Daily Briefing

Around the nation: CMS issues guidance on limits for state-directed Medicaid payments


CMS last week issued guidance on federal limits for state-directed Medicaid payments, part of federal funding cuts outlined in the One Big Beautiful Bill Act (OBBBA), in today's bite-sized hospital and health industry news from California, the District of Columbia, Maryland, and North Carolina. 

  • California/North Carolina: Craig Albanese, CEO of Duke University Health System, will step down from his position to become president of integrated care and coverage at Kaiser Permanente, effective Sept. 29. According to Modern Healthcare, Albanese was previously EVP and COO at Duke Health before he became the system's CEO in March 2023, succeeding A. Eugene Washington. In his new role at Kaiser Permanente, Albanese will report directly to Kaiser Permanente CEO and chair Greg Adams. Currently, Duke Health is searching for Albanese's successor and said that "[a]n interim management structure for [the system] will be implemented until a new CEO is named." (DeSilva, Modern Healthcare, 9/10)
  • District of Columbia: Federal Trade Commission (FTC) chair Andrew Ferguson has named Emma Burnham as the new associate director for healthcare in the Bureau of Competition. Before joining FTC, Burnham spent 11 years as a prosecutor in the Justice Department's Antitrust Division. Most recently, Burnham served as the director of criminal enforcement at the Antitrust Division. She also previously held the positions of trial attorney, counsel to the assistant attorney general, assistant chief, and acting chief. As a senior antitrust official, Burnham prosecuted violations in the healthcare sector and led investigations into cartels in the generic pharmaceutical industry. "I am delighted to appoint Emma as Associate Director for Healthcare in the Bureau of Competition. She is a talented attorney with many years of experience at the Department of Justice as a senior antitrust enforcer," Ferguson said. "Emma will be an invaluable champion in the FTC's ongoing fight to protect Americans' access to affordable, high-quality healthcare." (Cass, Becker's Hospital Review, 9/9; FTC news release, 9/9)
  • Maryland: CMS last week issued guidance on federal limits for state-directed Medicaid payments. According to Healthcare Dive, this guidance is the first step toward implementing funding cuts outlined in OBBBA. Under the Biden administration, state-directed Medicaid payments were capped at commercial insurance rates, which are often double or triple what Medicare pays. Due to Medicaid reimbursement rates being insufficient, providers say state-directed Medicaid payments are a critical source of revenue, especially in rural areas. However, the new guidance caps these payments at 100% of Medicare rates in expansion states and 110% in non-expansion states. If Medicare rates are not available, payments will be based on state Medicaid rates. Cuts to state-directed payments in OBBBA are projected to exceed $140 billion and will impact Medicaid expansion states the most, analysts say. These changes are expected to take effect Jan. 1, 2028. (Vogel, Healthcare Dive, 9/10)

One Big Beautiful Bill Act: Understanding the healthcare impacts

Unpack the One Big Beautiful Bill Act (OBBBA) and its far-reaching effects on the healthcare industry, from significant reimbursement cuts to enrollment reductions across key healthcare programs.


SPONSORED BY

INTENDED AUDIENCE

AFTER YOU READ THIS

AUTHORS

TOPICS

INDUSTRY SECTORS

Don't miss out on the latest Advisory Board insights

Create your free account to access 1 resource, including the latest research and webinars.

Want access without creating an account?

   

You have 1 free members-only resource remaining this month.

1 free members-only resources remaining

1 free members-only resources remaining

You've reached your limit of free insights

Become a member to access all of Advisory Board's resources, events, and experts

Never miss out on the latest innovative health care content tailored to you.

Benefits include:

Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox

You've reached your limit of free insights

Become a member to access all of Advisory Board's resources, events, and experts

Never miss out on the latest innovative health care content tailored to you.

Benefits include:

Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox

This content is available through your Curated Research partnership with Advisory Board. Click on ‘view this resource’ to read the full piece

Email ask@advisory.com to learn more

Click on ‘Become a Member’ to learn about the benefits of a Full-Access partnership with Advisory Board

Never miss out on the latest innovative health care content tailored to you. 

Benefits Include:

Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox

This is for members only. Learn more.

Click on ‘Become a Member’ to learn about the benefits of a Full-Access partnership with Advisory Board

Never miss out on the latest innovative health care content tailored to you. 

Benefits Include:

Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox
AB
Thank you! Your updates have been made successfully.
Oh no! There was a problem with your request.
Error in form submission. Please try again.