State-backed hackers targeting coronavirus responders, U.S. and UK warn

By Jack Stubbs and Christopher Bing

LONDON/WASHINGTON (Reuters) – Government-backed hackers are attacking healthcare and research institutions in an effort to steal valuable information about efforts to contain the new coronavirus outbreak, Britain and the United States said on Tuesday in a joint warning.

In a statement, Britain’s National Cyber Security Centre (NCSC) and the U.S. Cybersecurity and Infrastructure Security Agency (CISA) said the hackers had targeted pharmaceutical companies, research organisations and local governments.

The NCSC and CISA did not say which countries were responsible for the attacks. But one U.S. official and one UK official said the warning was in response to intrusion attempts by suspected Chinese and Iranian hackers, as well as some Russian-linked activity.

The two officials spoke on condition of anonymity to discuss non-public details of the alert. Tehran, Beijing and Moscow have all repeatedly denied conducting offensive cyber operations and say they are the victims of such attacks themselves.

State hacking groups “frequently target organisations in order to collect bulk personal information, intellectual property and intelligence that aligns with national priorities,” the NCSC and CISA said.

“For example, actors may seek to obtain intelligence on national and international healthcare policy or acquire sensitive data on COVID-19 related research.”

The warning follows efforts by a host of state-backed hackers to compromise governments, businesses and health agencies in search of information about the new disease and attempts to combat it.

Reuters has reported in recent weeks that Vietnam-linked hackers targeted the Chinese government over its handling of the coronavirus outbreak and that multiple groups, some with ties to Iran, tried to break into the World Health Organization.

The officials said the alert was not triggered by any specific incident or compromise, but rather intended as a warning – both to the attackers and the targeted organizations that need to better defend themselves.

“These are organizations that wouldn’t normally see themselves as nation-state targets, and they need to understand that now they are,” said one of the officials.

The agencies said hackers had been seen trying to identify and exploit security weaknesses caused by staff working from home as a result of the coronavirus outbreak.

In other incidents, the attackers repeatedly tried to compromise accounts with a series of common and frequently-used passwords – a technique known as “password spraying”.

“It’s no surprise that bad actors are doing bad things right now, in particular targeting organizations supporting COVID-19 response efforts,” a CISA spokesman said.

“We’re seeing them use a variety of tried and true techniques to gain access to accounts and compromise credentials.”

(Writing by Jack Stubbs; Editing by Peter Graff; Editing by Alex Richardson and Peter Graff)

More drugmakers hike U.S. prices as new year begins

By Michael Erman

NEW YORK (Reuters) – Drugmakers including Bristol-Myers Squibb Co, Gilead Sciences Inc, and Biogen Inc hiked U.S. list prices on more than 50 drugs on Wednesday, bringing total New Year’s Day drug price increases to more than 250, according to data analyzed by healthcare research firm 3 Axis Advisors.

Reuters reported on Tuesday that drugmakers including Pfizer Inc, GlaxoSmithKline PLC and Sanofi SA were planning to increase prices on more than 200 drugs in the United States on Jan. 1.

Nearly all of the price increases are below 10% and the median price increase is around 5%, according to 3 Axis.

More early year price increases could still be announced.

Soaring U.S. prescription drug prices are expected to again be a central issue in the presidential election. President Donald Trump, who made bringing them down a core pledge of his 2016 campaign, is running for re-election in 2020.

Many branded drugmakers have pledged to keep their U.S. list price increases below 10% a year, under pressure from politicians and patients.

The United States, which leaves drug pricing to market competition, has higher prices than in other countries where governments directly or indirectly control the costs, making it the world’s most lucrative market for manufacturers.

Drugmakers often negotiate rebates on their list prices in exchange for favorable treatment from healthcare payers. As a result, health insurers and patients rarely pay the full list price of a drug.

Bristol-Myers said in a statement it will not raise list prices on its drugs by more than 6% this year.

The drugmaker raised the price on 10 drugs on Wednesday, including 1.5% price hikes on cancer immunotherapies Opdivo and Yervoy and a 6% increase on its blood thinner Eliquis, all of which bring in billions of dollars in revenue annually.

It also raised the price on Celgene’s flagship multiple myeloma drug, Revlimid, 6%. Bristol acquired rival Celgene in a $74 billion deal last year.

