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December 26, 2024

Wakely Finds VBID Sunset Could Impact Medication Adherence Rates Many Medicare Advantage (MA) proponents have said that the sunset of the Value Based Insurance Design (VBID) in Medicare Advantage (MA) as of 2026 could have impact on outcomes and complicate affordability of healthcare for beneficiaries. Wakely Consulting, an actuarial and consulting firm, has found that this could be true in the area of medication adherence. Plans have used the VBID program to target waiver of pharmacy cost-sharing for low-income (LI) beneficiaries. These are the same targeted individuals in the new Health Equity Index (HEI) rolling out in Star Year 2027. Wakely found that medication adherence for diabetes, hypertension, and hyperlipidemia could be impacted if the cost-sharing waivers disappear. The analysis found that removing copays on maintenance medications improved beneficiary adherence, which is tied to improved quality of care and health outcomes. These are three key star measures in the Part

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December 24, 2024

What More Could The CMS Actuary Do For Its Annual Healthcare Spending Report? Interesting Health Affairs Forefront Blog on what more the Centers for Medicare and Medicaid Services (CMS) Actuary could do in terms of analysis of National Healthcare Expenditures Data (NHED) each year. As the author notes, there are some crucial missing pieces that could aid analysis and reform. (Article may require a subscription.) #nhed #cms #healthcare #spending https://www.healthaffairs.org/content/forefront/beyond-national-health-expenditure-data-three-things-wish-were-better-measured Fierce Healthcare’s Top 10 Payer Stories of 2024 Fierce Healthcare has issued its article on the top ten payer stories of 2024. The events include the Change Healthcare breach, numerous financial woes and cutbacks at major plans, the UnitedHealthcare CEO shooting, and Cigna selling its Medicare Advantage (MA) line. I will have my normal year-end wrap up and predictions soon at the blog tab. #healthcare #2024 #healthplans https://www.fiercehealthcare.com/payers/editors-corner-fierce-health-payers-top-10-stories-2024 Multiplan Reaches Debt Refinancing Deal Healthcare analytics company Multiplan reached an agreement

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December 23, 2024

CMS Pushing Streamlining Of Quality Measurement Interesting article on the Centers for Medicare and Medicaid Services’ (CMS) push to streamline quality metrics across programs. Its approach, called the Universal Foundation, is meant to ease complexity, burden, and the administrative costs on providers and health plans by establishing standardized metrics and financial incentives. Right now, CMS has about 20 measure sets that encompass hundreds of discrete measures. I certainly endorse standardization and streamlining, but migrating to the Universal Foundation will take years. Further, given differences in demographics, we will always have some unique measures in each program. But standardizing Accountable Care Organization (ACO) and Medicare Advantage (MA) measures would be a great place to start. (Article may require a subscription.) #quality #stars #acos #medicareadvantage #cms  https://www.modernhealthcare.com/policy/cms-universal-foundation-quality-data-reporting-measurement What Might HHS Look Like Under RFK Jr. An interesting article on what might occur under the Trump administration as Robert F. Kennedy Jr. pursues

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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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March 20, 2024

Both Class-Action And Provider Lawsuits Filed Against Change Change healthcare will face both class-action lawsuits from patients as well as lawsuits from providers impacted by the Change Healthcare cyberattack. Meanwhile, provider groups, including the American Hospital association, are arguing the government and UnitedHealth Group responses have been inadequate and are pressing lawmakers to intervene with the Department of Health and Human Services (HHS).  The complaint is that advanced payments are simply not enough. Congress is also asking HHS if a bill needs to pass granting the agency flexibility in collecting advanced payments. My blog tomorrow will be a comprehensive review of the Change cyberattack. Additional articles: https://www.modernhealthcare.com/politics-policy/change-update-aha-financial-help-congress and https://insidehealthpolicy.com/daily-news/lawmakers-does-hhs-need-authority-allow-flexible-repayments-after-cyberattack (Some articles may require a subscription.) #changehealthcare #cyberattacks Link to Article Health Equity In MA Star Ratings Could Be Boon For Some, Hurt Others A new health equity bonus formula will come to the Medicare Advantage (MA) star program in a

