit, rent safe housing, or even get a job. It also assists debt collectors in seeking to coerce payments, including for inaccurate or false medical bills.

The big three credit reporting agencies (Equifax, Transunion, Experian) voluntarily removed some medical collections information starting in 2022, but in 2024 the CFPB found that 15 million Americans still had more than $49 billion in outstanding medical debt on their credit reports. Consumers left behind by industry efforts were more likely to live in the South and in predominantly Black and Latino/Hispanic neighborhoods.

“Today’s medical debt rule will lessen the financial burdens for all households, but particularly for Black and Latine families, who carry more medical debt due to decades of intentionally racist policies and practices across health care, employment,housing, education, and financial services,” said Amanda N. Jackson, consumer campaign director for Americans for Financial Reform. “A good credit score is critical for participating in the U.S. economy, and this rule will continue to help lessen the negative credit impacts of medical debt.”

This rule is part of a larger initiative by the CFPB to address hidden junk fees charged by banks and financial companies that disproportionately impact low-income consumers. Since its formation, the CFPB has obtained over $21 billion in relief for over 205 million people. Despite its success and its popularity with the public, the agency’s future is at risk. Most recently, advisors to the President-elect have called for the CFPB to be shuttered. The medical debt credit reporting rule itself could also be overturned by Congress using the Congressional Review Act (CRA), which allows Congress, with the President’s signature, to overturn new regulations.

“The medical debt rule shows how important the CFPB is to working people who are losing ground to corporate profiteering,” said Lauren Saunders, associate director at NCLC. “Working class folks must speak up to ensure the CFPB’s rule to limit medical debts on credit reports, and the CFPB itself, survive attacks by corporate America.”

The final rule does not apply to medical debts on credit cards, including specialized credit cards, which advocates had urged the CFPB to include. It also does not apply to credit reports used for non-lending purposes, such as employment and tenant screening

“Medical debt shouldn’t harm credit records regardless of how it shows up,” said April Kuehnhoff, senior attorney at NCLC. “And it shouldn’t damage the ability of Americans to get a job or an apartment.”

Additional Quotes

“When banking gets mixed up with health care, it causes a lot of heartache,” said Adam Rust, director of financial services for the Consumer Federation of America. “The CFPB’s new rule places a sensible boundary between the two. People often pay medical debt they know they do not owe to protect their credit scores. Others avoid seeking medical care, fearing it will harm their creditworthiness. The new rule means that medical debt collectors cannot weaponize the credit reporting system to their advantage, and sick people will not forego treatment just because they want to borrow money in the future.”

“The crushing financial burdens of medical debt should not continue to undermine people’s ability to take out a loan or qualify for a mortgage,” said Christine Chen Zinner, senior policy counsel at Americans for Financial Reform. “While today’s rule will help over 100 million people saddled with medical debt, this rule will critically lessen the negative credit impacts stemming from decades of racist housing, employment, healthcare, and other policies and practices that have left Black and Latine households with higher amounts of medical debt.”

“With this rule requiring removal of medical bills from credit reports, the CFPB protects millions of medical debt-strapped Americans from certain additional financial struggles triggered by the archaic credit reporting system,” said Christine Hines, senior policy director at the National Association of Consumer Advocates.

“Finalizing this rule is a big win for Mainers and people all over the country,” said Nora Flaherty-Stanford of Maine People’s Alliance. “More than 40% of Mainers say they’ve taken on medical debt in the last five years, and for most of them, it’s still hanging over their heads. We all know that’s not right, and as we celebrate this good news, we’re calling on our members of Congress to stand strong in supporting this rule and the CFPB.”

“Someone’s history of unexpected medical debt has no correlation with their willingness or ability to repay future bills, so it should have no bearing on a person’s access to credit, an apartment or a job,” says Ruth Susswein, Consumer Action’s director of consumer protection.

“Medical debt burdens millions of families across the country and can unfairly tarnish a person’s credit record, making it more difficult to qualify for an affordable loan, get a job, or even rent an apartment,” said Chuck Bell, advocacy program director for Consumer Reports. “Many consumers have medical debt on their credit reports that is inaccurate or under dispute because our medical billing and insurance reimbursement system is so complex and confusing. No one’s credit record should be ruined by medical debt since it’s not a reliable predictor of credit risk. The CFPB’s ban on medical debt reporting provides critical protection to consumers and will help ensure they can get the health care they need without fearing that their credit record will be damaged beyond repair.”

