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Digging Into My Modest Election-Year Proposal For Healthcare Reform: Part 1 — The Importance Of Price Reform

This blog is one in a three-part series that digs into my modest proposal for healthcare reform published at this site on May 27, 2024. See that blog here to review my proposal thoroughly: https://www.healthcarelabyrinth.com/a-modest-election-year-proposal-for-healthcare-reform/ . Much of my proposal is taken from my book, The Healthcare Labyrinth, available at this site and through leading bookseller websites. It is available in print, ebook, and audiobook forms. — The importance of price reform In my “A Modest Election-Year Proposal For Healthcare Reform” blog on May 27, 2024, I stressed that the cornerstones of reform are three key tenets – driving affordable universal access, reforming price, and pivoting to care management from our obsession with utilization management. I am going to start with price reform in this blog and in later blogs cover the other two tenets. In the May 27, 2024 blog, I argue that we need to fundamentally tackle price

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CMS’ TukeyGate: Lawsuit Decision Threatens To Unravel Much of Medicare Advantage Star Scoring in 2024 and 2025 and Next Year’s Bids And Benefits

A bombshell legal decision this week from a federal district judge threatens to unravel much of the Centers for Medicare and Medicaid Services (CMS) Star process. CMS may have to revisit 2024 Star ratings across the Medicare Advantage (MA) industry, pay out several hundred million more in bonuses, and revisit the bids and benefit designs already in flight for next calendar year. The entire issue is a bit arcane, so let’s break it down here and then get to the implications. The lawsuit and decision Scan Group, a prominent and highly successful non-profit MA plan based in California and serving a number of western states, has successfully won a challenge in a federal district court on its Star ratings for 2024. The case centers on the introduction of the Tukey outlier formula that CMS implemented beginning with the 2024 ratings. The court decision said CMS violated the Administrative Procedures Act

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June 3, 2024

BCBS KC Will Exit Medicare Advantage Blue Cross and Blue Shield Kansas City has announced it will exit the Medicare Advantage (MA) program.  This shows the challenges created by some poor decisions by the Centers for Medicare and Medicaid Services (CMS).  I had said that many regional plans would pick up lives as major plans offload them due to investor concerns.  Will this be a trend or an exception? #medicareadvantage #coverage #cms https://www.fiercehealthcare.com/payers/blue-kc-exiting-medicare-advantage-market-2025-due-regulatory-demands Cigna Layoffs Cigna’s Evernorth services arm will lay off some specialty health center employees in favor of a focus on primary care. (Article may require a subscription.) #cigna #evernorth #healthcare #layoffs https://www.modernhealthcare.com/insurance/cigna-evernorth-care-layoffs-closings CVS Searching For Investment Partner For Oak Street This article speculates a good deal on CVS Health’s search for an investment partner to expand Oak Street, its primary care arm. (Article may require a subscription.) #cvshealth #primarycare https://www.modernhealthcare.com/providers/cvs-health-oak-street-private-equity-investment Grassley Wants To Understand Ascenion’s Ties To

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Hospitals Drive Up Overall Healthcare Costs Considerably

As a former board member of two hospitals (a children’s medical center and academic medical center), I am sympathetic to the unique services that hospitals provide and the role many of them play in the education of doctors, nurses, and more. But it is also clear that hospitals are inefficient organizations that continue to drive up costs overall in the healthcare system. While some hospitals are reforming, others cling to the status quo. Hosptial lobbies are also stuck in the past and bucking change. Here are a few areas and recent studies that point to the role hospitals play in driving up healthcare costs: Hospital consolidations drive up costs, not lower them. Quality often suffers. New statistics from the Federal Trade Commission suggest that about 90% of hospital markets are highly concentrated due to the massive mergers and consolidations that have occurred over the past many years. What’s more studies

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May 31, 2024

HHS Clarifies Responsibility For Change Healthcare Breach Notifcation The Department of Health and Human Services (HHS) announced today that UnitedHealth Group would inform people about privacy breaches resulting from the Change Healthcare cyberattack. Providers, payers, and others may direct United to do so.  Previous guidance was ambiguous.  HHS FAQs were updated and clarified the issue. HHS FAQs: https://www.hhs.gov/about/news/2024/05/31/ocr-updates-change-healthcare-cybersecurity-incident-faqs.html (Some articles may require a subscription.) #changehealthcare #cyberattacks #providers #payers https://www.modernhealthcare.com/cybersecurity/change-healthcare-hack-notification-requirements-hhs Centene Also Reports Pressure on Medicaid Finances On the tail of United, Centene is now reporting significant medical expense pressure tied to the Medicaid disenrollment due to the return of Medicaid redeterminations.  The article discusses that other plans are not seeing severe pressure.  It also discusses Medicare Advantage (MA) financial problems. Medicaid plans had received relief in the form of higher rates during COVID, but as I noted earlier state revenue is drying up and might spell issues for Medicaid managed

