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Are US Prescription Drug Prices 10 Times Those of Other Nations? Only Sometimes

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by Michelle Andrews
Fri, 19 May 2023 13:55:00 +0000

“We pay by far the highest prices in the world for prescription , in some cases 10 times more than the people of any other country.”

Sen. Bernie Sanders (I-Vt.), in an April 30, 2023, interview on CNN's “ of the Union”

Sen. Bernie Sanders (I-Vt.), whether in or as a presidential candidate, has always taken strong positions against the high cost of prescription drugs. Since becoming the chair of the influential Senate Health, Education, Labor and Pensions Committee this year, he's made lowering drug costs a top priority.

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It's therefore not surprising that the senator would, during a recent Sunday morning TV interview, rail against high drug prices in the United States and compare what Americans pay with what people in other countries must fork over.

“We pay by far the highest prices in the world for prescription drugs, in some cases 10 times more than the people of any other country,” Sanders said on CNN's “State of the Union” last month.

After all, it is a popular political talking point. But 10 times as much? That was a bit of a head-snapper. We decided to check it out.

A Complicated Market

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We first asked the senator's office for the documents to support Sanders' claims. But our repeated requests went unacknowledged.

So, we started digging around on our own. What we found was that, as expected, Sanders was right in asserting that drug prices in the United States generally exceed those in other countries. The magnitude of the difference, however, varies depending on the drugs and the countries included in the comparison, among other factors.

And no matter how the studies we examined sliced the data, the drug price difference almost never reached Sanders' stated level. Still, experts told us his point has merit. “I think the quote is on target, if a bit vague in scope,” said Andrew Mulcahy, a senior health economist at the Rand Corp., a global policy think tank.

Take, for example, the oft-cited 2021 study by Rand that found, based on 2018 figures, drug prices in the U.S. were on average 2.56 times the drug prices in 32 other Organization for Economic Cooperation and Development countries. These are mostly high-income, developed nations. For brand-name drugs, the gap was even bigger: Americans paid 3.44 times the prices for those drugs, on average. But the opposite was true for generic drugs, for which Americans paid just 84% of what people in other countries studied paid. One exception: Turkey. U.S. drug prices were nearly eight times those in Turkey overall, and 10.5 times those for brand-name drugs.

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Mulcahy, a co-author of the report, said that although the ratio across all drugs typically doesn't reach Sanders' “10 times” mark, “for some drugs it gets close, if you look at the manufacturer's list price.”

The manufacturer price, though, is not necessarily the best measure — especially if the idea is to capture what consumers are paying.

That's because it doesn't reflect the rebates and other discounts negotiated by insurers and pharmacy benefit managers that can lower a drug's retail price. Most people with health insurance are paying prices that include these discounts. The Rand researchers used the manufacturer price, though, because the discounts are confidential and it's hard to quantify how they affect net prices, the noted.

Other studies have found smaller — though still significant — gaps than Sanders cited. In 2021, the Accountability Office released a comparative analysis of the prices of 20 brand-name drugs in the United States, Canada, Australia, and France. The study, commissioned by Sanders himself, found that retail prices were more than 2 to 4 times what they were in the U.S.

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Another analysis, this one by the Peterson-KFF Health System Tracker, the prices of seven brand-name drugs in the U.S., Germany, the Netherlands, and the United Kingdom, and likewise found that some U.S. prices were roughly 2 to 4 times as high as those in other countries. But for other drugs the gap was smaller.

The drugs tracked in this analysis “tend to be specialty drugs and expensive no matter where you buy them,” said Cynthia Cox, director of the Peterson-KFF Health System Tracker, who co-authored the analysis.

Because the United States doesn't directly regulate drug prices as many other countries do, some prices here are more expensive. In 2019, the United States spent $1,126 per person on prescription drugs, $963 by health plans and $164 that people spent out-of-pocket, according to a KFF analysis of OECD data. Spending by comparable countries was $552 per capita, including $466 by health plans and $88 in out-of-pocket spending by individuals.

