Issue #286
Sellers Dorsey Digest
May 14, 2026
Explore:
Why Data Needs Direction: A Closer Look at Rural Health and Data Infrastructure
Federal News
CMS Announces New 6 Month Moratorium on Hospice and Home Health Agencies in Medicare
On May 13, 2026, CMS announced a six-month moratorium on hospice and home health agency (HHA) enrollment in Medicare. During this period, CMS stated that they will intensify targeted investigations to remove hospice and HHAs from Medicare that are suspected of fraudulent activity. The moratoria will apply to all applications for initial Medicare enrollment and certain changes in majority ownership. Current hospice and HHA enrollments will not be impacted. This action follows CMS’ earlier efforts to reduce potential fraud, waste, and abuse by instituting a moratorium on new durable medical equipment, prosthetics, orthotics, and supplies company enrollment in Medicare. With this current announcement from CMS, there are now three separate moratoria in place in an attempt to curb fraudulent providers in the program. The agency has also taken other steps to investigate or reduce potentially fraudulent activity among these provider types including conducting site visits; launching a new hospice scoring system; increasing oversight of newly enrolled hospice providers in states with elevated fraud risk; implementing enhanced enrollment screening measures for high-risk HHAs; and expanding a demonstration project in six states that allows pre- and post-claim review of HHA claims. More information about the hospice and HHA moratorium can be found on the Federal Register (CMS Newsroom, May 13).
MACPAC Commissioners Vote on Recommendations Ahead of June 2026 Report to Congress
On Thursday, May 7, Medicaid and CHIP Payment and Access Commissioners (MACPAC) voted on several recommendations that will be included in its June 2026 report to Congress. Commissioners passed the recommendations regarding transitions of care for children and youth with special health care needs for adult coverage in Medicaid; improving access to and discharge from youth residential treatment services for Medicaid beneficiaries with intense behavioral health needs; bolstering oversight of the Program of All-Inclusive Care for the Elderly (PACE) organizations; the use of automation in Medicaid prior authorization methods; and how states could best implement community engagement requirements. All recommendations were passed, though some had a few “no” votes after discussion. The final recommendations will be published in the near future (Inside Health Policy, May 7; Inside Health Policy, May 11).
Business Survey Finds that GLP-1 Coverage is Driving Up Healthcare Costs
A survey released by the Business Group on Health last week found that 8 in 10 employers say GLP-1s are significantly contributing to higher healthcare costs at their companies, with many facing challenges absorbing the increased expense and balancing rising benefit costs. 72% of survey respondents said they would maintain coverage of GLP-1s next year, with about 10% saying that they would likely not do so. Currently, 83% of respondents said that they use cost-sharing arrangements for the drug coverage and utilize different strategies to ensure proper prescription for GLP-1s, including limiting providers and requiring participation in a weight management program (Healthcare Dive, May 6).
Study Shows that Hospital at Home Program May Improve Health Outcomes for Medicare Beneficiaries
A study published in JAMA Network Open found that the Hospital at Home (HaH) model may improve clinical outcomes for Medicare beneficiaries compared to traditional inpatient hospital care. CMS launched the Acute Hospital Care at Home model during the COVID-19 pandemic with the goal of helping providers with their capacity during the public health emergency. Researchers found that HaH admissions were associated with lower in-hospital mortality and lower emergency department use within a month of discharge compared to Medicare beneficiaries with traditional inpatient admissions. However, there were no significant differences between the two regarding readmissions within 30 days of discharge. HaH patients were less likely to be moved to intensive care and develop hospital-related conditions like infections. Moreover, researchers found that the HaH had a minor decrease in total healthcare costs despite having a longer care period. Despite these promising results, the uptake of the HaH program varies geographically with all of the HaH admissions coming from urban areas, concentrated in the Northeast and Southern regions. Rural areas did not have high HaH use, indicating some challenges with implementing the program. Congress extended the HaH program through September 2030 (Healthcare Dive, May 7).
State News
West Virginia to Implement More Frequent Medicaid Provider Validation
West Virginia Governor Patrick Morrisey announced that the state will more frequently revalidate Medicaid providers, following the Trump administration’s efforts to reduce potential fraud, waste, and abuse. Starting June 1, 2026, West Virginia Medicaid providers will transition to a two-year revalidation cycle, prioritizing providers that have not had a review in the last year. The Medicaid agency will also identify high-risk providers based on trends identified in the state’s data (WVVA, May 6).