“This new rule is good news for at least 14 million people – including financially responsible families that have accumulated medical debt from unpredictable health issues, high out-of-pocket costs, insurance claim denials and billing errors,” said Patricia Kelmar, senior director of health care campaigns for U.S. PIRG. “We’ve known for years that medical debt is not predictive of credit-worthiness. The new rule builds on the CFPB’s important work on medical debt reporting and is yet another example of how the CFPB protects consumers from unfair practices.”

“Banning the reporting of medical debt will end the weaponization of credit reporting against those who are unlucky enough to get sick or injured and run up bills they cannot afford to pay,” said Renée Steinhagen, executive director, New Jersey Appleseed Public Interest Law Center and a member of the NJ for Healthcare Coalition. “Thanks to the new CFPB rule, they need no longer worry about their credit being ruined, which can make it harder to buy or rent a home or a car or even interfere with getting a job.”

“One in five New Jerseyans struggle with repaying medical debt,” said Beverly Brown Ruggia, Financial Justice Program director at New Jersey Citizen Action. “In a nation where good credit is essential for accessing housing, employment, and even medical care itself, it is unconscionable that anyone should face financial ruin and lose access to these basic necessities simply because they or a family member got sick. With this rule, the CFPB has stepped in once again to protect the most vulnerable among us from unfair treatment and potential financial devastation.”

“This landmark rule ensures consumers are no longer unfairly penalized for medical debt,” said Jennifer Holloway, staff attorney leading the Medical Debt Project at Tzedek DC. “By removing medical debt from credit reports, the CFPB helps individuals and families access housing, employment, and credit opportunities and advances racial and disability justice. This rule recognizes that access to medical care should not result in lifelong financial setbacks and will improve patients’ well-being by reducing stress and anxiety. Ultimately, this is a vital step toward supporting healthier and more financially secure communities.”

“The magnitude of medical debt in America is crippling:100 million Americans carry medical debt that is not caused by profligate spending, but often by medical emergencies. Thus punishing Americans who carry this debt by harming their credit scores, forcing them to turn to predatory lending if they need a car or home loan multiplies the harm,” said Sally Greenberg, chief executive officer at National Consumer League. “The CFPB’s rule stopping credit reporting agencies from sharing medical debt with lenders will prevent adding to the burden of the 15 million Americans with lowered credit scores due to medical debt. NCL supports this important rule.”

“This rule is a significant win for struggling Maryland families,” said Marceline White, executive director of Economic Action Maryland Fund (Economic Action). “More than 876,000 Maryland households have a medical debt they are unable to repay. No one should have their credit downgraded because they or a loved one fell ill and sought medical care.” 

“NALCAB – the National Association for Latino Community Asset Builders applauds the Consumer Financial Protection Bureau (CFPB)’s final rule banning medical debt from credit reports. According to a report by the Urban Institute, adults who live in communities where the majority of the population are people of color are more likely to have medical debt in collections reported on their credit reports.  Today’s announcement will help boost the economic trajectory of Latinos and therefore further stimulate economic growth,” said Clarinda Landeros, Director of Public Policy, NALCAB. 

“As we work to create a country where healthcare is a human right, we must eliminate the many burdens of a healthcare system that puts profit over people,” said Katie Goldstein, Director of Housing and Healthcare Campaigns at Popular Democracy. “Too often, our people risk financial ruin when they seek medical care due to high costs and long term medical debt that impacts credit ratings and makes it more difficult to secure housing and employment. By eliminating medical debt from credit scores, today’s much-needed CFPB ruling will ease some of these barriers, will protect folks from predatory debt collectors, and will encourage more people to seek medical care with less fear of financial repercussions.”

