Nov 21, 2016
Washington Healthcare Update
*There will be no newsletter released on November 28th due to the Thanksgiving holiday. The newsletter will resume on December 5th.*
This week was focused on leadership elections and getting rules out.
4. State Activities
5. Regulations Open for Comment
House Passes Midnight Rules Relief Act
On Nov. 17, the House of Representatives passed a bill that would make it easier to kill so-called midnight rules issued during a president’s final year in
office. H.R. 5982—the Midnight Rules Relief Act—permits lawmakers to group
together any number of regulations for a Congressional Review Act (CRA) challenge, rather than considering them one at a time. The bill’s Republican
supporters argued that Congress could find itself backed up passing individual CRA resolutions. The 240-179 vote broke down largely along party lines.
The White House, in a
Statement of Administration Policy, criticized
the bill as “intended to solve a problem that does not exist,” and noted Congress is free to pass CRA resolutions on a case-by-case basis. It also
complained that the bill “would expand the scope of rules subject to the CRA such that by the time a vote on a resolution occurs, some of the rules may
have been in effect for over a year,” thus creating “tremendous regulatory uncertainty.”
House Republicans Urge Agencies to Halt Rulemaking Until Trump Takes Office
On Nov. 15, House Republican leaders sent letters to every government agency requesting they halt all rulemaking until President-elect Donald Trump takes
office. The letter, sent by the House Republican committee chairmen and Majority Leader Kevin McCarthy (R-CA), warns federal agencies against finalizing
pending rules that may have unintended consequences for consumers and businesses.
Referring to planned rules, the GOP letter states: “As you are aware, such action often involves the exercise of substantial policymaking discretion and
could have far-reaching impacts on the American people and economy. Considering these potential consequences, we write to caution you against finalizing
pending rules or regulations in the Administration’s last days.”
The Office of Management and Budget started reviewing a rule finalizing changes to the Medicare, Medicaid and CHIP provider enrollment processes just a day
before the letter. There are three final CMS rules including the provider enrollment processes rule, and two proposed rules under review at OMB.
If FDA honors the request, regulations on postmarket safety reporting and compounding will be halted, among others. FDA was to publish a number of
regulations on compounding before the end of the year, including two lists of bulk drug substances that may be used to compound drugs under 503A of the
Food, Drug and Cosmetic Act, and a proposed rule on good manufacturing practices for outsourcing facilities involved in compounding. A proposed rule on
“Human Drug Compounding Under Sections 503A and 503B of the Federal Food, Drug, and Cosmetic Act” is also listed on FDA’s 2016 regulations agenda, although
it is listed as a long-term action.
House GOP Unanimously Nominates Ryan for Speaker
On Nov. 15, House Republicans unanimously nominated Paul Ryan for a second term as Speaker. The GOP conference gave the Wisconsin Republican voice-vote
approval, forgoing a secret ballot tally that would have shown how many Republicans oppose Ryan’s leading the chamber.
This vote sends a signal of GOP unity under President-elect Donald Trump and puts to rest speculation that Ryan’s speakership was in jeopardy. Ryan must
still win a floor vote in January to officially retain his position. That will require him to garner the support of a majority of the House, typically 218
Republicans, giving him little wiggle room.
Senate Republicans and Democrats Elect Their Respective Leaders
Republicans re-elected Mitch McConnell (R-KY) as Senate Majority Leader, Sen. John Cornyn (R-TX) as Majority Whip and Sen. John Barrasso (R-WY) as policy
chair. Sen. Orrin Hatch (R-UT) remains Chair of the Senate Finance Committee and Rep. Lamar Alexander (R-TN) remains Chair of the Senate Health, Education,
Labor and Pensions (HELP) Committee.
Senate Democrats elected Sen. Chuck Schumer (D-NY) Minority Leader to replace Sen. Harry Reid (D-NV), who is retiring. In addition to Schumer, the
leadership team for the Democrats includes:
Sen. Richard J. Durbin (D-IL) will serve as party whip and Schumer’s chief deputy, maintaining a role he held under outgoing Minority Leader Harry Reid.
