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This is Jacob Emerson with the Becker payers

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issues podcast.

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Here is your bi weekly industry news briefing

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4 June 20 fourth.

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A federal court has kept the Ach aca

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preventive care mandate in place for now, but

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is raising questions about its constitutional.

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The fifth Us Court of Appeals issued a

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decision in Braid Management versus Ba on June

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20 first.

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Judges there called their decision a, quote mixed

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bag, and the case is likely to be

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lit in higher courts.

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Braid Management to Texas company. Sued Hhs back

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in 20 21.

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The company argued that the requirement to cover

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prep for Hiv prevention, violated the company's religious

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freedoms.

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The Appeals court ruled Braid wood cannot be

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compelled to pay for prep for its employees,

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but reversed a lower court decision that prevented

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the federal government from enforcing requirements. To cover

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preventive services.

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Of course, the Aca requires payers to cover

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more than 100 preventive services with no c

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pays and more than a hundred million people

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use those services every year.

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In March, of last year, Us district Judge,

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R O'connor ruled, that recommendations made by the

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Us Preventive Services task force made after 20

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10 do not need to be comp with

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and blocked the federal government from enforcing its

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recommendations.

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Hhs later struck a deal to preserve the

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mandate while the case was appealed. The appeals

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court agreed with mister O'connor ruling that because

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the members of the task force are not

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confirmed by the Senate. Their authority to mandate

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coverage of services is

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unconstitutional. They did say though, we think it

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was air however for the court to have

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also vacated all agency actions taken to enforce

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to preventive care mandates and to universally enjoying

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the defendants from enforcing them. The The decision

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in the case will therefore apply only to

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Braid wood management. The appeals court will send

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the issue of the authority of the task

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force back to a lower court. To decide,

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and the case is likely to make its

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way to the Supreme Court.

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Will rise ant Health, a non nonprofit formed

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under Kaiser Permanente has signed a definitive agreement

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to acquire Cone health, which is based out

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of Greens, North Carolina.

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The news comes less than 3 month after

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R acquired its first health system, Dan, Pennsylvania

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based Ge health.

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Cohen health includes 4 acute care hospitals, a

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behavioral health facility, 3 ambulatory surgery centers, 8

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urgent care centers, and more than a hundred

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and 20 physician practices.

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It has more than 13000 employees in over

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700

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physicians.

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It also

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more Is the majority owner of health team

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advantage, a health insurance subsidiary founded in 20

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15.

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Winston, Salem of North Carolina based, Nova Health

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holds a minority stake and health team advantage,

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which has

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about 17000

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members and offers M plans and eligible... 2

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eligible Medicare beneficiaries in certain North Carolina counties.

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We'll change health has started informing healthcare

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organizations into insurers and other entities, whose data

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was breached in the February ransom attack. Change

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a subsidiary of United Health group has reviewed

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more than 90 percent of the affected files.

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Information potentially exposed in the attack includes names,

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addresses, health insurance information and search security numbers.

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To date, there is no evidence that medical

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charts or full medical histories were leaked in

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the breach. The company said it is still

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investigating and they may identify more customers who

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data whose data was compromised.

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In late April, the company said data stolen

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buy hackers likely covers a substantial proportion of

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people in America. Customers Change will start notifying

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individual patients affected by the breach in late

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July.

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While some of the nation's largest health insurers

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have signaled significant headwind in recent. And months

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with their Medicaid businesses, Mass costs rise in

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the effect of red

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takes hold. But fit analysts expect those headwind

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to be short lived. And in a June

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brief shared with Becker, Fit wrote that regardless

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of the core drivers of the higher utilization

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rates, we expect the resulting Medicaid margin pressure

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to be relatively short lived as rates setting

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discussions with states should incorporate the higher levels

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of acuity. For most companies,

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diversification, particularly in commercial group and individual exchange

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markets will also continue to be beneficial in

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helping to offset the temporary margin pressure in

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Medicaid.

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Additionally, higher interest rates continue to more heavily

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benefit the investment income generated by the large

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high quality bond portfolios of publicly held health

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insurers.

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We As of June fourteenth, more than 23000000

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people have lost Medicaid coverage. That's a direct

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hit to private insurers enrollments. If Medicaid managed

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organizations continue to lose members, but the enroll

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that keep retain use health care at a

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higher rate. Profits could suffer.

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Fit is analyst wrote that the morbidity of

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the risk has deteriorated. What's precise causes of

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higher acuity within remaining medicaid medicaid

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beneficiaries. Is currently unclear. However, we believe that

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1 potential factor is adverse selection driven in

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part by the high level of dis enrollment

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for procedural reasons.

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Well, priority Health is planning to purchase physicians

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health plan of Northern Indiana, a Fort Wayne

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based payer with more than 52000 members in

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Indiana, and Ohio,

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pending regulatory approvals, that acquisition is is expected

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to close by the end of this year.

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Financial terms of the deal were not disclosed.

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Priority health is the payer arm of Grand

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Rapids Michigan based core health, which serves more

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than 1300000.0

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people across commercial Medicare and Medicaid plans.

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Finally, the Us uninsured rate is projected to

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increase to 8.9

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percent by 20 34.

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That's according to new estimates published by the

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congressional budget office in June.

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According to the Cb, the nation's on uninsured

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rates in 20 23 hit a record low

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of 7.2

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percent. A preliminary survey published in June by

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these Cdc found the 20 23 short rate

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was 7.6

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percent. That's about 25000000 people nationwide.

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The Cb, which attributes the expected on uninsured

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increase over the next decade to medicaid red

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determinations and the expiration of Aca premium subs.

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Cities after 20 25.

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A recent increase in immigration will also contribute

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to that rate. The largest increase in the

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uninsured population between 20 24 and over the

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next decade will be among adults, ages 19

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to 44.

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If you like the latest health insurance industry

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