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Here's how Trump's tariffs on China could impact drug pricing and other healthcare costs

10 February 2025 at 03:00

President Donald Trump's tariffs on China have raised significant concern over their potential impact on healthcare costs, but while the move could have a broad effect on the industry, it is likely they will not produce the devastating results that some may be expecting, health policy and trade experts say. 

A survey by market research group Black Book Research found that 84% of the healthcare consumers they questioned said they expect to see higher costs due to increased pricing on medical treatments and drugs as a result of Trump's new tariffs. But health policy expert Chris Pope posited that healthcare is "not a very highly tradable sector" and that the sectors that do rely on trade relations, like pharmaceutical drugs or medical devices, will hinge on the magnitude of any Trump tariffs.

"There's not much international trade for most of healthcare. The biggest parts of healthcare – physician services, these are all provided domestically already, and hospitals are a domestic part of healthcare, so you take out those two things, and you've kind of ruled out almost three-quarters of all healthcare spending," Pope said in an interview with Fox News Digital. "So, for the most part, we're talking about drugs and devices, which are, at most, about a quarter of healthcare spending."

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"In terms of prices for the industry, whether it's absorbed in their margins, or they do less research and development, or they pass it on to consumers … it's not completely devastating, but it's definitely annoying," said Christine McDaniel, a senior economist at George Mason University's Mercatus Institute.

Experts told Fox News that drug prices are among the most vulnerable aspects of the healthcare system, largely due to the U.S.' reliance on China for certain precursor chemicals and compounds that are essential for producing important medications. However, Pope said that the impact will likely only affect generic drugs and not branded drugs that are based on demand rather than supply. Generic drugs are already relatively cost-efficient, with many of them ranging under $10, he said.

Monica de Bolle is an immunologist and a senior fellow at the Peterson Institute for International Economics, a Washington, D.C.-based think tank. She painted a bleaker picture of how many drugs could be impacted by the tariffs.

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"If you go through a list of the kinds of things that we import from China when it comes to active drug ingredients, or anything else that goes into the making of over-the-counter drugs, everything is in there. If you look at the list, it basically spans the range of potential medications that anyone takes at any point in their lives," said de Bolle. "It includes things like over-the-counter NSAIDS, so non-steroidal, anti-inflammatory drugs, things like Motrin, ibuprofen, even Tylenol, because Acetaminophen is on that list."

She added that drugs that are more dependent on China include medications for anxiety and other psychiatric disorders, such as antidepressants, and following Trump's tariffs, "those prices are going to go up, for sure," she said.

Experts say costs in healthcare could also rise due to disruptions in the supply chain for medical devices, but they noted that the impact will be a lot harder to generalize, compared to the impact on drug pricing. 

"Maybe before [the supply chain] was broken up into five stages. Well, now maybe they've broken it up into six or seven stages. So there are certain things that they have to stay in China for, or they have to source from China, but then they do the next step in India or another nearby country . . . which is going to be more expensive," McDaniel said.

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However, Pope argued that prices could change, depending on the device and the magnitude of Trump's tariffs. 

"It's going to vary a lot, according to where the devices are manufactured, where the components are manufactured, what kind of subsidies are available from other countries and domestically, and the degree of retaliation," he said.

While Trump's tariffs might be new, the experts say that getting out of China is not. Reducing the U.S.' dependency on Chinese products tied to healthcare, particularly drugs like antibiotics, has been talked about among lawmakers for some time due to the potential national security risks. Parallel to these discussions, companies have been preparing for future tariffs in light of increased geopolitical tensions.

"There has been a lot of discussion coming from both the Democratic camp, as well as the Republican one, about the necessity to bring some of the production of certain types of drugs back to the U.S. to reduce dependency on China," said de Bolle. "This whole deal about drugs and medical equipment and all of that that was under discussion before Trump. So, it's not even Trump-related."

"In essence, you know what's happening now with the tariffs that Trump imposed isn't any different from the sorts of things that these people were thinking of doing anyway."

Huge healthcare data breach exposes over 1 million Americans' sensitive information

8 February 2025 at 09:00

The healthcare industry has recently been a major target for hackers. You might remember the 2024 Ascension attack, which led to significant disruptions. 

The Change Healthcare breach was also on a massive scale. UnitedHealth initially claimed that 100 million Americans were affected, but later raised that number to 190 million. 

There have been countless other incidents, and now you can add another to the list. Community Health Center, Inc. (CHC), a Connecticut-based federally qualified health center, has disclosed a data breach following a criminal cyberattack on its systems. 

The attack has affected over a million people in the U.S.

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Community Health Center, Inc. (CHC) detected a data breach on Jan. 2 after identifying unusual activity within its computer systems. An investigation confirmed that a skilled hacker had accessed and extracted data but did not delete or lock any information. If CHC's claims are accurate, this is a positive outcome, as hackers often deploy ransomware, a type of attack in which they lock systems and demand payment before restoring access.