Experts added, though, that price is only one element that affects overall prescription drug spending.

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“If we're spending more, part of that might be because we're paying higher prices, but it also might be because we're using more medication,” said Cox.

And Then There Is Insulin

Where Sanders could find support for his statement, according to Mulcahy, is in insulin prices. A Rand study done in 2020 for the Health and Human Services' Office of the Assistant Secretary for Planning and Evaluation compared 2018 insulin prices in the United States with those in 32 other OECD countries. Their findings: The average U.S. manufacturer price for a standard unit of insulin sold domestically was more than 10 times the international price, $98.70 in the U.S. versus $8.81 in the OECD sample.

Such statistics have triggered a somewhat partisan rallying cry to address drug costs. The price of insulin has been the subject of congressional hearings, including one this month convened by Sanders.

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Meanwhile, capping insulin costs at $35 a month for Medicare recipients was a signature win for President Joe Biden in the Inflation Reduction Act. Members of Congress, Sanders among them, want to slash insulin prices further. In a press release announcing a bill he introduced with Rep. Cori Bush (D-Mo.) that would prohibit manufacturers from charging more than $20 per vial of insulin, Sanders said, “There is no reason why Americans should pay the highest prices in the world for insulin — in some cases, ten times as much as people in other countries.”

Our Ruling

When Sanders said that Americans “pay by far the highest prices in the world for prescription drugs,” he was on target. But his “10 times more” figure is off. Though that comparison may be accurate for some individual drugs or classes of drugs — and he did temper his comment by saying “in some cases” — it exaggerates overall differences in prices, which are generally higher here but not 10 times those in the rest of the world.

A well-known exception is insulin: The price in the U.S. has been shown to be 10 times as high as in other countries.

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But even this determination is complicated. Studies that showed a tenfold spread in prices for insulin drugs referred to manufacturer prices, which don't take discounts into account. But that's a misleading comparison because most people don't actually pay manufacturer prices.

Sanders' statement certainly contains elements of truth but also doesn't provide all the necessary information or context. We rate it Half True.

sources:

Friends of Bernie Sanders, Bernie Sanders on the Issues, accessed May 8, 2023

Sen. Bernie Sanders, “Bernie Sanders In Line to Chair Influential Senate Committee on Health, Education and Labor,” Nov. 17, 2022

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Rand Corp., “Prescription Drug Prices in the United States Are 2.56 Times Those in Other Countries,” Jan. 28, 2021

Rand Corp., “Comparing Insulin Prices in the U.S. to Other Countries,” September 2020

JAMA, “Estimated Savings From International Reference Pricing for Prescription Drugs,” Sept. 10, 2021

Government Accountability Office, “Prescription Drugs: U.S. Prices for Selected Brand Drugs Were Higher on Average Than Prices in Australia, Canada, and France,” March 29, 2021

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Sen. Bernie Sanders, “News: New GAO Study Finds U.S. Pays Two to Four Times More for Prescription Drugs Than Other Nations,” April 28, 2021

Peterson-KFF Health System Tracker, “How Do Prescription Drug Costs in the United States Compare to Other Countries?” Feb. 8, 2022

Senate Committee on Health, Education, Labor and Pensions, “News: Sanders and Cassidy Announce Bipartisan Deal to Lower Prescription Drug Prices,” April 25, 2023

Sen. Bernie Sanders, “News: Following Successful Public Pressure Campaign to Lower the Cost of Eli Lilly's Insulin, Sanders and Bush Introduce Bill to Finish the Job and Cap the Price at $20 per Vial,” March 9, 2023

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Senate Committee on Health, Education, Labor and Pensions, “Full Committee Hearing: The Need to Make Insulin Affordable for All Americans,” accessed May 8, 2023

Stat, “Disagreements and Digs Upend an Otherwise Bipartisan Hearing on PBM Reform,” May 2, 2023

Cost Institute, International Health Cost Comparison Report, July 2022

Interviews with Andrew Mulcahy, senior policy researcher at the Rand Corp., May 5 and 10, 2023

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Interviews with Cynthia Cox, vice president and director of the Program on the ACA at KFF and director of the Peterson-KFF Health System Tracker , May 5 and 9, 2023

Interview with Lovisa Gustafsson, vice president at the Commonwealth Fund, May 5, 2023

KFF Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about KFF.

