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2024 Supplemental Claims Impact

ACA risk scores increased by nearly 6% due to supplemental claims in the ACA individual market. This translates to roughly $3,000,000 ($30 PMPM) for a 10,000 member population. The 6% also represents a steady increase in supplemental claims impact and doubles the 2019 impact. Issuers should review and benchmark their data against the industry to ... Continue reading

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Week in Washington 08/21/25

PAYGO Sequestration CBO released updated estimates of the effects of Public Law 119-21 (the reconciliation bill). Overall, the CBO found that without Congressional action, the law would trigger the PAYGO (4% sequestration) on Medicare and reduce Medicare spending by up to $491 billion. It’s important to note that the PAYGO sequestration has never been implemented, ... Continue reading

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Newsworthy Findings

Elevance Loses Medicare Advantage Star Ratings Suit

The Texas judge’s decision — which picked apart Elevance’s argument on mathematical grounds — is expected to cost Elevance $375 million, though the insurer could still appeal.

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Editor's Note
Medicare Advantage star ratings have sparked litigation after methodology changes led to lower scores. In one case, a judge rejected Elevance’s claim that CMS misapplied rounding rules, upholding ratings that will cost the insurer an estimated $375 million next year, while other insurers have also sued over declining ratings.

CMS Initiative Targets Undocumented Immigrants in Medicaid

CMS will provide states monthly reports of beneficiaries whose citizenship or immigration status cannot be confirmed.

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Editor's Note
Since taking office, the Trump administration has prioritized restricting non-citizens’ access to public benefits, particularly healthcare, despite undocumented immigrants already being ineligible for federally funded programs like Medicaid, CHIP, Medicare, or ACA coverage. Recent actions, including data-sharing with DHS and the passage of the “One Big Beautiful Bill Act,” have further narrowed eligibility, cutting off groups such as refugees, asylum seekers, and trafficking survivors from many healthcare services.

Judge Overturns Rule Limiting Broker Payments in Medicare Advantage

Reed O’Connor’s ruling is a setback for smaller MA plans — and efforts to curb predatory marketing to seniors.

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Editor's Note
Judge Reed O’Connor ruled that CMS exceeded its authority when it tried to cap broker payments beyond base compensation and ban contracts that reward steering seniors to certain plans. CMS’ intent was to protect beneficiaries — ensuring seniors choose plans best suited for their needs, rather than those that pay agents the most.

Kennedy’s mRNA Cuts Could Set US Science Back, Experts Warn

Scientists say HHS’ decision to defund mRNA vaccine research will leave the country less prepared for pandemics and give other countries a chance to catch up in developing the technology.

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Editor's Note
Kennedy ordered HHS to cancel mRNA contracts, arguing the vaccines “fail to protect effectively against upper respiratory infections like COVID and flu.” But researchers note mRNA’s proven value in pandemic response and its broader potential as a drug development platform — particularly in cancer. Harvard’s Jonathan Kagan sees federal investment in mRNA as similar to past government backing of nuclear and physics research, which helped secure U.S. scientific leadership during the Cold War.

Judge Vacates Medicare Advantage Marketing Rule Provisions

Employers are bracing for a 9% healthcare cost increase in 2026, driven largely by rising use of GLP-1 drugs, cancer care, and mental health services, prompting many to rethink coverage policies and vendor partnerships.

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Editor's Note
Employers’ rising healthcare costs—fueled by GLP-1 demand, cancer care, and mental health needs—signal mounting pressure on payers to deliver more transparent, cost-effective benefit solutions.

Bonus Article

Just for Fun

Math Joke:

Why don’t prime numbers ever get along?

Prior Week

Q: Who’s in charge in a pencil case?

A: The Ruler!

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