Sen. Patty Murray (D-WA) will serve as the third-ranking Democrat, assuming the new title of assistant Democratic leader. Murray was rumored to be
considering a challenge to Senator Durbin, but the creation of this position negates the need for the Democrats to have a leadership fight.
Sen. Debbie Stabenow (D-MI) was named chair of the Democratic Policy and Communications Committee.
The Democratic leadership team will be expanded to 10 members, with Sens. Bernie Sanders (I-VT), Joe Manchin III (D-WV) and Tammy Baldwin (D-WI) adding to
the team’s ideological, geographic and gender balance. Manchin will help with messaging, and Sanders will handle outreach to key party constituencies,
while Baldwin plays an organizational role.
Following Democratic leadership elections, Sen. Patty Murray will remain the ranking Democrat on the Health committee, Sen. Patrick Leahy (D-VT) shifts to
ranking Democrat on Appropriations, Sen. Bernie Sanders (I-VT) retains the ranking spot on Budget and Sen. Dianne Feinstein (D-CA) takes the ranking
position on the Judiciary committee.
Murray has been heavily involved in FDA reform issues as part of work on 21st Century Cures legislation and now remains in a position to influence drug and
device user fee bills in the next Congress. Sen. Debbie Stabenow (D-MI) was named chair of the Democratic Policy and Communications Committee.
Leahy, who leaves his position as ranking Democrat on Judiciary, said addressing the opioid crisis and supporting research on cancer and infectious
diseases are continued health-related priorities he will address on Appropriations in the 115th Congress.
Sen. Ron Wyden (D-OR) remains ranking Democrat on the Senate Finance Committee.
CMS Issues New Guidance to Manufacturers
On Nov. 18, CMS released guidance to manufacturers through Manufacturer Release #102 to clarify how CMS intends to verify if a drug is an abuse-deterrent
formulation, and should thus be excluded from the definition of line extension for purposes of the Medicaid Drug Rebate (MDR) program.
The Manufacturer Release is available for download
CMS Launches New Tool for Clinicians in Quality Payment Program
On Nov. 17, CMS released a tool—an Application Program Interface (API)—to share automatically electronic data for the Medicare Quality Payment Program.
In October, CMS released the Quality Payment Program website, an interactive site to help clinicians understand the
program and successfully participate. The new tool, commonly referred to as an Application Program Interface (API), builds on that site by making it easier
for other organizations to retrieve and maintain the Quality Payment Program’s measures and enable them to build applications for clinicians and their
The API will allow developers to write software using the information described on the Explore Measures section of QPP.cms.gov. Based on interviews with
clinicians, CMS created the Explore Measures tool, which enables clinicians and practice managers to select measures that likely fit their practice,
assemble them into a group, and print or save them for reference.
Several groups have applauded the release of this information, including the American Academy of Ophthalmology, Network for Regional Healthcare Improvement
(NHRI), American College of Radiology (ACR), American College of Physicians (ACP), National Rural Accountable Care Consortium, Great Lakes PTN, Pacific
Business Group on Health, Compass PTN, TMF QIN-QIO and Mountain Pacific Quality Health Foundation.
To see the API Swagger documentation, click here.
Co-op Losses Occurring at a Slower Rate
According to new quarterly financial findings, most of the six remaining Obamacare co-ops continue to lose money, but at a slower rate than in prior years.
The five startup insurers for which reports were available lost roughly $55 million combined through the first nine months of this year. That was roughly
half the losses for the five nonprofits at this point in 2015.
Wisconsin’s Common Ground Healthcare Cooperative, which has a $25.7 million deficit for the year, has experienced the most losses. Minuteman Health, which
sells plans in Massachusetts and New Hampshire, turned a small profit of $270,000. The financial report for Maryland’s Evergreen Health Cooperative was not
Just six of the 23 nonprofit startups seeded with $2.4 billion in federal loans remain in business. The co-ops were designed to spur increased competition
in the Obamacare exchanges, but they hemorrhaged cash in their first two years of operations.
The biggest obstacle facing the remaining co-ops is most likely the risk adjustment program, which is designed to spread financial risk among all insurers
competing in the exchanges. But many insurers have complained that the program is too unpredictable and volatile, creating instability in the marketplaces.