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By: Michelle Andrews
Title: Are US Prescription Drug Prices 10 Times Those of Other Nations? Only Sometimes
Sourced From: kffhealthnews.org/news/article/are-us-prescription-drug-prices-10-times-those-of-other-nations-only-sometimes/
Published Date: Fri, 19 May 2023 13:55:00 +0000

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Kaiser Health News

Stranded in the ER, Seniors Await Hospital Care and Suffer Avoidable Harm

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Judith Graham
Mon, 06 May 2024 09:00:00 +0000

Every day, the scene plays out in hospitals across America: Older men and women lie on gurneys in emergency room corridors moaning or suffering silently as harried medical staff attend to crises.

Even when physicians determine these patients need to be admitted to the hospital, they often wait for hours — sometimes more than a day — in the ER in pain and discomfort, not getting enough food or , not moving around, not being helped to the bathroom, and not getting the kind of care doctors deem necessary.

“You walk through ER hallways, and they're lined from end to end with patients on stretchers in various states of distress calling out for help, a number of older patients,” said Hashem Zikry, an emergency medicine physician at UCLA Health.

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Physicians who staff emergency rooms say this problem, known as ER boarding, is as bad as it's ever been — even worse than during the first years of the pandemic, when hospitals filled with desperately ill patients.

While boarding can happen to all ER patients, adults 65 and older, who account for nearly 20% of ER visits, are especially vulnerable during long waits for care. Also, seniors may encounter boarding more often than other patients. The best estimates I could find, published in 2019, before the covid-19 pandemic, suggest that 10% of patients were boarded in ERs before receiving hospital care. About 30% to 50% of these patients were older adults.

“It's a public health crisis,” said Aisha Terry, an associate professor of emergency medicine at George Washington School of Medicine and Health Sciences and the president of the board of the American College of Emergency Physicians, which sponsored a summit on boarding in September.

What's going on? I spoke to almost a dozen doctors and researchers who described the chaotic situation in ERs. They told me staff shortages in hospitals, which affect the number of beds available, are contributing to the crisis. Also, they explained, hospital administrators are setting aside more beds for patients undergoing lucrative surgeries and other procedures, contributing to bottlenecks in ERs and leaving more patients in limbo.

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Then, there's high demand for hospital services, fueled in part by the aging of the U.S. population, and backlogs in discharging patients because of growing problems securing home health care and nursing home care, according to Arjun Venkatesh, chair of emergency medicine at the Yale School of Medicine.

The impact of long ER waits on seniors who are frail, with multiple medical issues, is especially serious. Confined to stretchers, gurneys, or even hard chairs, often without dependable aid from nurses, they're at risk of losing strength, forgoing essential medications, and experiencing complications such as delirium, according to Saket Saxena, a co-director of the geriatric emergency department at the Cleveland Clinic.

When these patients finally secure a hospital bed, their stays are longer and medical complications more common. And new research finds that the risk of dying in the hospital is significantly higher for older adults when they stay in ERs overnight, as is the risk of adverse such as falls, infections, bleeding, heart attacks, strokes, and bedsores.

Ellen Danto-Nocton, a geriatrician in Milwaukee, was deeply concerned when an 88-year-old relative with “strokelike symptoms” spent two days in the ER a few years ago. Delirious, immobile, and unable to sleep as alarms outside his bed rang nonstop, the older man spiraled downward before he was moved to a hospital room. “He really needed to be in a less chaotic environment,” Danto-Nocton said.

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Several weeks ago, Zikry of UCLA Health helped care for a 70-year-old woman who'd fallen and broken her hip while attending a basketball . “She was in a corner of our ER for about 16 hours in an immense amount of pain that was very difficult to treat adequately,” he said. ERs are designed to handle crises and stabilize patients, not to “take care of patients who we've already decided need to be admitted to the hospital,” he said.

