As States Eye Medicaid Cuts Amid Financial Woes, Provider Payments The Likely Target
Experts say the choices for states on what to cut from their Medicaid programs are limited and that there's no easy answer. In other insurance and health industry news: COBRA subsidies, health care cooperatives, and plummeting operating income.
Modern Healthcare:
Providers Could Bear Brunt Of State COVID-19 Medicaid Cuts
Governors in New York, California, Colorado, Ohio, Alaska, and Georgia have already indicated they plan to cut Medicaid spending. Congress increased federal matching funds in its second COVID-19 relief package, but included restrictions that leave states few options to cut Medicaid other than slashing provider payments. If pay cuts aren't targeted, they could inflict further damage on safety-net providers that have already been disadvantaged by formulas to distribute federal assistance. (Cohrs, 5/19)
Modern Healthcare:
Employer Groups Ask Congress To Provide COBRA Subsidies, Bolster Primary Care
A group of 36 organizations representing U.S. employers on Tuesday urged Congressional leaders to bolster job-based health coverage and access to healthcare services by providing COBRA subsidies, shoring up primary care practices and implementing programs to mitigate potential premium hikes. The joint letter outlined recommendations for policies to be included in the fifth COVID-19 relief package, which has been passed by the House of Representatives but is stalled in the Senate. The American Business Council, The ERISA Industry Committee, the National Alliance of Healthcare Purchaser Coalitions, and the Pacific Business Group on Health drafted the letter. (Livingston, 5/19)
Kaiser Health News:
How A Company Misappropriated Native American Culture To Sell Health Insurance
Jill Goodridge was shopping for affordable health insurance when a friend told her about O’NA HealthCare, a low-cost alternative to commercial insurance. The self-described “health care cooperative” promised a shield against catastrophic claims. Its name suggested an affiliation with a Native American tribe — a theme that carried through on its website, where a feather floats from section to section. (Schulte, 5/20)
Modern Healthcare:
Mayo Clinic's Operating Income Down 88% In First Quarter
Mayo Clinic's operating income took an 88% hit in the first quarter of 2020 as the health system weathered the effects of the pandemic in the latter half of March. Rochester, Minn.-based Mayo said it generated a strong margin in January and February, and even into the first half of March. That all changed when the health system was forced to cancel elective procedures amid the COVID-19 pandemic. Mayo ultimately reported $29 million in operating income in the quarter, which ended March 31, compared with $241 million in the 2019 period. Mayo's operating margin was just 0.9% in the first quarter of 2020, compared with a strong, 7.2% margin in the prior-year period. (Bannow, 5/18)
