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Week in Washington 06/25/26

Indiana Hospital Caps – Indiana is moving forward with price cap requirements for the five largest hospital systems. Indiana is expected to release data identifying which hospitals may be affected by the cap at the end of the month. Other states are looking into following Indiana’s model as rising health care costs continue to pressure ... Continue reading

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Newsworthy Findings

US Health Spending Spikes To $5.7T In 2025, Though Growth Should Moderate, CMS Finds

Utilization - not cost growth - continues to accelerate spending, government actuaries said. Rising prescription drug spending, including GLP-1s, is especially acute.

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Editor's Note
U.S. healthcare spending rose 7.3% to $5.7 trillion in 2025, driven primarily by increased use of healthcare services and expensive prescription drugs, especially GLP-1 weight loss and diabetes medications, rather than higher prices. CMS projects healthcare spending will continue to outpace economic growth, reaching $9 trillion (20.6% of GDP) by 2034, with Medicare seeing the fastest spending growth due to an aging population, while Medicaid growth slows because of recent policy changes and coverage reductions.

Anthem BCBS is Leaving ACA Small Group Market in Ohio

The exit follows a trend since the end of the enhanced premium tax credits in 2025 and the resulting premium increases and declining enrollments in 2026.

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Editor's Note
Anthem’s Ohio exit highlights that insurer participation in ACA markets depends heavily on regulatory and funding stability. When subsidies, taxes, and rules are uncertain, carriers may reduce their footprint or leave markets entirely.

DOJ Announces $6.5B Healthcare Fraud Takedown With Record Medicaid Enforcement

The Department of Justice announced charges against 455 individuals in connection with more than $6.5 billion in alleged healthcare fraud, highlighting record Medicaid enforcement actions, fraudulent wound allograft schemes, and expanded use of data analytics to identify and prevent improper payments.

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Editor's Note
This article provides an overview of the DOJ's latest nationwide healthcare fraud enforcement effort, emphasizing the scale of alleged fraudulent activity, Medicaid program integrity initiatives, and interagency collaboration to combat healthcare fraud.

Unpacking CMS' Decision to Recalculate 2026 MA Star Ratings After Clover Health Ruling

CMS is recalculating 2026 Medicare Advantage Star Ratings following a federal court ruling in favor of Clover Health that found certain rating measures were improperly applied, a decision that could affect plan ratings, 2027 bid submissions, and future litigation across the MA industry.

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Editor's Note
The Clover ruling could force meaningful changes to how CMS calculates MA Star Ratings, creating new upside for some plans but broader volatility and litigation risk across the program.

The $50B Rural Health Transformation Fund is Pushing Many Hospitals to Shrink

To avoid losing funding, many states are pursuing proven cost-saving strategies like downsizing inpatient care rather than untested approaches, some experts say.

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Editor's Note
The rural health fund is intended to transform care, but because of Medicaid cuts, funding limits, and clawback risk, it may function more like a managed downsizing program for rural hospitals.

Bonus Article

Just for Fun

Math Joke:

Why did the statistician bring a ladder to the presentation?

Prior Week

Q: What’s a mathematician’s favorite type of music?

A: Algo-rhythms.

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