White House Cuts Medicaid Payments to California
The White House announced that it would be withholding $1.3 billion in Medicaid payments until California meets the White House’s demands. CMS is also withholding $300 million in Medicaid payments to Minnesota. Vice President JD Vance also announced that CMS would be looking at other states’ fraud control units and would consider withholding all Medicaid payments to a state if CMS believes problems have been identified.
CMS Announces Moratoria on Hospice/Home Health Providers
CMS also announced it would be halting new Medicare enrollment for new hospice and home health providers for the next six months. This is on top of a similar moratorium for certain durable medical equipment companies.
Third Reconciliation Bill Update
House Republicans announced they are aiming to have a third reconciliation bill by the end of July. This third bill, while still in its infancy and by no means guaranteed to pass, is expected to include health care spending cuts if it comes together.
FDA Commissioner Resigns
Marty Makary resigned from leading the FDA this week. The resignation is the latest sign of instability at the FDA. There is concern that instability could slow drug review timelines.
ACA Enrollment Data
NOTUS was able to obtain an internal CMS memo on ACA Marketplace enrollment trends. Internal CMS analysis found that enrollment has declined by 21% in the FFM Marketplaces. This compares to last year, when about 12% of enrollees dropped coverage during the same time frame.

