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Congress can, and should, improve Medicaid enrollees’ access to clinical trials | TheHill

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Medicaid does not pay for the ancillary services most trial members need.

 
 

Clipped from: https://thehill.com/opinion/healthcare/523921-congress-can-and-should-improve-medicaid-enrollees-access-to-clinical

 
 

 

For many serious conditions, there are no proven therapies, so the best — and sometimes only — available treatment is an experimental therapy being tested in a clinical trial. My wife Kristin, for example, has been living with a type of cancer (metastatic ocular melanoma) that has both a poor prognosis and no proven treatment. Fortunately, she is enrolled in an open-label clinical trial — one where the participants know what treatment they are getting — of two drugs that are approved for other forms of cancer but are investigational for hers. 

Nearly two years into the trial, Kristin’s tumors, which had been growing rapidly, have stabilized, even shrunk a bit, and she is tolerating the treatment well. Her participation is possible only because our employer-provided health insurance covers the little-known but potentially prohibitive costs of the routine care that is required, but not paid for, by such trials. This routine care includes oncologist visits, lab tests, and scans to measure tumor progression. The drug company sponsoring the trial pays for the study drugs and the costs of running the trial. 

The Affordable Care Act (ACA) currently requires private health insurance to pay for the routine care associated with participation in clinical trials of treatments for cancer and other life-threatening conditions. The costs of routine care associated with participating in clinical trials for life-threatening conditions are also covered by Medicare, the federal health program for those 65 and older. 

 

That leaves two big groups uncovered: the uninsured, and enrollees in Medicaid, the federal-state program for low-income people, which covers one in five Americans. Providing health coverage to the uninsured — the primary aim of the ACA — remains an elusive goal, and the law continues to face court challenges. A prior Supreme Court ruling upheld provisions of the ACA, but this and other provisions of the law might not survive future court challenges. 

Fortunately, the lack of coverage by state Medicaid programs for the routine care required for clinical trial participation is a much more manageable problem than covering the uninsured. In fact, the Medicaid programs of 15 states and Washington, D.C., already cover these costs. Pending bipartisan federal legislation, the Clinical Treatment Act — which has a both House version (HR 913), and a Senate version (S. 4742) — would require all state Medicaid programs to cover these costs. Enactment of this legislation is crucial for two reasons. 

First, in the absence of the law, as many as 38 million Medicaid enrollees — a large portion of whom are from racial and ethnic minority and other underserved groups — are categorically blocked from receiving potentially lifesaving experimental treatments because their state’s Medicaid program does not cover the routine care that is required for trial participation. 

Medicaid enrollees tend to be low-income, underserved and vulnerable, and already face significant barriers to trial participation such as low health literacy, lack of trust in the health care system, and unmet logistical needs for trial participation such as lodging, meals, dependent care and transportation. Eliminating this significant financial roadblock to trial participation is an essential step to improve clinical trial access to Medicaid enrollees and reduce the health disparities that they experience.  

Second, people from racial and ethnic minority groups, low-income persons, and other underserved groups continue to be woefully underrepresented in therapeutic clinical trials. As a result, the knowledge gained from trials may be less applicable to members of these groups than to whites and to those with higher incomes. Passage of the Clinical Treatment Act will help to improve the relevance of the knowledge gained from clinical trials to these underserved groups, who often bear the heaviest burdens of cancer and other life-threatening illnesses. The COVID-19 pandemic has highlighted the critical need for diverse participation in therapeutic clinical trials by populations hit especially hard by the virus.

Kristin continues to do well, for now, in the trial of the experimental regimen that by all appearances seems to be prolonging her life. The scenario that we would have faced, if we instead had been covered by Medicaid and this experimental therapy had been unavailable, is simply unthinkable. The Clinical Treatment Act needs to be enacted without delay.

Sean Hennessy, PharmD, PhD, is a senior fellow at the Leonard Davis Institute of Health Economics and a professor of epidemiology at the University of Pennsylvania. Follow him on Twitter @HennessySean.

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Franklin County Circuit Judge orders Anthem Medicaid lawsuit to go to mediation – Louisville Business First

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

 
 

Curator summary

KY MCO lawsuits continue, with latest development being court-ordered mediation.

 
 

Clipped from: https://www.bizjournals.com/louisville/news/2020/11/12/kentucky-medicaid-dispute-headed-toward-mediation.html

Getty Images / Maren Winter / EyeEm

The legal dispute surrounding the state’s Medicaid awards is headed to mediation.

