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States binge on booze

The ideas and innovators shaping health care
Jan 03, 2023 View in browser
 
Future Pulse

By Ruth Reader and Ben Leonard with Carmen Paun

DANGER ZONE

NEW YORK, NY - MARCH 19: Cocktails are for sale to go at Dudley's bar and restaurant in Manhattan as the Coronavirus, COVID19, outbreak continued unabated on March 19, 2020 in New York City. Bars and restaurants were closed by the city days ago but are allowed to sell food and now alcohol to go. The economic situation in the city continued to decline as more businesses closed their   doors and New York weighed a shelter in place order for the entire city. (Photo by Victor J. Blue/Getty Images)

Many states legalized to-go cocktails in 2020 during Covid lockdowns. | Getty Images

As states locked down in 2020, many of them moved to help restaurants and small businesses by making it easier to sell alcohol.

But what started as a means to help soften the economic blow of mandatory business closures — and keep sales tax revenue up — is becoming the norm and a potential problem for public health, Ruth reports.

Here's the state of play:

— More than three dozen states have extended or made permanent policies permitting cocktails-to-go and alcohol delivery after businesses reopened and their customers returned.

— Lobbyists for eased alcohol regulation, including those representing restaurants and delivery services like online liquor store Drizly, are targeting state lawmakers in North Carolina and Pennsylvania, among other places, to revive pandemic-era alcohol rules permitting alcohol-to-go that have expired.

— The Michigan Senate recently passed a bill that makes cocktails-to-go legal indefinitely. Lawmakers in Pennsylvania are considering similar legislation.

Why that worries some public health experts:

— The CDC reported a 26 percent increase in alcohol-induced deaths between 2019 and 2020, the most recent data available.

— Some researchers are drawing a connection between pandemic policies and increased consumption. A 2021 study first found a link in New Zealand. This year, researchers in the U.S. reaffirmed those findings in the peer-reviewed journal Substance Abuse.

What's next: Most states have an incentive to side with the lobbyists for increased alcohol access: Sales tax revenue, a portion of it from restaurant and alcohol sales, makes up a large part of their budgets.

They're also eager to help revive main streets that still haven't recovered financially from the pandemic.

The advocates of more lenient rules around alcohol have faced little opposition, with those most concerned about alcoholism focusing on increasing access to treatment and mandating safety protocols to prevent underage and excessive drinking, such as automobile technology to help prevent drunk driving.

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This is where we explore the ideas and innovators shaping health care. 

Happy new year, Future Pulse readers! We're looking forward to 2023.

If you ever wished you were taller, don't: Reportedly, short people live longer and are less likely to get cancer.

Share any other thoughts, news, tips and feedback with Ben Leonard at bleonard@politico.com, Ruth Reader at rreader@politico.com, Carmen Paun at cpaun@politico.com, or Erin Schumaker at eschumaker@politico.com.

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WASHINGTON WATCH

Bob Casey speaks during a news conference on Capitol Hill.

A new law by Sen. Bob Casey (D-Pa.) will help people with disabilities save money tax-free. | Carolyn Kaster/AP Photo

The fiscal 2023 omnibus spending bill Congress passed before Christmas contains new help for people with disabilities.

The bill has a provision by Sen. Bob Casey (D-Pa.) that allows people with disabilities between ages 26 and 46 to save up to $15,000 annually, to a maximum of $100,000, in ABLE accounts. Those accounts, designed to cover expenses related to a disability, grow tax free. Savers won't lose their eligibility for other benefits, such as Supplemental Security Income and Medicaid.

About 6.2 million people, including 1 million veterans, could qualify.

The new law is a follow-up to another Casey measure that Congress passed in 2014: the Achieving a Better Life Experience Act.

That bill created the ABLE accounts for people who acquired a disability before age 26.

INNOVATORS

"I've seen how resilient health care can be in a down cycle."

– Peter Micca, national health tech leader at Deloitte

Health care stocks fell in 2022, though the carnage wasn't as great as it was in some industries.

In the new year, Peter Micca, national health tech leader at the consulting firm Deloitte, is feeling bullish.

Despite the economic downturn and falling venture capital funding, Micca told Ben that he still sees demand for health technology outpacing supply, particularly for products that seek to improve care delivery and bolster health outcomes.

What could stand in the way? 

— A lack of consumer adoption of new technology

— A complex health care system that can make change more difficult to achieve

— Bureaucratic hangups preventing seamless data sharing

For startups to succeed, Micca said companies need both the technology and a clear plan to drive revenue. Otherwise, funders will hold back, especially considering rising interest rates and the threat of recession.

Micca expects reimbursement rates for telehealth to be comparable to those for in-person care, which would be a win for virtual providers and vendors.

Micca suggests looking outside the U.S., as well as in, for top innovators.

"There's a compelling amount of intellectual property that gets created globally, particularly in geographies like Israel, that really only can get commercialized in the U.S.," he said.

 

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Ruth Reader @RuthReader

Carmen Paun @carmenpaun

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