November 4, 2019

Around the nation: Insurers could lose millions with new Texas Medicaid contract

Daily Briefing

    Some major health insurers, including Anthem, Cigna, and Molina Healthcare, could lose millions in premium revenue with the new contracts, in today's bite-sized hospital and health industry news from Indiana, Texas, and West Virginia.

    • Indiana: Riley Hospital for Children has signed an agreement with American University of Beirut Medical Center in Lebanon to partner in pediatrics, adolescent medicine, pediatric surgery, and pediatric cardiac surgery. As part of the agreement, the two hospitals will exchange residents, students, fellows, and faculty. In addition, the hospitals will collaborate on several programs and will have joint research and educational programs (Rappleye, Becker's Hospital Review, 10/30).

    • Texas: The Texas Health and Human Services Commission on Tuesday announced three-year contract awards for the Texas Medicaid Star+Plus managed care program. Several major health insurers, including Anthem, Cigna, and Molina Healthcare, were awarded contracts for fewer regions, and as a result, they are projected to lose millions in premium revenue with the new contracts, according to Modern Healthcare. Insurers will likely challenge the contracts in court, Modern Healthcare reports (Livingston, Modern Healthcare, 10/30).

    • West Virginia: Williamson Memorial Hospital on Oct. 21 filed for Chapter 11 bankruptcy, and according to a Worker Adjustment and Retraining Act Notification letter, the hospital may close by the end of the year. According to the letter, Williamson's financial problems are due to a number of issues, including poor reimbursement rates and "general economic difficulties of delivering health care in Mingo County" (Ellison, Becker's Hospital CFO Report, 10/30).
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