On Thursday, Franklin County Circuit Judge Phillip Shepherd ordered the counsels for all parties involved in a lawsuit filed by Anthem Kentucky Managed Care Plan Inc. to seek approval to engage in mediation, select a mediator and choose days for mediation — all within the next 30 days.

Shepherd wrote that he would assign a mediator if the parties failed to agree on mediation or the selection of a mediator. He also expects a status report from the parties by the close of business Friday, Nov. 13.

In September, Anthem sued the state and the five Medicaid companies it awarded big-dollar Medicaid contracts to, alleging the state erred in the the awards process. Specifically, Anthem alleged in its suit that the state made scoring errors and failed to eliminate a bidder for the Medicaid contracts that inappropriately hired a former state official.

Anthem’s suit followed a failed administrative appeal over the contract awards.

In November 2019, the administration of then-Gov. Matt Bevin announced the five winners of an request for proposals for the Medicaid contracts after Bevin lost the election to now Gov. Andy Beshear, who rescinded the contracts in December 2019 and announced a new RFP process.

Ultimately, the Beshear administration announced the same RFP winners as the Bevin administration had.

Here are the companies that were twice awarded contracts by two different administrations. They are also named as defendants in Anthem’s lawsuit:

  • Aetna Better Health of Kentucky
  • Humana Health Plan Inc.
  • WellCare Health Insurance of Kentucky
  • Molina Healthcare of Kentucky
  • UnitedHealthcare Community Plan of Kentucky

Shepherd also wrote in his Thursday order that he would consider a motion from UnitedHealthcare asking the court to assign it the members of Molina Healthcare and eliminate Molina from the Medicaid program and reverse a previous order that would allow Anthem to continue participating in the Medicaid program. UnitedHealthcare made that motion Nov. 2.

Timeline of court proceedings

On Oct. 23, Shepherd ordered the state to allow Anthem to continue in the Medicaid program, making it a sixth Medicaid company.

The managed-care organizations that won contracts and the state agencies claim in court documents that the judge overstepped his bounds. However, the state agencies complied with the order in an attempt to reduce disruption to the members in the Medicaid program.

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Kentucky Medicaid lawsuit: UnitedHealthcare accuses Anthem of violating procurement rules – Louisville Business First

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

 
 

Curator summary

KY MCO contract protests continue, with UHC asking judge to invalidate Molina win and give lives that Anthem lost to UHC.

 
 

Clipped from: https://www.bizjournals.com/louisville/news/2020/11/11/unitedhealthcare-lobs-accusations-of-procurement-v.html

 
 

 

UnitedHealthcare of Kentucky Ltd. raises its own allegations of improper hiring of a government official in the legal controversy surrounding the state’s Medicaid contract awards.

 

One of the two incoming companies to the Kentucky Medicaid program made a bold ask in the legal dispute surrounding how the administration of Kentucky Gov. Andy Beshear awarded its five Medicaid contracts.

In Franklin Circuit Court, UnitedHealthcare of Kentucky Ltd. made a motion before Judge Philip Shepherd on Nov. 4 asking him to eliminate Anthem Kentucky Managed Care Plan Inc. and Molina Healthcare Inc. from participating in the Medicaid program and to reassign their members to UnitedHealthcare.

Specifically, the motion asks Shepherd to modify his Oct. 23 order to enjoin the Kentucky Cabinet for Health and Family Services (CHFS) to eliminate the Medicaid contract Molina Healthcare was awarded in May following an request for proposals process and to assign the members that are covered by Anthem, who did not prevail in the RFP, to UnitedHealthcare.

In his Oct. 23 order, Shepherd ordered the state to allow Anthem to continue participating in the Medicaid program. The order came as part of Anthem’s lawsuit against the state, filed in September, that came after it exhausted an administrative appeal.

Attorneys for the Beshear administration have said in court documents that the state will continue to include Anthem in the Medicaid program — despite claiming that Shepherd overstepped his bounds — to “ensure continuity of care in the Medicaid program and to prevent any potential disruption in the provision of services to Medicaid members.”

In November 2019, the administration of then-Gov. Matt Bevin announced the five winners of an RFP for the Medicaid contracts after Bevin lost the election to Beshear, who rescinded the contracts in December 2019 and announced a new RFP process.

Ultimately, the Beshear administration announced the same RFP winners as the Bevin administration did.

UnitedHealthcare won a contract in both RFPs, while Anthem did not win a contract in either.