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May 30, 2024

Big Blue Highmark Sees Bad Trends in Medicare Advantage Pennsylvania-based Big Blue Highmark Health says it is seeing the same sort of Medicare Advantage (MA) trends other plans have reported. It sees increased utilization across inpatient and outpatient as well as rising costs of GLP-1 drugs. #highmark #medicareadvantage #weightlossdrugs https://www.fiercehealthcare.com/payers/highmark-health-seeing-medicare-advantage-and-glp-1-headwinds What Would GOP And Trump Healthcare Agenda Look Like? Many are readying for a new Trump administration and looking at what healthcare policy changes could occur.  Many say that the GOP will not go for a full repeal of the Affordable Care Act (ACA), but that enhanced subsidies will die at the end of 2025. The GOP might not fully repeal Medicare drug negotiations, but tweak the law.  Trump, too, could revive international reference pricing in Part B and perhaps in Part D. This is where Trump and Biden look a lot alike. The biggest changes could come with Medicaid,

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Medicare Advantage Will Grow Even With Plan Financial Woes and Benefit Reductions

I have received a number of pings and messages to explain why I predict Medicare Advantage (MA) enrollment will continue to rise even with some extensive geographic contraction and benefit reductions in the market by some leading national health plans. Here are some of my thoughts on the subject. I would love to hear others’ impressions as well. What is happening with plans? Low or negative rate increases, a return of medical utilization, low Star achievement, and new restrictions on prior authorization are leading to a huge surge in some Medicare Advantage (MA) plans’ medical loss ratios. As such, margins have been reduced considerably. Almost every large national MA plan has raised concerns, but impacts appear to have been greatest over the past few years on Centene, CVS Aetna, Humana, and Cigna. Centene was forced to reduce benefits and geographic expansions already and may do so again. Humana did so

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May 29, 2024

Clover Health Unveils Clover Assistant As SaaS Offering Congratulations to Clover Health by unveiling its Clover Assistant as a SaaS technology offering. Clover Assistant, now marketed as Counterpart Assistant, is available to Medicare Advantage (MA) payers and providers to improve outcomes and close care gaps. Additional article: https://www.modernhealthcare.com/insurance/clover-health-assistant-medicare-advantage (Some articles may require a subscription.) #medicareadvantage #clover #healthplans #providers https://www.fiercehealthcare.com/payers/clover-assistant-ai-tool-now-available-payers-providers New 340B Reform Bill Would Attempt To Return Program To Original Intent A new House Republican Bill would create major reforms to the 340B program.  Hospitals of course are panning the proposal.  But more and more studies show that hospitals are abusing the program by claiming discounts and then massively marking up drugs anyway.  It is driving costs for inpatient care dramatically for individuals, especially those with cancer. The program was intended to ensure access to those with low incomes. #340b #hospitals https://www.fiercehealthcare.com/providers/house-republicans-new-340b-bill-pharmaceutical-industry-wish-list-hospitals-say AI Promotion and Regulation On Capitol Hill Docket

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May 28, 2024

Biden On Healthcare Attack In Election 2024 President Joe Biden is attacking former President Donald Trump on his healthcare stances and indicating he wants to repeal the Affordable Care Act (ACA). Polling shows Biden is better trusted on healthcare and this could help him in swing areas of the country. See my blog on this topic: https://www.healthcarelabyrinth.com/election-update-and-the-potential-role-of-healthcare-issues/ .    (Article may require a subscription.) #election2024 #healthcare #aca #exchanges #medicaid #obamacare https://www.modernhealthcare.com/politics-policy/joe-biden-ad-aca-affordable-care-act-donald-trump-health-issues Calls For Medigap Reform New calls for Capitol Hill to reform Medigap coverage if someone wants to rejoin the traditional fee-for-service (FFS) program.  Ideas include both guaranteed issue and community rating. Researchers want this coupled with solving for overpayments and enhancing the traditional program to fill gaps in the benefit. Additional article: https://www.healthaffairs.org/content/forefront/improving-access-medigap-beneficiaries-leave-medicare-advantage (Some articles may require a subscription.) #medicaresupplement #medigap #medicare #medicareadvantage https://crr.bc.edu/medigap-and-the-one-way-street-problem/ Sanders’ GLP-1 Criticism Has Injected Some Guilt Into Novo Nordisk Demark-based Novo Nordisk said it

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May 27, 2024

The major healthcare news services were off today for Memorial Day. Please check out the blog we published today on my modest proposal for healthcare reform: https://www.healthcarelabyrinth.com/a-modest-election-year-proposal-for-healthcare-reform/ — Marc S. Ryan

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