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Hospitals Penalized For Readmissions

The Centers for Medicare and Medicaid Services (CMS) announced that 2,334 hospitals, about 80% of those evaluated, are being penalized under the Hospital Readmissions Reduction Program in fiscal 2027. CMS said 244 hospitals, or 8.4%, received penalties of 1% or more. Ten hospitals will face the maximum 3% penalty, with 34 facing penalties of 2% or more. Most hospitals — 71.8% — will see penalties below 1%. The share of hospitals receiving no penalty will drop to 19.8% (578 hospitals) from 21.8% (641) in 2026.

The Fiscal 2027 round of penalties used both Medicare Advantage and fee-for-service data, but penalties continue to apply only to traditional Medicare payments. The performance period included discharges from July 1, 2023, to June 30, 2025.

#hospitals #quality #readmissions

https://www.beckershospitalreview.com/finance/cms-penalizes-2334-hospitals-for-high-readmissions-6-things-to-know/

Insurers Backing Away From Medicaid

Given the looming budget cuts to hit Medicaid over the next decade, there are signs that some health plans are backing out of certain Medicaid managed care contracts. Insurers such as Centene and Elevance Health have walked away from Medicaid managed care contracts as costs rise. This has led to other plans picking up the slack in affected states. Providers complain that successors may not have enough providers in their network.

Plans have said there are some good signs coming from certain states who are increasing rates to deal with financial problems in managed care. Louisiana increased rates. It appears that Arkansas and D.C. may have done so as well.

#medicaid #managedcare #obbba

https://www.modernhealthcare.com/insurance/mh-centene-elevance-medicaid-states-providers/

Stricter Price Transparency

The Trump administration finalized its proposed rule that would make the data files mandated under price transparency regulations more usable. The Centers for Medicare & Medicaid Services said the regulation will improve the standardization, accuracy, and accessibility of the data plans and hospitals submit. It also would hold healthcare entities accountable for submitting incomplete or inaccurate data.

In addition, Federal Trade Commission (FTC) Chairman Andrew Ferguson said his agency will crack down on hospitals that are not providing complete and accurate price data, whether or not they are compliant with CMS’ transparency requirements. The FTC noticed 24 large hospitals and health systems for potential violations of consumer protection laws.

In part, the regulation removes the submission of junk data tied to  infrequently applied rates or ghost networks. The administration did not finalize certain proposals that would have made price disclosures even more robust.

Additional articles: https://www.fiercehealthcare.com/regulatory/cms-finalizes-updates-price-transparency-regulations-aim-improve-usability and https://www.modernhealthcare.com/politics-regulation/mh-cms-insurer-price-transparency-rule/ and https://www.healthcaredive.com/news/hhs-health-insurer-price-transparency-overhaul-final-rule/832105/ and https://www.beckershospitalreview.com/finance/ftc-warns-hospitals-against-deceptive-pricing-practices/

#pricetransparency #hospitals #healthplans

https://www.fiercehealthcare.com/regulatory/ftc-sends-price-transparency-warning-letters-24-large-hospital-systems-price

PDP Premium Increases And Hidden Hurt

Healthcare policy group KFF examined the standalone Part D (PDP) market. Of course, the Trump administration says the end of the suspect premium stabilization program will not mean major impacts to beneficiaries, but hidden hurt can be seen in the details.

KFF finds that PDP availability and premiums for 2027 show a mixed picture. There are modest premium increases for many Part D enrollees for their current plan, but steeper increases are in store for others. There also is a reduction in the number of PDP options for the fourth year in a row.

KFF’s key takeaways include:

• The number of stand-alone PDPs available from 11 in 2026 to 9 in 2027, on average.
• Enrollees in six of the eight PDPs that will continue to be offered on a national basis in 2027 will see premium reductions in some states if they keep their current plan.
• But enrollees in many other states will see higher premiums for these same plans if they don’t switch.
• There will be no zero premium PDPs available for Part D enrollees who do not receive low-income subsidies (LIS) in 2027. About 4 million who paid no monthly premium in 2026 will face higher premiums in 2027 whether they keep their current plan or switch. This is a clear sign that the stabilization fund’s end did have impact.

In related news, Devoted Health has garnered major financing for expansions of their Medicare advantage business.

Additional article: https://www.beckerspayer.com/payer/medicare-advantage/devoted-health-closes-1-2b-financing-deal-amid-expansion-push/

#partd #pdp #kff #medicare

https://www.kff.org/medicare/many-medicare-part-d-stand-alone-drug-plan-enrollees-will-see-modest-premium-increases-for-2027-but-others-could-pay-much-more-if-they-dont-switch-plans/

More MA Retrenchment News

Articles and analyses continue on the recent release of the landscape files and now with the go live of 2027 benefits on the Medicare Plan Finder. These new assessments continue to speak to the commotion under the seeming stability.

