overpayments

Out-Of-Network Provider Billing Is Yet Another Provider Attack Issue Against Plans

The health plan industry has been in turmoil since an April 7, 2024 New York Times article appeared attacking prominent insurers and a data technology vendor, MultiPlan, for seemingly transferring huge out-of-network bills to commercial product patients.  Insurers are already battling major headwinds related to two other issues: So, is the MultiPlan issue yet another front on which health plans may have to fight? The public relations on the article alone has raised lawmakers’ eyebrows. The American Hospital Association has asked the federal Department of Labor to investigate both MultiPlan and large insurers to determine whether they engage in business practices that disadvantage patients and providers under the self-insured ERISA law and regulations. So what does MultiPlan do on behalf of health plans While the data and technology firm has networks and negotiation services, more and more MultiPlan is hired by insurers to scrutinize claims coming in from out-of-network providers

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Finalization of 2025 Policies: Major Changes Coming To Medicare Advantage and Part D

Just recently, the Centers for Medicare and Medicaid Services (CMS) finalized two important notices and rules impacting CY 2025: the 2025 annual rate-setting and policy notice as well as the draft 2025 Medicare Advantage and Part D rule. In this blog, I will write about both the 2025 final rule as well as the policy changes in the 2025 final notice. In my blog on April 4, 2024, I discussed the rate-setting components of the annual rate-setting and policy notice.  That blog is here: https://www.healthcarelabyrinth.com/final-2025-rates-for-medicare-advantage-remain-as-proposed/ . In addition, my February 1, 2024 blog on the draft notice is here and has more details: https://www.healthcarelabyrinth.com/2025-rates-for-medicare-advantage-plans-look-tight/ . They should be read together due to a few changes. In addition to the below, you can see my November 13, 2023 blog on the 2025 Medicare Advantage and Part D rule when it was first announced.  This has additional details but also should be

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Final 2025 Rates For Medicare Advantage Remain As Proposed

In my February 1, 2024 blog, I walked you through the Advance Notice from the Centers for Medicare and Medicaid Services (CMS) regarding proposed Medicare Advantage (MA) rates for calendar year 2025.  Many health plans and industry-friendly trade groups lobbied CMS hard for a change in the proposal. Even lawmakers got into the game. But the final notice came out this week and almost nothing changed on the rate front.  On February 1, I told you that MA plans were very worried about the proposed 2025 rate because of a series of negative trends that were hitting them: So let’s take a look at what happened between the Advance Notice and the Final Notice of 2025 MA rates. 2024 and 2025 Medicare Advantage Rate Comparisons   2024 Final 2025 Proposed 2025 Final Effective Growth Rate 2.28% 2.44% 2.33% Changes in Star Revenue (Overall) -1.24% -0.15% -0.11% Rebasing 0.00% TBD 0.07%

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What’s All The Clamor Over GLP-1s For Weight Loss?

Hollywood supposedly is addicted to them. More and more Americans are now trying GLP-1s for weight loss. What is happening here with GLP-1s is something repeated often in the drug world. First, what is a GLP-1? The drugs were introduced in the U.S. beginning in the mid-2000s and have been used for those with type 2 diabetes who were overweight. These are a class of drugs that perform much like a hormone called glucagon-like peptide 1. As blood sugars rise in the blood stream, the drugs stimulate the production of more insulin, which lowers blood sugar levels. This is essential for controlling type 2 diabetes. It’s not clear how the GLP-1 drugs lead to weight loss overall, although the drugs do appear to slow the movement of food through the digestive tract and make you feel fuller. How did it become popular for weight loss? Now let’s get into off-label use of

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Surprise! Surprise! No Surprises Act Favors Providers And Is Driving Up Costs

Since the No Surprises Act (NSA) was passed in late 2020, I have argued that the baseball-style arbitration process is heavily stacked against health plans and favors providers.  The law went into effect on January 1, 2022, with some portions still forestalled by the federal government.  But the main components  that stop surprise billing to patients and the process to settle what is paid by plans to providers has been in force now for about 2 years.  The implementation of the arbitration has been rocky.  The number of cases is demonstrably above what was expected.  That said, more and more data is now available that shows how well providers are doing from the process. In commercial coverage, the main component of the law disallows providers from billing patients for out-of-network services beyond plan outlined in-network cost-sharing for emergency situations, post-emergency stabilization, and non-emergency in-network facility-based procedures where non-network services may

