The Gist Healthcare Podcast Wednesday, June 18, 2025
Jun 18, 2025
The Senate Finance Committee proposes larger cuts to Medicaid, sparking concerns over copays and work requirements. Iowa implements stringent restrictions on pharmacy benefit managers to support rural pharmacies. In a surprising twist, the former CEO of 23andMe acquires the bankrupt biotech firm for $305 million, promising data protection. Additionally, insights into the $7.4 billion Purdue Pharma settlement reveal crucial timelines and contributions from the Sackler family to opioid recovery efforts.
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Senate Draft Deepens Medicaid Cuts
- The Senate Finance Committee's reconciliation draft deepens Medicaid cuts beyond the House plan by tightening provider tax rules and expanding work requirements.
- Those changes could disproportionately strain rural hospitals and alter state financing for Medicaid expansion populations.
Cost Sharing And Expanded Work Rules
- The Senate keeps a $35 per-service copay for Medicaid recipients above poverty, with limited exemptions for key primary care and pediatric services.
- It also widens work requirements to include parents of children over 14, reversing prior exemptions and potentially reducing enrollment.
Provider Tax Phase-Down Could Strain Hospitals
- Provider taxes fund states' share of Medicaid but the Senate plan phases down allowable taxes in expansion states to 3.5% by 2031, excluding nursing homes and ICFs.
- Reducing this revenue source raises concerns about impacts on hospitals, especially in rural areas where margins are thin.