Health Plan Weekly
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States Put Prior Authorization in Crosshairs, Even Amid Insurer Reforms
More than 30 states last year considered or introduced legislation to reform prior authorization, due in large part to lobbying from physician groups that indicate they are being subject to more PA requirements from insurers, according to a recent analysis from the Georgetown University Center on Health Insurance Reforms (CHIR). While health plans in recent months have touted their reduction in PA mandates, Sabrina Corlette, one of the report’s authors and CHIR’s co-founder, says providers and their staff still are spending numerous hours each week on PA and identify it as a major burden.
Corlette and her colleagues primarily focused on four states — Arkansas, Illinois, Texas and Washington — that have enacted comprehensive PA reform in the commercial insurance market.
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Health Insurers’ 2Q Was a ‘Meeting Expectations Type of Quarter’
So far, 2024 has proven to be an eventful year for publicly traded health insurers — and not always in a good way.
Indeed, during the most recent quarter CVS Health Corp. made waves by adjusting its earnings outlook downward for the third time this year and dismissing the short-tenured president of its Aetna health benefits division due to ongoing Medicare cost pressures.
Other publicly traded firms, including Humana Inc. and Elevance Health, Inc., offered better second-quarter performances, but still saw their share prices fall amid investors’ concerns about how medical costs will shake out in the second half.
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Report Reveals Limitations of Expanding Pre-Deductible Coverage
Even after health plans were given the option to expand pre-deductible coverage in certain health plans, medication adherence didn’t significantly improve, according to a recent issue brief from the Employee Benefit Research Institute (EBRI).
Yet while the impact was minimal for most medications, Paul Fronstin, Ph.D., one of the report’s authors, says adherence was already high for the members evaluated, and the majority of insurers introduced copayments and/or coinsurance when expanding pre-deductible coverage.
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Stronger State Insurance Laws Improve Mental Health Care Access for Kids
Children and adolescents were much more likely to access necessary mental and behavioral health (MBH) services if they lived in states that mandate insurance coverage for mental health care, according to a recent study published in JAMA Network Open.
The study is based on responses from almost 30,000 caregivers of kids and adolescents ages 6 to 17 years with mental and behavioral health conditions in the National Survey of Children’s Health and State Mental Health Insurance Laws Dataset (SMHILD) from 2016 to 2019. The comprehensiveness of state MBH insurance laws was defined by the SMHILD score and categorized as 0 to 2, 3, 4, and 5 to 7.
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News Briefs: Elevance, PE Firm Form Primary Care Delivery Platform
Elevance Health, Inc. and private equity firm Clayton, Dubilier & Rice (CD&R) announced on Aug. 14 the formation of Mosaic Health, a primary care delivery platform focused on value-based arrangements with payers. The companies revealed in April their plans to merge CD&R-owned apree health and Millenium Physician Group with primary care assets owned by Elevance through its Carelon Health division. Elevance CEO Gail Boudreaux said in April that the company would own a “significant minority position” in Mosaic, while Chief Financial Officer Mark Kaye said Mosaic would have more than $4 billion in annual revenue when formed.