Uncertainty is the theme for 2011. Insurers have to implement a multitude of new requirements for providing coverage, often with scant information.
Uncertainty is the theme for 2011. Insurers have to implement a multitude of new requirements for providing coverage, often with scant information.
But House leaders will not be so gentle in the coming months.
MEDICARE, MEDICAID CHANGES
Critics of "Obamacare" also have their eye on the $10 billion authorized for the new Center for Medicare and Medicaid Innovation. It has readied several new demonstrations on methods to improve Medicare services and rationalize spending, but its budget may be slashed by money-crunchers.
Republicans, traditionally strong supporters of private Medicare plans, might seek to lessen the $145 billion cut in payments to Medicare Advantage plans (over 10 years), authorized by PPACA, but will have a hard time finding offsetting revenues. So far, insurers have not abandoned the MA program, largely because rates are frozen for 2011.
Furthermore, CMS gave insurers a surprise in November by extending bonus payments to more plans than expected. Most dropouts for 2011 were attributed to provider network requirements enacted two years ago, plus pressure from CMS to limit duplicative plans. Nearly 1 million seniors, of some 11 million in the MA program, had to look for new plans for this year, but that number is expected to rise in 2012 when rate cuts kick in and the market reshuffles.
At the same time, more states might turn to private plans to serve Medicaid patients as they struggle to extend coverage to millions of the uninsured. Even so, many states are cutting coverage of prescription drugs, vision, dental and other optional benefits in order to fill budget shortfalls.
State insurance regulators also are watching closely to see if disruptions emerge from the new medical loss ratio (MLR) requirements. Among the concerns is that the policy will force insurance brokers out of business. Four states applied for exemptions to allow local insurers more time to meet the MLR standard, and the feds appear willing to be flexible for the sake of stability in the individual market.
HHS also is giving a temporary pass to mini-med plans while the agency collects data on costs and outlays for these low-cost policies commonly provided to part-time and low-salary workers.
State concerns about their authority, moreover, are prompting more governors to enter the legal battle against the individual mandate. Last month, a federal judge in Virginia ruled, as expected, that the individual coverage mandate is unconstitutional, an issue that eventually will be decided by the Supreme Court. The judge did not freeze implementation pending appeal.
Jill Wechsler, a veteran reporter, has been covering Capitol Hill since 1994.
Upended: Can PBM Transparency Succeed?
March 6th 2024Simmering tensions in the pharmacy benefit management (PBM) industry have turned into fault lines. The PBMs challenging the "big three" have formed a trade association. Purchaser coalitions want change. The head of the industry's trade group says inherent marketplace friction has spilled over into political friction.
Read More
In this episode of the "Meet the Board" podcast series, Briana Contreras, Managed Healthcare Executive editor, speaks with Ateev Mehrotra, a member of the MHE editorial advisory board and a professor of healthcare policy and medicine at Harvard Medical School. Mehtrotra is also a hospitalist at the Beth Israel Deaconess Medical Center in Boston. In the discussion, Contreras gets to know Mehrotra more on a personal level and picks his brain on some of his research interests including telehealth, alternative payment models and price transparency.
Listen
Inflation Reduction Act: Reforms to Patient Cost-Sharing
September 18th 2023Lower out-of-pocket costs for patients might put upward pressure on drug prices, as manufacturers face less price sensitivity, note Matthew Majewski and Rhett Johnson of Charles River Associates. But they also note that upward pressure on price is likely to be limited to the inflation rate as any additional price increase would need to be paid back to CMS in the form of inflation rebates.
Read More
Spending climbed by 2.7% in 2021. In 2020, it soared by 10.3%, fueled by federal government spending in response to the pandemic. The blizzard of calculations of 2021 healthcare spending by CMS’ actuaries also provides further evidence that utilization of healthcare services bounced back in 2021.
Read More