HHS And Related Health Agencies Will Downsize By 20,000
The Department of Health and Human Services (HHS) will slash an additional 10,000 full-time jobs after laying off or “buying out” about the same number already. Prior to the moves, the agencies collectively had 82,000, so the workforce will be downsized by about 25%. These cuts are in line with the Department of Government Efficiency (DOGE) commission’s workforce optimization efforts and are slated to save the agencies $1.8 billion per year.
HHS is also reorganizing and will cut the department from 28 divisions to 15 and close five regional offices.
Job reductions include:
- 3,500 at the Food and Drug Administration (FDA).
- 2,400 at the Centers for Disease Control and Prevention (CDC).
- 1,200 at the National Institutes of Health (NIH).
- 300 at the Centers for Medicare and Medicaid Services (CMS).
Additional articles: https://www.fiercehealthcare.com/regulatory/rfk-jr-prepares-10000-job-cuts-across-hhs-new-wave-worker-reductions and https://insidehealthpolicy.com/daily-news/hhs-major-new-reorg-includes-agency-mergers-10k-more-job-cuts and https://www.healthcareitnews.com/news/hhs-reduce-workforce-20k-jobs-major-agency-wide-restructure and https://thehill.com/policy/healthcare/5218547-trump-administration-plans-hhs-cuts/ and https://www.medpagetoday.com/washington-watch/washington-watch/114854 and https://www.modernhealthcare.com/labor/hhs-cuts-rfk-jr
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#congress #trump #doge #budgetreconciliation #healthcare #hhs #cms #fda #cdc #nih
https://www.healthcaredive.com/news/hhs-job-cuts-reorganization-rfk-trump/743569
Bipartisan Prior Auth Reform Bill Unveiled Again
Rep. Mark Green, R-TX, reintroduced a major new prior authorization restriction bill impacting Medicare, Medicare Advantage, and Part D prescription drug plans. The bill would require only specialty board certified physicians to make important decisions about treatment. The bill is clearly excessive but has at least six other GOP members on it. It also has a Democratic co-sponsor.
#priorauthorization #medicare #medicareadvantage #healthplans
Paragon Issues Detailed Report On Medicaid Provider Taxes And Related State Money-Raising Programs
The Paragon Health Institute issued a very detailed and far-reaching assessment of Medicaid provider taxes, state-directed payments, supplemental payments, and certified public expenditures. While providers, especially hospitals, argue the money-raising tools are long-standing and legitimate, Paragon makes a good case for at least some reform.
Paragon calls for Congress to reduce what it sees as money laundering and abuse by doing the following:
- Adopt a 3.5% safe harbor threshold for the tax “at a minimum” as opposed to 6%. Ultimately it would like bans on the use of provider taxes as a means to fund states’ Medicaid costs.
- Eliminating or capping of state directed payments and lump sum supplemental payments so that effective Medicaid payment rates do not exceed Medicare rates.
- It would prefer a cap to overall Medicaid funding states receive from the federal government, which it acknowledged is “unlikely.” This is in essence a block grant approach.
In other news, the Senate GOP is looking to radically pull back on healthcare spending cut targets. This is being done to mollify some moderate GOPers in the Senate. But this could create issues for deficit and spending hawks in both the House and Senate.
Last, The Wall Street Journal finds that health insurers got “double paid” by the Medicaid system on hundreds of thousands of people across the country. Medicaid managed care plans were paid at least $4.3 billion over three years for enrollees who were enrolled in multiple states.
Additional articles: https://www.wsj.com/health/healthcare/medicaid-double-payments-insurers-states-1c091b41 and https://www.beckerspayer.com/payer/payers-received-billions-in-duplicate-medicaid-payments-wsj/ and https:/www.modernhealthcare.com/politics-policy/senators-medicaid-cuts-gop-tax-plan
(Some articles may require a subscription.)
#fwa #medicaid #healthplans #managedcare
Compounded Weight-Loss Drug Production Supposed To Stop, But …
Given the end of brand drug maker shortages for popular GLP-1 weight-loss drugs, theoretically compounding of generic copycats should come to an end. Such production is allowed if drugs are in shortage according to the Food and Drug Administration (FDA). But major telehealth companies and compounders are arguing that another provision of law and regulation allows the continued compounding of individualized dosages. Both brand drug makers and compounders are in court on the issue.
Brand GLP-1s are $1,000 to $1,300 per month, while compounded versions are $150 to $300 per month.
#glp1s #weightlossdrugs #drugpricing #branddrugmakers
— Marc S. Ryan
