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Week in Washington 6/11/26

Reconciliation 3.0 Watch – Congress this week passed a reconciliation bill for funding ICE and related immigration enforcement. With the passage of the 2nd reconciliation bill, eyes turn to the potential of a third reconciliation bill. Several House Republicans hope to pass a bill that would combine military spending with cuts to health programs. Cuts ... Continue reading

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Newsworthy Findings

Rethinking Downside Risk: The Role of Stop Loss in ACO Contracts

Wakely, an HMA Company, is putting out a series of white papers for providers taking MA risk. Our new white paper, Rethinking Downside Risk: The Role of Stop Loss in ACO Contracts, is the first installment in the ACO Risk Mitigation Strategies series developed by Wakely experts, in collaboration with Josh Gottesman of Brown & Brown. Written for ACO leaders evaluating two-sided risk in MSSP or the new LEAD Model, the paper explains how aggregate and member-level stop-loss reinsurance, paired with disciplined actuarial projection, can help organizations limit exposure to large repayments to CMS while preserving more of the upside that comes with taking downside risk.

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Editor's Note
Wakely supports a range of providers who take risk in Medicare Advantage (MA) and other government and commercial insurance programs.

1 in 5 U.S. Adults Denied Doctor-Recommended Care: Commonwealth Fund

Americans are increasingly frustrated about being blocked off from care, which results in worse health outcomes and financial stress.

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Editor's Note
The study found insurance denials before care was provided delayed patients’ treatments and worsened their health problems. Denials after care frequently left patients with unexpected medical bills or threw them into long-term debt. Perceptions about rising rates of denials have resulted in widespread frustration, especially as the cost of health insurance spikes, with patients arguing they’re still not able to access the care they need even if they shell out high monthly premiums for coverage.

PSG Report Examines Payers and Employers’ Attitudes Towards GLP-1 Coverage, Unbundling’ PBM Models

Despite steady demand for obesity medications, 49% of payers who do not currently cover GLP-1s for obesity would not do so at any price.

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Editor's Note
The top reasons for excluding coverage for obesity medications include the high cost of covering all members who may be prescribed the medication (45%), the perception that these medications are lifestyle drugs (24%), ongoing cost exposure (18%), and high discontinuation rates resulting in limited ROI (5%).

Illinois Awards New Medicaid Contracts

The state said it intends to divvy out new contracts, which represent tens of billions of dollars in revenue for each awardee, to six insurers. Winners are mostly incumbents, except for Humana.

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Editor's Note
Illinois plans to award new Medicaid managed care contracts to six insurers through 2030, including incumbents such as Centene, Aetna, Molina, and Humana. The contracts are worth more than $140 billion over the initial term and place greater emphasis on care coordination, behavioral health and social determinants of health. These contract awards come as Medicaid faces major uncertainty from federal funding cuts; however, market share is not expected to be significantly disrupted.

Cities Sue to Block ACA Rule For Increasing Uninsured Rate

City leaders said the regulation risks undermining the Affordable Care Act exchanges and adding new costs for local governments. Now, they’re suing to overturn the rule.

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Editor's Note
Several cities and healthcare organizations are suing HHS over a new ACA regulation that adds stricter enrollment requirements for marketplace plans beginning in 2027. The rule requires additional income and eligibility verification, changes tax credit rules, and expands access to lower-premium catastrophic plans. Opponents argue it will reduce enrollment and increase the number of uninsured Americans.

Medicare Insolvency Date Creeps Forward Thanks to ‘Big Beautiful Bill,’ Trustees Find

The trust fund underpinning Medicare’s hospital benefit is set to run out of money one quarter earlier than previously expected due to tax cuts in the GOP’s reconciliation legislation.

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Editor's Note
Medicare’s Hospital Insurance trust fund is now expected to be depleted in the second quarter of 2033, one quarter sooner than previously projected. CMS Chief Actuary Paul Spitalnic summed up the reason plainly: “lower taxation means... there’s a little less income coming in.” The fund is also being pressured by rising enrollment in Medicare Advantage, which costs Medicare more per beneficiary than traditional fee-for-service coverage according to the trustees.

Bonus Article

Just for Fun

Math Joke:

Why did the moon ace trigonometry?

Prior Week

Q: Why didn’t the quarter roll down the hill with the nickel?

A: Because it had more cents.

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