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Final 2027 HHS HCC Risk Adjustment Model Impact Estimates

This paper analyzes how the final 2027 HHS-HCC ACA risk adjustment model changes affect issuer risk scores and risk transfer payments. Using benefit year 2025 data from Wakely’s National Risk Adjustment Reporting (WNRAR) project, the report estimates the financial impact of moving from the final 2025 HHS-HCC model to the final 2027 HHS-HCC model for ... Continue reading

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Week in Washington 07/02/26

Lawsuit Challenges Work Requirements – 24 States and the District of Columbia filed a lawsuit challenging CMS’ interpretation of the recently released work requirements. In particular, the lawsuit focused on the interpretation of medical frailty. In the regulation Medicaid beneficiaries must have a medical condition and for that condition impair that individual’s ability to meet ... Continue reading

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Newsworthy Findings

States Sue Trump Administration Over Medicaid Work Requirements Rule

Twenty-six states are seeking to overturn some of the regulation released by the CMS this month that outlined Medicaid work requirements.

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Editor's Note
A coalition of 26 states is challenging the CMS' Medicaid work requirements rule, claiming it imposes stricter eligibility standards and implementation requirements than Congress intended. The states argue the rule could increase administrative complexity, make exemptions harder to obtain for vulnerable enrollees, and jeopardize Medicaid coverage for eligible individuals.

AHA Taps State Advocate as New CEO

Steve Walsh, the CEO of a Massachusetts hospital group, will assume the top role in the early fall, after the AHA’s longtime leader retires.

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Editor's Note
Rick Pollack, the longtime CEO of the American Hospital Association (AHA), announced his plans to retire this fall. As Pollack steps down, AHA has named Steve Walsh as its next president and CEO. Walsh has served as president and CEO of the Massachusetts Hospital Association since 2017.

Clinic Network CEO Pleads Guilty to Embezzling Millions For 'Social Media Influenced' Market Trading

The former top executive of a Washington network of healthcare clinics pleaded guilty to embezzling nearly $24.4 million to fuel unsuccessful trading in his personal brokerage account, the Department of Justice announced late last week.

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Editor's Note
Patrick Alan Bucknum, former CEO, CFO, and COO of a Washington-based nonprofit clinic network, pleaded guilty to embezzling about $24.4 million in funds from Community Clinic Network between 2017 and 2023 to support personal stock and options trading, much of which was driven by losses from risky, social-media-influenced investments. He also used misappropriated funds for personal purchases such as vehicles, a boat, and precious metals, and now faces sentencing after admitting to wire fraud.

Court Dismisses PBMs’ Lawsuit Against FTC Following Insulin Settlements

Express Scripts, Caremark and Optum Rx sued the FTC after the agency accused them of driving up the cost of insulin. But the countersuit is being put to bed now that the PBMs are settling.

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Editor's Note
A federal appeals court dismissed a lawsuit brought by major pharmacy benefit managers (Express Scripts, Caremark, and Optum Rx) against the FTC after the PBMs reached settlements over allegations that they contributed to rising insulin prices. The case was dropped following individual agreements requiring changes to PBM practices such as compensation structures, drug formulary incentives, and transparency requirements.

CMS Goes Live with GLP-1 Bridge Program for Part D Beneficiaries

Eligible people enrolled in Medicare Part D can secure certain GLP-1 medications for weight loss or management at $50 each month. The program will remain in place through the end of 2027.

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Editor's Note
CMS is testing a temporary, federally funded access pathway for weight-loss GLP-1s in Part D, signaling continued momentum toward broader obesity drug coverage while leaving longer-term pricing and plan participation questions unresolved.

Bonus Article

Just for Fun

Math Joke:

What’s the official animal of geometry?

Prior Week

Q: Why did the statistician bring a ladder to the presentation?

A: To take their confidence interval to the next level.

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