Morning Briefing
Summaries of health policy coverage from major news organizations
Outlook For 2027: Insurance Premiums And Home Care Costs To Rise Sharply
Modern Healthcare: Healthcare Costs To Grow 9% In 2027: PwC
Group healthcare costs are expected to rise 9% in 2027 as Americans use more services. The growing use of expensive drugs, the proliferation of mental health issues and reimbursement pressures will drive healthcare cost inflation, according to a Thursday report from consultancy PwC. Researchers spoke with actuaries at 27 health insurers that cover 103 million employer-sponsored members and 8 million Affordable Care Act enrollees to forecast healthcare inflation. (Kacik, 6/11)
Bloomberg: Health Insurance Costs For US Workers Set To Rise, Survey Finds
US companies plan to charge more for employee health plans next year, as soaring drug prices drive up insurance costs. Two thirds of large companies expect to raise monthly premiums for employee health coverage through paycheck deductions in 2027, according to a survey of businesses with at least 500 employees by benefits consultancy Mercer. And about half (48%) of employers say they will make other changes, such as raising deductibles and copays, that will increase how much workers pay out of pocket for care. (Rogers, 6/11)
Axios: Home Care Costs Grow Much Faster Than Inflation
One year of home care now costs more than twice the average retiree's annual Social Security benefits, and costs are growing much faster than inflation, according to an AARP analysis shared first with Axios. (Goldman, 6/11)
The New York Times: Can’t Pay Medical Bills? Trump Administration Suggests Getting A Loan
Buried in the fine print of Obamacare regulations, the Trump administration is floating a novel idea for those who can’t afford to shell out tens of thousands of dollars in out-of-pocket medical costs. Why not borrow the money from your health insurance company? In the dense 1,121-page final rule issued last month about how the Affordable Care Act market will operate next year, the administration suggested that insurers consider offering loans to cash-strapped customers. (Abelson, 6/11)
KFF Health News’ ‘What The Health?’ Podcast: The Drip, Drip, Drip Of Declining Coverage
When Congress failed to extend the covid-era enhanced subsidies for the Affordable Care Act, many experts predicted millions of people would lose coverage because they would be unable to make payments toward the higher premiums. It has taken a few months, but that prediction seems to be coming true. (Rovner, 6/11)
Regarding Medicaid work requirements —
AP: New Medicaid Guidance Threatens Coverage For Sick Patients
Brandon, who lives in Rockwell, North Carolina, is worried that new Medicaid work requirements starting next year could jeopardize her health coverage. She had expected to qualify for a medical frailty exemption, but new guidance introduced by President Donald Trump’s administration last week has thrown that into question. The interim final rule released by the Centers for Medicare and Medicaid Services means being sick with extreme exhaustion and memory challenges related to her treatments may not be enough for Brandon to evade the new work requirements. She will have to attest and later prove that those symptoms “significantly impair” her ability to fulfill the mandates. (Swenson, 6/11)
KFF Health News: Final Rules For Medicaid Work Requirements Are Out. Here’s What You Need To Know
The Trump administration has issued final rules on how states should ensure that millions of Medicaid enrollees prove they’re working or completing other activities, such as job training, volunteering, or being enrolled in an educational program. The Centers for Medicare & Medicaid Services released the rules on June 1. That deadline was set last year in the GOP tax-and-spending law known as the One Big Beautiful Bill Act, which established a work requirement for certain people enrolled in Medicaid, the state-federal health insurance program for people with low incomes or disabilities. (Whitehead, 6/12)