How common is ER boarding and where is it most acute? No one knows, because hospitals aren't required to report data about boarding publicly. The Centers for Medicare & Services retired a measure of boarding in 2021. New national measures of emergency care capacity have been proposed but not yet approved.

“It's not just the extent of boarding that we need to understand. It's the extent of acute hospital capacity in our communities,” said Venkatesh of Yale, who helped draft the new measures.

In the meantime, some hospital systems are publicizing their plight by highlighting capacity constraints and the need for more hospital beds. Among them is Massachusetts General Hospital in Boston, which announced in January that ER boarding had risen 32% from October 2022 to September 2023. At the end of that period, patients admitted to the hospital spent a median of 14 hours in the ER and 26% spent more than 24 hours.

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Maura Kennedy, Mass General's chief of geriatric emergency medicine, described an 80-something woman with a respiratory infection who languished in the ER for more than 24 hours after physicians decided she needed inpatient hospital care.

“She wasn't mobilized, she had nothing to cognitively engage her, she hadn't eaten, and she became increasingly agitated, trying to get off the stretcher and arguing with staff,” Kennedy told me. “After a prolonged hospital stay, she left the hospital more disabled than she was when she came in.”

When I asked ER doctors what older adults could do about these problems, they said boarding is a health system issue that needs health system and policy changes. Still, they had several suggestions.

“Have another person there with you to advocate on your behalf,” said Jesse Pines, chief of clinical innovation at US Acute Care Solutions, the nation's largest physician-owned emergency medicine practice. And have that person speak up if they feel you're getting worse or if staffers are missing problems.

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Alexander Janke, a clinical instructor of emergency medicine at the University of Michigan, advises people, “Be prepared to wait when you come to an ER” and “bring a medication list and your medications, if you can.”

To stay oriented and reduce the possibility of delirium, “make sure you have your hearing aids and eyeglasses with you,” said Michael Malone, medical director of senior services for Advocate Aurora Health, a 20-hospital system in Wisconsin and northern Illinois. “Whenever possible, try to get up and move around.”

Friends or caregivers who accompany older adults to the ER should ask to be at their bedside, when possible, and “try to make sure they eat, drink, get to the bathroom, and take routine medications for underlying medical conditions,” Malone said.

Older adults or caregivers who are helping them should try to bring “things that would engage you cognitively: magazines, books … music, anything that you might focus on in a hallway where there isn't a TV to entertain you,” Kennedy said.

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“Experienced patients often show up with eye masks and ear plugs” to help them rest in ERs with nonstop stimulation, said Zikry of UCLA. “Also, bring something to eat and drink in case you can't get to the cafeteria or it's a while before staffers bring these to you.”

We're eager to hear from readers about questions you'd like answered, problems you've been having with your care, and advice you need in dealing with the health care system. Visit kffhealthnews.org/columnists to submit your requests or tips.

——————————
By: Judith Graham
Title: Stranded in the ER, Seniors Await Hospital Care and Suffer Avoidable Harm
Sourced From: kffhealthnews.org//article/emergency-room-boarding-older-adults-harm/
Published Date: Mon, 06 May 2024 09:00:00 +0000

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Could Better Inhalers Help Patients, and the Planet?

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Martha Bebinger, WBUR
Mon, 06 May 2024 09:00:00 +0000

Miguel Divo, a lung specialist at Brigham and Women's Hospital in Boston, sits in an exam room across from Joel Rubinstein, who has asthma. Rubinstein, a retired psychiatrist, is about to get a checkup and hear a surprising pitch — for the planet, as well as his .

Divo explains that boot-shaped inhalers, which represent nearly 90% of the U.S. market for asthma medication, save lives but also contribute to climate change. Each puff from an inhaler releases a hydrofluorocarbon gas that is 1,430 to 3,000 times as powerful as the most commonly known greenhouse gas, carbon dioxide.

“That absolutely never occurred to me,” said Rubinstein. “Especially, I mean, these are little, teeny things.”