The uncertainty about Obamacare’s future after the election is another challenge for the co-ops and other insurers.
SAMHSA Expands Ability to Prescribe Opioid Treatment
On Nov. 16, federal officials launched a 24-hour training course that will allow physician assistants and nurse practitioners to prescribe buprenorphine
for opioid abuse, as required by the Comprehensive Addiction and Recovery Act. This privilege had previously been restricted to doctors.
HHS also announced that it will write a new rule raising the cap on the number of patients NPs and PAs can treat with the opioid replacement therapy from
30 to 100 after they had prescribed the treatment for a year. In July, HHS boosted the cap on the number of patients doctors can treat with buprenorphine
from 100 to 275.
The moves are meant to close the gap between the 2.3 million people who were estimated to abuse or be dependent on opioids in 2012, according to a recent study, and the 1.4 million who had
access to that treatment.
One Million People Sign Up for Obamacare Plans in First Two Weeks
About 1 million people signed up for Obamacare plans on HealthCare.gov during the first two weeks of open enrollment, the Obama administration said Nov.
16. The vast majority of customers renewed coverage—approximately 246,000 were new enrollees and nearly 762,000 were renewals. The CMS enrollment figures cover the period from
Nov. 1 to Nov. 12 and include the 39 states using HealthCare.gov this year.
The Obama administration and ACA supporters are trying to boost enrollment amid the GOP’s efforts to dismantle the law when President-elect Donald Trump
HHS has estimated that 13.8 million people will sign up for coverage during the 2017 open enrollment window, about 1 million more than last year. The
three-month enrollment season ends Jan. 31, less than two weeks after Trump takes office.
FDA Responds to Questions Concerning Mylan EpiPen
In its response to a letter from Senate Judiciary Chairman Chuck Grassley (R-IA) and other senators asking what the Food and Drug Administration could do
to address the high price of Mylan’s EpiPen, the FDA said it is willing to meet with companies to discuss what might be needed for an epinephrine
auto-injector to be switched from prescription to over the counter. However the FDA would not say whether it has been approached due to the sensitivities
of the approval process.
In order to make a switch, a sponsor would have to provide data showing consumers can self-diagnose and use a drug safely and effectively on their own
without supervision from a health care professional, according to FDA. In addition, for an OTC switch to be approved, a sponsor must develop a drug label
that explains to consumers how to use the drug in question safely. However, in response to a question on whether FDA had specifically looked into making
EpiPen an OTC drug, the agency declined to answer.
CMS Releases Data on Medicaid and Medicare Drug Costs
On Nov. 14, CMS
on Medicaid and Medicare costs. The Medicaid prices do not reflect the rebates drugmakers pay. Overall, Medicaid spending on the 20 drugs with the highest
yearly increases more than tripled from $146 million in 2014 to $486 million in 2015. The program’s total drug spending for its more than 73 million
beneficiaries in 2015 was $57 billion.
Twenty drugs saw their unit costs more than double for Medicaid in 2015 and one drug—Valeant’s Ativan—rose more than 1,200 percent in a single year.
Ativan, cost Medicare more than $700 per prescription or $5.3 million in 2015.
Drugs with high year-over-year price increases included both brands and generics. Nine of the 20 drugs with the highest per unit costs were generic drugs
including the antimalarial treatment hydroxychloroquine sulfate, which rose by 489 percent. It is also used to treat autoimmune diseases like rheumatoid
The drugs in the dashboard represent just 70 of the more than 6,500 products in the Medicaid drug program but accounted for about 41 percent of Medicaid
outpatient drug spending in 2015. The dashboard numbers are based on prices paid to pharmacies, without the rebates.
The drugs with the highest burden to Medicaid in terms of total spending were the Hepatitis C drug Harvoni, which accounted for about $2.2 billion,
followed not far behind by the antipsychotic Abilify at $2 billion. Sanofi’s insulins, Lantus and Lantus SoloSTAR, accounted for more than $1.4 billion—the
only other drug that topped $1 billion in Medicaid spend in 2015.