In a regulatory filing with the Maine Attorney General’s Office, CHC said that 1,060,936 people were affected by the data breach. The type of information compromised varies depending on an individual’s relationship with CHC. Patient data that may have been accessed includes names, dates of birth, addresses, phone numbers, email addresses, diagnoses, treatment details, test results, Social Security numbers and health insurance information.

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For individuals who are not regular CHC patients but received COVID-19 services at a CHC clinic, the breached data may include names, dates of birth, phone numbers, email addresses, addresses, gender, race, ethnicity and insurance details if provided. Additional information, such as test dates, results and vaccine details, including type, dose and administration date, may also have been affected. In rare cases, Social Security numbers were also included in the breach.

The organization did not disclose how the hackers gained access to the data or whether proper cybersecurity measures were in place at the time of the breach. While CHC has assured that its systems are no longer at risk, the same cannot be said for its patients, who may now be targets of various cyberattacks.

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CHC said the hacker’s access was terminated within hours, and daily operations were not disrupted. To strengthen cybersecurity, CHC claims it has implemented advanced monitoring software and reinforced system protections. The organization said there is no evidence at this time that the compromised data has been misused.

The health center is offering free identity theft protection services for all patients and COVID-19 service recipients whose Social Security numbers were involved in the breach. The organization is also encouraging individuals whose Social Security numbers were not affected to take additional steps to protect their information.

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HOW TO REMOVE YOUR PRIVATE DATA FROM THE INTERNET 

1. Remove your personal information from the internet: The breach has exposed sensitive personal data, making it essential to reduce your online footprint. While no service can guarantee complete data removal, a reputable data removal service can significantly limit your exposure. These services systematically monitor and erase your personal information from numerous websites and data brokers. Check out my top picks for data removal services here.

2. Be wary of mailbox communications: With addresses among the compromised data, scammers may exploit this breach to send fraudulent letters. Be aware of mail claiming missed deliveries, account suspensions or security alerts. Always verify the authenticity of such communications before responding or taking action.

3. Be cautious of phishing attempts and use strong antivirus software: Scammers may use your compromised email or phone number to target you with phishing attacks. Be wary of messages asking for personal information or containing suspicious links. To protect yourself, ensure strong antivirus software is installed on all your devices. Get my picks for the best 2025 antivirus protection winners for your Windows, Mac, Android and iOS devices.

4. Monitor your accounts: Given the scope of this breach, regular monitoring of your bank accounts, credit card statements and other financial accounts is critical. Look for unauthorized transactions or suspicious activity, and report any issues immediately to your bank or credit card provider.

5. Recognize and report a Social Security scam: If your Social Security number is exposed, you could become a target for related scams. Official communication regarding Social Security issues usually comes via mail, not phone calls or emails. Learn more about spotting and reporting scams by visiting the Social Security Administration’s scam information page.

6. Invest in identity theft protection: Data breaches happen every day, and most never make the headlines, but with an identity theft protection service, you’ll be notified if and when you are affected. An identity theft protection service can monitor personal information like your Social Security number (SSN), phone number and email address and alert you if it is being sold on the dark web or being used to open an account. It can also assist you in freezing your bank and credit card accounts to prevent further unauthorized use by criminals.

One of the best parts of using an identity theft protection service is that it might include identity theft insurance of up to $1 million to cover losses and legal fees and a white glove fraud resolution team where a U.S.-based case manager helps you recover any losses. See my tips and best picks on how to protect yourself from identity theft. 

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The CHC breach may not be as large as the UnitedHealth attack, but with over a million individuals affected, it’s still a serious incident. Cybercriminals can exploit stolen data in various ways, from identity theft to targeted phishing scams. While CHC has taken steps to secure its systems, those impacted should remain vigilant. Be wary of unexpected emails, calls or messages requesting personal information, and consider monitoring financial and medical accounts for any suspicious activity.

Do you think these companies are doing enough to protect your data, and is the government doing enough to catch those behind cyberattacks? Let us know by writing us at Cyberguy.com/Contact

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'The View' host Sunny Hostin's surgeon husband facing years-long legal battle in fraud case

11 January 2025 at 05:36

The husband of "The View" host Sunny Hostin, along with 200 co-defendants accused of insurance fraud in a sweeping, $459 million New York lawsuit, could find himself tied up in court for years to come, according to legal experts.

Emmanuel ‘Manny’ Hostin, an orthopedic surgeon, is among dozens of doctors and medical personnel named in the federal lawsuit, which was filed last month by American Transit Insurance Co., a New York-based commercial auto insurance provider that insures Uber, Lyft, and taxi companies in the state. Hostin in particular is accused of receiving kickbacks by "performing surgery and fraudulently billing" American Transit, according to the lawsuit.

It cites at least two of Hostin's patients who were allegedly treated in January 2023 following involvement in "low-impact" collisions that caused only minimal damage. Despite experiencing "no more than soft-tissue injuries," both received arthroscopic surgery, the lawsuit said.