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So Divo has begun offering a more eco-friendly option to some with asthma and other lung diseases: a plastic, gray cylinder about the size and shape of a hockey puck that contains powdered medicine. Patients suck the powder into their lungs — no puff of gas required and no greenhouse gas emissions.

“You have the same medications, two different delivery systems,” Divo said.

Patients in the United States are prescribed roughly 144 million of what doctors call metered-dose inhalers each year, according to the most recently available data published in 2020. The cumulative amount of gas released is the equivalent of driving half a million gas-powered cars for a year. So, the benefits of moving to dry powder inhalers from gas inhalers could add up.

Hydrofluorocarbon gas contributes to climate change, which is creating more wildfire smoke, other types of air pollution, and longer allergy seasons. These conditions can make breathing more difficult — especially for people with asthma and chronic obstructive pulmonary disease, or COPD — and increase the use of inhalers.

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Divo is one of a small but growing number of U.S. physicians determined to reverse what they see as an unhealthy cycle.

“There is only one planet and one human race,” Divo said. “We are creating our own problems and we need to do something.”

So Divo is working with patients like Rubinstein who may be willing to switch to dry powder inhalers. Rubinstein said no to the idea at first because the powder inhaler would have been more expensive. Then his insurer increased the copay on the metered-dose inhaler so Rubinstein decided to try the dry powder.

“For me, price is a big thing,” said Rubinstein, who has tracked health care and pharmaceutical spending in his professional roles for years. Inhaling the medicine using more of his own lung power was an adjustment. “The powder is a very strange thing, to blow powder into your mouth and lungs.”

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But for Rubinstein, the new inhaler works and his asthma is under control. A recent study found that some patients in the United Kingdom who use dry powder inhalers have better asthma control while reducing greenhouse gas emissions. In Sweden, where the vast majority of patients use dry powder inhalers, rates of severe asthma are lower than in the United States.

Rubinstein is one of a small number of U.S. patients who have made the transition. Divo said that, for a variety of reasons, only about a quarter of his patients even consider switching. Dry powder inhalers are often more expensive than gas propellant inhalers. For some, dry powder isn't a good option because not all asthma or COPD sufferers can get their medications in this form. And dry powder inhalers aren't recommended for young or elderly patients with diminished lung strength.

Also, some patients using dry powder inhalers worry that without the noise from the spray, they may not be receiving the proper dose. Other patients don't like the taste powder inhalers can in their mouths.

Divo said his priority is making sure patients have an inhaler they are comfortable using and that they can afford. But, when appropriate, he'll keep offering the dry powder option.

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Advocacy groups for asthma and COPD patients more conversations about the connection between inhalers and climate change.

“The climate crisis makes these individuals have a higher risk of exacerbation and worsening disease,” said Albert Rizzo, chief medical officer of the American Lung Association. “We don't want medications to contribute to that.”

Rizzo said there is work being done to make metered-dose inhalers more climate-friendly. The United States and many other countries are phasing down the use of hydrofluorocarbons, which are also used in refrigerators and air conditioners. It's part of the global attempt to avoid the worst possible impacts of climate change. But inhaler manufacturers are largely exempt from those requirements and can continue to use the gases while they explore new options.

Some leading inhaler manufacturers have pledged to produce canisters with less potent greenhouse gases and to submit them for regulatory by next year. It's not clear when these inhalers might be available in pharmacies. Separately, the FDA is spending about $6 million on a study about the challenges of developing inhalers with a smaller carbon footprint.

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Rizzo and other lung specialists worry these changes will translate into higher prices. That's what happened in the early to mid-2000s when ozone-depleting chlorofluorocarbons (CFCs) were phased out of inhalers. Manufacturers changed the gas in metered-dose inhalers and the cost to patients nearly doubled. Today, many of those re-engineered inhalers remain expensive.

William Feldman, a pulmonologist and health policy researcher at Brigham and Women's Hospital, said these dramatic price increases occur because manufacturers register updated inhalers as new products, even though they deliver medications already on the market. The manufacturers are then awarded patents, which prevent the production of competing generic medications for decades. The Federal Trade Commission says it is cracking down on this practice.