Allegations of improper hiring

Anthem claimed in its appeal and lawsuit that the state erred in its scoring methods and for failing to eliminate a successful contract winner, Long Beach, California-based Molina Healthcare, over allegations of improperly hiring former Beshear CHFS transition team co-chair Emily Parento.

UnitedHealthcare argues that Shepherd’s order making Anthem a sixth Medicaid company violates state law and the terms of the state’s RFP. Further, the company argues that allowing Anthem to remain within the Medicaid program wouldn’t leave enough Medicaid members for UnitedHealthcare to run a viable business.

“UnitedHealthcare has been selected twice to serve the Medicaid population in Kentucky,” UnitedHealthcare spokeswoman Catherine Witz said in an email. “We respect the judge and his ruling, but we must ensure a fair and transparent procurement process.”

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New Medicaid proposal will put treatments and cures even further out of reach | Opinion – pennlive.com

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

 
 

Curator summary

A move to apply rebates to combination drugs and discount cards to deductibles can have significant cost implications for states and members.

 
 

 
 

Clipped from: https://www.pennlive.com/opinion/2020/11/new-medicaid-proposal-will-put-treatments-and-cures-even-further-out-of-reach-opinion.html

President Trump has long promised to lower prescription drug prices. Unfortunately, two of his administration’s newest proposals would actually raise out-of-pocket costs and reduce access to medicines.

They must be scrapped before they do real harm.

Both proposals impact Medicaid, the joint federal-and-state program more than 60 million low-income Americans depend on for access to health care. Trump’s proposals would place a new and substantial burden on a group of Americans who least need added challenges: low-income individuals suffering from chronic diseases. Their access to the care they need is in serious jeopardy.

The first proposal involves a reclassification of combination drugs — those created by binding multiple drugs into one medication. Currently classified as new medications, they enter the market as a name brand with no generic competition. The proposed reclassification would deem them an alteration of an existing treatment — and Medicaid would accordingly demand that manufacturers provide the program the bigger rebates associated with that group of medications.

Patented new combination drugs are often made from two or more readily available generics. So cost-cutters naively say: why not just take the cheap generics separately if the clinical effect is the same? Therefore, the combination should cost no more. What they overlook is the complicated research questions underlying the creation of new combination medicines: which drugs can be effectively combined to treat which conditions at which dosages.

Once you know, for example, that combining generic Prilosec with baking soda can yield better results treating acid reflux in some patients, of course, it’s cheaper to take the two separately. But you never would have known about it were it not for extensive research and testing.

This proposed reclassification is the government trying to get away with paying less for costly innovation. It won’t work. Instead, it will hamper pharmaceutical research and development efforts. After all, companies won’t continue to pour millions of dollars into developing new and improved combination drugs if they have no reasonable financial incentive to do so. Combination therapies also make it much easier for patients to stick to their prescription regimens.

That can be a matter of life and death.

Combination treatments have done wonders extending the lives of patients with HIV and hepatitis. Instead of taking several different pills per day, with the risk of error that entails, a combination HIV or hepatitis medication allows patients to take just one pill to keep the disease at bay.

The second ill-considered Medicaid proposal could lead to new financial burdens for many low-income people. It would change the Medicaid rules on how co-pays and deductibles work.Medicaid enrollees typically have to meet a deductible each month — or other specified period, which varies by state — before the program starts paying for their medical care.

Meanwhile, pharmaceutical companies often issue discount coupons patients can use to meet part of or all of the costs of their medications. In Medicaid’s current structure, such coupons count toward meeting an enrollee’s deductible. Under the proposed change, the value of the coupons could be excluded from the deductible. If this change takes effect, enrollees will have a higher hurdle to jump before they begin to receive their benefits. That would pose major concerns for the many low-income Americans living with chronic conditions.

Right now, patients with a chronic disease already spend twice as much out-of-pocket on medications than patients without one. Those suffering from two chronic diseases are sometimes on the hook for nearly five times more. And conditions such as diabetes, obesity and high blood pressure are much more common at the lower income levels associated with Medicaid.

If this rule change goes forward, managing a chronic condition could soon become untenable. Indeed, cost is one of the primary reasons that half of all chronic disease medications aren’t taken as prescribed. When chronically ill people can’t afford their medicines, their conditions often drastically worsen. Stabilizing and treating them at that point can wind up costing much more.

Indeed, medication non-adherence leads to one in 10 U.S. hospitalizations and adds as much as $289 billion to national healthcare spending annually.These proposals for Medicaid will only make matters worse. The Trump administration should drop them.

