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News You Need to Know Today
Healthcare Ecomomics | June 2018
Friday, June 1, 2018
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Editor's Choice: Economics

Partners finalizes merger agreement with Care New England

The deal will still need to be approved by federal and state regulators, but after delays in contract talks and an unsolicited bid from Brown University, the agreement advances Partners HealthCare’s aim of expanding beyond Massachusetts and matching the increased scale of other Boston-based health systems.

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Partners HealthCare HQ
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Partners finalizes merger agreement with Care New England

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Partners HealthCare HQ
The deal will still need to be approved by federal and state regulators, but after delays in contract talks and an unsolicited bid from Brown University, the agreement advances Partners HealthCare’s aim of expanding beyond Massachusetts and matching the increased scale of other Boston-based health systems.
READ MORE >

California’s rate-setting bill shelved

The legislation, sponsored by California Assemblyman Ash Kalra, a Democrat from San Jose, would have created a state commission to set rates for many medical services currently covered by private insurers in the group and nongroup markets.

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California Assemblyman Ash Kalra
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California’s rate-setting bill shelved

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California Assemblyman Ash Kalra
The legislation, sponsored by California Assemblyman Ash Kalra, a Democrat from San Jose, would have created a state commission to set rates for many medical services currently covered by private insurers in the group and nongroup markets.
READ MORE >

Individual mandate repeal won’t be as bad for insurance coverage as previously thought

The Congressional Budget Office has scaled back its projections of coverage losses from the Affordable Care Act’s individual mandate being repealed, estimating 8.5 million people will be uninsured in 2027 due to the penalty being eliminated by Republicans’ tax legislation beginning next year.

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Individual mandate repeal won’t be as bad for insurance coverage as previously thought

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The Congressional Budget Office has scaled back its projections of coverage losses from the Affordable Care Act’s individual mandate being repealed, estimating 8.5 million people will be uninsured in 2027 due to the penalty being eliminated by Republicans’ tax legislation beginning next year.
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UnitedHealth: Medicaid more cost-effective than ACA plans

UnitedHealth said it costs an average of $9,400 annually to cover a low-income, subsidized enrollee on the marketplace with $7,000 of that cost falling on the federal government. For someone eligible for Medicaid thanks to the Affordable Care Act (ACA), the overall cost is $5,400—with $5,100 coming from federal funds.

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UnitedHealth: Medicaid more cost-effective than ACA plans

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UnitedHealth said it costs an average of $9,400 annually to cover a low-income, subsidized enrollee on the marketplace with $7,000 of that cost falling on the federal government. For someone eligible for Medicaid thanks to the Affordable Care Act (ACA), the overall cost is $5,400—with $5,100 coming from federal funds.
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TransUnion acquires Healthcare Payment Solutions

TransUnion Healthcare has announced the acquisition of reimbursement technology company Healthcare Payment Solutions (HPS). Adding HPS solutions to its portfolio will boost TransUnion’s position in the post-discharge revenue recovery technology market, the company said.

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TransUnion acquires Healthcare Payment Solutions

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TransUnion Healthcare has announced the acquisition of reimbursement technology company Healthcare Payment Solutions (HPS). Adding HPS solutions to its portfolio will boost TransUnion’s position in the post-discharge revenue recovery technology market, the company said.
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Medicare Part D consolidation will only get worse with proposed megamergers

Three sponsors of Medicare Part D plans—UnitedHealth Group, Humana and CVS Health—account for more than half the program’s total enrollment. If proposed mergers involving smaller players like Aetna, Express Scripts and Cigna move ahead, the market would become even more concentrated.

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merger.png
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Medicare Part D consolidation will only get worse with proposed megamergers

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merger.png
Three sponsors of Medicare Part D plans—UnitedHealth Group, Humana and CVS Health—account for more than half the program’s total enrollment. If proposed mergers involving smaller players like Aetna, Express Scripts and Cigna move ahead, the market would become even more concentrated.
READ MORE >

Primary care compensation rising as practices get spooked about physician shortage

Primary care physicians and non-physician practitioners have seen their compensation rise more rapidly than specialists, which the Medical Group Management Association (MGMA) said is evidence of the worsening shortage of primary care doctors.

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Halee Fischer-Wright, MD
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Primary care compensation rising as practices get spooked about physician shortage

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Halee Fischer-Wright, MD
Primary care physicians and non-physician practitioners have seen their compensation rise more rapidly than specialists, which the Medical Group Management Association (MGMA) said is evidence of the worsening shortage of primary care doctors.
READ MORE >

Maryland all-payer model expands beyond hospitals

CMS has approved an extension of Maryland’s model of offering a fixed payment for most hospital services, allowing physician practices and nursing homes to voluntarily participate in a program that has saved Medicare hundreds of millions of dollars.

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Maryland
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Maryland all-payer model expands beyond hospitals

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Maryland
CMS has approved an extension of Maryland’s model of offering a fixed payment for most hospital services, allowing physician practices and nursing homes to voluntarily participate in a program that has saved Medicare hundreds of millions of dollars.
READ MORE >

Health spending, prices growing even as insurance coverage falls

Year-over-year price growth was 2.2 percent in April 2018, which Altarum said was fractionally above the March rate, setting a six-year high for price growth in the sector. Hospital price growth fell slightly to 3.7 percent.

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Health spending, prices growing even as insurance coverage falls

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Year-over-year price growth was 2.2 percent in April 2018, which Altarum said was fractionally above the March rate, setting a six-year high for price growth in the sector. Hospital price growth fell slightly to 3.7 percent.
READ MORE >

Hospitals without competition have higher prices

When hospitals enjoy a monopoly in their market, their prices for privately insured patients are 12.5 percent higher on average, according to a study encompassing 88 million people covered by Aetna, Humana and UnitedHealthcare. The differences disappeared when consolidating facilities were located more than 25 miles apart.

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Hospitals without competition have higher prices

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When hospitals enjoy a monopoly in their market, their prices for privately insured patients are 12.5 percent higher on average, according to a study encompassing 88 million people covered by Aetna, Humana and UnitedHealthcare. The differences disappeared when consolidating facilities were located more than 25 miles apart.
READ MORE >

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