Elevance Expands Into Wisconsin Medicaid Long-Term Care Program
Elevance Health’s Anthem Blue Cross Blue Shield subsidiary has entered Wisconsin’s Medicaid long-term care market after receiving a contract to participate in the state’s Family Care program, with coverage that includes the Milwaukee area. The move adds a new insurer to a program that serves older adults and people with disabilities needing long-term services and support. Wisconsin’s Family Care model has historically been difficult for insurers financially, as participating plans have faced ongoing profitability challenges. The contract follows a recent state procurement process in a market previously led by Humana’s Inclusa and Molina’s My Choice Wisconsin (Health Payer Specialist, May 11).
Oklahoma Pushes November Medicaid Expansion Ballot Measure
Oklahoma lawmakers are pursuing a single state question for the November ballot that combines two previously separate Medicaid proposals after earlier efforts to advance separate measures stalled. The revised House Joint Resolution 1067 would ask voters to remove Medicaid expansion from the Oklahoma Constitution while also allowing the Legislature to reconsider or end expansion coverage if the federal funding match falls below 90%. If approved, the measure would give lawmakers greater authority over a program of voters adopted in 2020 that now covers more than 200,000 low-income adults. Supporters say the proposal is aimed at addressing long-term state budget concerns and preserving flexibility if federal funding changes. Revised language added following negotiations with tribal leaders would also maintain certain fully federally funded healthcare services, including coverage tied to Indigenous populations. Tribal leaders, including Cherokee Nation Principal Chief Chuck Hoskin Jr., have supported preserving Medicaid expansion, while legal questions remain over whether combining multiple policy changes into one state question could face challenges under Oklahoma’s constitutional single-subject rule (Oklahoma Voice, May 6).
Utah’s Medicaid Program for Homeless and Justice-Involved Adults in Danger of Sunsetting
Currently, Utah’s Targeted Adult Medicaid (TAM) program, which is authorized under the state’s 1115 federal waiver program, is set to expire on June 30, 2027. Since 2017, the program has provided 12 months of continuous coverage to adults without dependent children, who earn up to 5% of the federal poverty level (FPL), and are chronically homeless, are justice-involved, or in need of mental health or substance abuse treatment. The state has indicated it will eliminate the TAM program unless CMS approves 6 months of continuous coverage for the program. Advocates and service providers urge state officials to continue TAM coverage, citing how vital the program is to the stability of justice-involved individuals. The Utah Chiefs of Police Association and the Sheriffs’ Association are also aligned in the pursuit of continued coverage, noting how the program is an effective and practical tool for this population, and is associated with a 61% reduction in recidivism. If the waiver demonstration is not renewed, the approximately 6,500 adults currently served by TAM will transition to the expansion population program on July 1, 2027. The state’s public comment period is open until May 21, 2026 (Utah News Dispatch, May 11).
SPAs and Waivers
Waivers
- 1115(a)
- Arkansas
- On April 30, 2026, Arkansas submitted a request for a five-year renewal of its 1115 demonstration, titled, “Arkansas Health and Opportunity for Me (ARHOME).” The state is seeking authority to expand the Life360 HOMEs program by modifying provider enrollment requirements, update requirements for Qualified Health Plans serving the expansion adult population and introducing voluntary “Success Coaching” services to help eligible members meet the new federal community engagement requirements. The federal public comment period is open from May 11, 2026, through June 10, 2026.
- Arkansas
SPAs
- Services
- Oklahoma (OK-26-0010, effective January 1, 2026): In alignment with the Consolidated Appropriations Act of 2023, adds Marriage and Family Therapist (MFT) and Mental Health Counselor (MHC) services to Rural Health Center (RHC) and Federally Qualified Health Centers (FQHC) core service definitions. Additionally, expands encounter-rate reimbursements, if applicable.
- Payment
- Arkansas (AR-26-0003, effective May 1, 2026): Reverts reimbursement for continuous glucose monitors (CGMs) and related diabetic supplies to Medicare non-rural rate, while pharmacy claim types will continue to be reimbursed at wholesale acquisition cost (WAC) plus the applicable professional dispensing fee.
- Colorado (CO-25-0017, effective July 1, 2025): Removes references to the Colorado Indigent Care Program (CICP) after the program was sunset and aligns disproportionate share hospital (DSH) eligibility with the Hospital Discounted Care (HDC) program participation requirements.
- Oregon (OR-26-0003, effective January 1, 2026): Implements a 3% cost of living adjustment (COLA) to fee-for-service (FFS) dental service rates.