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December 13, 2024

UnitedHealth CEO Admits Frustration Is Understandable UnitedHealth Group CEO Andrew Witty published an opinion piece in The New York Times today where he acknowledged the rage that has surfaced in the aftermath of the death of his deputy. Witty said health plans play a role in the issues. Witty stated: “We know the health system does not work as well as it should, and we understand people’s frustrations with it.” Oscar Health CEO Mark Bertolini, who once ran Aetna before its merger with CVS Health, also said that anger at the healthcare system is “justified.” Bertolini says he would eliminate employer-sponsored insurance because employers have little leverage. He thinks that migrating to individual coverage would be better. Oscar is focused on the individual market. While I understand Witty’s statement in light of what occurred, I think insurers are an actor in a very dysfunctional system. Health plans alone are not

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December 12, 2024

Centene Earnings Guidance Released For 2025 Centene released its earnings guidance for 2025 at its investor day. Centene says revenue will be between $166.5 billion and $169.5 billion. It says utilization will continue to be elevated and its medical loss ratio (MLR) will be between 88.4% and 89%. Centene reaffirmed that it expects to bring in between $143.5 billion and $144.5 billion in premium and service revenue for 2024. Its MLR will be between 88.3% and 88.5% for this year. Centene expects to lose $250 million on Medicare Advantage (MA) this year but intends to break even by 2027. It also lost 20% of its MA enrollment during the 2025 enrollment season that just concluded. Centene will gain $200 million in additional MA Star Ratings bonus payments in 2026 after the Centers for Medicare and Medicaid Services (CMS) revised its ratings. Additional articles: https://www.modernhealthcare.com/insurance/centene-medicare-advantage-ratings-investor-sarah-london and https://www.beckerspayer.com/policy-updates/centenes-predictions-for-trump-administration-policy-3-things-to-know.html (Some articles may require

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December 11, 2024

Bipartisan Bills Seek PBM Divestitures From Health Plans More evidence that some kind of pharmacy benefits manager (PBM) reform is coming on Capitol Hill: Democratic and Republican lawmakers now have bills to have health plans divest their PBMs. In the Senate, the bill is co-led by a very unlikely pair – liberal Sen. Elizabeth Warren, D-MA, and conservative Sen. Josh Hawley, R-MO. In the House, a companion bill is sponsored by Rep. Jake Auchincloss, D-MA. and Diana Harshbarger, R-TN. Hawley is among those anti-corporate welfare Republicans who are getting more active on healthcare issues. The Patients Before Monopolies Act of 2024 would require insurers to sell off their PBMs within three years. The bill also would prohibit corporations that own PBMs or health plans from also owning pharmacies. Other PBM reform proposals continue to gain bipartisan momentum. Some changes could come in the end-of-year stop-gap bill or sometime in 2025.

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December 10, 2024

Democrats Ramping Up Opposition To Mehmet Oz For CMS Administrator Democrats are beginning to ramp up efforts in opposition to Mehmet Oz as Administrator of the Centers for Medicare and Medicaid Services (CMS). Democrats question the numerous investments he holds, including in UnitedHealth Group. As well, they question his previous endorsement of Medicare Advantage for All, which would enroll those currently covered by private insurance, all Medicare beneficiaries, and the uninsured in Medicare Advantage (MA). Oz now says he favors expansion of MA not a radical healthcare transformation. Additional articles: https://insidehealthpolicy.com/daily-news/senate-democrats-scrutinize-oz-s-ma-all-proposal-insurance-ties and https://thehill.com/policy/healthcare/5032680-warren-democrats-oz-medicare-privatization/ (Some articles may require a subscription.) #medicareadvantage #medicare #oz #trump https://www.modernhealthcare.com/politics-policy/dr-oz-medicare-advantage-investments-elizabeth-warren-ron-wyden Ailing Walgreens May Go Private Walgreens is weighing a potential sale to a private equity firm. The ailing drug store chain may sell to Sycamore Partners. The Wall Street Journal says the deal could come together early next year. Additional article: https://www.fiercehealthcare.com/retail/walgreens-talks-sale-pe-firm-wsj (Article may require a

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December 9, 2024

Trump Wants PBM Reform Pressure is mounting to pass pharmacy benefits manager (PBM) reform. Donald Trump came out over the weekend in favor of PBM reform. Brand drug makers have gotten to Trump, getting him to focus on PBMs rather than high brand drug prices at the beginning of the drug channel. Discussions are occurring on whether PBM reform should go in the lame-duck session bill. (Article may require a subscription.) #pbms #drugpricing https://insidehealthpolicy.com/inside-drug-pricing-daily-news/trump-pegs-pbm-reform-priority-wyden-pushes-hard-lame-duck-reforms House Republican Says Medicare And Social Security Could Be On Efficiency Cut List While Donald Trump has said Medicare and Social Security will not be touched, a prominent Republican is arguing differently. Rep. Mark Alford, R-MO, is floating the two programs as potential areas of focus for the Department of Government Efficiency (DOGE). #efficiency #doge #trump #medicare #socialsecurity https://thehill.com/business/budget/5030214-republican-alford-medicare-social-security-doge/?tbref=hp Rural Providers Urge No More MA EGWP Conversions Interesting article discussing how some rural providers are actively

