Hospital Corporation of America Newsletter
week beginning August 5, 2019
NOTEWORTHY
Del Sol Medical Center Treats Victims of Mass Shooting
HCA Healthcare's Del Sol Medical Center in El Paso, Texas, received and treated 11 of the 26 wounded in a mass shooting at a local Walmart on August 4. Governor Greg Abbott (R) visited El Paso and deployed state troopers, tactical teams, and the Texas Rangers, calling this a heinous act. CEO David Shimp and Dr. Stephen Flaherty, on the morning of August 6, announced the passing of two more victims, raising the death toll to 22.

Sam Hazen, HCA Healthcare's CEO, said on Monday, August 5, "During the past two days, Del Sol's physicians, nurses, administrators, and support teams have worked tirelessly to serve their local community in one of its darkest times. In the midst of tragedy, they continue to do whatever it takes to care for patients, their families, and each other. As I watch the various news conferences led by Del Sol's CEO, David Shimp, and medical director of trauma, Dr. Stephen Flaherty, I am overcome with an appreciation for how much our colleagues give of themselves to serve others.  I am proud of the skill and compassion demonstrated by the team at Del Sol Medical Center and of our caregivers across the enterprise who are pillars of strength when our communities need us most. Their work - your work -- is the first step in helping individuals, families, and communities heal. "
Top Health Policy Aide to Leave White House
Abe Sutton, the White House's top health policy aide for the Domestic Policy Council, is leaving this week and is headed to law school. Abe helped guide the Trump Administration's work on drug pricing and insurance market reforms, and the kidney care initiative unveiled by the President last month. Maria Bonner, also on the Domestic Policy Council will assume much of Sutton's portfolio, while Leslie Ford will undertake his work on Medicaid and other issues.
John Meacham Takes the Stage at NCSL in Nashville

John Meacham, a presidential biographer, Pulitzer Prize winner, and one of America's most prominent historians is all about looking back with an eye to the future. Meacham is a prolific author of numerous bestsellers including, "The Soul of America: The Battle For Our Better Angels," and his recent book with country singer Tim McGraw, "Songs of America: Patriotism, Protest, and the Music That Made a Nation." HCA was a sponsor of NCSL's National Meeting and hosted 6,000 + legislators in Nashville.
Southern Hills Holds ESO Event Attended by Legislators

CEO Alexis Mussi of Southern Hills Hospital in Las Vegas, Nevada (pictured third from right), and her team held an ESO event at the hospital, to which Senate Finance Chair Wooodhouse (D) (pictured front row, center right) and Assemblywoman Gorelow (D) (pictured front row, center left) attended.

Southern Hills Hospital invited its EMS partners to come and learn about a new technology called ESO. HCA has made a significant investment to implement ESO, which streamlines information to physicians to make sure they get all the information for a patient in an emergency situation. It also provides feedback for EMS so that they can see if their diagnosis was correct. In addition, 
Ms. Mussi took this opportunity to thank Senator Woodhouse for her work to increase Medicaid reimbursement rates during the last session.
Inside this issue
FEDERAL
STATE
  FEDERAL  
  House Ways and Means Committee to Introduce Surprise Medical Bill Legislation  
  The House Ways and Means Committee leaders are crafting their own legislation to address surprise medical bills, which could possibly compete with the bill approved last month by the House Energy and Commerce Committee.
 
Chairman of the House Ways and Means Committee, Richard Neal (D-MA), and Ranking Member, Kevin Brady (R-TX), are still working on the details; however, they plan to mark up their own bill, rather than take up the Energy and Commerce legislation that contains federal rate-setting or legislation proposed by Representatives Raul Ruiz (D-CA) and Phil Roe (R-TN), which allows for arbitration.

The House Education and Labor Committee has also signaled its interest in the issue, though it's not clear whether the panel will hold its own markup.
 