Gilead raised prices on more than 15 drugs including HIV treatments Biktarvy and Truvada less than 5%, according to 3 Axis.

Biogen price increases included a 6% price hike on multiple sclerosis treatment Tecfidera, according to 3 Axis.

Gilead and Biogen could not be immediately reached for comment.

3 Axis advises pharmacy industry groups on identifying inefficiencies in the U.S. drug supply chain and has provided consulting work to hedge fund billionaire John Arnold, a prominent critic of high drug prices.

(Reporting by Michael Erman; Editing by Nick Zieminski)

Trump administration to announce changes to anti-kickback rules for healthcare providers

By Carl O’Donnell

(Reuters) – The Trump administration will announce plans to change healthcare regulations on Wednesday to loosen anti-kickback provisions that restrict the kinds of outside services providers can refer patients to, administration officials said.

President Donald Trump on Thursday will explain how the new rules advance his broader healthcare agenda, which includes reducing regulatory burdens and promoting innovative ways to reimburse healthcare providers, in a speech in Minnesota, the officials said.

The plan will change how the Department of Health and Human Services (HHS) enforces the Physician Self Referral Law, also known as the Stark law, which penalizes healthcare providers for referring patients to outside services that the provider could stand to benefit from financially.

HHS will create exceptions for healthcare providers that enter into agreements with other parties if they are aimed at cutting costs and improving patient health, the officials said.

Trump issued an executive order last week that sought to woo seniors by strengthening the Medicare health program.

The order was the Republican president’s answer to Democrats like Bernie Sanders, who is running to become the party’s nominee in the 2020 presidential election and is promoting the idea of Medicare for all Americans.

The Trump administration has also rolled out measures in recent months designed to curtail drug prices and address other problems in the U.S. healthcare system.

Policy experts say the efforts are unlikely to slow the rise of drug prices in a meaningful way, however.

(This story corrects lead to show Trump administration officials, not President Trump, announcing plans on Wednesday)

(Reporting by Carl O’Donnell; Editing by Sonya Hepinstall)

Trump administration opens door to importing medicine from Canada

A pharmacist counts pills in a pharmacy in Toronto in this January 31, 2008 file photo. REUTERS/Mark Blinch/Files

By Michael Erman

(Reuters) – The Trump administration took a first step on Wednesday toward allowing the importation of medicines from Canada, an action the president has advocated as a way to bring cheaper prescription drugs to Americans.

The U.S. Department of Health and Human Services said it and the Food and Drug Administration will propose a rule that will allow it to authorize states and other groups to pursue pilot projects related to importing drugs from Canada.

The agency also said that it would allow drugmakers to bring drugs that they sell more cheaply in foreign countries into the United States for sale here, potentially enabling them to sell below their contracted prices in the U.S.

Drug industry shares were lower slightly, with the NYSE Arca Pharmaceutical Index <.DRG> off 0.25 percent versus a broader flat market. Wall Street analysts said importation was far from being put into place and was limited to certain drugs from Canada.

Health and Human Services Secretary Alex Azar said he has had prior discussion with Canada about importation and that it would be up to the states, pharmacies and distributors to address any hurdles.

“There are hurdles of course, but the hurdles now are known. They are being laid out and they are surmountable,” he said during a call with reporters.

Canadian officials were not immediately available for comment. Reuters has previously reported that Canada opposes any U.S. plans to buy Canadian prescription drugs that might threaten the country’s drug supply or raise costs for its own citizens.

Many drug purchase agreements in Canada forbid the re-export of drugs to other countries, according to a Canadian government memo obtained by Reuters.

“Given the size of the U.S. market and of large states such as Florida, which alone is two-thirds of the population of Canada, reliance on imports from Canada would have limited viability as a long term solution to the high cost of drugs in the U.S.,” Health Canada said in a statement on July 17.

Evercore ISI analysts Ross Muken and Michael Newshel said in a research note that any implementation is still far away given the technical steps of rulemaking and that the proposals will face challenges. For instance, he said, most Republicans in Congress oppose importation.

The first part of the proposal would allow states, wholesalers or pharmacists to submit plans for pilot projects for Canadian drugs if their raw materials are manufactured in the same plant as the U.S. version and are in line with the FDA’s approval. It would exclude biologics, infused drugs, injected drugs, inhaled drugs for surgery and certain parenteral drugs.