Kenneth E. Thorpe is a professor of health policy at Emory University and chairman of the Partnership to Fight Chronic Disease.

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Medicaid cuts on the table as states grapple with impact of pandemic on program enrollment – MarketWatch

New Roundtable, Curator, Finance

 
 

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

 
 

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States are working on budgets that must be finalized this summer, and cuts to Medicaid and education appear likely in order to deal with a decrease in the tax revenue base.

 
 

 
 

Clipped from: https://www.marketwatch.com/story/medicaid-cuts-on-the-table-as-states-grapple-with-impact-of-pandemic-on-program-enrollment-01606494876

 
 

Administrator of the Centers for Medicare and Medicaid Services Seema Verma and Vice President Mike Pence look on as President Donald Trump speaks at a coronavirus briefing in April.

jim watson/Agence France-Presse/Getty Images

State leaders are weighing possible cuts to Medicaid services and health-care benefits to offset rising costs due to a surge of enrollees who have lost jobs and need health coverage as the coronavirus pandemic has intensified.

Congress boosted federal matching funds to states for Medicaid as part of its first coronavirus relief package, but many states are still struggling to afford the increasing pace of sign-ups in the program for low income and disabled people. Enrollment for the fiscal year ending Sept. 30, 2021, is expected to jump 8.2%, with state spending accelerating by 8.4%, compared with 6.3% growth in the previous fiscal year, based on data from 42 state Medicaid directors compiled by the Kaiser Family Foundation.

 
 

Medicaid has grown to become one of the largest portions of state budgets, from about 21% in fiscal 2008 to about 30% in fiscal 2018, according to the National Association of State Budget Officers.

State leaders working on budgets that must be finalized in July are confronting budget crises. Tax revenues have tumbled since March because of restrictions on businesses, social distancing and high unemployment related to the pandemic, economists have found. Most states have constitutional or statutory requirements that they maintain balanced budgets.

Some state leaders may try to narrow the gap between the revenues they need to balance the budget and the shortfalls they face by cutting vision and dental benefits, or payments to doctors and other providers. Cuts to other programs, such as education, could also be in the mix.

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The Trump Medicaid record: Big goals, yet few successes | Salon.com

Curator summary

 

Most of the efforts of the outgoing administration to transform the program have failed.

 
 

 

 

 

Clipped from: https://www.salon.com/2020/11/01/the-trump-medicaid-record-big-goals-yet-few-successes_partner/

Trump entered office seeking a massive overhaul of Medicaid. Four years later, his administration has fallen short

 
 

President Donald Trump entered office seeking a massive overhaul of the Medicaid program, which had just experienced the biggest growth spurt in its 50-year history.

His administration supported repealing the Affordable Care Act’s Medicaid expansion, which has added millions of adults to the federal-state health program for lower-income Americans. He also wanted states to require certain enrollees to work. He sought to discontinue the open-ended federal funding that keeps pace with rising Medicaid enrollment and costs.

 

He has achieved none of these ambitious goals.

Although Congress and the courts blocked a Medicaid overhaul, the Trump administration has left its mark on the nation’s largest government-run health program as it has sought to make states more responsible for assessing its impact and improving the health of enrollees.

One notable achievement: The Trump administration pushed some states to be more aggressive in weeding out ineligible recipients — an initiative that led to a drop in enrollment of children in several states, including Missouri and Tennessee. About half of those enrolled in Medicaid are children.

 
 

 

A recent report from the Georgetown University Center for Children and Families found that the number of uninsured children rose by more than 700,000 to 4.4 million from 2017 through 2019. The increase of uncovered children stands out since uninsured rates typically drop during periods of economic growth, such as the one occurring from 2017 to 2019.

Advocates for the poor say the administration’s efforts contributed to an increase in the number of uninsured children, after years of decline. “The administration has not succeeded on any of its goals in any meaningful way,” said Joan Alker, executive director of the Georgetown center. “But they still have inflicted some damaging changes to the program.”

“The administration has not prioritized the health of children,” said Bruce Lesley, president of the child advocacy group First Focus on Children.

 

Alker attributes the rise in uninsured children to federal officials’ decision to slash outreach funding for the Obamacare insurance exchanges — through which families eligible for Medicaid are often identified — and the administration’s focus on the “public charge” rule. That provision allows the federal government to more easily deny permanent residency status, popularly known as green cards, or entry visas to applicants who use — or are deemed likely to use — publicly funded programs such as food stamps, housing assistance and Medicaid.

