Health Plan Weekly
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News Briefs: Health Care Spending Growth Slows in 2021 After Pandemic Spike
U.S. health care spending grew 2.7% to reach $4.3 trillion in 2021, representing a slowdown in growth compared to the 10.3% increase recorded in 2020. That’s according to the 2021 National Health Expenditures Report from CMS’s Office of the Actuary, which attributed the spending-growth slowdown to a 3.5% year-over-year decline in health care expenditures from federal government that jumped in 2020 amid the COVID-19 response. The decline in government spending “more than offset” the impact of greater insurance coverage and higher health care utilization seen in 2021. The report also noted that private health insurance spending increased by 5.8% in 2021 to reach $1.2 trillion. -
New Prior Authorization Reforms May Not Be Problematic for Health Plans
In a rule proposed on Dec. 6, CMS seeks to impose new requirements on federally funded health plans surrounding their prior authorization processes and data interoperability. While that might normally induce private payers to push back, the health insurance sector’s main trade group has already endorsed the regulation, which CMS issued to replace a previously proposed rule that appears to have generated more industry pushback. Health care industry observers, meanwhile, tell AIS Health that the new requirements could be a win for consumers, providers, and payers alike.
“I think it’s good for the business,” says Katherine Hempstead, Ph.D., a senior policy adviser at the Robert Wood Johnson Foundation. “It’s good immediately for consumers and providers, and it’s good in the long run for plans. It’s going to be better for everyone.”
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Federal Watchdogs Raise Telehealth Fraud Concerns
The pandemic-induced telehealth revolution expanded access to an exciting new modality of care delivery, but a new report from federal watchdogs found that federal payers face new, telehealth-derived challenges in stopping waste, fraud and abuse. Those findings mean the commercial carriers that administer certain federally underwritten health insurance plans have a new auditing and accountability challenge as telehealth settles in as a permanent part of the care delivery landscape.
The report, prepared by six Offices of Inspectors General (OIGs) from HHS, the Dept. of Justice, Dept. of Defense, Dept. of Veterans Affairs (VA), Dept. of Labor and Office of Personnel Management (OPM), found that “while the expansion of telehealth has been essential to maintaining individuals’ access to care, there have been concerns about the potential for fraud, waste, and abuse associated with expanded telehealth services.”
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Plans, Community Orgs Need to Share Data to Tackle Social Determinants of Health
As health insurers rapidly expand their technology divisions and ally with tech companies to create population health and business insights, many health care leaders have expressed a hope that new technologies and insights can help tackle social determinants of health (SDOH). Those tools hold great promise, according to experts, but must be paired with old-school, community-based coalition building to be successful.
During a panel convened for a Dec. 6 Milliman Inc. webinar, health tech experts from organizations including Independence Blue Cross and Microsoft Corp. agreed that population health and equity insights can’t move the needle on SDOH if they aren’t paired with grassroots coalitions.
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Nearly 800K Could Gain Coverage if Georgia, North Carolina Expand Medicaid
Almost 450,000 people in Georgia could gain health coverage if the state expands Medicaid eligibility to nonelderly individuals with incomes up to 138% of the federal poverty level, according to an Urban Institute analysis. The statewide uninsurance rate would fall from 14.7% to 10.0% with Medicaid expansion. By geographic area, decreases in uninsurance rates would vary from 3.9 percentage points in the Atlanta area to 6.3 percentage points in the southern area. However, Republican Gov. Brian Kemp’s victory over Democrat Stacey Abrams, who made Medicaid expansion a core pillar of her campaign in the midterm election, may stymie Georgia Democrats’ long-standing push for full Medicaid expansion. Currently, Centene Corp. dominates the state’s Medicaid managed care market, with more than 1.04 million members as of December 2022.
