Providers React To Medicaid Cuts
Protests broke out at the Capitol and providers and advocates reacted to Medicaid reductions in a draft framework of the budget reconciliation bill. Provider taxes are especially getting attention. The bill proposes to freeze all new provider taxes, while a proposed administration rule would rein in what the administration calls provider-tax waivers that violate the spirit of the law. Limits on state directed payments, often funded by provider taxes, would occur as well in the reconciliation bill.
In other news, the Trump administration says it plans on revisiting the mental health parity rule.
In addition, doctors appear to be on the verge of some relief in terms of a Medicare physician rate fix. While no relief will be granted in 2025, in 2026 rates would increase by about 2.25% and future increases would be linked to the Medicare Economic Index, which generally rises faster than overall inflation.
Further, a good article in The Hill on the coming friction between President Trump and GOP leaders in the House on the president’s efforts to reduce drug prices. As I note, lawmakers have always been in the hip pocket of Big Pharma, while Trump has made an honest effort to lower prices in a system that is by no means a free market. GOP lawmakers (my party) have spent their life repeating Big Pharma talking points.
Last, healthcare policy group KFF lays out all the provisions in the current House Energy & Commerce Committee draft of healthcare cuts. I laid most of these out yesterday, but visit the links below for a very good summary and analysis of the impacts.
Additional articles: https://www.fiercehealthcare.com/payers/health-plans-advocacy-groups-descend-dc-ahead-medicaid-hearing and https://www.fiercehealthcare.com/regulatory/cms-proposes-tighter-guardrails-medicaid-provider-taxes-funding-state-directed-payments and https://www.healthcaredive.com/news/cms-proposed-rule-provider-taxes-medicaid-state-supplemental-payments/747966/ and https://www.fiercehealthcare.com/regulatory/trump-administration-reconsider-mental-health-parity-rule and https://www.modernhealthcare.com/politics-policy/house-budget-doctor-medicare-pay and https://thehill.com/homenews/house/5296446-trump-executive-order-pharmaceutical-costs/ and https://www.kff.org/policy-watch/how-will-the-2025-budget-reconciliation-affect-the-aca-medicaid-and-the-uninsured-rate/
(Some articles may require a subscription.)
#budgetreconciliation #congress #trump #healthcare #coverage #medicaid #physicians #medicare #rates
https://www.kff.org/tracking-the-medicaid-provisions-in-the-2025-budget-bill/
Witty Steps Down As UnitedHealth Group CEO
In a shocking move, UnitedHealth Group CEO Andrew Witty stepped down immediately. The company indicated he was doing so for personal reasons. United has faced lackluster financial news of late and is weathering the assassination of its second highest executive recently. Stephen Hemsley, who previously held the CEO title from 2006 to 2017, will succeed him. Hemsley will remain as chairman of UnitedHealth’s board of directors. Witty will be a senior adviser to the CEO.
The United stock also took another downturn after the company suspended guidance for 2025, citing ongoing medical cost volatility.
Additional articles: https://www.healthcaredive.com/news/andrew-witty-unitedhealth-ceo-steps-down-hemsley/747945/ and https://www.modernhealthcare.com/people/unitedhealth-group-andrew-witty-out
(Some articles may require a subscription.)
#unitedhealthcare #healthplans
— Marc S. Ryan
