chevron-down Created with Sketch Beta.
February 02, 2024

Washington Roundup

Here is a link to January 31’s hearing held by the House Energy and Commerce Committee’s Health Subcommittee about national healthcare expenditures. 

Fierce Healthcare tells us,

  • “Medicare Advantage (MA) payments are set to decrease yet again in 2025 as the feds phase in significant changes to risk adjustment.
  • “As those overhauls begin to take effect, benchmark payments are set to decline by about 0.2% on average, according to the latest advance notice released by the Centers for Medicare & Medicaid Services (CMS).
  • “Despite this, the feds said Wednesday that payments to MA plans are expected to increase by 3.7% in 2025, a $16 billion increase over 2024. The payment rate announced today could change by the time the final rate announcement is published, no later than April 1.”

The CY 2025 Advance Notice may be viewed by going to: and selecting “2025 Advance Notice.”

A fact sheet discussing the provisions of the CY 2025 Advance Notice, as well as frequently asked questions, can be viewed here:

Beckers Payer Issues adds,

  • “A bipartisan group of lawmakers is urging CMS to maintain “payment and policy” stability in Medicare Advantage. 
  • “In a letter to CMS Administrator Chiquita Brooks-LaSure, the group of 60 senators asked the agency to “consider the ongoing implementation of program reforms finalized last year and provide stability for the Medicare Advantage program in 2025.”  * * *
  • “The letter comes after two lawmakers, Sen. Elizabeth Warren and Rep. Pramila Jayapal, wrote to the agency urging more action on curbing overpayments to the program. 
  • "Read the full letter here.

KFF shares three charts about Medicare drug price negotiations.

Reuters reports,

  • “Pharmaceutical companies are due to receive by Thursday [February 1] the U.S. government’s opening proposal for what are expected to be significant discounts on 10 of its high-cost medicines, an important step in the Medicare health program’s first ever price negotiations.
  • “Five Wall Street analysts and two investors told Reuters they expect the negotiations over prices that will go into effect in 2026 to result in cuts ranging from the statutory minimum of 25% to as much as 60% when the final numbers are set in September.
  • “The drugmakers and the government are expected to wait until then to disclose them.” * * *
  • “Pharmaceutical companies and business groups have filed more than half a dozen lawsuits to stop the negotiations from taking place, saying that they are unlawful.
  • “Drug companies say the law’s costs will hurt drug development programs and patients.”
  • “The lawsuits have not slowed the implementation timeline.”
The material in all ABA publications is copyrighted and may be reprinted by permission only. Request reprint permission here.