10/14 Torchbearer Weekly Policy Update
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- Annual Inflation Rate Drops to 2.4 Percent, Lowest Since February 2021
- New Statewide Coalition Aims to Advance Entrepreneurship
- Lawmakers Scrutinize ‘Black Box of State PBM Spending’
- Share the Torchbearer Newsletter with Your Network!
- Important Dates
Let’s dive in.
Annual Inflation Rate Drops to 2.4 Percent, Lowest Since February 2021
Consumer prices rose slightly in September, signaling a potential shift in the Federal Reserve’s interest rate strategy.
Why it matters: Inflation remains a key economic indicator, affecting everything from consumer spending to election outcomes.
- The annual inflation rate is now at its lowest since February 2021, providing some relief to consumers amidst economic uncertainty.
- With the upcoming election, Vice President Harris is highlighting economic recovery efforts while addressing inflation concerns.
Driving the news: The consumer price index increased by 0.2% in September and 2.4% over the past year, slightly exceeding economists’ expectations.
- Despite the unexpected rise, the Federal Reserve is likely to continue cutting rates to stimulate the economy.
What’s next: The Fed’s decision in the upcoming meeting will be crucial.
- Investors are watching closely, as continued rate cuts could bolster economic growth and investor confidence.
- Meanwhile, the vice president aims to leverage these economic improvements in her campaign against former President Trump. (The Hill)
New Statewide Coalition Aims to Advance Entrepreneurship
A new initiative has been launched to enhance entrepreneurship across Indiana.
Why it matters: This initiative aims to lower barriers for entrepreneurs statewide, helping them establish businesses more easily, which is crucial for economic growth and innovation in Indiana.
Driving the news: The Indiana Starters Coalition, announced at the 16 Tech Innovation District, is spearheading efforts to support entrepreneurs from all industry types.
What’s next: The coalition plans to work with lawmakers in the 2025 legislative session to identify and propose policy changes to facilitate new business growth. (IBJ)
Lawmakers Scrutinize ‘Black Box of State PBM Spending’
An audit of Indiana’s pharmacy benefit managers (PBMs) reveals significant overspending and transparency issues, prompting calls for reform.
Why it matters: The state’s financial commitment to PBMs exceeded $6.7 billion, yet the anticipated cost savings remain elusive. This raises questions about the efficiency and transparency of PBM operations, which affects taxpayer money and healthcare costs.
Driving the news: The preliminary audit by RxConnection, LLC, presented to the Health Care Cost Oversight Task Force, cataloged more than 63 million claims. However, incomplete data and opaque practices hindered comprehensive analysis, leading to civil investigative demands by the Office of the Attorney General.
The big picture: PBMs have been under scrutiny nationwide for contributing to rising healthcare costs. In Indiana, the review highlights how PBMs’ lack of transparency and complex contracts may not serve the state’s interests.
What’s next: Lawmakers are exploring new strategies, including potentially establishing a state-run PBM, to reduce costs and ensure accountability. There’s also a push for contract reforms to eliminate offsetting clauses that allow PBMs to avoid financial penalties. (Indiana Capital Chronicle)
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Important Dates:
- Interim Study Committee on Fiscal Policy - Tuesday, October 15 at 10am
- Interim Study Committee on Government - Monday, October 21 at 1:30pm
- State Fair Advisory Committee - Wednesday, October 23 at 1pm
- Interim Study Committee on Energy, Utilities, and Telecommunications - Thursday, October 24 at 10am
- Interim Study Committee on Pension Management Oversight — Monday, October 28 at 1pm
- Organization Day - Tuesday, November 19