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Digital therapeutics are now covered by Medicare. What does that mean?

Good morning. A recent study published in the Annals of Internal Medicine found that in 2021, UnitedHealth Group received just under $14 billion in extra Medicare Advantage payments after using a code that made its members appear sicker. It’s another tough break for the plan and provider that has faced allegations of illegally taking additional money from patients and taxpayers, especially after its CEO was fatally shot in early December.

In today’s edition:

Apps for health

Layoffs impact maternal health

You’re (both) hired!

—Caroline Catherman, Maia Anderson

DIGITAL THERAPEUTICS

Mashup of a phone, brain, sky, pill, and healthcare symbol

Amelia Kinsinger

Medication and therapy have long been the standard protocol for treating mental health conditions. But there’s a third option: your smartphone.

In 2017, the FDA began clearing virtual tools to treat conditions like depression, attention-deficit/hyperactivity disorder (ADHD), insomnia, and substance use disorder. These digital mental health treatments (DMHTs) are a type of digital therapeutic, defined by trade group Digital Therapeutics Alliance (DTA) as health software that delivers an evidence-backed medical intervention for a disease or disorder.

Yet despite their potential, these apps have struggled to find success. Developers previously told Healthcare Brew that’s largely because payers have been unwilling to cover them due, in part, to their newness. In a qualitative study published in 2024, 22 pharmacists and health insurance representatives said they were waiting for more evidence or a clearer reimbursement pathway.

On Jan. 1, 2025, the wait ended.

Get the latest updates on digital therapeutics here.—CC

Presented By Thermo Fisher Scientific

REPRODUCTIVE HEALTH

In the cell laboratory, culture dishes are prepared at the Fertility Center Berlin to collect the eggs after egg retrieval.

Picture Alliance/Getty Images

Experts are worried that Department of Health and Human Services (HHS) cuts on April 1 are bad news for reproductive health.

During layoffs of about 10,000 federal employees starting April 1, multiple outlets including NBC reported that most of the approximately 100 employees at the CDC’s Division of Reproductive Health (DRH) had lost their jobs.

“It appears that anything having to do with women’s or reproductive health was particularly targeted in these cuts,” Sean Tipton, chief advocacy and policy officer at the nonprofit American Society for Reproductive Medicine (ASRM), told Healthcare Brew.

While 100 out of 10,000 might seem like a drop in the ocean, Tipton and others say this team is critical. The DRH collects and analyzes data on issues like maternal and infant mortality and lays out potential solutions, Lynn Yee, associate chief of maternal-fetal medicine for research at Northwestern University Feinberg School of Medicine, told Healthcare Brew.

Here’s how layoffs are impacting fertility and maternal health.—CC

RETAIL PHARMA

A CVS sign against a blue cloudy sky

Patrick T. Fallon/Getty Images

CVS named two new executives to its leadership team as the company tries to bounce back from a year that saw its net income cut nearly in half.

The retail pharmacy giant named UPS veteran Brian Newman as its new EVP and CFO and Press Ganey expert Amy Compton-Phillips as its new EVP and chief medical officer. Newman will take over the role on April 21 and Compton-Phillips starts on May 19, CVS announced on April 8.

“As I continue to build out my leadership team, I am confident that Brian and Amy will help us continue the momentum we have built over the past several months,” CVS Health President and CEO David Joyner said in a statement.

Some background. Joyner took the reins from former CEO Karen Lynch in October 2024, and the company has since made several changes in attempts to boost the company’s financial performance, including appointing a new head of insurer arm Aetna and implementing a $2 billion cost-savings plan.

Learn more about the new hires and CVS’s strategy here.—MA

VITAL SIGNS

A laptop tracking vital signs is placed on rolling medical equipment.

Francis Scialabba

Today’s top healthcare reads.

Stat: 27%. That’s how much maternal morbidity increased from 2018 to 2022, according to a new paper based on CDC data. (Stat)

Quote: “We already have shortages. If we start deporting or scaring away 1.1 million noncitizen healthcare workers, things will get much worse. And that’s going to affect the healthcare of all Americans.”—Steffie Woolhandler, a professor of health policy at Hunter College, on how President Donald Trump’s immigration policies could exacerbate healthcare workforce shortages (NPR)

Read: How Max medical show The Pitt displays the ER crowding crisis hospitals are facing across the US. (the New York Times)

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