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March 19, 2024

Elevance Health To Buy Kroger Specialty Pharmacy In an effort to further build out its Carelon service subsidiary, Elevance Health is buying Kroger Specialty Pharmacy.  This will add to its growing PBM offerings. Additional articles: https://www.fiercehealthcare.com/payers/elevance-health-acquire-kroger-specialty-pharmacy and https://www.modernhealthcare.com/finance/elevance-health-carelonrx-kroger-specialty-pharmacy (Some articles may require a subscription.) #kroger #elevancehealth Link to Article ERISA Update RFI Means Battle Lines Drawn A House committee issued a request for information to see how the employer self insurance laws (ERISA) should be updated after 50 years.  Providers of course are asking for major regulation, while employers want to ensure pre-emption of state laws. Abandoning pre-emption would add demonstrably to costs.  ERISA provides the most coverage in America and it should not be played with. #erisa #coverage #employers #providers Link to Article PBM Reform Dead For Now No deal could be reached on pharmacy benefit manager (PBM) reforms despite bipartisan support in each house of Congress.  Reforms will

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March 18, 2024

Progress And Support During Change Healthcare Cyber Attack Some services have been restored by Change Healthcare and more are readying.  Change says that claim preparation software for providers will soon come back online. Electronic payments have come back online. United says it has made more than $2 billion in advanced payments from its program. United as an insurer, Highmark, and the Blue Cross and Blue Shield Association have developed advanced payment programs for providers, but many other insurers are moving slowly on the idea. Other insurers are contracting with Change competitors to help providers file claims. They also are extending claim deadlines. Provider groups say aid is not enough. The Centers for Medicare and Medicaid Services is also asking states to submit state plan amendments so they can advance Medicaid payments. Additional articles here: https://www.modernhealthcare.com/cybersecurity/change-update-unitedhealth-systems-progress and https://www.modernhealthcare.com/insurance/change-outage-prior-authorization-pay and https://www.modernhealthcare.com/government/change-update-cms-medicaid-reimbursements and https://www.healthcaredive.com/news/change-healthcare-cyberattack-medicaid-flexibilities-american-hospital-association-survey/710561/ (Some articles may require a subscription.) #changehealthcare #cyberattacks Link

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March 15, 2024

Medicare Households Spend The Most On Healthcare Costs Good article from Fierce Healthcare and analysis from Kaiser Family Foundation on healthcare spending in Medicare households. Medicare households spend more on healthcare than other households. Health spending burden was twice as high. Analysis by KFF: https://www.kff.org/medicare/issue-brief/medicare-households-spend-more-on-health-care-than-other-households/ #coverage #costs #medicare #medicareadvantage Link to Article AHA Survey Says 94% Of Hospitals Impacted By Change Cyber Attack While for-profit hospitals are going out of their way to send a message of stability after the Change Healthcare cyber attack, an American Hospital Association (AHA) says 94% of hospitals were impacted. Mounting evidence from providers (impacted by up to $1 billion a day in revenue) and health plans (claims dried up!) that this will have big and lingering impacts. While some systems are back online, the sheer magnitude of the missed throughput of transactions is amazing and will take time to work through the backlog and

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March 14, 2024

Change Pharmacy Network Back On While insurtechs overall have struggled, at least three – Alignment Healthcare, Devoted Health, and Clover Health – appear to be doing well.  Clover Health had an adjusted EBITDA loss of $19.1 million in the fourth quarter and a full-year loss of $44.7 million last year.  This is significantly better than in 2022. Its medical loss ratio (MLR) is projected to be just 81.2% for 2024. It expects adjusted EBITDA profit up to $20 million. Since it began, it, too, amassed a sizeable membership. #clover #insurtechs Link to Article Federal Appeals Court Deals Drug Makers A Blow On 340B A federal appellate court said that a state law could be reconciled with the federal 340B drug discount program. Drug makers are fighting to rein in the discounts they give to various pharmacies and hospitals.  While I find Big Pharma’s constant lawsuits defending their unreasonable pricing system

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March 13, 2024

Clover Health Readying For Positive Margin While insurtechs overall have struggled, at least three – Alignment Healthcare, Devoted Health, and Clover Health – appear to be doing well.  Clover Health had an adjusted EBITDA loss of $19.1 million in the fourth quarter and a full-year loss of $44.7 million last year.  This is significantly better than in 2022. Its medical loss ratio (MLR) is projected to be just 81.2% for 2024. It expects adjusted EBITDA profit up to $20 million. Since it began, it, too, amassed a sizeable membership. #clover #insurtechs Link to Article Feds Investigating Change Healthcare The federal government has launched an investigation into UnitedHealth Group and its Change Healthcare subsidiary after a major cyber attack.  While I am always weary of government investigations based on headlines, in this far-reaching incident it is important to understand what happened and whether there was negligence.  In related news, major for-profit

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