This month's policy signals for health systems:
CMS opens Medicaid fraud investigations in New York, freezes Minnesota funding
CMS Administrator Oz seeks information on New York's Medicaid program from state officials within 30 days, threatening deferred payments for non-compliance. The announcement follows CMS freezing nearly $260 million in Medicaid funding to Minnesota over allegations of fraud, waste, and abuse. Minnesota filed suit March 2 in the U.S. District Court, claiming Fifth Amendment due process violations, Administrative Procedure Act violations, Spending Clause violations, and ultra vires actions, seeking injunctive relief to prevent immediate withholding of threatened funds and other measures. Read more at AP News, Becker’s Hospital Review, and Healthcare Finance.
RAND projects OBBBA Medicaid provisions will reduce federal funding by $665 billion over 10 years
A RAND research report analyzing the One Big Beautiful Bill Act (OBBBA) Medicaid provisions predicts $665 billion in reduced federal Medicaid funds over a 10-year period, with state general funds reduced by $96 billion and 7.6 million fewer enrollees by 2034. Medicaid expansion states with substantial state-directed payments (SDPs) and provider taxes — notably Arizona, Iowa, and Nevada — face the greatest reductions, while some non-expansion states like Wyoming and South Dakota may see budget increases. Access the report from RAND and read more at Fierce Healthcare.
Novo Nordisk implements 340B claims data submission requirement for all dispensed drugs
Beginning April 1, Novo Nordisk will require 340B covered entities to submit claims data every time any of the company's drugs are dispensed at a 340B discounted price, extending to both in-house and contract pharmacies. The policy follows a similar move by Eli Lilly in January. The American Hospital Association is urging HHS to prevent implementation, calling the policy illegal and costly to 340B entities. Read Novo Nordisk’s policy announcement and more at Becker’s Hospital Review and Inside Health Policy.