Policy Updates

Is CON on the Way OUT in Rural States?

The federal Rural Health Transformation Program may sound the death knell for certificate-of-need laws in some states. The rural funding program, created last year as part of H.R. 1, often referred to as the One Big Beautiful Bill Act, is a five-year, $50 billion program intended to offset some of the damage anticipated as a result of that law’s 10-year reduction in federal health care spending, and especially its Medicaid cuts, on rural health care. While every state that applied for funding through the program was awarded grants, the Centers for Medicare & Medicaid Services has indicated that approval of [...]

joe2026-04-10T14:27:33-04:00April 13, 2026|Centers for Medicare & Medicaid Services, Medicaid|

Federal Health Policy Update for April 10

The following is the latest health policy news from the federal government for April 4-10. Some of the language used below is taken directly from government documents. Congress The House and Senate were in recess this week and are scheduled to be back in session on April 14. House Speaker Mike Johnson (R-LA) has indicated that the House will not vote on the Senate‑passed Department of Homeland Security continuing resolution until there is meaningful progress on a reconciliation package to fund U.S. Immigration and Customs Enforcement (ICE) and U.S. Customs and Border Protection. In an effort to narrow the scope [...]

joe2026-04-10T13:43:20-04:00April 10, 2026|340b, Center for Medicare and Medicaid Innovation, Centers for Medicare & Medicaid Services, CMMI, Congress, Medicaid, Medicare, Medicare disproportionate share, Medicare DSH, Medicare reimbursement policy|

Insurer Use of Prior Authorization Down

The insurance industry appears to be making good on its pledge to reduce its use of prior authorization for services and to make that process simpler for providers and patients Last June, some of the leading health insurers agreed to work to address prior authorization challenges. Now, an AHIP-Blue Cross Blue Shield Association survey has found that they have reduced by 11 percent the number of procedures and services that require prior authorization, which translated into 6.5 million fewer requests. Medicare Advantage plans went even further, eliminating 15 percent of procedures and services that require prior authorization. In addition, the [...]

joe2026-04-08T13:38:49-04:00April 10, 2026|Uncategorized|

Search for Undocumented Medicaid Participants Not Yielding Major Results

An administration effort to identify undocumented U.S. residents illegally enrolled in Medicaid is not turning up many undocumented residents illegally enrolled in Medicaid. At least not so far. Last fall, the administration sent the names of hundreds of thousands of suspected illegal Medicaid participants to the states and directed them to review the eligibility of those individuals. Data from five states, however, has not turned up many such individuals. Between them, Colorado and Pennsylvania reviewed 79,000 names and found none illegally enrolled in their state Medicaid programs. Texas reviewed 28,000 records and terminated 77 people from the program. Ohio checked [...]

joe2026-04-07T16:53:00-04:00April 9, 2026|Medicaid|

States Looking to Swap Medicaid Taxes

With Medicaid provider taxes on the road to oblivion as a result of passage of last year’s H.R. 1, often referred to as “The One Big Beautiful Act Law,” a number of states are looking to Medicaid managed care plan taxes to replace at least some of the tax revenue they will lose from the demise of Medicaid provider taxes. Iowa has already adopted such a tax, more than tripling its Medicaid managed care plan tax in the middle of its fiscal year. The state even increased taxes on managed care plans that do not serve Medicaid patients. Elsewhere, lawmakers [...]

joe2026-04-07T14:42:09-04:00April 8, 2026|Medicaid|

Federal Health Policy Update for April 3

The following is the latest health policy news from the federal government for March 27 to April 3. Some of the language used below is taken directly from government documents. Proposed and Final CMS Medicare Regulations Proposed FY 2027 Medicare Inpatient Rehabilitation Facilities Payment Rule CMS has published a proposed rule updating Medicare payment policies and rates for inpatient rehabilitation facilities (IRF) under its IRF prospective payment system and updating the IRF quality reporting program for FY 2027. CMS proposes updating FY 2027 IRF rates by 2.4 percent based on a market basket update of 3.2 percent less a proposed [...]

joe2026-04-03T13:22:10-04:00April 3, 2026|Accountable Care Organization, ACO, Alternative payment models, Center for Medicare and Medicaid Innovation, Centers for Medicare & Medicaid Services, CMMI, Congress, Medicaid, Medicare regulations, Medicare reimbursement policy|

Hospitals Sue Over Medicare DSH Payments

More than 100 hospitals have sued the Department of Health and Human Services, arguing that the manner in which the Centers for Medicare & Medicaid Services calculates their Medicare disproportionate share payments shortchanges hospitals that care for especially large numbers of low-income patients – the very hospitals Medicare DSH payments were created to help. According to the hospitals, CMS’s Medicare DSH payment methodology undercounts the number of low-income patients hospitals serve, thereby reducing the Medicare DSH payments yielded under the Medicare DSH payment calculation formula adopted in 2023. Learn more about how the suing hospitals believe CMS is undercounting their [...]

joe2026-04-01T12:33:31-04:00April 3, 2026|hospitals, Medicare disproportionate share, Medicare DSH|

No More Hospital Jello?

The days of enjoying a heaping bowl of jello while stuck in a hospital bed may soon become a thing of the past. In a new directive to hospitals, the Centers for Medicare & Medicaid Services has told hospitals that they need to do a better job of meeting their patients’ nutrition needs and “…to align food service with the 2025–2030 Dietary Guidelines for Americans, which prioritize whole, nutrient-dense foods and adequate protein while limiting ultra-processed foods and added sugars.” The CMS memo to hospitals offers the following guidelines: Limiting ultra-processed food options for patients. Elimination of sugar-sweetened beverages unless [...]

joe2026-03-31T15:19:12-04:00April 2, 2026|Centers for Medicare & Medicaid Services, hospitals|

Medicare Increases Emphasis on Behavioral Health

Medicare policy is evolving to encourage providers to take a more active role in addressing the behavioral health needs of their patients. In traditional Medicare, new payment codes encourage practitioners to spend more time identifying and helping patients with their behavioral health challenges. Meanwhile, CMS and its Center for Medicare and Medicaid Innovation have introduced several new care and payment models that place a greater emphasis on beneficiaries’ behavioral health needs. Among them: The LEAD (Long-Term Enhanced ACO Design) Model, which seeks to include more behavioral health providers and encourages greater integration of behavioral health care. The ACCESS (Advancing Chronic [...]

joe2026-03-31T17:02:07-04:00April 1, 2026|Center for Medicare and Medicaid Innovation, Centers for Medicare & Medicaid Services, CMMI, Medicare|

Hospitals Had a Rough January

Hospitals’ financial performance in January of 2026 suffered in comparison to that in January of 2025, according to a recent report. The report found that: Discharges fell two percent. Emergency department visits were off five percent. Average length of stay declined three percent. Expenses rose five percent. Labor costs increased five percent. Bad debt and charity care rose eight percent. Learn more about how the new year brought financial challenges to hospitals from the Healthcare Dive article Hospitals’ financial performance off to a shaky start in 2026: report.

joe2026-03-25T10:29:31-04:00March 27, 2026|hospitals|