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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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National Healthcare Expenditure Data Issued for 2023: What Does It All Mean?

2023 saw a major surge in healthcare spending coming out of the COVID pandemic One of my Christmas traditions is to write about the release of the Centers for Medicare and Medicaid Services (CMS) Actuary’s National Healthcare Expenditure Data (NHED) for a given calendar year. This usually is released in the middle of December each year for the prior year. It literally takes CMS about a year to capture, calculate, and categorize all the data for a year given the size and labyrinthine complexity of our healthcare system. Each year as well, usually in the first half of June, the CMS Actuary updates healthcare spending projections for ten outyears. Why is this so important? First, it is the main comprehensive source of data for calculating the history and future of healthcare spending. Most other studies rely in some form on the CMS Actuary’s NHED reports. Second, it is a treasure trove

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December 20, 2024

House Passes Stop Gap; On To Senate To Avoid Shutdown The House passed a continuing resolution (CR) to fund the government late Friday. This should avert a midnight shutdown. The CR funded government through March 14, 2025. Far-reaching healthcare provisions once going to pass as part of a free-standing bill or within the CR became a closely tailored list of must-haves for healthcare. The funding bill extends Medicare telehealth flexibilities and CMS’ acute hospital at home program for 90 days, through March 31, 2025. The CR postpones scheduled cuts to Medicaid disproportionate share payments for safety-net hospitals and extends special Medicare reimbursements for low-volume hospitals and Medicare-dependent hospitals until April 1. It sustains funding for community health centers and pandemic preparedness programs until March 31. No relief for Medicare physicians, who now will see a 2.8% rate reduction as of January 1. ACOs did not see an extension of critical

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December 19, 2024

Government Shutdown Looms with Stop Gap Failure In House A government shutdown now looms as the budget funding saga plays out. This week President-elect Donald Trump, a number of his incoming aides, and a set of rightist House Republicans came out against a bipartisan stop gap that would have funded the government through March 14 and extended the debt limit until January 2027. The House GOP has just attempted to pass a skinny continuing resolution (CR), which stripped out a number of things on the healthcare front and still funded disaster aid. The House Democrats opposed the refinements and fewer spending initiatives. The bill needed two-thirds to pass due to the inability to put the bill through the rules committee. At about 7:00 PM tonight the bill failed, with all but two Democrats opposing. The bill would not have passed under regular order, either. About three dozen conservatives opposed the

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November To December Medicare Advantage Enrollment Statistics Signal Some Trends For 2025

Some evidence that MA enrollment is slowing and big national plans realigning The 2025 enrollment season for Medicare Advantage (MA), known as the Annual Election Period (AEP), has come to a close as of Dec. 7, with some getting through Dec. 31 due to plan terminations. In this period, people can make changes between the traditional fee-for-service (FFS) program and MA or between MA plans. Standalone Part D (PDP) can be added or switched as well. Then, from Jan. 1 to Mar. 31, we have the perhaps misnamed MA Open Enrollment Period (MA OEP). In these three months, only those in MA can switch back to FFS and add a Part D plan or switch MA plans. Those enrolling in an MA Part C only plan can also add a standalone Part D plan. We are in a very odd time. Plan terminations and geographic contractions were major. Benefit cutbacks,

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December 18, 2024

Passage Of Stop Gap Measure In Limbo The passage of a government shutdown bill is now in limbo after a group of House Republicans as well as President-elect Donald Trump, VP-elect JD Vance, Elon Musk, and Vivek Ramaswamy came out against the measure, arguing it is irresponsible and not a straight government-funding extension. The bill includes provisions to bolster the accuracy and reliability of Medicare Advantage (MA) provider directories and cost-sharing protections for those who receive care from out-of-network providers due to inaccuracies in those directories. The bill also includes reform of pharmacy benefit managers’ practices in Medicare, Medicaid and the commercial market and reforming so-called patent thickets to delay generic competition. Trump and Vance also argue the debt ceiling should be raised under Biden’s watch to avoid issues with Democratic support in 2025. In other news, the final health piece of the bill left out site-neutral payments and prior

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December 17, 2024

PBMs Took Payments From Drug Makers During Opioid Crisis A New York Times multi-part expose continues its attacks on the pharmacy benefits manager (PBM) industry. In its latest investigation, the newspaper tells us that PBMs took payments from opioid manufacturers in return for not restricting the flow of pills. PBMs collected billions while tens of thousands overdosed and died from the prescription painkillers. Among the drug manufacturer payors was Purdue Pharma and the disgraced Sackler Family. Slowly but surely the roles of various drug channel stakeholders have come to light, from drug makers to wholesalers to PBMs to pharmacies. It is a national tragedy stoked by greed. All of the corruption needs to come to light and violators civilly and criminally held to account. The report is sure to turn up the heat even more on PBMs on Capitol Hill. (Article may require a subscription.) #nyt #opioids #branddrugmakers #pbms https://www.nytimes.com/2024/12/17/business/pharmacy-benefit-managers-opioids.html

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December 16, 2024

CR and Healthcare Policy Bill Updates Capitol Hill lawmakers are inching toward a continuing resolution (CR) that needs to be adopted by the end of the week. At the same time, Congress looks like it has agreed to a critical bill to extend certain healthcare programs set to expire at year’s end. Telehealth extensions will be for two years, while the hospital at home program will get a five-year extension. Medicare docs will get a 2.5% hike in 2025 vs. a 2.8% cut. At least a dozen other healthcare areas get fixes or increases under the bill. In a bombshell, there are major offsets to pay for increases, including major pharmacy benefits manager (PBM) reforms. Reports also suggest that Medicare Advantage (MA) prior authorization reforms are or may be included. These could include some or all of the provisions in the Improving Seniors’ Timely Access to Care Act. The PBM

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Be Level-Headed On Medical Loss Ratio Rules

CMS’ MLR proposals are understandable, but caution is needed In a parting shot at the private managed care industry, the Biden administration’s Centers for Medicare and Medicaid Services (CMS) issued a 2026 Medicare Advantage (MA) and Part D proposed rule for 2026 that would make major changes to the minimum medical loss ratio (MLR) requirements in the Medicare managed care program.  This comes as Capitol Hill is shining a light on a number of MA program issues, including overpayments, risk adjustment abuses, supplemental benefits, marketing, poor Star performance, and the vertical integration of top national health insurers. These top national players control about three-quarters of all MA enrollment right now. Minimum MLR explained Most lines of business now have MLR requirements except self-funded employer plans. In these cases, businesses are at risk for healthcare expenditures as opposed to insurers. Insurers will still administer such plans usually for a set administrative

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