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March 26, 2024

The Looming Election Year Debate Over The Affordable Care Act This article captures the big divide between advocates and detractors of the Affordable Care Act (ACA). Good links to various studies. Proponents say that over 21 million are enrolled in the Exchanges and a total of about 45 million gained coverage including Medicaid expansion.  Opponents argue costs have been huge — 36,798 per additional private insurance enrollee and 20,739 per additional non-group enrollee.  This is well above original estimates. Further, critics say insurers have benefited disproportionately. Here is my Republican defense of the ACA – as strange as that sounds. I also am dubious of the study that says 3 in 4 (73%) U.S. adults “report that in one way or another the healthcare system is failing to meeting their needs.”  Other surveys would suggest general contentment with their coverage and insurer. #healthcare #healthcarereform #aca #obamacare #exchanges #medicaid  Link to

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March 25, 2024

Biden Signs Funding Bill President Joe Biden signed a $1.2 trillion spending package on Saturday, avoiding a government shutdown. The package includes funding for the Department of Health and Human Services (HHS). The Senate passed the measure 74-24, technically after the deadline. Additional article: https://www.modernhealthcare.com/politics-policy/spending-bill-passes-hhs-funding (Some articles may require a subscription.) #governmentshutdown #spending #healthcare Link to Article Change Ready To Turn On Last Major Products Involving Claims UnitedHealth Group said that its largest clearinghouse, called Relay Exchange, will be back online this weekend.  Further, after testing by clients, $14 billion in medical claims will be processed through a system. It also unveiled a timeline for remaining products to come online – roughly through mid-April. Another article speaks to a new bill that would open up funding during cyberattacks if providers have met certain cyber standards. As well, the American Hospital Association (AHA) is opposing proposals that would tie cyber standards

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The Audacity of Mark Cuban

Mark Cuban is known as a bold entrepreneur — a smart-thinking guy who cuts through all the nonsense to come up with the right solution. But how audacious was he at a recent White House forum when he suggested that federal and state programs as well as employers essentially cut the top three pharmacy benefits managers (PBMs) out of the pharmacy spending equation altogether in favor of a transparent model? However difficult in the short term, I believe the provocative Cuban has the right answer and wants to aggressively go after it. The entrepreneur is a recent entrant into the world of healthcare. His Cost Plus Drug Company (CPD or Cost Plus) is taking the nation by storm by showing how going direct to the manufacturer — and then to the consumer — can make money and lower costs. He would argue it is not a new model in free

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March 22, 2024

Senate Has Funding Bill After House Passage The Senate will need to pass a huge funding bill before midnight Friday to avert a government shutdown.  The House passed the bill, which includes healthcare funding, on a vote of  286-to-134 (112 Republicans and 22 Democrats voted against the bill). One conservative House member has called for the ouster of House Speaker Mike Johnson, R-LA, who hails from the Freedom Caucus.  She says she has support from folks, but the caucus and some Democrats do not want to see more chaos. The GOP hold on the House will be razor-thin with two early retirements. #governmentshutdown Link to Article After Win On Prior Authorization, Providers Now To Focus On Denied Claims Medicare Advantage (MA) and other health plans watch out. Providers will now want strict rules from the Centers for Medicare and Medicaid Services (CMS), Medicaid agencies, and state legislatures regarding claims denials. 

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March 21, 2024

Medicare To Cover GLP-1s For Specific Conditions Medicare Part D will cover obesity drugs if they are approved for specific medical conditions. For example, Novo Nordisk’s Wegovy, just received approval from the Food and Drug Administration (FDA) to reduce risk of stroke or heart attack in people with cardiovascular disease and who are obese/overweight. The same rule will apply to Medicaid. The decision does not make these weight-loss drugs available more broadly. Additional article on trials showing GLP-1s slowing kidney disease progress and cardiovascular events: https://www.managedhealthcareexecutive.com/view/ozempic-reduces-kidney-disease-progression-cardiovascular-events-by-24- Additional articles: https://www.fiercehealthcare.com/payers/wsj-cms-broadens-part-d-coverage-obesity-drugs and https://www.medpagetoday.com/publichealthpolicy/medicare/109305 #weightlossdrugs #medicare #medicaid Link to Article GOP Senators Want HHS To Explain Delay In Responding To Cyberattack Senate HELP Committee Ranking Member Bill Cassidy, R-LA, and member Tommy Tuberville, R-AL, have asked why it took the Department of Health and Humans Services (HHS) almost two weeks to respond to the Change Healthcare cyberattack. Check out my blog here on

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