Budget Freeze Confusion
This week health policy news was dominated by the Trump Administration instituting funding freeze on financial assistance. Early in the week the White House announced, via a memo, a freeze in financial assistance programs, including grants and loans. This resulted in a wide freeze in federal funds including states being unable to have access to Medicaid federal funds. On Wednesday the memo was rescinded. Additionally a federal court ordered the government to lift the freeze. Several outlets reported that while Medicaid funding was unfrozen there is currently confusion as to whether some funding streams were still frozen. The White House has taken a position that it has the authority to unilaterally freeze federal payments so this issue will likely reoccur.
RFK Hearing
The Senate held a hearing around Robert F Kennedy Jr’s nomination for HHS Secretary. The hearing focused on RFK’s prior history of anti-vaccine activism. Kennedy voiced support for Medicare Advantage during the hearing. RFK is expected to talk with a key Senate committee today before his nomination moves towards a vote.
Policy Change on Hyde Amendment
HHS released an announcement around a policy change around enforcing the Hyde Amendment. The new policy calls for vigorously enforcing the Hyde Amendment. The Hyde Amendment prevents federal funds from paying for elective abortions. Under the previous Trump Administration this meant the imposition of separate funds to pay for abortions for Marketplace plans. This policy tends to reduce enrollment for issuers that offer this benefit. There are likely additional policy changes coming on this issue.
Cigna Higher Medical Costs
Cigna reported higher than expected medical expenses in the fourth quarter. UnitedHealth also reported higher than expected medical expenses. The higher-than-expected medical trend is expected to reduce profit and put pressure on premium next year.
