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Medicaid Monitor
Wednesday, October 7, 2026 · Updated 6:09 AM MT · 34 stories today
Daily Briefing · 34 stories todayPRO

The complete record

19 stories, Tuesday, July 28, 2026

Federal Policy

7 storiesFederal Policy section →

CMS Electronic Prior Authorization Requirements Take Effect January 1, 2027 for Medicare Advantage and Medicaid Managed Care

On January 1, 2027, Medicare Advantage organizations, Medicaid managed care plans, CHIP managed care entities, and federally facilitated exchange QHP issuers must support electronic prior authorization through standardized APIs under CMS's 2024 Interoperability and Prior Authorization final rule. The rule requires impacted payers to enable providers to determine prior authorization requirements, submit requests, and receive approval decisions electronically through EHR integration, using standardized HL7 FHIR-based workflows. The rule does not eliminate prior authorization or change medical necessity criteria — it standardizes the electronic exchange of prior authorization information between providers and health plans. Hospitals should engage EHR vendors and health plans now to prepare workflows, test systems, and train staff before implementation.

Why it mattersMedicaid managed care plans must implement new API-based prior authorization capabilities within six months, requiring coordination with provider EHR systems, technology vendors, and internal operations to meet federal interoperability standards.

USaha.org1:30 PM MT
Managed Care

HHS OIG Audits Department AI Governance Framework for Federal Compliance

The HHS Office of Inspector General has initiated an audit examining whether the Department of Health and Human Services has established adequate governance for developing and deploying artificial intelligence tools across its operations. The audit will assess compliance with federal requirements, including National Institute of Standards and Technology AI risk management standards and departmental policies. The review covers AI governance structures affecting HHS agencies including CMS. The audit's scope and timeline for completion have not been publicly specified.

Why it mattersThe audit may influence how CMS implements AI tools in Medicaid program integrity, eligibility systems, and managed care oversight, potentially leading to new compliance requirements for state agencies and health plans using AI-driven administrative systems.

USBecker's1:31 PM MT
Managed Care · Finance

CMS Proposes Mandatory 340B Claims Data Reporting for Medicare Part D

CMS published the 2027 Physician Fee Schedule proposed rule on July 16, proposing to make 340B claims data reporting mandatory for covered entities participating in Medicare Part D, converting what was previously a voluntary submission. The proposal would require 340B covered entities to submit Part D claims data to the Medicare Part D Claims Data 340B Repository starting in 2027. This change affects hospitals, federally qualified health centers, and other 340B covered entities that dispense drugs under Medicare Part D, requiring new compliance infrastructure and potentially increasing administrative burden for entities that have not voluntarily reported to date.

Why it mattersMandatory 340B reporting creates new compliance obligations for Medicaid managed care organizations and providers operating 340B programs, particularly those that have avoided voluntary reporting and may lack the data systems to meet CMS requirements.

USjdsupra.com1:30 PM MT
Pharmacy · Managed Care

CMS Publishes Q2 2026 Quarterly Listing of Medicare and Medicaid Program Issuances

CMS published its quarterly compilation of manual instructions, regulations, and Federal Register notices issued between April and June 2026 for Medicare, Medicaid, and other CMS-administered programs. This is a routine administrative notice that compiles previously issued guidance and rulemakings from the quarter into a single reference document. The listing provides a consolidated index of policy issuances for stakeholders tracking program changes. This quarterly publication serves as an administrative record and reference tool rather than announcing new policy.

Why it mattersThis compilation helps state Medicaid agencies and managed care plans track what guidance and rules CMS issued during Q2 2026, though it contains no new policy itself.

USFederal Register7:31 AM MT
Managed Care · Finance

CMS Proposes Home Health Enrollment Changes to Reduce Fraud and Improper Payments

On July 1, 2026, CMS proposed enrollment-related policy changes under the Home Health Prospective Payment System aimed at reducing improper Medicare payments and protecting beneficiaries. The proposed rule introduces new enrollment requirements and fraud deterrence measures for home health providers. While the rule targets Medicare home health providers, states with Medicaid home health programs or 1915(c) waiver programs providing home and community-based services may see similar enrollment standards adopted or referenced in future Medicaid guidance. CMS has not specified a comment deadline or effective date in the summary provided.

Why it mattersStates with Medicaid LTSS or HCBS waiver programs often align provider enrollment standards with Medicare requirements, and new fraud controls may inform future Medicaid compliance expectations for home health agencies.