The lawsuit was filed under the federal Racketeer Influenced and Corrupt Organizations Act, or RICO, in the Eastern District of New York— a strategy that legal experts told Fox News Digital is designed to have a chilling effect on behavior. It's also one that risks entangling defendants such as Hostin in years of complex court proceedings— and potentially saddling them with massive payouts as a result. 

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That's because RICO laws— passed in the 1970s as an attempt to crack down on mafia activity and other organized crime— allow plaintiffs to win "treble damages," awards that are triple the amount of actual, or compensatory damages. 

In the American Transit case, that's somewhere in the ballpark of $459 million or more— three times as high as their compensatory damages, which stand at $153 million.

Intimidation factor, chilling effect 

Often, these types of lawsuits are pursued with a certain strategy in mind, said Michael Mears, an associate law professor at the John Marshall Law School who specializes in criminal law and RICO cases. 

"There's a lot more going on with the use of the RICO statute than just recovering damages," Mears told Fox News Digital in an interview. "It's changing behaviors. It's changing attitudes. It's changing the way business is done sometimes."

RICO civil lawsuits are sometimes used as a means to force people or stop certain behaviors and oppressive practices.  In the case involving Hostin, that includes allegedly habitual over-billing by doctors and ambulatory services, or the overcharging of patients to an extraordinary degree. 

In the New York case, for example, "you've got doctors who really don't want to be called criminals," Mears said. "Just the accusations alone [in] a civil RICO statute can be very intimidating, and be a very powerful tool" to stop objectionable practices. 

That's not to say there won't be a litany of courtroom activity ahead for defendants named in the American Transit lawsuit, including Hostin. 

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Legal experts told Fox News Digital that civil RICO cases in today's world are a long game— often carrying a timeline of years, rather than months, to play out in court.

Plaintiffs in civil RICO cases are often insurance companies who are accusing a group of people of fraud, Jeffrey Grell, an attorney specializing in RICO litigation, told Fox News Digital in an interview. 

In the American Transit lawsuit, the insurance provider accuses Hostin and the dozens of other medical practitioners of abusing New York's no-fault law to artificially inflate or bill for unnecessary medical treatments and profit from the kickbacks.  

No-fault laws require companies like American Transit to cover health care expenses "reasonably incurred" as a result of injuries suffered by insured occupants. But the low burden of proof under no-fault laws also means that they are especially vulnerable to exploitation by medical practitioners. 

American Transit alleges that Hostin and other defendants abused New York’s no-fault laws to bill "hundreds of millions" of dollars in fraudulent payments between 2009 and December 2024. 

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Complex cases, lengthy timelines  

Civil RICO cases are often lengthy, arduous cases for each of the individuals involved.

In fact, the 698-page lawsuit filed by American Transit is among the largest RICO civil cases ever filed in New York— all but ensuring a drawn-out resolution process for Hostin and other defendants. 

Courts "are going to look at the individual claims made against each defendant to establish all the elements of a RICO claim, and all the elements of RICO claims are pretty complicated," Grell said.

Many of the defendants— if not all— will attempt to move to dismiss the case before discovery begins, a preliminary process that alone can take more than a year. Often, there will be a flurry of related motions filed by defendants in attempting to have their motion to dismiss granted by the court, further adding to the drawn-out time frame. 

After the motions to dismiss are resolved, the discovery process begins. This process can be lengthy and complex, as it involves each person named in the suit, and the counsel for each defendant will attempt to make the case that their client individually does not satisfy the elements of the RICO case.

"Like in any other civil lawsuit, the RICO statute allows people to take depositions," Mears said of the time frame for RICO cases. "They allow the collection of documents. They allow the discovery of filling records." 

Ultimately, it's a process that "opens up a whole avenue to find out what's going on within the organization— whether it's a doctor's office, a hospital, a doctor's group," he said, and which allows plaintiffs to order discovery and document collection from each individual named. 

That can result in the case dragging on for even longer.

"In other words, the discovery process [in RICO cases] can be very intimidating," Mears said. "It's a long game."

Sunny Hostin, for her part, has weighed in on her husband's work as a doctor in her role co-hosting "The View."

Most recently, Hostin referred to his work in a discussion over health insurance in the wake of the assassination of UnitedHealthcare CEO Brian Thompson in New York City.

"Doctors suffer because of big corporations as well, doctors that want to do good like my husband," Hostin said in the segment. She added that her husband, in his capacity as an orthopedic surgeon, "operates on someone even though they don't have insurance and then has to sue health insurance companies to get paid for the work that he's been trained his whole life to do."

Hostin's lawyers previously denied all allegations against him and described the filing a "blanket, scattershot, meritless lawsuit by a near-bankrupt insurance carrier," according to the Daily Mail.

They did not respond to Fox News Digital's request for comment on the allegations or any timeline anticipated in the RICO proceedings.

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