What We’re Reading: ACA Preventive Care; CMS Repayment Plan; Medicaid Enrollment Cuts


Biden administration finalizes a deal on covering preventive care despite legal battle; CMS prepares safety net hospital reimbursement plans; over 1 million Americans have been dropped from Medicaid coverage

Biden Keeps ACA Preventive Care Coverage Intact Amid Legal Challenges

Apart from current legal obstacles, the Biden administration finalized a deal to maintain the federal mandate that requires United States health insurers to cover preventive care without additional costs to patients, according to Reuters. The agreement allows the mandate to remain in effect nationwide while the administration appeals a court order that struck it down. However, the deal grants Texas-based company, Braidwood Management, the temporary ability to cease coverage of certain preventive services for its employees, such as pre-exposure prophylaxis for HIV, until the mandate's status is resolved on appeal.

CMS to Reveal Repayment Plan for Safety Net Hospitals

The CMS is preparing to unveil a repayment plan for safety net hospitals to address nearly $10 billion in underpayments from the federal drug discount program, according to Axios. The plan follows a Supreme Court ruling that deemed CMS's program cuts from 2018 to September 2022 as illegal. However, there are concerns that CMS may seek to recover the funds by reducing Medicare payments to non-340B facilities, potentially impacting rural facilities and children's hospitals that were exempt from the cuts.

Concern Over Alarming Rate of Medicaid Enrollment Cuts
The Biden administration raised concerns over Medicaid cuts after more than 1 million Americans lost coverage due to administrative setbacks and the resumption of eligibility checks, according to Kaiser Health News. With the end of pandemic protections on April 1, many states have resumed checking the eligibility of Medicaid recipients, resulting in individuals losing coverage. The administration urges states to take optional steps to ensure eligible individuals remain covered, such as pausing cancellations and aiding in completing required paperwork.

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