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December 6, 2024

KFF Finds Spending Higher When MA Enrollees Return To Traditional Medicare A new analysis from Kaiser Family Foundation (KFF) finds higher Medicare spending among those who switch from Medicare Advantage (MA) to traditional Medicare as compared with similar beneficiaries who were in traditional Medicare all along. KFF says Medicare spent an average of 27% more on those switching in, after adjusting for differences in health status and other characteristics. This amounts to a difference of $2,585 in Medicare spending per person, on average, between the two groups in 2022. The difference in spending among people with certain health conditions varied from 15% for those with pneumonia to 34% for people with diabetes. The causes for the higher spending are as follows: skilled nursing facility spending (34%), outpatient hospital spending (23%), and inpatient hospital spending (20%). Differences in spending were greater for people of color and dual eligibles and increased with age.

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December 5, 2024

Primary Care Market To Shift by 2023 A Bain & Company study on primary care suggests non-traditional providers, including retailers, payers, and advanced primary care providers, are expected to capture 30% of the U.S. primary care market by 2030. Bain says payers will continue to invest in primary care and population-focused models and will capture 20% of the market. How retailers will fare is more of a question. Bain also says providers will pivot to and grow their value-based care focus. #primarycare #healthplans #insurers #providers https://www.fiercehealthcare.com/providers/primary-care-market-will-see-major-shifts-2030-payers-nontraditional-providers-gain CMS Says Exchanges To Hit Record Numbers Again, But That May Be In Doubt The Biden administration says nearly 1 million new customers have enrolled in coverage through the Affordable Care Act’s (ACA’s) Exchanges during open enrollment so far and that 4.4 million people have returned to a marketplace plan for 2025. The Centers for Medicare and Medicaid Services (CMS) says 2025 could set yet

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December 4, 2024

Tragedy In New York A tragedy in New York today as UnitedHealthcare CEO Brian Thompson, the leader of UnitedHealth Group’s insurance subsidiary, was shot and killed just before an investor meeting in Manhattan. All indications point to the fact that the shooting was premediated and targeted and not a random act. Our thoughts and prayers are with Thompson’s family and the UnitedHealth community. Additional articles: https://www.modernhealthcare.com/people/unitedhealthcare-ceo-brian-thompson-shot-new-york-city and https://www.healthcaredive.com/news/unitedhealthcare-ceo-brian-thompson-fatally-shot-nyc/734557/ (Some articles may require a subscription.) #unitedhealthcare https://www.fiercehealthcare.com/payers/reports-unitedhealthcare-ceo-brian-thompson-fatally-shot-manhattan Progress On Stop Gap Measure To Fund Government Republican lawmakers have proposed a lame-duck healthcare deal to Democrats that includes extending key Medicare telehealth measures and the Acute Hospital Care at Home program for three years as well as a one-year Medicare physician pay patch. This would be paid for with a full repeal of the Biden administration’s nursing home staffing rule and pharmacy benefit manager reforms. (Article may require a subscription.) #crs #governmentshutdown

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December 3, 2024

Government Spending Bill Needed In Next Two Weeks With the government running out of money as of December 20, Congress is back for a lame-duck session and needs to pass a permanent funding bill or stop-gap continuing resolution (CR) soon. The latest guess is that the parties will come together in each chamber to pass a stop-gap CR and boot major funding and policy decisions until the next Congress. But that certainly puts Democrats at a disadvantage as they become the minority in both chambers. But the sheer work to get a permanent bill passed is likely just too much right now for anyone. There is wide speculation on what will happen with various healthcare policy proposals. Many hope for a great deal of healthcare bills to be rolled up into an end-of-year act. But that hope is dying given all that needs to be done. More likely are some

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December 2, 2024

United And Centene Get Star Hikes For 2025 After a federal court ordered the Centers for Medicare and Medicaid Services (CMS) to revise United Healthcare’s 2025 Star ratings, the agency issued new Star ratings for both United and Centene today. The agency increased the quality ratings for 12 UnitedHealthcare contracts and 7 Centene contracts. Centene now has a sole 4-Star contract under the agency changes. Two United contracts were upgraded to 5 Stars and three contracts to 4 stars. United now will have 37 contracts rated at least 4 stars. The United and Centene cases surrounded how CMS handled the two call center ratings. Centene sued like United and the Centene case is still pending. It likely will be withdrawn. Humana and Elevance Health also sued and both suits are still pending. No changes to Star ratings have yet been made for Humana and Elevance Health.  One reason could be

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