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Week in Washington 09/11/25

Budget Bill Latest Congress’ energy continues to be focused on a budget bill. Congress has until the end of the month to pass a budget. One of the largest points of contention is the extent to which an extension of enhanced premium tax credits for the individual market are included. It’s also possible that the ... Continue reading

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Newsworthy Findings

Mayo Clinic to Close 6 Clinics, Consolidate Service Lines

The nonprofit provider said low patient volumes and persistent staffing shortages motivated the decision.

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Editor's Note
Mayo Clinic plans to close six of its clinics in Minnesota by Dec. 10. It is consolidating services in part to address lower patient volumes and staffing shortages. Experts warn that rural hospital cuts and closures could increase as implementation of the One Big Beautiful Bill Act begins.

AHA Accuses Drug Companies of Colluding to Impose 340B Rebate Plans

The hospital lobby wants the Trump administration to investigate Johnson & Johnson, Eli Lilly, Sanofi, Novartis and Bristol Myers Squibb, citing the suspicious timing of their 340B rebate proposals.

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Editor's Note
These major drugmakers built up and announced their 340B rebate plans over the same five months which is leading the AHA to believe there is illegal coordination going on between these companies to remake 340B.

Health Benefit Cost Increases Expected to Hit 15-Year High, Mercer Warns

The cost of health benefits per employee could climb an average of 6.5% next year, with the outsized increases signaling a mounting pressure on employers’ healthcare budgets.

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Editor's Note
Rising healthcare prices and utilization are the two primary components of health benefit cost trends. These are driven by factors such as rising inflation trends and advances in diagnostics and therapeutics, such as cancer treatments and weight-loss drugs, that tend to be more expensive.

Medicare Advantage Penetration Doesn’t Translate to Lower Hospital Margins: MedPAC

Higher Medicare Advantage enrollment isn’t associated with a change in hospital margins, with the findings throwing cold water on hospital allegations that the privatized Medicare plans are contributing to shrinking margins, especially for cash-strapped rural facilities.

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Editor's Note
A 10-percentage point increase in MA penetration was associated with a 1.3% drop in revenue — but with a 1.2% drop in costs, too. These findings show that Medicare Advantage is delivering for seniors and taxpayers — not driving the financial challenges some hospitals have raised.

CMS Delays Medicare Advantage Unused Benefits Policy: Impact on Healthcare Providers

CMS delayed the Medicare Advantage unused benefits notification policy, scheduled for implementation on January 1, 2026, in response to industry concerns and practical challenges. It affects over 33 million Medicare Advantage Plan subscribers and is a significant policy reversal on which healthcare stakeholders must be very clear.

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Editor's Note
Delays in moving forward with this benefits policy came from industry feedback, implementation issues, and logistical concerns with lack of technical guidance.

Bonus Article

Just for Fun

Math Joke:

What did the acorn say when it grew up?

Prior Week

Q: Why don’t mathematicians argue?

A: Because they always sum things up.

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