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Week in Washington 06/04/26

Work Requirements Regulation Released  CMS released the long-awaited rules outlining how states will be required to implement Medicaid work requirements beginning January 1, 2027. Under last year’s legislation, Medicaid expansion enrollees, unless granted an exemption, must work or participate in 80 hours of community engagement per month to maintain their coverage. The regulations released by ... Continue reading

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Newsworthy Findings

Eli Lilly Issues Data Sharing Ultimatum To 340B Hospitals

Select hospitals have refused to share data to prove they’re not double-dipping drug discounts, the drugmaker said. Lilly is giving them until Monday to comply, or lose out on 340B savings altogether.

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Editor's Note
Eli Lilly is requiring hospitals participating in the 340B drug discount program to submit claims data by June 8 or lose access to discounted pricing on Lilly medications. Lilly says the data is needed to prevent duplicate discounts and fraud, while hospital groups argue the requirement is unlawful, administratively burdensome, and could encourage other drugmakers to impose similar restrictions. The dispute reflects a broader conflict between pharmaceutical manufacturers and providers over oversight and use of the rapidly growing 340B program.

Trump Signs Off on HHS Overhaul of Childhood Vaccine Schedule with New Executive Order

President Donald Trump has endorsed a decision by the Department of Health and Human Services to cut down the number of required vaccinations for children, directing federal agencies to align their policies with HHS' assessment.

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Editor's Note
President Trump signed an executive order supporting HHS Secretary RFK Jr.'s overhaul of the childhood vaccine schedule and directed the CDC and ACIP to review and potentially revise current recommendations. The updated schedule removed routine recommendations for flu, COVID-19, rotavirus, meningitis, hepatitis A, and hepatitis B vaccines for children, though these vaccines remain available after consultation with a healthcare provider.

CMS Releases Medicaid Work Requirements Guidance for States

The highly anticipated interim final rule weighs in on key issues for states hustling to operationalize work requirements before the 2027 deadline.

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Editor's Note
Starting on Jan. 1, 2027, Americans who receive Medicaid coverage due to their state’s expansion under the Affordable Care Act will have to work, volunteer or attend school for 80 hours a month to stay enrolled in the insurance program. The rule includes some flexibilities, allowing individuals to self-attest that they’re exempt once before states require documentation.

Mayo’s Latest AI Bet: A Frontier Model with Microsoft

The advanced model should support earlier and more accurate diagnoses and treatment planning.

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Editor's Note
The deal will combine Mayo’s de-identified clinical data with Microsoft’s AI, cloud and engineering capabilities to build a so-called “frontier” model for a range of clinical reasoning and healthcare use cases, the partners said in a press release. Mayo will own the frontier model, but Microsoft plans to make it available to other organizations through its Azure Foundry AI platform.

OIG: Feds May Have Overpaid MA Plans by Millions Due to Unsupported Stroke Diagnoses

A federal OIG audit found that Medicare Advantage plans may have received about $462 million in overpayments in 2021 due to unsupported acute stroke diagnoses that were not backed by medical records.

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Editor's Note
This highlights the importance of strong documentation and validation controls in risk adjustment to ensure payments accurately reflect members’ true clinical conditions.

Bonus Article

Just for Fun

Math Joke:

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

Prior Week

Q: How do you make seven an even number?

A: Remove the “S”.

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