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  Insurers Profit on Short-Term Health Plans  
  The National Association of Insurance Commissioners' published their 2018 Accident and Health Policy Report, which shows the percentage of premiums spent on medical claims. The data brings to light the limited value that people receive when enrolling in short-term health plans, which the Trump administration expanded access to last year. The short-term plans do not have to comply with the Affordable Care Act rules, resulting in carriers paying fewer claims for paying less on the dollar.

The average loss ratio of the five health insurers that bring in the most premiums from short-term insurance policies was 39.2% in 2018. That means that 39 cents of every $1 collected in premiums was spent on medical care, while the rest was spent on administrative expenses or kept as profit. In contrast, the average loss ratio among comprehensive major medical plans purchased by individuals in 2018 was about 73%, according to the NAIC report.
 

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  Opioid Litigation Updates  
  A federal judge overseeing the consolidation of about 2,000 opioid cases brought by cities and counties, has expressed support for a plan brought by the plaintiffs that would bring every city, town, and county in the United States into the settlement talks with opioid manufacturers, distributors, and pharmacies. State Attorneys General (AGs), who are pursuing their own settlements over the opioid epidemic, objected to the proposal. On August 6, Bloomberg reported sources familiar with the state negotiations said the nation's three biggest opioid distributors had proposed a $10 billion settlement, but states are seeking $45 billion.
 
For more on this go to Bloomberg. (may require password) 
 

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  STATE  
  Alaska  
  Alaska Medicaid Budget Still Unresolved
Alaska lawmakers passed a bill that would restore about two-thirds of the $284 million that Governor Mike Dunleavy (R) cut from the state budget, including $77 million for Medicaid, a portion of which funded the adult dental program.

The issue is that Governor Dunleavy could line-item veto this legislation, and despite strong support, there are not enough votes so far to override his veto. The Governor called the legislature's bill "another attempt to blow up the size of government," and said he stood by his original reductions "to put Alaska on a sustainable path forward."
 

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  Colorado  
  State Receives Approval for 1332 Waiver for Reinsurance Program
On July 31, 2019, the Centers for Medicare and Medicaid Services (CMS) approved Colorado's request to develop a state-based reinsurance program under Section 1332 of the Affordable Care Act (ACA). Colorado has been approved for a two-year waiver for 2020 and 2021. The state's $249 million reinsurance program is expected to reduce 2020 premiums by 16 percent (relative to what premiums would have been in the absence of the waiver). The federal government is expected to contribute $162 million, while state funds (from an assessment on hospitals and general state revenue) are expected to account for $87 million.
 
Colorado adopted an attachment point model that will reimburse insurers at an average of 60 percent of claims between $30,000 and $400,000. This reimbursement percentage will, however, vary in different parts of the state based on a three-tier structure. The goal of this structure is to encourage insurers to offer coverage in areas of the state with higher health care costs. 

CHA Urges Division of Insurance to Hold Health Insurers Accountable
On August 5, the Colorado Hospital Association (CHA) commented on health insurers' proposed rate filings, urging the Division of Insurance (DOI) to hold insurers accountable as they review rate filings for 2020 and future years. Specifically, the Association asked DOI to take the following actions:
  • Evaluate and report on consumers' full out-of-pocket costs prior to approving the 2020 rates - including changes in monthly premiums, cost sharing and federal advance premium tax credits - and make this information public during the annual Consumer Forum. 
  • Ensure that health insurers follow the law and that savings realized in future years are fully passed on to consumers; and not simply shifted to consumers in the form of higher deductibles and co-insurance or to employers through increases in the small and large groups markets. 
DOI projects an average 18.2 percent decrease in premiums for 2020 plans on the individual health insurance marketplace. DOI credits the creation of the state's new reinsurance program - largely funded by hospitals - for the projected decrease, ranging from 10.3 percent to 33.5 percent across all plans and payers. The preliminary premium changes are available by carrier and by area and carrier.
 
CMS also released its first summary report on the impact of risk adjustment data validation and issued updated renewal and discontinuation notices for 2020 coverage.
 