“The National Fair Housing Alliance applauds the Consumer Financial Protection Bureau (CFPB)’s final rule banning medical debt from credit reports,” said Nikitra Bailey, executive vice president of the National Fair Housing Alliance. “Medical debt devastates the budgets of millions of families, especially those living in the South making it difficult for people living in the region to secure quality credit opportunities to purchase a home, start a business, or finance a car to get to work. It also disproportionately impacts Black and Latino consumers who are more likely to lack wealth to immediately address surprise medical expenses because they were long denied fair housing and lending opportunities. These medical debts can then result in collections reported on their credit reports, although the medical debits are not an accurate reflection of the consumer’s ability or willingness to repay debts. The CFPB’s final rule will help provide a more equitable path to access to credit and therefore further stimulate economic growth, especially in the South.”

“It surprises Alaskans when health insurance fails to protect them from the extremely high costs of healthcare in our state,” explained Claire Lubke, economic justice lead at Alaska Public Interest Research Group. “All it takes is an accidental visit to an out-of-network provider and we end up in a situation where 40% of Alaskans are holding medical debt, including military members and those with access to tribal health services. Allowing medical debt on credit reports punishes Alaskans for receiving medical care they need and often don’t realize is uncovered until it’s too late. AKPIRG commends the CFPB for improving access to necessary financial services for Alaskans who are working hard to overcome medical debt.”

“Medical debt often stems from unpredictable, unavoidable circumstances and shouldn’t stop access to financial opportunities. In Oregon, 30% of residents have incurred medical debt in the last two years. Of those residents, 85% report significant impacts, from increased stress and anxiety to financial hardship and delayed medical care. Oregon Consumer Justice applauds the Consumer Financial Protection Bureau for finalizing this vital rule addressing medical debt on credit reports,” says Jagjit Nagra, executive director of Oregon Consumer Justice. “This rule is a critical first step in protecting consumers and promoting financial equity. In Oregon’s upcoming legislative session, we look forward to championing legislation that will further extend this rule’s impacts to exclude medical debt in employment and tenant screening and medical debt incurred using medical credit cards.”

“This rule not only relieves patients and their loved ones from the financial burden of medical debt on their credit reports, but also relieves them from the real and harmful physical and mental impacts of medical debt on their health,” said David Zhao, Equal Justice Works Fellow, sponsored by Amgen Inc. and Munger, Tolles & Olson LLP, at Public Counsel. “In Los Angeles, one in ten adults is substantially burdened by medical debt, leading them to be 2-3.5 times more likely to be food insecure, forgo prescriptions, and be unstably housed. Under the CFPB’s new rule, patients can break the cycle of delaying further medical care due to the stress and anxiety of having their medical bills show up on their credit reports.”

Related Resources

###

About the National Consumers League (NCL) 

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL’s latest podcast highlights the disparities with the 340B drug pricing program

/in , , /by

January 6, 2025

Media contact: National Consumers League – Lisa McDonald, lisam@nclnet.org, 202-207-2829

Washington, DC – The National Consumer League (NCL) has released a new episode of its We Can Do This podcast, shedding light on the inequities and lack of transparency surrounding the 340B Drug Pricing Program. This federal initiative was designed to provide medications at reduced prices to low-income patients, but it has been manipulated by large healthcare entities to generate billions in profits with minimal oversight. As a result, the program’s intended beneficiaries—low-income patients—are often forced to pay full price for medications they cannot afford.

In this episode, NCL’s CEO Sally Greenberg is joined by Amy Hinojosa, President and CEO of MANA, a National Latina Organization, and founding member of the Health Equity Collaborative, and Dr. Ge Bai, an expert on healthcare accounting, finance, and policy at Johns Hopkins University about the shocking lack of transparency around a program that has more than doubled in cost to taxpayers reaching more than $120 Billion in 2022. Both experts emphasize the importance of accountability to ensure that the 340B program truly benefits those it was designed to serve.

“The 340B program was created as a ‘buy-low-sell-low’ initiative. But over the years, it has evolved into a ‘buy-low-sell-high’ program,” said Dr. Ge Bai. “Hospitals can still buy drugs at a low price, but when they sell those drugs, they do so at full price—without any discount. This allows hospitals to reap substantial profits from the difference between the discounted purchase price and the high selling price.”

The episode also discusses the bipartisan 340B ACCESS Act (HR 8574), proposed legislation aimed at restoring transparency and accountability to this critical healthcare program.