Medicaid officials said the increase is partly due to loss of health coverage by middle-income families who are not eligible for Medicaid. They say those families don’t qualify for government subsidies for the ACA’s marketplace plans and were forced to drop their plans because of high premiums.

 

But Alker said federal data suggests that families who have incomes over the 400% federal poverty level eligibility limit for subsidies (about $87,000 for a family of three) saw a slower rate of increase in the number of uninsured children as opposed to lower-income kids.

A spokesperson for the federal government’s Centers for Medicare & Medicaid Services said the agency was “committed to ensuring that eligible children are enrolled and retained in coverage” and it spent $48 million in grants for outreach and enrollment effort last year.

The Trump administration opposes the ACA’s expansion of Medicaid, which provided billions in federal dollars to cover nondisabled, low-income adults. Yet seven states adopted the expansion during the past three years, including Republican-controlled Utah, Idaho, Oklahoma, Nebraska and Missouri.

 

Despite the aim to shrink the program, about 75 million people were enrolled in Medicaid in June 2020 — roughly the same number as in January 2017, when Trump took office.

One reason is that Medicaid enrollment soared this year following the COVID-19 outbreak as unemployment spiked to historic highs and federal stimulus money forbid states to drop anyone unless they moved out of state.

But that is far from the administration’s goal of “ushering in a new day” for Medicaid, as CMS Administrator Seema Verma said when she laid out her bold vision in a 2017 speech.

 

Verma acknowledged she was stepping into a hornet’s nest of entrenched stakeholders and interest groups.

“I would like to invite everybody here today who have fought the political healthcare battles over the last decade to take a deep breath, exhale and agree to reset as a group,” she said.

They didn’t. The administration’s major Medicaid changes were met with opposition from hospitals, doctors and patient advocacy groups, who feared the efforts would lead to cuts in funding or add obstacles for enrollees seeking care.

Officials spent two years seeking to allow states to require enrollees to work or volunteer as a condition for enrollment. They approved proposals from 10 states, but only Arkansas implemented the new requirement before a federal judge ruled it illegal. Arkansas’ brief experience resulted in more than 18,000 adults losing coverage.

 

After losing in federal district and appeals courts, the Trump administration has appealed to the Supreme Court, which will decide later this year whether to take the case.

The push for work requirements and other changes have altered the culture of Medicaid so that officials are more intent on keeping people out of the program instead of welcoming more in, said Lesley, of First Focus.

Before the pandemic, he said, the administration allowed states to add hurdles for families to get enrolled and stay enrolled, such as requiring them to more frequently recertify their income eligibility.

Aaron Yelowitz, a professor of economics at the University of Kentucky, said one of the Trump administration’s biggest impacts on Medicaid was prodding states to be more active in making sure they were covering only people who met the states’ eligibility rules. He noted the ACA gave states incentives to enroll newly eligible adults over traditional groups such as children and the disabled because the federal government paid a higher share of the cost.

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Seeking flexibility for states

The administration — as well as Republicans in Congress — favored a fundamental change in how Medicaid is funded. But Congress failed to move the program to a “block grant” approach, which would have given states a set annual amount — rather than the current system that provides funding determined by how many people qualify for the program and health costs. The GOP proposal also would have allowed states more flexibility in running the operations.

Critics predicted a block grant would have cut billions in state funding and led to cuts in services and eligibility.

Once the legislative proposal was dead, the administration sought to enact the strategy via its authority to test changes in payment methods. Only one state applied — Oklahoma — and it dropped its application this year after voters passed a Medicaid expansion ballot initiative.

 

Verma promised to give states more flexibility in running their programs in other ways, while also holding them more accountable for care to Medicaid enrollees. CMS has approved dozens of Medicaid waivers since 2017, including allowing states to be more innovative in helping enrollees with substance abuse or addiction problems and serious mental illness. It granted more than 30 states waivers to enhance treatment options.

With Medicaid paying for more than half of all births in the United States, Verma also sought to improve oversight of prenatal and early childhood services.

While CMS has started a scorecard to track Medicaid outcomes, the data is missing for several states or outdated on several measures. For example, the low-birthweight measure is missing data from more than 20 states and no data is listed on children born with an addiction.

CMS officials said they are working to provide more updated information on its report card.

Changes implemented by the administration, officials added, have elicited more timely data from states, allowing them to spot problems quicker. For example, in September, CMS determined that many children were delayed from March through May in seeing a doctor and getting important vaccines as the pandemic took hold. CMS pushed states and health providers to remedy the problem but did not offer specific help.

