Medicaid Regulation Watch: All eyes are on CMS as it prepares for the release of the Medicaid work requirements regulation. One of the key questions is what flexibilities states will have around the definition of medical frailty. The work requirement law requires states to exempt from work requirements individuals who are medically frail. KFF has a good summary of the issue as well as state by state information on their current plans. CMS has stated the regulation would be released before June.
Home Health Freeze Implications: CMS recently imposed a six-month freeze on new home health provider enrollments in Medicare, which limits expansions. One unintended impact of this, according to the American Hospital Association, is that it could slow the discharge of patients to home for post-acute care, especially in rural areas. This could increase overall health care costs in the short term.
Medicare Advantage Growth Slows: CMS announced Medicare Advantage enrollment figures. In February 2026 MA enrollment reached 35.5 million, up 3.2% from February of last year. The increase is less than it has been in recent years.
ACA Exits: PacificSource announced that it would exit the individual market, affecting 42,000 members in Oregon and Montana. The news comes on the heels of other exits from the ACA market such as Baylor, Scott & White, Providence and Cigna.
