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Morning Briefing

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Wednesday, Mar 1 2023

Full Issue

Biden Says 'Health Care Hangs In The Balance' Of GOP's Budget Cut Plans

In a speech Tuesday, President Joe Biden pressured Republicans to release their plans to cut government spending, which are expected to target Medicaid and the Affordable Care Act. And in another preview of the 2024 presidential race, Donald Trump is warning his party against touching Medicare.

President Joe Biden on Tuesday said GOP lawmakers could put millions of people鈥檚 health care at risk, honing his message ahead of the release of his budget plan next week as Republicans push for him to negotiate over spending levels. The Democratic president spoke at a recreation center in Virginia Beach, Virginia. His remarks were part of a broader effort this week to contrast his administration鈥檚 priorities with those of Republicans who have yet to spell out their budget cuts. Using past proposals, Biden said the GOP could try to slash Medicaid and Obamacare benefits, as well as Social Security and Medicare. 鈥淲hat are they going to cut? That鈥檚 the big question,鈥 Biden said Tuesday. 鈥淔or millions of Americans, health care hangs in the balance.鈥 (Long and Boak, 3/1)

KHN: Biden Promises To Fight GOP On 鈥楪utting鈥 Medicaid. Budget Talks Seem Like Another Story.聽

Most lawmakers 鈥 Republicans and Democrats alike 鈥 have declared the marquee safety-net programs of Medicare and Social Security off-limits for cuts as a divided Washington heads for a showdown over the national debt and government spending. Health programs for lower-income Americans, though, have gotten no such bipartisan assurances. More than 20 million people gained Medicaid coverage in the past three years after Congress expanded access to the entitlement program during the covid-19 pandemic, swelling Medicaid鈥檚 population by about 30%. But enrollment will fall starting in April, when the pandemic-era changes end and states begin cutting coverage for Americans who are no longer eligible. (McAuliff, 3/1)

Donald Trump is driving a wedge through the GOP over one of American politics鈥 thorniest issues: the future of Medicare and Social Security. The former president鈥檚 attacks on potential GOP primary opponents, and his warning to party leaders to stay away from the popular entitlement programs in their push to cut spending, are cleaving Republicans at every level. (Everett and Emma, 3/1)

On Medicare Advantage 鈥

Anew analysis released Monday shows that insurance giants are benefiting hugely from the accelerating privatization of Medicare and Medicaid, which for-profit companies have infiltrated via government programs such as Medicare Advantage. According to the聽report聽from Wendell Potter, a former insurance executive who now advocates for systemic healthcare reform, government programs are now the source of roughly 90% of the health plan revenues of Humana, Centene, and Molina. (Johnson, 2/28)

Medicare Advantage had fewer avoidable hospitalizations for ambulatory care鈭抯ensitive conditions (ACSCs) when compared to traditional Medicare, but were more likely to have observation stays and emergency department direct discharges for the same conditions, according to findings published in the Journal of the American Medical Association. These findings raise the possibility of a "shifting effect," authors said, whereby Medicare Advantage patients are more likely than traditional Medicare patients to be treated under observation status or in the ED instead of being admitted to the hospital. (Lagasse, 2/28)

The insurer's net loss was down to $338.8 million in 2022 after it reduced spending by its in-house broker, Seek Medicare, the company announced during a call with investors. Revenue grew 136.1% to $3.4 billion driven by higher Medicare Advantage and Accountable Care Organization enrollment.. Clover Health had almost 89,000 Medicare Advantage members and 164,000 ACO REACH participants last year. (Tepper, 2/28)

Alignment Healthcare Tuesday reported a loss in its fourth quarter of nearly $57 million as the startup provider of Medicare Advantage coverage launches into new markets and projects health plan membership of more than 100,000 in the new year. (Japsen, 2/28)

In other news about Medicare 鈥

The Biden administration's decision last week to continue restricting Medicare coverage for a class of Alzheimer's drugs has angered some Republicans and renewed a thorny debate over when seniors should have access to new treatments 鈥 and under what conditions. (Owens, 2/28)

Walmart and the health insurer CareSource have forged a partnership to conduct risk screenings and provide wellness services to customers at select retail locations in Ohio, the companies announced Tuesday. The three-year arrangement will focus on improving outcomes among CareSource's Medicare, Medicaid and health insurance exchange policyholders who have conditions such as heart disease, diabetes and hypertension. (Hartnett, 2/28)

A new bill proposed by the state Department of Social Services would financially penalize nursing homes that don鈥檛 have more than 90% of their beds filled over a 12-month period. About 60% of the state鈥檚 nursing homes have occupancy levels below 90% as of Feb. 12, according to data from the Center for Medicare and Medicaid Services. (Altimari and Martinez, 2/28)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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