News from CMS

Reduction in number of Part D plans could impact about 3 million Medicare beneficiaries.

CMS plans to streamline operations by keeping insurers from marketing more than one basic drug plan in any location.

Our Take: Implementation of the ruling will reduce the number of available health plans by about 1,600. Ironically, the plan is to eliminate the confusion seniors might feel as they navigate the system. However, the impact of the ruling has been criticized as well. Those affected by the shift will be required to vacate plans that are being eliminated and could see changes to their costs in terms of adjusted premiums and co payments. Read more here.

HHS Secretary Sebelius statement advises governor's to apply for Medicaid funds earns mixed response.

Our Take: The announcement that governors must ask for the newly approved Medicaid funds is seen by some as a move to require critics of the deficit spending initiatives to seek the monies that were approved when Congress reconvened during its recess. The issue is covered here in Kaiser Health News along with the text of the Secretary's letter.

Medicare Advantage Plans under greater scrutiny.

New reporting templates, awaiting final approval at Office of Management and Budget, are being considered "final" and will enhance scrutiny of the MA programs.

Our Take:   The initiatives will be undertaken under CMS' Quality Improvement Projects (QIPs) and Chronic Care Improvement Programs (CCIPs) and are intended to "take things up a notch" in terms of assessing and monitoring of MA plans. The new forms are more detailed reporting templates for both the CCIP and QIP initiatives.  They will require details of methodologies used in CCIPs. Likewise QIP requirements will be more extensive, particularly for plans using QI indicators other than in HEDIS. Also this week, a George Washington University School of Public Health Policy Professor and researchers from researchers at Milliman presented data at a summit suggesting that cuts to MA will likely be greater than originally projected due to the Medicare fee schedule. We'll update on this as relevant information becomes available.