The Trump Administration has experienced several recent failures in its efforts to bring down drug prices. Its plans to make drugmakers disclose prices in TV ads had to be thrown out after it lost a legal battle with drugmakers, and it abandoned efforts to force pharmacy benefit managers to pass discounts onto Medicare recipients.

Drug pricing is an important election issue for Trump and also for Democrats, many of whom have said they would support importing medicines to lower U.S. drug prices. Pharmaceutical companies have opposed importing medicine.

(Reporting by Manas Mishra in Bengaluru; Michael Erman and Caroline Humer in New York and Allison Martell in Toronto; Editing by Steve Orlofsky)

Chinese hacking against U.S. on the rise: U.S. intelligence official

A staff member sets up Chinese and U.S. flags for a meeting in Beijing, China April 27, 2018. REUTERS/Jason Lee

By Jim Finkle and Christopher Bing

NEW YORK (Reuters) – A senior U.S. intelligence official warned on Tuesday that Chinese cyber activity in the United States had risen in recent months, and the targeting of critical infrastructure in such operations suggested an attempt to lay the groundwork for future disruptive attacks.

”You worry they are prepositioning against critical infrastructure and trying to be able to do the types of disruptive operations that would be the most concern,” National Security Agency official Rob Joyce said in response to a question about Chinese hacking at a Wall Street Journal conference.

Joyce, a former White House cyber advisor for President Donald Trump, did not elaborate or provide an explanation of what he meant by critical infrastructure, a term the U.S. government uses to describe industries from energy and chemicals to financial services and manufacturing.

In the past, the U.S. government has openly blamed hackers from Iran, Russia or North Korea for disruptive cyberattacks against U.S. companies, but not China. Historically, Chinese hacking operations have been more covert and focused on espionage and intellectual property theft, according to charges filed by the Justice Department in recent years.

A spokesperson for Joyce said he was specifically referring to digital attacks against the U.S. energy, financial, transportation, and healthcare sectors in his speech on Tuesday.

The comments follow the arrest by Canadian authorities of Meng Wanzhou, chief financial officer of Chinese telecommunications giant Huawei Technologies, at the request of the United States on Dec. 1. Wanzhou was extradited and faces charges in the U.S. related to sanctions violations.

(Reporting by Jim Finkle and Christopher Bing; Editing by Bernadette Baum)

Cyber-attack on Singapore health database steals details of 1.5 million, including PM

Singapore Prime Minister Lee Hsien Loong in Manila, Philippines November 14, 2017. REUTERS/Aaron Favila/Pool

By Jack Kim

SINGAPORE (Reuters) – A major cyber attack on Singapore’s government health database stole the personal information of about 1.5 million people, including Prime Minister Lee Hsien Loong, the government said on Friday.

The attack, which the government called “the most serious breach of personal data” that the country has experienced, comes as the highly wired and digitalized state has made cybersecurity a top priority for the ASEAN bloc and for itself.

Singapore is this year’s chair of the 10-member Association of Southeast Asian Nations (ASEAN) group.

“Investigations by the Cyber Security Agency of Singapore (CSA) and the Integrated Health Information System (IHiS)confirmed that this was a deliberate, targeted and well-planned cyberattack,” a government statement said.

“It was not the work of casual hackers or criminal gangs,” the joint statement by the Health Ministry and the Ministry of Communications and Information said.

About 1.5 million patients who visited clinics between May 2015 and July 4 this year have had their non-medical personal particulars illegally accessed and copied, the statement said.

“The attackers specifically and repeatedly targeted Prime Minister Lee Hsien Loong’s personal particulars and information on his outpatient dispensed medicines,” it said.

A Committee of Inquiry will be established and immediate action will be taken to strengthen government systems against cyber attacks, the Ministry of Communications said in a separate statement.

It did not provide details about what entity or individuals may have been behind the attack.

Lee, in a Facebook post following the announcement, said the breach of his personal medical data was not incidental and he did not know what information the attackers were hoping to find.

“My medication data is not something I would ordinarily tell people about, but there is nothing alarming in it,” he said.

(Reporting by Jack Kim; Editing by Clarence Fernandez and Michael Perry)

Slowing gasoline price rises keep U.S. inflation in check

A woman shops in the Health & Beauty section of a Whole Foods in Upper St. Clair, Pennsylvania, U.S., February 15, 2018. Picture taken February 15, 2018. REUTERS/Maranie Staab

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. consumer prices rose marginally in May amid a slowdown in increases in the cost of gasoline and the underlying trend continued to suggest moderate inflation in the economy.

