Issue #167

Key Updates:

On December 21, the Federal Independent Dispute Resolution (IDR) Process Administrative Fee and Certified IDR Entity Fee Ranges final rules were published. These regulations finalize rules associated with fees established by the No Surprises Act for the Federal IDR process, as established by the Consolidated Appropriations Act of 2021. The administrative fee for use of the IDR process increases from $50 to $115 and the range of fees that certified entities can charge will increase on January 22 (Inside Health Policy, December 22).

According to the most recent CMS data, enrollment on state and federal exchanges has risen to approximately 15.3 million, which is 33% more than December 2022. December 15 was the last day to enroll to guarantee coverage on January 1, 2024, but the enrollment period continues through January 16, 2024, with coverage starting on February 1, 2024. CMS is expecting total enrollment to rise to over 19 million by the end of the enrollment period (Health Payer Specialist, December 22).

Seventeen states have various healthcare laws that are taking effect in 2024. These laws cover key issues like reproductive care, patient documentation, wages, and reimbursement (Modern Healthcare January 2).

From December 20 to January 3, CMS approved three SPAs.

Federal Updates

Featured Content

Federal IDR Process Administrative Fee and Certified IDR Fee Ranges

  • On December 21, the Federal Independent Dispute Resolution (IDR) Process Administrative Fee and Certified IDR Entity Fee Ranges final rules were published. The final rules associated with fees established by the No Surprises Act for the Federal IDR process, as established by the Consolidated Appropriations Act of 2021. The administrative fee for use of the IDR process increasesfrom $50 to $115 and the range of fees that certified entities can charge will increase on January 22. This final rule comes after the Biden administration reopened the IDR portal to accept single and batched claims for air ambulances on December 15 and announced that the deadline to initiate a new dispute or address a dispute filed before the initial shutdown in August 2023 would be extended to March 14 (Inside Health Policy, December 22).

ACA Enrollment Rises to 15.3 Million

  • According to the most recent CMS data, enrollment on state and federal exchanges has risen to approximately 15.3 million, which is 33% more than December 2022. December 15 was the last day to enroll and guarantee coverage on January 1, 2024, but the enrollment period continues through January 16, 2024, with coverage starting on February 1, 2024. CMS is expecting total enrollment to rise to over 19 million by the end of the enrollment period (Health Payer Specialist, December 22).

News

  • As part of its approach to whole-person care, HHS expressed support for music and music therapy services and CMS clarified that these services can be covered by Medicare and Medicaid. As part of these efforts to expand whole-person care and access to music therapy services, SAMHSA announced its Art of Recovery Campaign that starts in 2024. Music therapy services are proven to help with pain management and stress reduction, and researchers are currently examining whether sound vibrations absorbed through the body can help alleviate the symptoms of Parkinson’s disease, fibromyalgia, and depression (Inside Health Policy, December 29).

Federal Studies and Report

  • On December 28, CMS released the updated enrollment numbers for Medicare, Medicaid, and CHIP. As of September 2023, CMS data revealed the following:
    • 66,472,325 individuals are enrolled in Medicare, this is an increase of 134,147 since the previous reporting period.
      • 33,990,369 are enrolled in original Medicare.
      • 32,481,956 are enrolled in Medicare Advantage or other health plans and includes enrollment with and without prescription drug coverage.
      • 52,204,330 are enrolled in Medicare Part D and includes enrollment in stand-alone prescription drug plans as well as Medicare Advantage plans that offer prescription drug coverage.
      • More than 12 million individuals are dually eligible for Medicare and Medicaid and are counted in the enrollment figures for both programs.
    • 88,414,773 individuals are enrolled in Medicaid and CHIP, a decrease of 1,593,385 since the previous reporting period.
      • 81,408,432 are enrolled in Medicaid.
      • 7,006,341 are enrolled in CHIP.

CMS also included its quarterly MAGI report and unwinding data information in the bulletin (Medicaid.gov, December 28).

State Updates

17 States Update Healthcare Laws for 2024

  • Seventeen states have healthcare laws that are taking effect in 2024. These laws cover key issues like reproductive care, patient documentation, wages, and reimbursement. Below are some of the laws taking effect:

California

    • Some laws have been updated and some new laws include the following:
      • Borderline personality disorder has been added to the list of mental illnesses that make an individual eligible for pretrial diversion (avoidance of jail time if charged with a non-violent offense). Previously, the list was limited to bipolar disorder, schizophrenia and post-traumatic stress disorder.
      • Providers who distribute mail-ordered abortion pills or perform gender-affirming treatment are provided new protections.
      • Physician assistants are allowed to provide surgical abortions without direct physician supervision.
      • The minimum wage for healthcare workers, including nursing assistants, medical technicians and janitorial staff, will be raised to $23 per hour June 1 and  will reach $25 per hour by 2026.

Minnesota

    • Healthcare facilities that earn average annual revenue between $10 million and $80 million must notify the state health department of upcoming mergers or acquisitions. The state plans to use the information to track the number of transactions in the state and how they might affect access, cost and quality of care services. However, the health department and attorney general are not permitted to stop a merger or acquisition.

