Healthcare Policy News

HHS Fixes ACA Family Glitch, Loses 340B Drug Pricing Program Battle

HHS lost its 340B court battle and announced that a Biden Administration rule fixing the ACA family glitch is now finalized.

HHS Family Glitch, HHS Drug Pricing Program, Department of Veterans Affairs, Mental Health, Public Health Emergency

Source: Getty Images

By Hayden Schmidt

- US District Judge Rudolph Contreras has ordered the Department of Health and Human Services (HHS) to restore full payments to hospitals and reverse its cuts to the 340B Drug Pricing Program. HHS, through CMS, will reprocess claims at the default rate paid on or before the September 28 ruling. Meanwhile, the department got a win last week, announcing that a new rule would be going into effect to remedy the Affordable Care Act (ACA) family glitch.

Department of Veterans Affairs EHR Postponed

Last week the VA revealed it would delay further EHR implementation to address issues with existing systems. The Oracle Cerner EHR system will be put on hold until mid-2023 as VA officials work to fix performance bugs at the five locations where it has been implemented.

“Right now, the Oracle Cerner electronic health record system is not delivering for Veterans or VA health care providers – and we are holding Oracle Cerner and ourselves accountable to get this right,” Donald Remy, deputy secretary of Veterans Affairs, commented in the announcement. READ MORE.

Americans Say Mental Health is a Public Health Emergency

An American Psychiatric Association (APA) survey found that four out of every five Americans believe mental health issues in the United States constitute a public health emergency. Survey results also learned that 80 percent of Americans thought children’s mental health should be considered a public health emergency. The survey has political implications as midterm elections approach, suggesting that most Americans would likely vote for a candidate who makes mental health a priority in their agenda. READ MORE.

HHS Loses 340B Hospital Reimbursement Battle

HHS is reversing course and revising its methodology for outpatient drug payments following a district court ruling. Hospital groups, including the American Hospital Association, succeeded in reversing the HHS cuts to the 340B Drug Pricing Program and restoring the default rate for all qualifying outpatient drug claims. Through CMS, HHS will reinstate full payment to hospitals before the end of the year and reimburse hospitals for claims filed before the court ruling. READ MORE.

HHS Fixes ACA Family Glitch

HHS officials announced that the Treasury Department finalized a Biden Administration rule addressing the ACA’s family glitch. The glitch made it difficult for people to gain coverage for dependents from the federal marketplace if their employer’s coverage was too expensive. The fix will change the regulation and allow people to acquire discounted coverage for their family through the marketplace if their employer’s plans require them to spend more than 9.83 percent of their household income on premiums.

“Starting next month, Americans can sign up to take advantage of this change,” President Joe Biden said in his statement. “I urge everyone to take advantage by visiting HealthCare.gov starting November 1st and signing up for a plan that works best for them.” READ MORE.

Biden Executive Order on Drug Costs

President Biden signed an executive order last Friday that implores HHS to seek options that would decrease prescription drug costs for Americans. HHS will have 90 days to respond with a formal plan to lower drug costs and promote access to medicine for Medicare beneficiaries. READ MORE.

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