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July 24, 2025

Could Bipartisan Healthcare Reforms Be In The Making? Senate Republicans say they are working on a bipartisan healthcare package to lower drug and health insurance costs. Democrats say they have not been brought into the process and are skeptical. Sen. Bill Cassidy, R-LA, who leads the HELP Committee, is leading the talks, with pharmacy benefit managers reform and stopping upcoding practices in the Medicare Advantage (MA) risk adjustment program at the top of the list of reforms. Further, a group of Republican senators, including Lisa Murkowski of Alaska, are pushing to extend the expiring Exchange enhanced premium subsidies. It appears that even conservative Senate Finance Chair Michael D. Crapo, R-Idaho, who chairs the Senate Finance Committee, is involved. #healthcare #riskadjustment #medicareadvanage #pbms #drugpricing https://rollcall.com/2025/07/23/republicans-plan-bipartisan-health-package-as-democrats-demur Prominent Insurer Executives Cover Major Issues A Modern Healthcare webinar had a number of prominent Medicare Advantage (MA) executives outlining concerns regarding recent announcements. First, they distanced themselves

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June to July 2025 Medicare Advantage Enrollment

Despite financial woes in MA, enrollment keeps chugging along. A quick blog to tell you about enrollment growth in Medicare Advantage (MA) from June 2025 to July 2025. MA growth slowed down from 2024 to 2025 because of the financial woes of the MA industry. But the rolls are still growing due to aging and the popularity and value of MA compared with the archaic traditional Medicare (fee-for-service) program. What do the latest statistics show? Growth from January 2024 to February 2025 was 4.39% or 1.468 million. (I used February 2025 because of issues with the January 2025 statistics). Enrollment in MA reached 34.941M in February 2025. In July 2025, it reached 35.437M. MA enrollment grew about 80K from June to July and about 496K from February to July. How did Big MA do? From January 2024 to February 2025, Big Plan MA enrollment performed very poorly because of retrenchment

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July 23, 2025

With Friends Like These: No Love From GOP For Medicare Advantage At a House Ways and Means Committee’s joint oversight and health subcommittee hearing, GOP lawmakers declared that the Medicare Advantage (MA) program needs an overhaul and private plans need to be reined in. The primary complaints were risk adjustment upcoding and prior authorization abuses. They also argued MA is not saving money as promised. The hearing was contentious and could lead to either accelerated reforms from the Centers for Medicare and Medicaid Services (CMS) or possible inclusion of cuts in a future budget bill. But admittedly, so far Congress has not wanted to pull the trigger on MA reforms given the popularity among seniors. In other news, a good article on the Trump administration proposal to begin some site neutral payment reform in Medicare. Some hospital-owned outpatient facilities (just off-campus outpatient facilities) would be paid the same to administer

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July 22, 2025

Oscar Health Slashes Earnings Guidance The trend continues of large health plans surprising The Street with major slashes in guidance with little or no notice. While its Q2 investor call is not until August 6, Oscar Health announced today it is slashing its full-year guidance by about half a billion dollars. The insurer expects a loss from operations of $200 million to $300 million just months after estimating earnings from operations of $225 million to $275 million. Elevated utilization is a big culprit. Oscar’s medical loss ratio is climbing to between 86% and 87%, more than 5% higher than initially forecast. Oscar had an operating loss of about $230 million in Q2, when analysts expected an operating profit of $55.5 million. Oscar is a 100% Exchange plan. Revenue and margin concerns likely will continue given the expiration of the enhanced premium subsidies and enrollment tightening in a new rule and

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July 21, 2025

Final Budget Score In From CBO: 10 Million To Lose Coverage The One Big Beautiful Bill Act that President Donald Trump signed into law on Independence Day will add $3.4 trillion to the national debt from 2025 to 2034. This is from the final scoring of the bill from the Congressional Budget Office (CBO). The estimated deficit rise reflects $1.1 trillion in cuts to direct spending and a $4.5 trillion government revenue loss due to extended and new tax cuts. CBO also projects the number of uninsured individuals will increase by 10 million by 2034 due to the Medicaid and Exchange reductions in the bill. This is about 2 million less than previously estimated due to some provisions being ruled unallowable by the Senate parliamentarian. Adding the expected 4.2 million to lose coverage when the enhanced Exchnage subsidies expire December 31 as well the 900,000 to lose coverage due to

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2024 Medicare Advantage and Part D Program Audit Enforcement Report Out: What Does It Tell Us?