Asked during a recent phone briefing with reporters about Medicaid’s legacy under her stewardship, Verma didn’t mention the expansion, work requirements or efforts to turn Medicaid into a block grant program for states.

“We have aimed to try to ensure the program is sustainable for generations to come and ensure better outcomes for those it serves,” she said.

Kaiser Health News (KHN) is a national health policy news service. It is an editorially independent program of the Henry J. Kaiser Family Foundation which is not affiliated with Kaiser Permanente.

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Mariah Carey- Merry Christmas, 2019

https://music.amazon.com/albums/B07Y414W29

Let’s work together today while we listen to the same album.

I think there are a few voices that stand atop the highest mountain of singing power.

Whitney. Celine. Tina.

And of course- and perhaps above all- Mariah.

All of us can hear her hit that high note- that only-Mariah-can-hit-it high note- in our heads on command. She does it in several songs. One of the very best instances is on track 2 of this album.

Enjoy this with me today, fellow humans. Hit the high notes today.

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Magellan Rx Management Releases Fifth Annual Medicaid Pharmacy Trend Report

Curator, Rx, Roundtable show

 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

Curator summary

Roughly half of Medicaid spending is on specialty drugs based on this 25-state study.

Clipped from: https://news.yahoo.com/magellan-rx-management-releases-fifth-113000880.html

Magellan Rx Management, the full-service pharmacy benefits management division of Magellan Health, Inc. (NASDAQ: MGLN), released its fifth annual Medicaid Pharmacy Trend ReportTM, the industry’s leading report exclusively detailing trends in the Medicaid pharmacy fee-for-service (FFS) space and the only detailed source examining Medicaid FFS gross and net drug spend trends.

“As a national leader in pharmacy benefit management, with more than 40 years of experience, we maintain a deep understanding of the complexities within the Medicaid space related to prescription drug costs and utilization trends,” said Meredith Delk, PhD, MSW, general manager and senior vice president, government markets, Magellan Rx Management. “The Medicaid Trend Report is one tool of many we deploy that provides value to our more than 25 government customers and Medicaid agencies across the country. We are delighted to release it for the fifth consecutive year.”

Developed through in-depth data analysis and supported by Magellan’s broad national experience managing Medicaid FFS pharmacy, the Medicaid Pharmacy Trend Report highlights the evolving landscape of Medicaid prescription drugs and anticipates the trends and challenges in the Medicaid FFS space. The report also now includes a standard in-depth analysis of the top drug classes including six additional categories that provide a superior overview of classes with significant net dollar impact.

 

Key findings in this year’s report include:

  • In 2019, specialty drugs accounted for 48.5 percent of net cost in Medicaid while making up just 1.3 percent of utilization.
  • Traditional net spending on drugs decreased 0.4 percent from 2018 to 2019.
  • Unit cost, not utilization, drove specialty trend in 2019. The net cost per claim increased by $141.12, while utilization decreased by 0.9 percent.
  • While claim volume remains virtually unchanged, the total net spend on specialty drugs increased by 2.4 percent which indicates that specialty drugs will account for 50 percent of total net spend for 2020.

“States are faced with inherent challenges related to the variability in the Medicaid program due to fluctuations in enrollment, enabling legislation and pharmacy program design,” said Chris Andrews, Pharm.D., vice president, value-based purchasing, Magellan Rx Management. “The Medicaid Trend Report clearly illustrates critical data-driven observations and helpful solutions that can assist states as they continue to explore and implement efforts to balance the growing cost of state Medicaid programs with state budget projections as they focus on achieving improved outcomes for Medicaid patients.”

The Magellan Rx Management Medicaid Pharmacy Trend Report includes data derived from Magellan Rx’s Medicaid FFS pharmacy programs in 25 states and the District of Columbia.

About Magellan Rx Management: Magellan Rx Management, a division of Magellan Health, Inc., is shaping the future of pharmacy. As a next-generation pharmacy organization, we deliver meaningful solutions to the people we serve. As pioneers in specialty drug management, industry leaders in Medicaid pharmacy programs and disruptors in pharmacy benefit management, we partner with our customers and members to deliver a best-in-class healthcare experience.

About Magellan Health: Magellan Health, Inc., a Fortune 500 company, is a leader in managing the fastest growing, most complex areas of health, including special populations, complete pharmacy benefits and other specialty areas of healthcare. Magellan supports innovative ways of accessing better health through technology, while remaining focused on the critical personal relationships that are necessary to achieve a healthy, vibrant life. Magellan’s customers include health plans and other managed care organizations, employers, labor unions, various military and governmental agencies and third-party administrators. For more information, visit MagellanHealth.com.