CMS also provided data on Medicaid spend from 2011 through 2015 for these drugs. Over those five years, Abilify was by far and away the most costly drug
for Medicaid with more than $10 billion in total spend, followed by Lantus at more than $4 billion and the HIV medicine Truvada at $2.9 billion.
Harvoni tops the list of the most expensive drugs on a per prescription basis in Medicaid coming in at number three. The new Hepatitis C drug is used by
far more patients than most other drugs that come in at such a high price per prescription, pointing to why the drug’s high price has been so burdensome to
The drugs with the most prescriptions filled on the list include two asthma drugs, Ventolin HFA and ProAir HFA, with around 7 million prescriptions each,
followed by the insulin Lantus with around 3.7 million prescriptions.
Other commonly prescribed drugs in Medicaid include the opioid addiction treatment Suboxone, which was the eighth most prescribed in 2015 with more than 2
million prescriptions. Attention deficit hyperactivity disorder drugs are also commonly prescribed.
Former Valeant Executive Charged in Fraud Scheme
A former Valeant executive and the former head of the specialty pharmacy Philidor Rx Services were indicted on federal fraud and conspiracy charges for
engaging in a multimillion-dollar kickback scheme, federal prosecutors announced Nov. 17.
The complaint accuses former Valeant executive Gary Tanner and former
Philidor CEO Andrew Davenport of conspiracy to create Philidor to benefit them financially. Davenport allegedly paid Tanner approximately $10
million in kickbacks to facilitate Philidor’s interests, which enabled Davenport to receive over $40 million and potentially tens of millions of additional
dollars from Valeant. Tanner also allegedly encouraged Valeant to purchase Philidor, enabling him to receive additional kickbacks from Davenport.
Tanner is also accused of using the pharmacy to promote and direct business to Valeant’s costly dermatological drugs, despite the availability of cheaper
generics. Philidor had been altering doctors’ orders to request Valeant’s brand-name medicines.
At least 90 percent of the drugs dispensed by Philidor were for Valeant-branded drugs, according to the complaint. Valeant acknowledged the criminal
complaint in a statement and said it was cooperating with authorities. Congress
has scrutinized the company in recent years for dramatically raising the prices of many old medicines.
Federal Claims Judge Rejects Illinois Co-op Efforts to Collect Money From Federal Government
A U.S. Court of Federal Claims judge has rejected Illinois insurance co-op Land of Lincoln Health’s efforts to collect on nearly $73 million in payments it
claims it is owed by the federal government, a decision the insurer said it plans to appeal.
Land of Lincoln Mutual Health Insurance Co., which closed earlier this year in the face of a $32 million payment it owed the government under the
Affordable Care Act, can’t use the act to immediately collect on money the government doles out in a separate program to mitigate insurers’ risk, Federal
Claims Judge Charles F. Lettow said in an opinion published Nov. 17.
The company, currently in liquidation, will appeal the decision and ask for an expedited review. In its suit filed earlier this year before the company
announced its closure, Lincoln argued the U.S. Department of Health and Human Services owed the company at least $72,859,053 for 2014 and 2015 under the
ACA’s risk corridor program, which the company said required the government to pay its full obligation annually. The suit also claimed HHS breached its
contracts with Lincoln and violated the Fifth Amendment’s Takings Clause by failing to make the payments.
Judge Lettow agreed with the government, finding the statute doesn’t dictate the payments be made in full and annually. The agency’s interpretation of the
rule, which allows it to make payments as it collects money from other insurers, is supported by Congress’ deliberations while it considered the bills that
eventually became the Affordable Care Act, the judge said.
4. State Activities
Alabama: GOP Lawmakers Optimistic About Trump Administration
Alabama Gov. Robert Bentley and Republican lawmakers expressed initial optimism about how a Donald Trump administration could be a potential solution to
the state’s Medicaid problems. Some of the Republican lawmakers said they were encouraged by Trump’s support for block grants for Medicaid, which Gov.
Bentley called for in 2014. They said block grants would give them more options when trying to solve their budget shortfall, which has been mostly driven
by Medicaid. Alabama cut physician rates to save money earlier this year, but those have since been restored.