The Labor Department’s inflation report was published ahead of the start of the Federal Reserve’s two-day policy meeting on Tuesday. Steadily rising inflation and a tightening labor market are expected to encourage the U.S. central bank to raise interest rates for a second time this year on Wednesday.

The Consumer Price Index increased 0.2 percent last month, also as food prices were unchanged. That followed a similar gain in the CPI in April. In the 12 months through May, the CPI increased 2.8 percent, the biggest advance since February 2012, after rising 2.5 percent in April.

Excluding the volatile food and energy components, the CPI rose 0.2 percent, supported by a rebound in new motor vehicle prices and a pickup in the cost of healthcare, after edging up 0.1 percent in April. That lifted the year-on-year increase in the so-called core CPI to 2.2 percent, the largest rise since February 2017, from 2.1 percent in April.

Annual inflation measures are rising as last year’s weak readings fall from the calculation. Last month’s increase in both the CPI and core CPI was in line with economists’ expectations.

The Fed tracks a different inflation measure, which is just below its 2 percent target. Economists are divided on whether policymakers will signal one or two more rate hikes in their statement accompanying the rate decision on Wednesday.

The dollar held gains versus a basket of currencies immediately after the data before falling to trade slightly lower. U.S. Treasury yields were trading lower while U.S. stock index futures were slightly higher.

FOOD PRICES

The Fed’s preferred inflation measure, the personal consumption expenditures price index excluding food and energy, rose 1.8 percent on a year-on-year basis in April, matching March’s increase.

Economists expect the core PCE price index will breach its 2 percent target this year. Fed officials have indicated they would not be too concerned with inflation overshooting the target.

Last month, gasoline prices increased 1.7 percent after surging 3.0 percent in April. Food prices were unchanged in May after rising 0.3 percent in the prior month. Food consumed at home fell 0.2 percent amid declines in the cost of meat, eggs, fruits and vegetables.

Owners’ equivalent rent of primary residence, which is what a homeowner would pay to rent or receive from renting a home, rose 0.3 percent in May after a similar gain in April.

Healthcare costs gained 0.2 percent last month after nudging up 0.1 percent in April. Prices for new motor vehicles rose 0.3 percent after sliding 0.5 percent in April.

Prices for used cars and trucks fell 0.9 percent after tumbling 1.6 percent in April. Airline fares declined 1.9 percent in May after dropping 2.7 percent in the prior month. Prices for apparel and recreation were unchanged in May.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

Suspected cholera cases in Yemen hit 1 million: Red Cross

A health worker reviews a list of patients admitted to a cholera treatment center in Sanaa, Yemen

DUBAI (Reuters) – The number of suspected cholera cases in Yemen has hit 1 million, the International Committee of the Red Cross said on Thursday, as war has left more than 80 percent of the population short of food, fuel, clean water and access to healthcare.

Yemen, one of the Arab world’s poorest countries, is in a proxy war between the Houthi armed movement, allied with Iran, and a U.S.-backed military coalition headed by Saudi Arabia.

The United Nations says it is suffering the world’s worst humanitarian crisis. The World Health Organization has recorded 2,219 deaths since the cholera epidemic began in April, with children accounting for nearly a third of infections.

Cholera, spread by food or water contaminated with human faeces, causes acute diarrhea and dehydration and can kill within hours if untreated. Yemen’s health system has virtually collapsed, with most health workers unpaid for months.

On Dec 3, the WHO said another wave of cholera could strike within months after the Saudi-led coalition closed air, land and sea access, cutting off fuel for hospitals and water pumps and aid supplies for starving children.

The ports were closed in retaliation for a missile fired from Yemen by the Houthis. On Wednesday, despite a fresh missile attack on Riyadh, Saudi Arabia said it would allow the Houthi-controled port of Hodeidah, vital for aid, to stay open for a month.

(Reporting by Sylvia Westall; Editing by Kevin Liffey)

Nearly 1.5 million people signed up for Obamacare plans so far: officials

Nearly 1.5 million people signed up for Obamacare plans so far: officials

WASHINGTON (Reuters) – More than 800,000 people signed up for Obamacare individual health insurance plans in the second week of open enrollment, U.S. government health officials said on Wednesday, bringing the total number of sign-ups to nearly 1.5 million so far.