The 340B Access Act (HR 8574) seeks to:

  • Ensure that discounts directly reduce patient costs
  • Modernize contract pharmacy arrangements
  • Strengthen eligibility requirements
  • Implement public reporting measures
  • Prevent abuse by middlemen

“Entering this new legislative session, there is a real opportunity to leverage bipartisan support and push the 340B ACCESS Act across the finish line,” said NCL CEO Sally Greenberg. “The bottom line is that this program needs stronger guardrails to ensure that everyday Americans—especially those in underserved communities—have access to affordable medications.”

Additional Resources:

Dr. Ge Bai, PhD, CPA, Johns Hopkins University: Do Nonprofit Hospitals Deserve Their Tax Exemption?

340 B State Press Releases

 

###

About the National Consumers League (NCL) 

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Hospitals and PBMs hijack discount drug program

/in , , , , /by

January 6, 2025: On this episode of NCL’s “We Can Do this” podcast, National Consumers League CEO Sally Greenberg speaks with Amy Hinojosa, President and CEO of Mana, a National Latina Organization, and Dr. Ge Bai, an expert on health care accounting, finance, and policy at Johns Hopkins University, regarding a shocking lack of transparency for a program that has more than doubled in cost reaching more than $120 Billion in 2022.

Read more

Fighting for fairness: The Obesity Bill of Rights

/in , , /by

In terms of the number of people it affects and the serious health problems it creates, obesity is the most significant chronic disease in human history. And yet, it is a disease that is too frequently undiagnosed and untreated, and leads to harsh judgments rather than understanding and care.

As a physician who has devoted my career to addressing the disparities affecting obesity sufferers, I am grateful for the work of the National Consumers League (NCL) in communicating the message that people who have this disease matter and that they have the right to quality healthcare without enduring discrimination or bias.

This argument can’t be made strongly enough. Obesity is a disease that people wear. You can’t look at someone and tell if they have cancer, high blood pressure, or diabetes. Often, you can look at someone and determine that they have obesity, and that leads to negative assumptions about their lifestyle instead of an acknowledgment that they have a chronic disease requiring treatment.

NCL and the National Council on Aging demonstrated essential and invaluable leadership by creating the first-ever Obesity Bill of Rights, defining the core requirements for people with obesity to receive person- centered, quality care. They established, for example, the right to respect from all members of an integrated care team, the right to treatment from qualified health providers, the right to receive care in settings that allow for privacy and the use of size– and weight– accessible equipment and diagnostic scans, and the right to coverage for treatment with access to the full range of treatment options for the patient’s disease.

These organizations put muscle behind their message by creating the Right2ObesityCare, a grassroots movement focused on ensuring that these rights are incorporated into medical practice.

As NCL CEO Sally Greenberg said very well when the Obesity Bill of Rights was announced, “For too long, adults with obesity have encountered a healthcare system that is working against them. They have been stigmatized, discriminated against, not treated with respect by their health providers, and have faced significant hurdles and burdensome requirements to receive obesity care.”

This commitment to health equity remains critical at a time in which 1 billion people worldwide and more than 100 million in the United States are living with obesity. This is a disease for which, too frequently, the economic haves and have-nots in our society have significant differences in care and coverage. There are novel therapies— GLP-1 agonists like Ozempic and Trulicity, for example—that can improve blood sugar control and lead to weight loss. Those in the higher socioeconomic strata have generous health insurance plans that cover these drugs. In contrast, those who struggle financially don’t have access even though they tend to have higher obesity rates.

If we’re to address a disease of this extraordinary magnitude, then these inequities must be addressed.

This is, in fact, a disease so far-reaching that it can’t be solved by just one breakthrough therapy or one effective medicine. This will require a multifaceted approach involving virtually every sector of our society and multiple industries. Most of all, it will take vision and leadership to keep making the point that obesity patients matter and that they require care, not judgment.

NCL is providing that voice, and its actions will continue to be critical in combating this ongoing healthcare crisis.

______________

Dr. Fatima Cody Stanford is an obesity medicine physician, scientist, educator, and policymaker at Massachusetts General Hospital and Harvard Medical School. She is a sought-after expert in obesity medicine, who bridges the intersection of medicine, public health, policy, and disparities

New NCL analysis of medical debt policies highlights need for reform

/in , , , , , , , , /by

By Sam Sears, Health Policy Associate, National Consumers League

The National Consumers League (NCL) recently published a new issue brief focused on hospital’s medical debt practices. With over 100 million Americans grappling with medical debt, and 1 in 7 of them reporting to KFF Health News that they’ve been denied care, it is prudent to evaluate these anti-consumer hospital policies.