The state also updated laws concerning contraceptive care and doula-related services:

      • Hospitals and primary care providers must provide MinnesotaCare enrollees with comprehensive and scientifically accurate contraception options.
      • Health plans are required to cover contraceptive care with no cost-sharing or referral requirements.
      • The state’s Medicaid and MinnesotaCare programs must reimburse hospitals separately for long-acting, reversible contraceptives, such as an IUD, given immediately after birth in an inpatient hospital setting.
      • Medical assistance and health plans are required to provide a year’s supply of any prescribed contraceptive.
      • Doula services reimbursement increased to $100 per prenatal or postpartum visit and to $1,400 for services provided at birth.

Nebraska

    • Medicaid postpartum coverage has been extended to 12 months, from 60 days.

Pennsylvania

    • Insurers are required to have a communications network for prior authorization requests to be submitted and returned electronically.

Rhode Island

    • Properly trained pharmacists can prescribe and dispense hormonal contraceptives.

Texas

    • Health insurers must create and maintain websites where providers can verify if patients are covered by the issuer and see a patient’s potential deductible, copayment or coinsurance.

Utah

    • Healthcare employees are eligible to receive mental health treatment coverage from an out-of-network mental health provider on a one-time basis as part of their health benefit plan. (Modern Healthcare January 2).

SPAs

  • COVID-19 SPAs
    • Maine (ME-23-0005-B, effective March 1, 2020): Adds supplemental payments to adult family care services providers and several classes of hospitals. This time-limited COVID-19 disaster relief SPA terminated at the end of the PHE.
  • Payment SPAs
    • Nevada (NV-23-0017, effective July 1, 2023): Implements a new inpatient fee-for-service upper payment limit (UPL) supplemental payment to all qualifying private hospitals in the state.
  • Services SPAs
    • Wyoming (WY-23-0017, effective July 1, 2023): Adds coverage and payment for pharmacists services.

News

  • Louisiana’s new governor-elect, Jeff Landry (R), has recommended updating Medicaid rules in the state that include work requirements and copayments. Governor Landry is replacing a democratic governor, John Bel Edwards, who expanded Medicaid in the state when he first took office in 2016. Most Medicaid beneficiaries in Louisiana are children with thousands of other beneficiaries being disabled and unable to work. Advocates in the state have also found that most low-income individuals in the state with Medicaid coverage already work, but are unable to afford private insurance (Health Payer Specialist, December 22; Louisiana Illuminator, December 20).
  • In Florida, Governor DeSantis’ administration filed a Freedom of Information Act (FOIA) lawsuit against CMS and HHS, alleging that the agencies are withholding information the state needs to defend itself in a potential class-action lawsuit by individuals excluded from Florida’s Medicaid program. The FOIA lawsuit references requests for copies of interactions between CMS/HHS and the Florida Health Justice Project or the National Health Law Program related to the potential class-action lawsuit. HHS denied the initial request in November, highlighting an exemption from the FOIA based on attorney-client privilege. The FOIA lawsuit came one day after HHS Secretary Becerra sent a letter to DeSantis assessing the state’s Medicaid redetermination process (Health Payer Specialist, December 22).
  • Aetna Better Health of Illinois and UPMC Health Plan in Pennsylvania are expanding services intended for underserved communities. Aetna has partnered with Mae Health to address maternal health disparities in Chicago and surrounding communities in Cook and Kane counties. Aetna Medicaid members will now be paired with doulas and can use a digital app for virtual and in-person pregnancy and birth education, emotional, labor and delivery, and lactation support, and postpartum assistance. In Pennsylvania, UPMC has introduced a new online tool to help LGBTQIA+ members. Members of the health plan are now able to access providers trained specifically in addressing the needs of the LGBTQIA+ community and has also included a new LGBTQIA+ Affirming Provider designation within the online directory (Health Payer Specialist, December 20).
  • Effective January 5, Samantha Olds Frey, the CEO of the Illinois Association of Medicaid Health Plans since its establishment in 2013, is leaving the organization (EINPresswire, December 20).
Private Sector Updates

News

  • Hospital merger and acquisition (M&A) activities are expected to grow in 2024 due to financial pressures, the combining of competitors, and growth of insurers. It is not estimated that these M&A activities will reach pre-pandemic levels, but cross-market health system combinations are becoming more common and are expected to continue. Key factors influencing these activities include labor costs, growth of primary care companies, and increasing training opportunities at community hospitals that are available to medical students (Modern Healthcare, December 26).
Sellers Dorsey Updates
  • With nearly 20 years of experience in strategic policy development, Managing Director of Sellers Dorsey, Jennifer Duffy, brings a wealth of knowledge to the Firm’s state-based New Jersey practice. We recently sat down with Jennifer to ask about her experience and the work she does each day to enhance healthcare quality, equity, and access for underserved populations. Click here to read our Q&A with Jennifer.
  • Thanks to our readers’ constructive feedback, we’re thrilled to introduce our newly designed Sellers Dorsey Digest coming next week. Bringing you the latest news in Medicaid and healthcare all in one place, the Digest has a new look with the same timely insights to keep you informed. Thank you for your continued readership and we hope you enjoy our new design!

 


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