There is particular scrutiny of how Affordable Care Act programs are faring after a year in which President Donald Trump has sought to undermine Obamacare, especially after his fellow Republicans in Congress failed to pass legislation to repeal and replace the law.

More people have signed up for Obamacare plans in the first two weeks of 2018 open enrollment than in the same time period last year, and the sign-ups include about 345,000 new consumers, according to the latest figures from the U.S. Centers for Medicare and Medicaid Services.

But the Trump administration halved the 2018 open enrollment period to six weeks, slashed the Obamacare advertising budget by 90 percent and cut funding for groups that help people enroll in Obamacare insurance, so it is still unclear whether there will be the same level of participation as in years past.

The Congressional Budget Office has forecast that 11 million people will buy plans in 2018, 1 million more than were enrolled in 2017.

Republicans, who control the White House, Senate and U.S. House of Representatives, failed this summer to push through legislation to overturn the 2010 law, former Democratic President Barack Obama’s top domestic policy achievement.

Repealing Obamacare has long been a goal of Republicans and it was one of Trump’s main election campaign promises. Frustrated by inaction in Congress, the president has taken steps through executive and regulatory actions to undercut the law, and has promised to let the healthcare program “implode.”

Republicans including House Speaker Paul Ryan have said they will try again next year to repeal the law, which has extended health insurance coverage to 20 million more Americans but which has long been seen by Republicans as costly government overreach.

The Senate this week added a repeal of Obamacare’s individual mandate, the requirement that most Americans purchase health insurance or else pay a penalty, to its version of an overhaul of the U.S. tax code that is working its way through Congress.

(Reporting by Yasmeen Abutaleb; Editing by Frances Kerry)

Senate Finance chairman revises tax plan to end Obamacare mandate

Senate Finance chairman revises tax plan to end Obamacare mandate

WASHINGTON (Reuters) – The head of the U.S. Senate Finance Committee proposed major changes to a Republican tax reform plan, adding a repeal of Obamacare’s health insurance mandate and making corporate tax cuts permanent while ending individual cuts in 2025.

In a statement late on Tuesday, committee chairman Orrin Hatch said the proposed changes would also slightly lower some individual tax rates and includes a repeal of the alternative minimum tax but only through 2025, when it would be reinstated.

The 226-page amendment comes as the Senate continues to craft its version of tax reform alongside the U.S. House of Representatives, which is finalizing its own bill. The two plans must be reconciled and merged into a final plan that can pass both chambers before it goes to President Donald Trump to sign into law.

Republicans, who control Congress and the White House but have yet to pass any major legislation, are eager for a legislative victory ahead of the 2018 midterm elections and are pushing hard to pass tax cuts by the end of the year.

It was not immediately clear how many of Hatch’s colleagues will support the plan in the Senate, where Republicans hold a slimmer 52-48 majority than in the House.

Democrats have dismissed the Republican plans as giveaways to corporations and the wealthy that would swell the nation’s deficit. If Democrats remain united in opposition, Republicans cannot lose more than two senators from their ranks and still have enough votes to pass tax legislation.

The inclusion of the healthcare provision, however, could add to the uncertainty, given that Republicans earlier this year failed to make good on their pledge to repeal and replace former President Barack Obama’s 2010 healthcare overhaul.

Hatch’s changes would end one of the more unpopular provisions in Obama’s Affordable Care Act that require Americans to obtain health insurance or pay a penalty. The nonpartisan Congressional Budget Office estimated that the change would increase the number of uninsured by 13 million people by 2027.

“By scrapping this unpopular tax from an unworkable law, we not only ease the financial burdens already associated with the mandate, but also generate additional revenue to provide more tax relief to these individuals,” Hatch said in a statement.

But several key moderate Republicans, including Senators Susan Collins and John McCain, expressed uncertainty on Tuesday over tying the tax bill to the healthcare provision details.

Hatch’s plan would also expand access to deductions for so-called “pass-through” businesses and increase the child tax credit to $2,000 from the earlier proposed $1,650, Hatch said. The current tax credit for children is $1,000.

(Reporting by David Alexander; Editing by Jeffrey Benkoe)