USjdsupra.com7:31 AM MT
LTSS

ACA Marketplace Enrollment Drops 15% After Enhanced Premium Tax Credits Expire in 2026

ACA Marketplace enrollment declined nationwide in 2026 for the first time in seven years following the expiration of temporary enhanced premium tax credits, with all states except New Mexico experiencing enrollment losses. Enrollment fell 15% on the federal marketplace (HealthCare.gov), while state-based marketplaces saw smaller declines averaging 6%, particularly in states that partially offset the federal subsidy loss with state funds. The enhanced subsidies, which had driven enrollment growth since their introduction, expired at the end of 2025.

Why it mattersLower marketplace enrollment may increase Medicaid churn and enrollment as subsidy-eligible individuals lose affordable coverage options and potentially qualify for Medicaid instead, affecting state program costs and managed care plan enrollment.

USKFF Research1:31 PM MT
Managed Care · Finance

CMS Proposes Removing 638 Additional Procedures from Medicare Inpatient-Only List for 2027

CMS proposed removing 638 procedures from the Medicare Inpatient Only List in the CY 2027 OPPS/ASC Proposed Rule, effective January 1, 2027. This follows removal of 285 procedures in CY 2026. The broader scope includes surgical services beyond the 2026 focus on musculoskeletal procedures. The removals affect whether procedures must be performed in inpatient settings or can shift to outpatient settings under Medicare payment rules.

Why it mattersMedicaid managed care plans that follow Medicare payment methodologies or use Medicare's IPO List for prior authorization criteria will need to update utilization management protocols and network adequacy assessments as services shift from inpatient to outpatient settings.

USjdsupra.com1:31 PM MT
Managed Care

Managed Care

1 storyManaged Care section →

Connecticut Hospitals Redesign Emergency Departments for Behavioral Health Crises

Hospitals in Connecticut are redesigning emergency rooms to better accommodate patients experiencing behavioral health crises. Physicians and hospital leaders report the specialized units create calmer, more therapeutic environments compared to traditional ERs. The redesigns address growing demand for mental health crisis services in emergency settings. The changes affect how Medicaid managed care organizations coordinate behavioral health emergency services and may influence network adequacy and crisis stabilization requirements.

Why it mattersMCOs must ensure network providers have appropriate crisis stabilization capacity as emergency departments shift behavioral health treatment models and potentially affect authorization pathways and utilization patterns.

CTctmirror.org7:32 AM MT
Behavioral Health · Managed Care

State Policy

5 storiesState Policy section →

Indiana Imposes Six-Month Enrollment Moratorium on HCBS Waiver Providers Effective August 1

Indiana received CMS approval to implement a statewide provider certification and enrollment moratorium for multiple Home- and Community-Based Services (HCBS) 1915(c) waiver provider types. The moratorium takes effect August 1, 2026, and will initially remain in place for six months. The action halts new HCBS provider certifications and enrollments across Indiana's waiver programs during this period. Indiana Medicaid managed care organizations will be unable to contract with new HCBS providers in the affected categories while the moratorium is in effect, potentially limiting network expansion and member access to services.

Why it mattersMCOs operating Indiana HCBS waivers must immediately halt new provider contracting in affected categories, requiring network adequacy contingency planning and potential member access mitigation strategies during the six-month freeze.

INHall Render1:30 PM MT
LTSS · Managed Care

Georgia Excludes HIV from Medically Frail Exemptions in Medicaid Work Requirement Proposal

Georgia's proposed Medicaid work requirement does not include HIV on its list of conditions qualifying beneficiaries as medically frail, meaning low-income Georgians living with HIV would need to meet work requirements to maintain coverage. The proposal is still under consideration by state officials. Advocates are questioning the exclusion, which could affect eligibility for vulnerable populations. The decision stands in contrast to other states that have included HIV in medically frail definitions for work requirement waivers.

Why it mattersState decisions on medically frail criteria directly determine which beneficiaries face work requirements versus exemptions, affecting coverage continuity for chronic condition populations and MCO enrollment stability.

GAgeorgiarecorder.com7:30 AM MT
Managed Care

Los Angeles County Seeks Half-Cent Sales Tax to Shield Safety-Net Clinics from Medi-Cal Cuts

Los Angeles County voters will decide in June 2026 whether to approve a half-cent sales tax to generate approximately $1 billion annually for community health clinics. The proposed tax aims to protect safety-net providers from ongoing state Medi-Cal budget reductions and federal funding cuts. If approved, the measure would take effect following the June ballot. The initiative responds to financial pressures threatening clinic operations and access to care for Medi-Cal enrollees who rely on community clinics for primary care, behavioral health, and other essential services.