(MGLN-GEN)

View source version on businesswire.com: https://www.businesswire.com/news/home/20201113005178/en/

Contacts

Media Contact: Lilly Ackley, ackleyl@magellanhealth.com, (860) 507-1923

Investor Contact: Darren Lehrich, lehrichd@magellanhealth.com, (860) 507-1814

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Medicaid hemorrhaging $100B on Americans ineligible for the program

Curator, Roundtable Show, Fraud, Waste and Abuse

 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

 
 

Curator summary

Suspension of eligibility audits for several years has hidden $100B in spending on people who are not Medicaid eligible. The author advocates for Trump to finalize MFAR before leaving office.

 
 

Clipped from: https://nypost.com/2020/11/28/medicaid-hemorrhaging-100b-on-americans-ineligible-for-the-program/

Enlarge Image

 
 

ObamaCare ushered in rapid Medicaid expansion, but checks on fraud were stymied, leading to record waste — which Trump can tamp down before he leaves office. NY Post photo composite

Medicaid is meant to cover health care and long-term care for lower-income Americans. But a new report reveals the government — both in Washington and in state capitols across the country — is failing to ensure that only people who are eligible for Medicaid are enrolling.

The federal government’s improper Medicaid payments now exceed $100 billion a year. This means that more than one-in-four dollars flowing out of Medicaid — our nation’s third-largest government program — do not meet program rules. This staggering failure doesn’t just reduce health-care access for the truly eligible, it also harms taxpayers who fund it.

The main problem is that states are not verifying people’s eligibility. In fact, “the required verification of eligibility data, such as income, was not done at all” in many cases, according to the report from the Centers for Medicare and Medicaid Services (CMS). The report also suggests that many people remain on Medicaid well past the time they were initially eligible.

CMS examined states each year from 2017-2019 for its 2020 report — which was entirely pre-coronavirus. The report showed an improper payment rate of 21.4 percent — a total of $86.5 billion — but the actual amount is much higher, because eligibility audits were not conducted in the year 2017. If you only count the two years where an eligibility audit was performed, the improper payment rate is actually 27 percent — and improper federal spending totals more than $100 billion.

The Obama administration canceled the eligibility audits from 2014 to 2017 — the first four years of ObamaCare’s Medicaid expansion — to build political support for its signature law by maximizing enrollment, even if it was unlawful. They were successful. Millions of ineligible people enrolled in Medicaid.

ObamaCare created a new class of Medicaid enrollees — non-disabled, childless, working-age adults — for whom the federal government reimburses no less than 90 percent of the cost. Since their coverage is financed almost entirely by federal dollars, states loosened eligibility reviews and increased payments to health insurers, who reaped massive profits from ObamaCare’s Medicaid expansion.

After Obama signed the Affordable Care Act, Americans weren’t tested for their Medicaid eligibility for four years — enabling millions to unlawfully enroll.

Because Washington pays nearly two-thirds of the total Medicaid tab, states do not spend with an eye toward value. Program integrity efforts, like ensuring only eligible people enroll, almost always get short shrift. But the primary job of executive branch agencies, like CMS, is to implement the law and ensure enrollees and taxpayers are well-served.

Before the year ends, the Trump administration can take one important and overdue step to address Medicaid’s improper payments, which have soared with ObamaCare’s expansion. CMS should finalize a fiscal accountability rule that would enhance Medicaid program integrity. This rule would require states to report to CMS where the $600 billion of Medicaid expenditures — including the $400 billion of federal tax dollars — is going. It also limits accounting gimmicks that some states use to rip off federal taxpayers.

While much more work needs to be done to reform Medicaid, including ensuring only eligible people are enrolled, greater transparency would be a good first step toward limiting widespread waste, fraud, abuse, and misspending.

Brian Blase served as a special assistant to President Trump at the National Economic Council, 2017-19. He is CEO of Blase Policy Strategies and a senior research fellow at The Galen Institute and The Foundation for Government Accountability.

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Published- Insurers’ strong financial performance continues in Q3 as they brace for a potentially rocky Q4 | FierceHealthcare

Curator, News Roundtable, Managed Care

 
 

 
 

The article below has been highlighted and summarized by our research team. It is provided here for member convenience as part of our Curator service.