The analysis, which was completed by Magnolia Market Access, found that 340B hospitals are significantly more aggressive with their medical debt policies – 340B hospitals are twice as likely to deny or defer chare and also significantly more likely to take legal action against a patient. Additionally, our analysis found that for-profit hospitals are significantly less aggressive in their practices against patients with medical debt than nonprofit or government hospitals, and that screening for financial assistance does not resolve medical debt issues.

Medical debt is unpredictable and can have long lasting consequences. Nearly 50% of Americans struggling with medical debt have it reported to their credit report, and over 40 million people owe nearly $88 billion that has been sent to collections. The Biden Administration has taken action to combat and address medical debt, which you can read more about here on our blog. However, there are additional actions that policymakers may take.

NCL has, and continues to fight to protect consumers from excessive troubles due to medical debt, including working with policymakers to combat anti-consumer debt collection policies hospitals continue to practice. The findings from the analysis conducted in this issue brief further highlight the need for 340B Drug Pricing Program reform, to ensure the savings that hospitals receive are reinvested in ways that continue to benefit consumers and patients.

Hospital Medical Debt

###

About the National Consumers League (NCL)

The National Consumers League, founded in 1899, is America’s pioneer consumer organization.  Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.  For more information, visit nclnet.org.

A trusted source for reliable health information

/in , /by

For more than a century, the National Consumers League (NCL) has been a vigorous advocate for consumers, playing a pivotal role in protecting health and safety, by providing vital and reliable information on medical and food products so that individuals and families can make informed decisions about matters that affect their well-being.

Since being chartered in 1899, the organization has worked to create and strengthen protections for consumers. These critical protections were led initially by the work of its first general secretary, Florence Kelley, who helped spread the word about the importance of typhoid vaccines to mitigate a disease outbreak at the end of the 19th century and helped lead the League’s efforts to promote the Pure Food and Drug Act of 1906, which laid the foundation for the Food and Drug Administration (FDA).

Indeed, the work and mission of NCL shares much with the FDA, an agency that embraces a basic responsibility to provide the public with accurate, science-based information so that Americans can make well-informed decisions about their health. We’ve seen great success in this area, thanks in part to the work done by NCL. Nevertheless, we still face great challenges, and I am confident that NCL will play a very important role in addressing these as well.

Our nation has enacted important laws to help protect consumers, and we have marshaled extraordinary progress in science and technology in the development of new treatments and cures for diseases. Despite these and other advances that enable us to improve our health, we are today witnessing a troubling new development in, and threat to, public health. Notably, we are experiencing a worrisome decline in our nation’s life expectancy that is in part linked to an increasing prevalence and cumulative impact of a number of chronic diseases — heart, vascular, metabolic (such as obesity and diabetes), and lung and kidney disease, and to troubling rates of overdoses, suicides, and gun violence.

Just as regrettable is the growing problem of misinformation about public health, science, and medicine. A stream of misinformation and often unfounded opinions, most often spread via the Internet and social media, is eroding the public’s trust in science and government agencies, such as the FDA, making it increasingly difficult for the public to verify facts and advice from these trusted sources.

While not a new problem in our nation’s history, the digitization of our culture and the rapid growth of social media have exacerbated the pervasiveness and impact of the problem. This is an area where NCL’s powerful voice and unimpeachable credibility can have an enormous impact. Neither the FDA, nor the entire federal government can combat the spread of misinformation on its own. It is going to require a concerted non-governmental response. Few organizations are better positioned to succeed at this task than the National Consumers League.

It wouldn’t be the first time NCL rose to the occasion. During the COVID-19 public health emergency, NCL was an essential voice – helping Americans better understand the virus, its variants, and how to protect themselves from infection. The organization testified before the FDA and Centers for Disease Control and Prevention panels on vaccine development and safety and advocated for limits on social media misinformation during that crisis.

