Wakely Wire

New Insights

Whitepapers, briefs, press releases and more

Implications of Proposed NBPP on Bronze Plans

The proposed 2027 NBPP introduces a significant shift in ACA marketplace dynamics by allowing Bronze plans with higher-than-standard out-of-pocket maximums, enabling ultra-low actuarial value designs and more aggressive pricing strategies. While these plans may improve affordability and attract healthier members, they also introduce meaningful uncertainty—premium reductions may outpace claims savings, risk adjustment transfers could shift ... Continue reading

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Impact of the 2027 Federal Actuarial Value Calculator Updates

The 2027 Federal Actuarial Value Calculator (AVC), released on February 25, 2026, maintains a methodology consistent with previous versions, though it incorporates partially updated underlying data and revised Platinum continuance tables. Inflation continues to drive high trend, pushing many plans beyond the upper thresholds of the de minimis ranges and putting them out of compliance. Offsetting this, ... Continue reading

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Newsworthy Findings

Tech Nonprofit Sues CMS Over Medicare AI Prior Authorization Pilot

The Electronic Frontier Foundation is seeking more information on the government’s agreements with participating vendors.

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Editor's Note
The Centers for Medicare and Medicaid Services launched the WISeR pilot, which uses AI-backed prior authorization in traditional Medicare to reduce low-value care, but it has drawn criticism for potentially delaying treatment and increasing administrative burden. A lawsuit by the Electronic Frontier Foundation claims the model lacks transparency, may introduce bias, and is already causing harm, while also alleging CMS violated public records law by failing to release requested information.

CVS Health Opens Pharmacy-only Locations As It Rightsizes Store Footprint

CVS Health opened nearly 20 pharmacy-only locations with plans to expand as part of its healthcare-focused strategy.

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Editor's Note
CVS plans to expand pharmacy-only locations nationwide to improve access to essential pharmacy services. Each site will include a full-service pharmacy along with a tailored selection of over-the-counter products. This move is part of the company’s broader effort to reshape its pharmacy business and realign its retail footprint to better meet patient needs and adapt to changes in the industry.

Elevance Sidesteps Medicare Advantage Sanctions for Now

The insurer had until the end of March to correct faulty data submissions or be hit with severe sanctions from the CMS. But regulators agreed to give Elevance more time to comply.

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Editor's Note
Earlier this year, CMS notified Elevance that it planned to block its Medicare Advantage plans from enrolling new members and impose additional sanctions beginning March 31. Following the extension, Elevance now has until May 30 to correct its data before penalties take effect. The revised timeline gives both Elevance and CMS more time for technical discussions and allows the insurer to submit required corrections through CMS’s official electronic systems.

Over 130 Hospitals Sue HHS Over DSH Payments

Hospitals in 16 states have sued the department, arguing a 2023 final rule underpays hospitals that treat a disproportionate number of low-income patients.

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Editor's Note
Filed Monday, the lawsuit seeks to overturn the 2023 rule and require recalculation of Disproportionate Share Hospital (DSH) payments. These payments are intended to offset the financial burden of treating large numbers of uninsured, low-income, and Medicaid patients. However, the methodology used to calculate DSH payments has long been contentious and remains a frequent source of litigation.

Bipartisan Lawmakers Urge CMS To Crack Down on Medicare Advantage Overpayments

Senators praised a recent CMS proposal aimed at reducing payments in MA, but urged the agency to work with Congress and go further.

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Editor's Note
A bipartisan group of senators is urging the Centers for Medicare & Medicaid Services to go further in addressing overpayments in Medicare Advantage by tightening rules around how diagnoses are used for reimbursement. While they support a proposal to exclude certain chart review diagnoses, they argue additional reforms are needed to curb upcoding, which contributes to billions in excess government spending each year.

Bonus Article

Just for Fun

Math Joke:

What does the Excel analyst put in his hair?

 

Prior Week

Q: Why was the limit so mysterious? 

A: Because it always approached things… but never quite got there.

 

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