 
 

 
 

Curator summary

National health plan messaging is suggesting a slowing of the profits seen in Q2/Q3 due to COVID-utilization suppression.

 
 

Clipped from: https://www.fiercehealthcare.com/payer/insurers-strong-financial-performance-continues-third-quarter-as-they-brace-for-a-potentially

 
 

Insurers continued to turn a significant profit in the third quarter, though the results were more subdued than they were in the first half of the year.

Major national health insurers continued to largely turn a significant profit in the third quarter, though numbers didn’t quite reach the sky-high figures reported in the first half of the year.

And some warned that the fourth quarter could be ugly, with pent-up utilization and costs related to COVID-19 coming to a head.

As with the prior quarter, UnitedHealth Group led the way on profit, bringing in $3.2 billion in earnings. That’s down slightly from the third quarter of 2019, where the company earned $3.5 billion in profit, and halved from the second quarter, when UnitedHealth posted an eye-popping $6.6 billion in profit.

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Cigna came in second for profitability in the quarter, reporting $1.4 billion in profit. Humana was close behind at $1.3 billion, as was CVS Health at $1.2 billion.

RELATED: Insurers saw sky-high profits in Q2. Now, Congress wants to take a look at their finances

Those companies all saw profit declines from the second quarter as well, where CVS posted $3 billion in profit and Cigna and Humana both reported $1.8 billion in earnings.

Anthem brought in $222 million in profit and, while that represents a massive decline from its $2.3 billion in earnings for the second quarter, it still beat Wall Street estimates. Centene Corporation and Molina Healthcare also reported declines in profits from the prior quarter, bringing in $568 million and $185 million, respectively.

Across the board, insurers said that the drop in profitability compared to the beginning of 2020 reflects care utilization returning to levels near those seen before the COVID-19 pandemic. Earlier in the year, most warned that while they were hugely profitable at the time, that was likely to change as utilization ticked back up.

Some are bracing for even stormier skies in the fourth quarter, too. Humana, for instance, gave investors a heads-up about an expected loss in the quarter as use continues to rebound and COVID-19-related costs increase.

Humana Chief Financial Officer Brian Kane said the company is expecting to pay $1 billion in COVID-19 treatment and testing costs alone this year.

CVS lead the pack on revenue for the quarter, bringing in $67.1 billion, followed closely by UnitedHealth, which reported $65.1 billion in revenue.

Cigna brought in $41 billion in revenue. Anthem and Centene were neck-and-neck for the quarter, reporting $31.2 billion in revenue and $29.1 billion in revenue, respectively.

Humana brought in $20.1 billion in revenue, and Molina lands in last place for revenue with $4.8 billion reported.

RELATED: VIDEO: FierceHealthcare discusses healthcare companies’ Q1 results in the wake of COVID-19—and beyond

Here are two more trends to watch in the final quarter of 2020:

PBM subsidiaries leading the way

Both UnitedHealth and Cigna have reported substantial growth in their pharmacy benefit management subsidiaries over the course of this year. Optum has been UnitedHealth’s growth leader of late, and in the third quarter posted 21% growth.

Much of Optum’s growth has been concentrated in its OptumHealth segment, which includes the company’s large provider footprint at OptumCare. OptumHealth providers treated 98 million patients in the third quarter, an increase of 3 million year over year, with revenue per customer served up 25% compared to the third quarter of 2019.

In addition, OptumRx has invested heavily in growing its pharmacy services, including in specialty pharmacy, e-commerce and home infusion, UnitedHealth Group said.

Cigna also touted the performance of its newly rebranded Evernorth subsidiary in its earnings, a company that includes the nation’s largest PBM in Express Scripts. Evernorth’s revenues were up 20% in the third quarter compared to the second quarter, Cigna said.

Cigna is continuing to design and launch new solutions at Evernorth, CEO David Cordani said during an appearance at HLTH in October, with an eye on continued business growth.

Pandemic’s long-term impact on enrollment remains fuzzy

As shutdowns to prevent the spread of COVID-19 led to significant job losses, the healthcare industry braced for large numbers of people to become uninsured in the process.

However, insurers have found over the past several months that membership losses in the employer-sponsored segments were largely offset by growth in Medicaid and individual market enrollment.

What impact does this potentially have on the current open enrollment period for the Affordable Care Act’s exchanges? Centene CEO Michael Neidorff said enrollment has “been bouncing around a lot.”

The variability suggests we won’t have a clear picture of the pandemic’s long-term impacts on payer mix for some time.

“It is just a swinging variable and too many factors,” Neidorff said.