Of large plans, only one, Molina, is fully exiting Medicare Advantage (MA) mainstream coverage. It will continue to offer Special Needs Plans (SNPs). Second-place Humana has the largest county footprint (2,694) followed by leader UnitedHealthcare (2,655). But all of the major plans are paring considerably in certain counties, while growing in others. For the most part, most big plans have modestly smaller overall offerings, with Centene being an outlier.

Analyses now seem to say that the largest number of people ever will face terminations of their existing plans. Numbers vary, but the impact loosk to be 3 million or more.

MA plans argue they are preserving core benefits key to seniors, including $0 premium plans. But benefits are being pared to ensure a return to investor-demanded margins. Supplemental dental and so-called Part B givebacks are noticeably smaller.

Healthcare policy group KFF says that Medicare beneficiaries will have the option of 28 MA prescription drug (MA-PD) plans in 2027, a decline from 32 options in 2026 (excluding employer plans and special needs plans not available for general enrollment).

Additional articles: https://www.fiercehealthcare.com/payers/focus-hmos-c-snps-look-medicare-advantage-landscape-2027 and https://www.healthcaredive.com/news/medicare-advantage-benefit-cuts-2027-unh-hum/831861 and https://www.modernhealthcare.com/insurance/mh-unitedhealth-aetna-humana-medicare-advantage-plans and https://www.kff.org/medicare/the-average-medicare-beneficiary-has-28-medicare-advantage-prescription-drug-plan-options-for-2027/

#medicaladvantage #enrollment

https://www.beckerspayer.com/payer/medicare-advantage/medicare-advantage-looks-stable-for-2027-underneath-its-shifting/

GLOBE Model Finalized

The Centers for Medicare and Medicaid Services (CMS) finalized GLOBE, a mandatory five-year model linking Medicare Part B drug prices to cost benchmarks in 19 developed countries. The program starts in January and lasts for five years.

The model targets drugs in oncology, rheumatology, immunology, ophthalmology and endocrinology. The parallel Part D program is not yet finalized. The models build on various initiatives undertaken by the Trump administration.

Two problems here: GLOBE will reduce fee-for-service costs and effectively reduce Medicare Advantage payments without giving plans any lower costs. This could further reduce benefits in the program over time. As well, the final rule exempts from the model drug manufacturers in the parallel GENEROUS model for Medicaid. Drug makers struck price deals in Medicaid with the president. While I support Trump’s overall efforts, I think that is a mistake.

Additional articles: https://www.modernhealthcare.com/politics-regulation/mh-cms-globe-medicare-part-b-drug-model/ and https://www.beckershospitalreview.com/pharmacy/cms-finalizes-new-drug-pricing-model-7-notes/

#drugpricing #partb #partd #medicare

https://www.cms.gov/newsroom/press  releases/cms-finalizes-new-mandatory-drug-payment-model-deliver-lower-drug-prices-beneficiaries-original

More On MA Retrenchment

More details on the Medicare Advantage (MA) landscape files and the depth of retrenchment for 2027. In total, the number of MA plans to be offered will only drop from 5,553 in 2026 to 5,532 in 2027. But that hides the impacts of adds and cuts. The number of impacted enrollees looks much bigger than anticipated.

A Modern Healthcare analysis finds that the number of individual MA with Part D prescription drug coverage (MA-PD) products will decline 8% in 2027. Further, it says that there will be 181 counties with no plans next year, up from 67 this year. And at least 3.8 million people will be forced to select new coverage after their insurers terminate a plan. Various analyses peg 2026 impacts at between 2.9 million and 4.6 million. I think the 2027 impact will be closer to 3M — still a shock for me.

While many are adding products in areas, reductions of offerings is big. HCSC has the biggest net reduction at 498, with Centene at 344, United at 140, and Aetna at 123.

Despite major investments over the past few years, Dual Eligible Special Needs Plans (D-SNPs) are being reduced overall, with Chronic Care SNPs (c-SNPs) still increasing.

Additional article: https://www.modernhealthcare.com/insurance/mh-medicare-advantage-plans-2027-cms/

#medicareadvantage #enrollment

https://www.healthcaredive.com/news/medicare-advantage-cuts-2027-cms-landscape/831563/

Medicare Advantage Will See Huge Changes Again in 2027

The Trump administration is putting the best spin possible on a continuing retrenchment in the Medicare Advantage (MA) industry. The Centers for Medicare & Medicaid Services (CMS) announced that weighted average MA premiums are projected to fall more than 16% from 2026 to 2027, with MA prescription drug (MA-PD) premiums set to decrease by 38% year-over-year. Additionally, CMS said average premium for standalone Part D prescription drug plans is projected to rise by less than $1 per month in 2027.

The industry certainly has a different narrative. While it is true that MA remains broadly available, there is little doubt that benefits are being further diminished and that more plan terminations are occurring. This is evident in the landscape file release.

A Becker’s Payer article gives an overview of the retrenchment still occurring. MA choice will go down in 29 of 51 states and the District of Columbia in 2027. Florida is losing the most plans overall, from 611 in 2026 to 560 in 2027. Ohio is dropping from 212 to 180, and Illinois is falling from 157 to 136.