After the CFC ban, “manufacturers earned billions of dollars from the inhalers,” Feldman said of the re-engineered inhalers.

When inhaler costs went up, physicians say, patients cut back on puffs and suffered more asthma attacks. Gregg Furie, medical director for climate and sustainability at Brigham and Women's Hospital, is worried that's about to happen again.

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“While these new propellants are potentially a real positive , there's also a significant risk that we're going to see patients and payers face significant cost hikes,” Furie said.

Some of the largest inhaler manufacturers, GSK, are already under scrutiny for allegedly inflating prices in the United States. Sydney Dodson-Nease told NPR and KFF Health that the company has a strong record for keeping medicines accessible to patients but that it's too early to comment on the price of the more environmentally sensitive inhalers the company is developing.

Developing affordable, effective, and climate-friendly inhalers will be important for hospitals as well as patients. The Agency for Healthcare Research and Quality recommends that hospitals looking to shrink their carbon footprint reduce inhaler emissions. Some hospital administrators see switching inhalers as low-hanging fruit on the list of climate-change improvements a hospital might make.

But Brian Chesebro, medical director of environmental stewardship at Providence, a hospital network in Oregon, said, “It's not as easy as swapping inhalers.”

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Chesebro said that even among metered-dose inhalers, the climate impact varies. So pharmacists should suggest the inhalers with the fewest greenhouse gas emissions. Insurers should also adjust reimbursements to favor climate-friendly alternatives, he said, and regulators could consider emissions when reviewing hospital performance.

Samantha Green, a family physician in Toronto, said clinicians can make a big difference with inhaler emissions by starting with the question: Does the patient in front of me really need one?

Green, who works on a to make inhalers more environmentally sustainable, said that research shows a third of adults diagnosed with asthma may not have the disease.

“So that's an easy place to start,” Green said. “Make sure the patient prescribed an inhaler is actually benefiting from it.”

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Green said educating patients has a measurable effect. In her experience, patients are moved to learn that emissions from the approximately 200 puffs in one inhaler are equivalent to driving about 100 miles in a gas-powered car. Some researchers say switching to dry powder inhalers may be as beneficial for the climate as a patient adopting a vegetarian diet.

One of the hospitals in Green's health care network, St. Joseph's Health Centre, found that talking to patients about inhalers led to a significant decrease in the use of metered-dose devices. Over six months, the hospital went from 70% of patients using the puffers, to 30%.

Green said patients who switched to dry powder inhalers have largely stuck with them and appreciate using a device that is less likely to exacerbate environmental conditions that inflame asthma.

This article is from a partnership that includes WBUR, NPR, and KFF Health News.

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——————————
By: Martha Bebinger, WBUR
Title: Could Better Inhalers Help Patients, and the Planet?
Sourced From: kffhealthnews.org/news/article/inhalers-environmentally-friendly-planet-dry-powder-climate-changer/
Published Date: Mon, 06 May 2024 09:00:00 +0000

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Journalists Delve Into Climate Change, Medicaid ‘Unwinding,’ and the Gap in Mortality Rates

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Sat, 04 May 2024 09:00:00 +0000

KFF senior correspondent Samantha Young discussed and climate change on KCBS Radio's “On-Demand” on April 29.

KFF Health News contributor Andy Miller discussed Medicaid unwinding on WUGA's “The Georgia Health ” on April 26.

KFF Health News Nevada correspondent Jazmin Orozco Rodriguez discussed mortality rates in rural America on The Yonder's “The Yonder Report” on April 24.

——————————
Title: Journalists Delve Into Climate Change, Medicaid ‘Unwinding,' and the Gap in Mortality Rates
Sourced From: kffhealthnews.org/news/article/journalists-delve-into-climate-change-medicaid-unwinding-and-the-gap-in-mortality-rates/
Published Date: Sat, 04 May 2024 09:00:00 +0000

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