Florida: Florida Seeking Extension of Medicaid Managed Care Program
Florida is asking CMS to extend its Medicaid managed care program for three additional years. Public comment on
ended Nov. 10. If CMS approves the extension, the state will continue outsourcing its Medicaid program for more than 3.6 million residents to private
contractors. The program will expire next June if it is not extended.
Iowa: State Supreme Court Upholds Governor’s Closing of Mental Health Facilities
Iowa’s Supreme Court upheld Gov. Terry
Branstad’s decision last year to close two state-run mental health care facilities. Branstad had vetoed funding for them in June 2015, prompting a lawsuit
by the largest state employee union and 20 state legislators who said state law requires Iowa to have four mental health institutions. The suit also
claimed the governor did not have authority to close the facilities. Nonetheless, the court sided with Branstad.
Minnesota: Task Force on Mental Health Releases Draft Report
A task force assembled by Minnesota Gov. Mark Dayton released a draft report detailing serious problems in the state’s mental health
system including severe workforce shortages and significant barriers to care. The report revealed a significant shortage of psychiatric beds and said that
insurers commonly deny coverage for mental health treatment. They recommended enforcing parity laws, increasing the behavioral workforce and creating a
continuum of mental health care that provides follow-up services instead of allowing people to file in and out of the emergency rooms. They also
recommended creating additional affordable housing for people in need of mental health treatment.
South Dakota: Gov. Daugaard Will No Longer Pursue Medicaid Expansion
On Nov. 15, South Dakota Gov. Dennis Daugaard said he will give up efforts to expand Medicaid, citing Donald Trump’s victory in the presidential election.
Daugaard had been one of a few Republican governors who supported Medicaid expansion but was admonished by a GOP-controlled legislature. He even personally
lobbied HHS to take on additional expenses through the Indian Health Service, which would have freed up state money to cover expansion costs.
Daugaard ultimately decided early this year that he would not urge the state legislature to pursue expansion during its 2016 session, but he left open the
possibility it would be on the table for 2017. Nineteen states have yet to join Obamacare’s Medicaid expansion.
Wisconsin: Emergency Rule Requires Doctors to Learn About Opioid Prescriptions
Wisconsin’s Department of Safety and Professional Services approved an emergency rule that requires doctors to get biennial training on how to prescribe
opioids. The new rule means that two of the required 30 hours of training for doctors must cover opioid-prescribing guidelines, which advise against
prescribing opioids as the first option to treat pain.
5. Regulations Open for Comment
IRS, Treasury Release Proposed Rule on QHP Benchmarks
The IRS and Treasury Department, in a proposed rule released July 6, proposed to
alter how qualified health plan (QHP) benchmarks are determined so that they
account for the costs of pediatric dental benefits. If finalized, the rule would
go into effect for the 2019 plan year.
Although pediatric dental care is one of the 10 “essential health benefits” that
plans are required to cover under the Affordable Care Act (ACA), several plans
do not include such coverage, and consumers instead buy stand-alone dental
products. Meanwhile, the marketplace determines the amount of tax credits a
family can receive to cover the cost of coverage based on the second-cheapest
However, as the proposed rule said, “because qualified health plans that do not
offer pediatric dental benefits tend to be cheaper than qualified health plans
that cover all ten essential health benefits, the second lowest-cost silver plan
(and therefore the premium tax credit) for taxpayers purchasing coverage through
a Marketplace in which stand-alone dental plans are offered is likely to not
account for the cost of obtaining pediatric dental coverage.”
Treasury and IRS added that the existing rules “frustrate” the goal of making
all essential health benefits affordable to those receiving premium tax credits,
so the administration wants to update its interpretation to ensure all 10
services are addressed.
“Consistent with this interpretation, the proposed regulations provide that for
taxable years beginning after December 31, 2018, if an Exchange offers one or
more silver-level qualified health plans that do not cover pediatric dental
benefits, the applicable benchmark plan is determined by ranking (1) the
premiums for the silver-level qualified health plans that include pediatric
dental benefits offered by the Exchange and (2) the aggregate of the premiums
for the silver-level qualified health plans offered by the Exchange that do not
include pediatric dental benefits plus the portion of the premium allocable to
pediatric dental benefits for stand-alone dental plans offered by the Exchange,”
the proposal said.
