More Crippling News On Employer Healthcare Costs
I told you about a number of business surveys projecting huge increases in healthcare costs in 2027. The bad news continues. A new survey underscores the trend.
Marsh, formerly Mercer, says employers’ healthcare costs are projected to spike again in 2027. Without intervention, the hike would be 11%. With benefit adjustments and other interventions, the hike will be 8.2%.
This echoes the Aon survey which said costs will rise 9.5%.
In other news, only 60% of employer health plans cover GLP-1 drugs for obesity, down from 72% last year. This is from the Business Group on Health.
Additional articles: https://www.fiercehealthcare.com/payers/employers-health-benefits-costs-could-rise-82-2027-marsh-survey and https://www.modernhealthcare.com/insurance/mh-employer-health-plans-glp-1-coverage/
#employercoverage #healthcare #coverage #costs
https://thehill.com/policy/healthcare/6066452-employer-health-costs-spike-2027
Elevance Will Exit LA Medicaid
Elevance Health’s Healthy Blue joint venture will close at year’s end, impacting 290,000 Medicaid enrollees. Louisiana will run a special enrollment period from Oct. 15 to Nov. 16 for impacted members. The company in part is rescaling its Medicaid footprint due to looming cuts from the One Big Beautiful Bill Act (OBBBA).
#medicaid #elevancehealth
https://www.modernhealthcare.com/insurance/mh-elevance-health-medicaid-program-louisiana
NSA Arbitrators’ Conflict Of Interest
A great Modern Healthcare article on the conflict of interest that seems to exist with arbitrators in the No Surprises Act dispute resolution process. Arbitration decisions overwhelmingly favor providers, with some arbitrators deciding in favor of providers 98% of the time. Others are close to 50-50. Because arbitrators collect a fee each time, it makes sense that they favor the side filing the cases and looking for hefty payouts.
#nsa #nosurprisesact #providers #healthplans
https://www.modernhealthcare.com/providers/mh-no-surprises-act-arbitrators-idr
Site Neutral Savings
The Blue Cross Blue Shield Association (BCBSA) finds that enacting site-neutral payments under Medicare for imaging services would generate an estimated $9.7 billion in combined savings over 10 years. If the Trump administration rule is finalized, a BCBSA analysis estimates $7.2 billion in total Medicare savings from 2027 to 2036, with $5.3 billion going to the federal government and $1.9 billion in reduced beneficiary out-of-pocket costs. Because commercial rates largely piggyback off of Medicare, the analysis estimates $2.5 billion in total commercial savings over the 10-year period — $1.6 billion in employer premium contributions, $530 million in enrollee premium contributions and $300 million in member out-of-pocket savings.
#siteneutral #medicare #employercoverage
HHS OIG: CMS Paid Over Half A Billion For Uncovered Drugs
The Health and Human Services Office of Inspector General finds that Medicare Part D sponsors paid pharmacies $587.7 million for some over-the-counter (OTC) drugs with obsolete prescription-only labels. Medicare Part D does not cover such drugs.
#medicare #partd
— Marc S. Ryan
