The shutdown continues, plus the latest on 340B
HFMA Senior Editor Nick Hut and HFMA Policy Director Shawn Stack discuss the latest in healthcare finance news.
Medicaid cuts to hit hospitals before OBBB Medicaid cuts
Hospitals and health systems are facing financial challenges due to a series of regulatory changes and lack of action in other areas, including $24 billion in Medicaid DSH cuts, $90 million in ACA marketplace navigator funding, and potential cuts to Medicaid and ACA marketplace subsidies.
Senate passes tax bill with $1 trillion in Medicaid cuts despite concerns
The Senate passed a tax and spending reduction bill that includes over $1 trillion in 10-year Medicaid cuts, with Vice President J.D. Vance breaking a 50-50 tie, and included amendments to create a $25 billion fund for rural hospitals and accelerate the start of new Medicaid eligibility checks to 2027.
Medicaid enrollment drops, but many newly insured patients switch to commercial plans
Medicaid enrollment peaked at 94.5 million in April 2023, but after the unwinding process, it fell to 79.3 million in October 2024, with over 25 million people disenrolled, but overall enrollment only decreased by about 13 million due to enrollment of newly eligible.
ACA plan payment denials increase as hospital financial reliance increases
Payment denial rates by Affordable Care Act (ACA) marketplace plans reached their highest point in nine years, at the same time health systems became most reliant on revenue from them. The average total denial rate was 20% for ACA plans sold in the federal marketplace used by most states, according to tracking by the Kaiser…