The rule aims to create the ranking by adding the premium for the lowest-cost
silver plan that does not include a pediatric dental benefit to the premium for
the cheapest stand-alone dental plan, and the premium for the second-cheapest
silver plan without pediatric dental benefits to that of the second-lowest
stand-alone dental plan. The second-cheapest amount from this combined ranking
would be the taxpayer’s applicable benchmark plan premium, the rule said.
HHS Proposes Updates to Title X Rules
On Sept. 2, HHS
proposed to preclude Title X grant recipients from using criteria in
their selection of family planning providers that are unrelated to the
ability to deliver services effectively.
Since 2011, 13 states have attempted to restrict participation by family
planning providers in Title X based on factors unrelated to their ability to
provide services. The Title X program provides funding for certain family
planning services, including STD screening and treatment, but funding is not
used to pay for abortions. Although Planned Parenthood is not mentioned by
name in the proposed rule, it has often been the subject of defunding
actions by states and Congress.
In the proposed rule, HHS said the effects already felt by the restrictions
in many states justify the department’s rulemaking. HHS said grant
recipients that do not provide services directly would also be required to
follow the updated standards when choosing subrecipients.
HHS also proposed that a tiered structure governing how funds are
distributed would not be allowed unless it can be proven that a
provider in a top tier delivers Title X services more effectively than a
lower-tier provider. According to the Guttmacher Institute, a research
organization that supports reproductive rights, four states have a priority
system for distributing family planning funds, which often disadvantages
family planning centers.
CMS Releases Proposed Rule on Fire Safety Requirements for Dialysis Facilities
On Nov. 3, CMS announced a proposed rule to update Medicare
fire protection guidelines for certain dialysis facilities to ensure that patients are protected from fire while receiving treatment in those facilities.
The new proposed guidelines apply to all dialysis facilities that do not provide one or more exits at grade level from the treatment area level. CMS
previously updated the requirements to include dialysis facilities located adjacent to industrial high-hazard occupancies; however, as dialysis facilities
are not permitted to be located in such areas, the requirement specific to such geographically located facilities will be removed.
The rule adopts, for certain dialysis facilities, updated provisions of the National Fire Protection Association’s (NFPA) 2012 edition of the Life Safety
Code (LSC), as well as provisions of the NFPA’s 2012 edition of the Health Care Facilities Code in order to bring CMS’s requirements more up to date with
current fire safety standards. The LSC is a compilation of fire safety requirements for new and existing buildings, and is updated every three years.
The proposed rule addresses construction, protection and operational features of dialysis facilities to provide safety for Medicare beneficiaries from fire
and smoke. Some of the main requirements laid out in the rule include:
Doors to hazardous areas must be self-closing or must close automatically.
Alcohol-based hand rub dispensers now may be placed in corridors to allow for easier access.
A fire watch or building evacuation is required if the sprinkler system is out of service for more than 10 hours.
Currently, CMS is using the 2000 edition of the LSC to survey dialysis facilities for health and safety compliance. With this proposed rule, CMS is
adopting provisions of the 2012 edition of the LSC and provisions of the 2012 edition of the Health Care Facilities Code, to bring CMS’s requirements more
up to date, and align dialysis facility fire safety requirements with the codes CMS uses to survey other healthcare facilities.
CMS Releases Proposed Notice With Changes to Medicaid National Drug Rebate Agreement
On Nov. 7, CMS issued a proposed notice announcing changes that would be made to the Medicaid National Drug Rebate Agreement (NDRA) for use by the
Secretary of the Department of Health and Human Services and manufacturers under the Medicaid Drug Rebate Program. The NDRA is being updated to incorporate
legislative and regulatory changes that have occurred since the agreement was published in February 1991, as well as to make editorial and structural
revisions, such as references to the updated Office of Management and Budget (OMB)-approved data collection forms and electronic data reporting. There is a
90-day comment period for this proposed notice that will end on Feb. 7, 2017.
