CMS launches initiative to crack down on Medicaid funding for undocumented immigrants
CMS is launching a series of reviews to crack down on federal Medicaid funds going to cover those unlawfully present in the country and plans to recoup any affected federal funds, while a proposed rule would reduce Medicaid funding by $52 billion over the next five years and the House has passed a bill that would end federal funding for illegal immigrants and restrict federal dollars until their citizenship or immigration status is verified.
Lesser-known healthcare changes found in budget bill
The House-passed budget reconciliation bill includes numerous healthcare provisions, including Medicaid changes that would reduce future increases in federal Medicaid spending by $625 billion and result in 8.6 million more uninsured over a decade, as well as changes to tax-advantaged accounts and the Affordable Care Act, which would allow Medicare Part A enrollees to contribute to HSAs and allow HSAs to be used for fitness and exercise programs.
Employers anticipate 2026 to see biggest healthcare cost increase in over a decade
Employers are expected to experience a similar increase in healthcare costs in 2026, driven by factors such as disease prevalence, aging workforce, and government spending reductions, and are responding by increasing employee premium contributions, using wellness programs, and employing plan design and network strategies to steer patients to lower-cost, higher-quality providers.
Hospitals treating more patients with fewer staff
Hospitals have been hiring changes have decreased in the number of staffed beds despite patient volumes surpassing pre-pandemic levels.
Survey reveals most providers expect VBC revenue to increase this year
Most providers expect their value-based care revenue to increase this year, but financial risk remains the top barrier to adoption, with 20% of providers receiving over half of their revenue from fully capitated or downside risk.
For-profit hospital executives breathe easier as budget cuts soften
The House passed the budget reconciliation package with provisions that include work requirements, the repeal of new provider taxes, and a cap on new Directed Payment Programs, but executives expect minimal impact and the bill's healthcare provisions to be further whittled down when it is taken up by the Senate.
Hospitals urge ways to cut $1 trillion administrative cost
The American Hospital Association has submitted 100 regulatory changes to the Trump administration to reduce the estimated $1 trillion annual cost of health administrative requirements, including deregulating quality measures, billing and payment, and telehealth.
CMS proposes rule to curb Medicaid provider tax loophole
CMS is proposing a rule to limit the use of provider taxes to finance Medicaid, which would reduce Medicaid funding by $52 billion over the next five years and ensure federal Medicaid dollars go to pay for health care for vulnerable Americans, not to fund unrelated programs.
Rhode Island’s hospital price limits linked to 9.1% cut in hospital prices over 10 years
Rhode Island's unique rate-limiting program resulted in a 9.1% cut in hospital prices over 10 years, much of which was passed along to commercially insured plans and enrollees, and may inform other states on hospital price control initiatives.
Bad debt, charity up 32% since 2022
Uncompensated care costs have increased 32% in 2025 compared to 2022, but they have been offset by increasing hospital incomes, and the trend is driven by increased payer denials, growing ED visits, and Medicaid volumes.