CMS is upping the ante on program audits, enforcement, and penalties Each year, the Centers for Medicare and Medicaid Services (CMS) issues its Part C and Part D Program Audit and Enforcement Report. I liked how CMS did it in years past, where actual plan audit scores as well as average scores by audit area were released. It gave you a great feel for where plans were struggling the most. Nonetheless, the report continues to be a good tool for Medicare Advantage (MA) and Part D plans (MA-PD or standalone PDP) to review and hone their compliance chops. Here are the major findings from this most recent report and last year’s (link at bottom for 2023 and 2024 reports).  Background CMS has been expanding the audits it does, using both internal and external expertise. In 2023, a total of 69 MA-PD contracts were audited — 31 of these contracts offered special needs plans

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July 18, 2025

Humana Loses Stars Lawsuit Humana’s lawsuit on Star calculations was thrown out of court this week. The judge indicated that the plan did not exhaust internal appeals processes at the time of the filing and thus the suit did not have standing. The suit could be refiled, though. The Centers for Medicare and Medicaid Services (CMS) later rejected Humana’s appeal. Humana’s suit was far-reaching and pointed. It said CMS did not follow its own regulations in its methodology for calculating ratings and said the agency does not provide plans the necessary data to calculate aspects of Star ratings. As an example, Humana said it could not replicate 60% of CMS’ cut point calculations. Humana’s average Star score fell from 4.37 in 2024 to 3.63 for 2025. Despite the lawsuit outcome, Humana is not wrong in its premise that inadequate data and a lack of transparency pervades the Star process. While

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July 17, 2025

Democratic States Challenge Exchange Rule Finalization Democratic states sued the Trump administration today over the finalization of the Exchange rule that will significantly tighten the enrollment season and dampen eligibility. Provisions in the budget reconciliation bill will further clampdown on enrollment. The states are arguing that the administration did not follow all regulatory rules before finalization and that the rule is arbitrary and capricious. They also argue that the changes will boost the uninsured rate and cost states a great deal of money. In related news, the administration supplied data on improper enrollments in government programs. Analyzing 2024 enrollment data, the administration found 1.2 million enrolled in Medicaid or the Children’s Health Insurance Program in multiple states, and 1.6 million enrolled in one of those programs and an Exchange plan. Data-sharing and procedural requirements in the budget bill seek to further address this issue. As well, the Centers for Medicare

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Health Plans And Their Finances Post The Big Beautiful Bill

The budget bill will mean more turmoil and a steeper climb to financial recovery for health plans In a number of blogs recently, I have discussed the ongoing financial pain of health plans. I characterized health plan efforts to recover financially as cloudy and rocky going into 2026 and beyond. But I have yet to really layer in the impact of the One Big Beautiful Bill on health plan finances moving forward. To state it clearly, it makes things dramatically worse. I told you that health plans are already fighting a number of headwinds: In general, we have seen annual spending growth trends of 6% to 9% in the past few years. For 2026 and some years beyond, annual trends will hit the lower end of the range, with some lines of business (e.g., employer coverage) seeing costs trends at the high end. So how will the One Big Beautiful

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July 16, 2025

Employers Could Transfer Costs to Employees While there has been some increased costs for employees the past few years, employers attempted to shelter much of the huge trend in employer healthcare costs from their employees. Given ongoing trends, that is likely about to change. Analysts at Mercer polled 711 employers and found that 51% said they are likely or very likely to shift costs to employees in 2026. That’s up from 45% in 2025. About 19% said they were very likely to shift costs and 33% said they were likely to do so in 2026. More than half of employers are likely or very likely to make plan design changes that will shift more cost sharing to employees in 2026. Additional article: https://www.fiercehealthcare.com/payers/mercer-survey-employers-may-make-return-healthcare-cost-shifting-strategies #employercoverage #healthcare #coverage https://www.beckerspayer.com/payer/employers-plan-to-shift-more-healthcare-costs-to-employees-2026-10-things-to-know Study Looks At Consequences Of Medicaid Cuts New research in JAMA Health Forum says Medicaid cuts in the budget reconciliation bill could have far-reaching

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