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  Mississippi  
  Runoff to be Held in the Republican Gubernatorial Race
On August 6, the race for the Republican nomination for Governor in Mississippi resulted in no one candidate receiving 50 percent of the votes, and will, therefore, go to a runoff later this month. The winner of the runoff will face Democratic state Attorney General, Jim Hood, in the general election. AG Hood defeated his opponent by capturing 69 percent of the votes and securing his party's nomination.

In the Republican primary, Lt. Governor Tate Reeves finished with 49 percent of the vote - just shy of the majority needed to win the nomination. Instead, he will face former state Supreme Court Justice Bill Waller, who won 33 percent of the vote, in the August 27 runoff. A third candidate, state Representative Robert Foster, had 18 percent.
 

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  Texas  
  Texas Governor Responds to El Paso
Texas Governor Greg Abbott (R) met Wednesday, August 7, with the state's El Paso legislative delegation. Following the meeting, Governor Abbott made several proposals:  
  • $5 million in monetary assistance to El Paso to cover immediate psychological needs for survivors, first responders and other community members;
  • Working roundtables to begin the week of August 19 in Austin and El Paso to seek recommendations on legislation and potential executive orders;
  • Texas Department of Public Safety (DPS) collaboration with federal and local officials to identify potential domestic terrorists, hate groups, and racists; and
  • Partnership with technology/social media companies to address online outlets or speech promoting racism and hatred.
 
Departures from the Texas Congressional Delegation
A total of four Texas Congressional members have announced their intentions to retire: Pete Olson (R-Sugar Land), Mike Conaway (R-Midland), Will Hurd (R-Helotes) and Kenny Marchant (R-Carrollton). Three of these districts (currently held by Republicans) are being targeted by Democrats to flip.
 
Texas Paid Sick Leave Ordinances 
Three Texas cities have created mandatory paid sick-leave ordinances since fall of 2018.  The Austin and San Antonio city councils have delayed implementation of the ordinances pending the outcome of court challenges, while the city of Dallas was scheduled to implement the new ordinance on August 1.
 
On July 30, local business owners sued the city of Dallas, alleging that the Dallas ordinance is an overreach of the city's regulatory power. Texas Attorney General Ken Paxton joined the suit on August 6. All of these suits are a game of wait-and-see until the Texas Supreme Court rules on the original case originating out of Austin.
 

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  Utah  
  Utah Seeks CMS Approval for Medicaid Per-Person Spending Caps 
Utah officials announced that they will still ask the Trump administration for permission to impose per-person spending caps for certain Medicaid enrollees.
 
Earlier this week, CMS announced that states, including Utah, that partially expanded Medicaid, will not receive enhanced Affordable Care Act funds. Utah officials say, despite that announcement, they will still seek CMS approval on components of their proposal, including capping enrollment, permitting 12-month continuous eligibility and removing benefits from Medicaid beneficiaries who intentionally violate program rules.
 

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  Virginia  
  Medicaid Expansion Enrollment Reaches 300,000
Governor Ralph Northam (D) announced that over 300,000 adult Virginians have been enrolled since the Commonwealth expanded its Medicaid program in January. The Virginia Department of Medical Assistance Services (DMAS) tracks Medicaid expansion enrollment through a dashboard, which also provides statistics on enrollees. Currently, 60% of new enrollees are women and 102,898 of the new enrollees are parents.
 
Incumbent Delegate Loses Ballot Slot
After a decision by the Virginia Department of Elections, Delegate Nick Freitas (R) lost his last chance to get on the ballot for the November 5 election because he missed a crucial filing deadline for certification paperwork. His options to retain his seat are a write-in campaign or a plea to the courts. The Republicans hold a slim 51-49 majority in the House of Delegates, so this roadblock for one of their members is unwelcome. The district has been reliably Republican, but Democrats have an active candidate that may put the district in play.
 

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