Tennessee will see the most plans added, rising from 132 to 155, followed by Missouri (157 to 174), Arizona (133 to 148) and Alabama (98 to 113).

Most assessments say about 2.9 million people were impacted by plan closures in 2026, or about 10%. A new study by the Alliance of Community Health Plans and consulting firm HealthScape Advisors says that number was bigger in 2026, 4.6 million or 16% of enrollees.

Humana already said that its 2027 plan exits are expected to affect about 600,000 members. Earlier 2027 estimates suggested at least 1 million could face plan terminations, but impacts were not expected to be as high in 2027. The new HealthScape number for 2026 and preliminary data we now know could push the 2027 number well higher. We will know much more as the data is analyzed.

In addition, Modern Healthcare updates on some major Special Needs Plan (SNP) changes that are happening. Starting in 2027, CMS will limit new enrollments in Dual Eligible SNPs (D-SNPs) to people enrolled in Medicaid plans from the same carrier. The limitation only exists if the D-SNP holds a state Medicaid contract in an overlapping service area. By 2030, CMS will require all D-SNP beneficiaries to enroll in an aligned Medicare-Medicaid plan. The change will for the first time lead to some changes in MA plans’ approach to SNPs moving forward, including closing enrollment in certain states. Some plans are now moving to create Chronic Care or C-SNPs, which are not subject to the same regulations. But CMS is known to want to tighten requirements on these plans over time as well.

Another new development: CMS is allowing prospective enrollment caps to encourage plans to retain marginal business propositions. It appears just a small number of plans, a bit over a dozen, are taking advantage of the new policy.

Insurers are also battling with CMS over enrollment decline predictions. One was predicted last year but MA still grew by a nominal amount.

Additional articles: https://www.cms.gov/newsroom/press-releases/medicare-advantage-medicare-prescription-drug-programs-expected-remain-stable-2027 and https://www.fiercehealthcare.com/payers/cms-projects-medicare-advantage-premiums-decline-16-2027 and https://www.modernhealthcare.com/insurance/mh-medicare-advantage-d-snp-enrollment-2027/ and https://www.beckershospitalreview.com/finance/cms-projects-lower-medicare-advantage-premiums-flat-enrollment-for-2027/ and https://www.beckerspayer.com/payer/medicare-advantage/the-states-losing-the-most-medicare-advantage-plans-in-2027/ and https://www.beckerspayer.com/payer/medicare-advantage/a-real-checkerboard-the-medicare-advantage-threats-facing-older-adults-community-plans/

#medicareadvantage #enrollment

https://www.modernhealthcare.com/insurance/mh-2027-medicare-advantage-enrollment-cms

Trump Admin Strikes Deal With 42 States On Improving Medicaid Quality

The Trump administration has announced that 42 states will partners with the Centers for Medicare & Medicaid Services to rethink how quality is measured in Medicaid and the children’s health program (CHIP). CMS said the partnership will put health outcomes “at the center of how success is defined” and streamline hundreds of reporting requirements.

The initial state participants have about 56 million Medicaid and CHIP beneficiaries and account for roughly $701 billion in fiscal 2024 Medicaid spending. At the center will be streamlining quality measure inventories, adopting digital quality measurement with near-real-time data when possible, and aligning financial accountability with outcomes measures.

The program lines up incredibly well with efforts to boost lagging Medicaid outcome performance, interoperability, as well as migrate all government programs to a universal foundation of measures.

Additional articles: https://www.fiercehealthcare.com/regulatory/37-states-partner-cms-initiative-rethink-medicaid-quality-measures and https://www.cms.gov/newsroom/press-releases/cms-refocuses-medicaid-quality-health-outcomes-launches-innovative-partnership-37-states

#quality #medicaid #cms

https://www.beckershospitalreview.com/legal-regulatory-issues/cms-launches-medicaid-quality-pledge-with-37-states/

Will Vertical Integration Be A Focus?

An interesting Becker’s Payer article indicating vertical integration will become a strong focus. Recently, late-night TV host John Oliver tore into the inner workings of huge vertically integrated company UnitedHealth Group. The article notes that UnitedHealth is now the fourth-largest company in the world by revenue, taking in $447 billion last year, up 11.8% year over year. It reported ten significant subsidiaries down from a reported 2,700 a short time ago. Vertical integration is not unique to United.

While health plan execs have defended vertical integration it is increasingly being looked at by Congress and federal agencies. Sens. Elizabeth Warren, D-Mass., and Josh Hawley, R-Mo., introduced the Break Up Big Medicine Act, which would prevent companies from simultaneously owning a health insurer or pharmacy benefit manager and a provider or management services organization.

#verticalintegration #healthplans #unitedhealthcare

https://www.beckerspayer.com/payer/as-vertical-integration-scrutiny-grows-unitedhealth-takes-center-stage/