Morning Briefing
Summaries of health policy coverage from major news organizations
Fate Of Medicaid Cuts Unclear After House Pauses Budget Resolution Vote
Modern Healthcare: House Budget Resolution Vote Canceled, Medicaid Cuts In Limbo
The House abandoned a vote on the budget resolution Wednesday, leaving President Donald Trump's tax cuts and massive reductions to federal healthcare spending in limbo. House Speaker Mike Johnson (R-La.) pulled the measure, which the Senate approved Monday, from the floor just before it was set for a vote. A handful of conservative Republicans rebelled because they believed the budget would not bring about sufficiently deep cuts. In consultation with Trump, Johnson said House GOP leaders would strive to mollify upstart Republicans with new language he said would ensure conservatives get the huge spending cuts they demand, and try hold a vote Thursday. Congress is scheduled to begin a two-week recess Thursday evening. (McAuliff, 4/9)
Stateline: A Fifth Of Americans Are On Medicaid. Some Of Them Have No Idea.
Some Americans who rely on Medicaid to pay for their health care don’t realize their insurance is funded by that very program, which congressional Republicans are looking to shrink. One reason is that state programs aren’t always called “Medicaid.” Many states have rebranded their programs with consumer-friendly names such as SoonerCare in Oklahoma, Apple Health in Washington, Medi-Cal in California or TennCare in Tennessee. And nearly all states now use private insurance companies such as UnitedHealth or Blue Cross Blue Shield to run their Medicaid programs. That means Medicaid enrollees may hold an insurance card and paperwork with the name of a commercial insurance company. (Vollers, 4/9)
In other Medicaid and Medicare news —
Modern Healthcare: Nursing Homes Feel Relief After Staffing Rule Overturned
A court ruling striking down a federal nursing home staffing mandate brought a sigh of relief from nursing home operators even as the industry still faces financial uncertainty. An end to the mandate could bring stability to nursing home budgets and valuations. However, some nursing homes still face challenges, such as tougher state staffing minimums, as well as the threat of potential Medicaid rate cuts. (Eastabrook, 4/9)
Politico: Hope Florida's Mysterious $10M Came From Settlement With State's Largest Medicaid Operator
A Florida welfare assistance project spearheaded by first lady Casey DeSantis received a $10 million donation from the state’s largest Medicaid managed care operator — part of a $67 million out-of-court settlement involving the company’s pharmacy benefit manager. According to a copy of the settlement provided to POLITICO on Wednesday, Centene, which owns Sunshine Health in Florida, agreed to pay the Florida Agency for Health Care Administration $67 million. Of that amount, the agreement directed Centene to contribute $10 million to Hope Florida. (Sarkissian, 4/9)
Modern Healthcare: CareSource Acquires Commonwealth Care Alliance
Nonprofit health insurance company CareSource has invested more than $400 million to buy struggling nonprofit insurer Commonwealth Care Alliance. The deal adds nearly 50,000 Dual Special Needs Plan members who are eligible for both Medicaid and Medicare to CareSource’s book of business, the companies said in a news release Wednesday. CareSource also acquired Commonwealth Care Alliance’s two primary care clinics and its home care practice through the transaction. CareSource counts 2 million Medicaid, Medicare and exchange plan enrollees across seven states. (Tepper, 4/9)
Modern Healthcare: Medicare Advantage Pay Rate Increase Leaves Insurers Optimistic
Health insurance investors cheered after the Centers for Medicare and Medicaid Services granted Medicare Advantage carriers their largest pay increase in a long while. Wall Street reacted enthusiastically to the 5.1% payment hike for 2026 that CMS finalized Monday, which could signal a more favorable regulatory environment under Republican President Donald Trump than during the four years Democratic President Joe Biden occupied the White House. Health insurance stocks jumped 8.4% when the markets opened Tuesday. (Tepper, 4/9)
On the Affordable Care Act —
Politico: Cash-Strapped States Panic Over End Of Obamacare Subsidies
States facing budgetary pressures have few good options to keep millions of people from losing health coverage if Congress lets federal funding for Obamacare expire at the end of the year. That isn’t stopping health officials from trying. California, Colorado, Maryland, Washington and others are all scrambling to avoid a fiscal cliff that could sharply increase health care costs for their residents. (Hooper, 4/9)
KFF Health News: Tax Time Triggers Fraud Alarms For Some Obamacare Enrollees
Because of past fraud by rogue brokers, some Affordable Care Act policyholders may get an unexpected tax bill this season. But that isn’t the only potential shock. Other changes coming soon — stemming from proposals by the administration of President Donald Trump — could affect their coverage and its cost. And sorting out related problems and challenges may take longer as federal workers are laid off and funding for assistance programs is cut. (Appleby, 4/10)
