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Hospital Margins Expected to Remain Low Next Year

Labor costs that outstrip increases in reimbursements will lead hospitals to continue to have low operating margins through 2025, according to Moody’s, the bond and credit rating company. While the growth of hospital labor costs is no longer as great as it was during the COVID-19 pandemic, Moody’s reports, labor costs continue to grow – as do supply costs.  Meanwhile, reimbursements are not keeping pace, with government payments especially lagging. As a result of these factors, hospital margins and operating cash flow margins are down and prospects for recovery in the coming year are only modest. Learn more about how [...]

2024-10-23T10:59:15-04:00October 23, 2024|hospitals|

New Part D Limits on Target to Save Billions

By mid-2024, Medicare participants with Part D prescription drug plans had already saved nearly $1 billion in prescription drug costs as a result of a provision in the Inflation Reduction Act that capped Part D enrollees’ annual drug spending. For 2024 that limit is $3500 a year, and by the end of June nearly 1.5 million people had hit that limit and faced no more prescription drug costs for the rest of the year.  500,000 people hit that limit before mid-year and were already saving money – just shy of $1 billion over the same period of time.  Nine of [...]

2024-10-22T17:15:20-04:00October 23, 2024|Medicare|

Federal Health Policy Update for October 17

The following is the latest health policy news from the federal government for October 11-17.  Some of the language used below is taken directly from government documents. Aftermath of Hurricanes Helene and Milton CMS has updated its waivers and flexibilities to help health care providers respond to the damage caused by Hurricane Helene in South Carolina, Tennessee, Georgia, North Carolina, and Florida and by Hurricane Milton in Florida.  Find the updated waivers and flexibilities here.  Please note that these waivers are not dated and therefore require individual attention by affected providers. HHS has initiated a series of steps to help restore [...]

MedPAC Meets

MedPAC’s commissioners held their latest public meetings last week, on Thursday, October 10 and Friday, October 11.  The subjects on the meetings’ agenda were: Medicare beneficiaries in nursing homes findings from MedPAC’s annual beneficiary and provider focus groups supplemental benefits in Medicare Advantage work plan for a mandated final report on the impact of recent changes to the home health prospective payment system initial estimates of home health care use among Medicare Advantage enrollees Go here for summaries, key points, actions, and the presentations offered at the meetings about each agenda item and go here for a transcript of the [...]

HHS Acts on IV Shortage

The Department of Health and Human Services has initiated a series of steps to help restore the supply of IV solution that was greatly reduced by damage to a Baxter International Inc.’s facility in North Carolina during Hurricane Helene. Among those steps are: posting FDA guidance providing flexibility for compounding IV solution alternatives; extending the expiration dates of existing IV products; airlifting new supplies into and around the country; working with other manufacturers to increase production capacity; helping Baxter clean up and restore its North Carolina plant and invoking the Defense Production Act toward that end; and more. Learn more [...]

2024-10-15T17:30:39-04:00October 16, 2024|Uncategorized|

Federal Health Policy Update for October 10

The following is the latest health policy news from the federal government for October 4-10.  Some of the language used below is taken directly from government documents. Hurricane-Related Notices HHS Secretary Becerra has posted a letter to health care leaders and stakeholders outlining his department's response to Hurricane Helene and the shortage of IV solutions exacerbated by that storm and how providers can modify some of their practices in response to the shortage.  Learn more from Secretary Becerra’s letter, which includes links to other HHS and external resources.  In addition, the FDA has established a web page that addresses specific [...]

Federal Health Policy Update for September 26

The following is the latest health policy news from the federal government for September 20-26.  Some of the language used below is taken directly from government documents. Congress Yesterday, Congress passed a continuing resolution to fund the federal government when the new federal fiscal year begins on October 1.  The continuing resolution will extend funding for federal agencies at current levels through December 20 of this year.  The bill did not include other significant policy provisions.  President Biden will sign the bill this week and avoid a shutdown of the federal government.  Find the bill text here. Following passage of [...]

Medicaid Enrollment Exceeds Pre-Pandemic Levels

While 25 million Americans have lost their Medicaid eligibility as a result of the post-pandemic “Medicaid unwinding” process, enrollment in the program today exceeds its pre-COVID level. Currently, Medicaid enrollment nationwide is 10 million more than it was in February of 2020, right before COVID struck. In all, 56 million people have had their Medicaid eligibility renewed while 25 million people were removed from the program’s rolls. The current situation varies from state to state; some states have seen enrollment rise while others have experienced enrollment declines.  In some states, the status of enrollment gains and losses differs between adults [...]

2024-09-25T12:51:45-04:00September 26, 2024|Medicaid|

Feds Set End Date for “Medicaid Unwinding”

States need to complete their “Medicaid unwinding” activities by the end of 2026, the Centers for Medicare & Medicaid Services informed state Medicaid programs in a recent memo. According to the agency, … all states are required to complete a compliance assessment, demonstrate compliance with federal Medicaid and CHIP renewal requirements described at 42 C.F.R. §§ 435.916 and 457.343, and submit a plan outlining steps and milestones for addressing identified areas of non-compliance to CMS by December 31, 2024. Compliance plans will detail how states will achieve compliance with all applicable requirements no later than December 31, 2026. “Medicaid unwinding” [...]

2024-09-24T16:50:11-04:00September 25, 2024|Medicaid|

Administration Launches Patient Safety Initiatives

In response to World Patient Safety Day, the administration has launched a multi-faceted approach to reducing harm for patients and workers in the delivery of health care. The initiative will fall under the umbrella of a new multi-agency, public/private National Action Alliance for Patient and Workforce Safety administered by the Department of Health and Human Services’ Agency for Health Care Research and Quality.  Other federal agencies to be involved in the initiative include the Centers for Disease Control and Prevention, the Centers for Medicare & Medicaid Services, the Veterans Health Administration, the Department of Defense, the Health Resources and Services [...]

2024-09-19T17:44:03-04:00September 23, 2024|Centers for Medicare & Medicaid Services, Uncategorized|
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