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September 9, 2021

Around the nation: CMS allocates $452M for reinsurance programs in 13 states

Daily Briefing

    CMS will send $452 million in funds—ranging from $2.5 million to $139 million—for reinsurance programs in 13 states, in today's bite-sized hospital and health industry news from the District of Columbia, South Dakota, and Utah. 

    • District of Columbia: CMS on Tuesday announced plans to send $452 million to reinsurance programs in 13 states, including Colorado, Maine, and Oregon. According to Axios, reinsurance programs directly compensate health insurers for some of their most expensive claims, preventing premiums from increasing. The funds, which come from the American Rescue Plan, range from $2.5 million to $139 million depending on the size of each state's program, Axios reports. In addition, CMS said the funds will allow more people to be enrolled in health coverage and cover part of the states' costs for the reinsurance programs. "This investment is a testament to our Administration-wide commitment to making health care more accessible and affordable," HHS Secretary Xavier Becerra said. "This funding ... will reduce monthly health care costs for consumers, increase coverage, and provide more options." (Fernandez, Axios, 9/7; press release, 9/7)
    • South Dakota: Gov. Kristi Noem (R) on Tuesday signed an executive order requiring people seeking medication abortions to undergo a medical exam and pick up the medication at a doctor's office. According to Axios, the order eliminates abortion services through telehealth. Based on online registries, the state currently only has one abortion clinic, Axios reports, and the order effectively limits access to abortion services for those who do not have the means to travel long distances. (Sclafani, Axios, 9/7)
    • Utah: University of Utah Health Hospitals and Clinics last week named Dan Lundergan CEO of the health system, effective immediately. According to Becker's Hospital Review, Lundergan has served as interim CEO since February. Lundergan began his career at University of Utah Health more than 40 years ago as a laundry worker and worked his way up through the organization. Most recently, he served as COO of the health system. (Jensik, Becker's Hospital Review, 9/2)

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