Week in Washington – 3/12/26

Congress

Congress has been focused on issues other than health policy at the moment. There are ongoing discussions among Republicans on the Hill as to whether they will pursue another reconciliation bill. If so, the focus would be additional cuts or increases to Medicaid and/or ACA. Further clarity on this issue should occur in the next few weeks.

Minnesota Governor Proposes Eliminating Medicaid Managed Care

Governor Tim Walz submitted a proposal this week to end the role of managed care companies in Minnesota’s Medicaid program. Under the proposal, the state would establish a single, statewide Administrative Service Organization. If approved, the transition would be completed by July 2028. Minnesota’s legislative session ends in May.

Medicaid Funding Fight

A hearing is scheduled for today regarding the Trump Administration’s deferral of $243 million in Medicaid funding to the state of Minnesota. The state of Minnesota is seeking a temporary restraining order to reverse the halt of payments. The Trump Administration has begun to focus their attention on New York’s Medicaid program and may be considering similar steps of Medicaid payment reductions.

Medicare Advantage

Two news items worth monitoring:

• Aetna agreed to pay about $118 million over allegations that it submitted inaccurate diagnosis codes from its Medicare Advantage plans.
• CMS announced that it will be suspending enrollment in Elevance Health MA plans, effective March 31, 2026. CMS stated the sanctions are due to noncompliance when submitting required information. The suspension will not affect the 1.9 million beneficiaries currently enrolled in Elevance plans but will prevent new members from joining those plans.