Similarly, NCL has provided enormous public benefit through its work to help consumers understand food labeling, to hold companies accountable for the claims they make regarding food and health care products, and with programs such as Script Your Future that help raise awareness of the importance of medication adherence among patients, particularly those with chronic health challenges.

There is an old saying that a lie can get halfway around the world before the truth can get out of bed. Given the speed and reach of social media today, that analogy can be applied to misinformation, which is disseminated far too quickly to be adequately countered with trustworthy facts. However, we don’t have the luxury to surrender. The lives and well-being of too many people depend on our ability to provide the public with reliable information grounded in science.

I am confident in our ability to overcome this latest challenge, thanks in large part to allies like the National Consumers League with its long track record of empowering generations of Americans to make well-informed decisions to secure their health and their futures. I look forward to NCL’s continued activism, engagement, and leadership.

______________

Robert M. Califf, M.D. is Commissioner of the Food and Drug Administration.

Pioneering access to affordable healthcare

/in , /by

The drive to achieve accessible, affordable, high-quality healthcare for every man, woman, and child in the United States has been a long one, and it has been a central pillar of the National Consumers League’s (NCL’s) mission and history. Having served as Secretary of Health and Human Services during the creation and implementation of the Affordable Care Act (ACA), I have a great awareness and appreciation for the role NCL has played in bringing health security to more Americans and preventing those protections from being diminished or taken away by opponents of progress.

As I said, it’s been a long battle and one that is far from complete. You can go back to the Franklin D. Roosevelt Administration to witness NCL’s impact on health reform. Josephine Roche, a former president of NCL, was by President Roosevelt’s side writing the first-ever universal healthcare bill to be introduced in Congress. Components of that legislation became the groundwork for the creation of Medicare and Medicaid. 

In building a healthier nation, NCL also played a key role in the passage of the Sheppard– Towner Maternity and Infancy Protection Act, the first venture of the federal government into Social Security legislation and the first major law that came to exist after the full enfranchisement of women. Before its passage, most of the expansion in public health programs occurred at the state and local levels. The act provided support for women and their babies through pregnancy and childbirth and resulted in a decrease in infant mortality rates. It was repealed after lobbying by the American Medical Association, which argued it was “socialized medicine” in 1929, but when the Social Security Act was passed in 1935, it included many of the same provisions.

Since that time, NCL’s name has been there whenever opportunities occur to improve the health and well-being of consumers and working Americans or when efforts to roll back hard-won healthcare benefits need to be fiercely opposed. The Department of Health and Human Services has one of the most far-reaching portfolios of any cabinet department, and, as Secretary, I valued NCL’s ability to weigh in on so many of those issues, be they Medicare reform, prescription drug affordability, or food safety.

What I appreciate about NCL’s work in this space is that its mission involves not just policy advocacy, but also practical guidance for consumers trying to navigate the complexities of our healthcare system. The organization has been an invaluable resource in helping people better understand their healthcare coverage options; protect themselves against fraud; realize the importance of being up-to- date on vaccines; and, through the excellent Script Your Future program, practice better medication adherence.

The need for NCL in today’s healthcare sphere is more important than ever. Healthcare is, and always has been, a politically charged, volatile issue. As we saw during the battles to enact the ACA and prevent its repeal, and again during the COVID-19 pandemic and the effort to get people vaccinated, there is no shortage of misinformation designed to thwart public health initiatives. We need NCL, with its impeccable credibility, to combat the misinformation clutter and to cut through the noise with reliable, evidence-supported messaging that the American people can trust.

NCL’s voice is vital, as well, in the continuing battle to make healthcare more affordable and accessible. While the ACA has been an enormous success in reducing the number of uninsured persons in this country, patients and consumers are still dealing with industry machinations that make it more difficult to get the treatments they need and make out-of- pocket costs higher than they should be. NCL continues to be an effective advocate so that patients and their healthcare providers, rather than insurers, can determine the best course of treatment together.

Yes, the road to universal healthcare is a long one, but we wouldn’t be as far in this journey as we have come without the work of the National Consumers League.

______________

Kathleen Sebelius is the CEO of Sebelius Resources, LLC, a strategic advisory firm, and was Secretary of Health and Human Services under President Barack Obama, and was a 2023 recipient of the Trumpeter Award.