For more information, click here.
Comments Due on IMPACT Act Cross-Setting Quality Measure
On Nov. 4, CMS announced that public comments are due Nov. 17 on a cross-setting post-acute care measure under the Improving Medicare Post-Acute Care
Transformation Act of 2014 (IMPACT Act) to further develop and refine
the percentage of residents or patients with pressure ulcers that are new or worsened and language modifications being explored with the term “Pressure
Injury.” CMS seeks feedback on potential updates to measure specifications and items used to calculate the quality measure. Visit the Public Comment webpage
for more information.
CMS Issues Interim Final Rule to Delay Inclusion of U.S. Territories in Definitions of States and United States
CMS published the Covered Outpatient Drug Final Rule with Comment Period in the Federal Register on Feb. 1, 2016. As part of that
final rule with comment, CMS amended the regulatory definitions of “States” and “United States” to include the U.S. territories (American Samoa, the
Northern Mariana Islands, Guam, the Commonwealth of Puerto Rico and the U.S. Virgin Islands) beginning April 1, 2017. However, the agency said those
territories could not be ready to implement the program by this date.
Therefore, CMS issued an Interim Final Rule with comment period that delays the inclusion of the territories in the definitions of “States” and “United
States” from April 1, 2017, until April 1, 2020, which is effective on Nov. 15, 2016. There is a 60-day comment period that will end on Jan. 17, 2017.
For more information visit theCovered Outpatient Drugs Policy page on Medicaid.gov.
CMS Issues Proposed Rule for Medicaid Managed Care Plans
CMS has issued a new proposed rule detailing regulations for pass-through payments to providers from Medicaid managed care plans. The guidance builds on
the Medicaid managed care rule finalized by the Obama administration in May.
Read the proposed rule
here. It is scheduled to be
in the Federal Register on Nov. 22.
CDC Study Shows Opioid Epidemic Drove Increase in Preventable Deaths
New CDC research shows that more people died prematurely from
unintentional injuries amid a growing opioid epidemic. But there has been a decline in preventable deaths from stroke, cancer and heart disease.
The agency estimated that avoidable deaths from unintentional injuries rose 23 percent between 2010 and 2014. The CDC attributed much of that to a rise in
drug overdoses. The increase came as the number of potentially preventable deaths from diseases like cancer and heart disease fell significantly, with
premature cancer deaths dropping by a quarter over the four-year period. Early heart disease deaths fell 4 percent between 2010 and 2014, while stroke
deaths declined 11 percent.
GAO Releases Highlights From a Forum on Preventing Illicit Drug Use
On Nov. 14, GAO released a report highlighting key ideas from a forum on preventing illicit drug use. The forum consisted of a panel of education, health
care and law enforcement officials who discussed common factors related to drug use, strategies in each relevant sector to prevent illicit drug use and
high-priority areas for future action. The panel also discussed strategies for reducing the number of opioid prescriptions.
To see the report, click here.
Report Finds Mental Health Coverage Is More Expensive, Harder to Find
A report from the National Alliance on Mental Illness confirms mental health coverage is significantly more
expensive and hard to find in-network than any other type of medical treatment.
In a survey of 3,000 publicly or privately insured people, one in four respondents said they did not have a mental health therapist in their plan’s
network. A quarter also said they did not have a mental health prescriber covered by their plan’s network.
The report found people were nearly 2.5 times more likely to have difficulty finding a psychiatric hospital that would accept their insurance compared to
other types of hospital care. On the cost side, 80 percent of respondents said they had out-of-pocket costs over $200 for psychiatric hospital or
residential mental health treatment compared to fewer than 60 percent for general hospital care.
Notably, Medicaid beneficiaries were more likely to have in-network therapists or mental health prescribers than those with private insurance. They were
also more likely to use an in-network psychiatric hospital or residential treatment versus out-of-network facilities.
If you have any questions, contact the following individuals at
Kennan, Senior Vice President
Charlie Iovino, Vice
Caroline Perrin, Research Assistant
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