Why it mattersThe ballot measure represents a local financing strategy to sustain Medicaid provider capacity when state and federal Medicaid appropriations are under pressure, potentially serving as a model for other counties facing similar access threats.

CAchcf.org7:30 AM MT
Finance · Managed Care

New Mexico Reports Doubled Postpartum Visits After 2022 Medicaid Extension

New Mexico Department of Health reported that its 2022 Medicaid postpartum coverage extension doubled medical visits among new mothers, according to preliminary evaluation results. The extension, implemented in 2022, expanded postpartum Medicaid coverage beyond the standard 60-day period. State officials cite the increased utilization as evidence the policy may help reduce maternal mortality. The evaluation is ongoing and final results have not been released.

Why it mattersThe doubling of postpartum visits demonstrates that extending Medicaid coverage beyond 60 days drives measurable increases in care utilization, providing data points for other states weighing similar maternal health extensions under the American Rescue Plan Act option.

NMsourcenm.com1:30 PM MT
Maternal

Alabama Democratic Gubernatorial Nominee Jones Calls for Medicaid Expansion

Former U.S. Senator Doug Jones, now the Democratic nominee for Alabama governor, delivered a policy speech Monday calling for Medicaid expansion alongside other reforms including a lottery vote and broader government participation measures. The speech outlined what Jones described as 'three real opportunities' for Alabamians, with Medicaid expansion positioned as part of his health policy agenda. Alabama remains one of the states that has not expanded Medicaid under the Affordable Care Act. The policy positions represent a traditional Democratic platform in a state where Medicaid expansion has faced consistent Republican opposition.

Why it mattersAlabama's gubernatorial election could determine whether the state joins Medicaid expansion, affecting coverage for an estimated 300,000 low-income adults and bringing significant federal funding to hospitals and health plans.

ALalabamareflector.com7:31 AM MT
Managed Care · Finance

Industry

4 storiesIndustry section →

Centene Reports $1B Profit in Q2, Raises 2026 Earnings Outlook

Centene swung to more than $1 billion in profit in the second quarter of 2026, marking a significant turnaround for the managed care giant. The company raised its full-year 2026 earnings outlook for the second time this year following what its CFO described as "fantastic" results. The strong performance comes after previous quarters of financial challenges and represents improved operational execution across Centene's health plan portfolio, which includes substantial Medicaid managed care operations in multiple states.

Why it mattersCentene's financial recovery signals improved operational stability for one of the nation's largest Medicaid MCOs, which serves millions of enrollees across dozens of states.

USHealthcare Dive1:30 PM MT
Managed Care · Finance

Flourish Health Raises $26M Series A for In-Home Youth Mental Health Services

Flourish Health, a youth mental health provider offering in-home visits for young people with serious, complex behavioral health needs, raised $26 million in Series A funding led by B Capital, F-Prime, and Cherryrock Capital. The round brings total funding to $46 million. The company provides home-based care through specialized workers for youth with high-acuity mental health conditions. This expansion comes as states increasingly contract with specialized behavioral health providers to serve high-need Medicaid populations, particularly children with serious emotional disturbance.

Why it mattersFunding signals growing investor interest in home-based behavioral health models that may compete for or complement managed care plans' in-home crisis and intensive treatment services for Medicaid-enrolled youth with serious mental health needs.

USHome Health Care News1:32 PM MT
Behavioral Health · Managed Care

UHS Says Talkspace Acquisition Will Expand Outpatient Behavioral Health Capacity

Universal Health Services executives stated the pending Talkspace acquisition will address two key obstacles to outpatient behavioral health growth: access to virtual care and therapist capacity for post-discharge patients. UHS CFO Steve Filton described Talkspace as providing both a virtual delivery platform and a larger therapist network to serve patients transitioning from inpatient settings. The acquisition, announced earlier in 2026, is positioned as an accelerant for UHS's outpatient behavioral health expansion strategy. This reflects ongoing consolidation in behavioral health delivery and growing emphasis on virtual care integration.

Why it mattersThe acquisition signals a major behavioral health system investing in virtual platforms to expand Medicaid-serving capacity, particularly for post-acute behavioral health services where access gaps often disrupt continuity of care.

USBecker's1:31 PM MT
Behavioral Health · Managed Care

Tenet Raises 2026 Outlook Despite $65M ACA Exchange Loss in Q2

Tenet Healthcare raised its full-year 2026 financial outlook after absorbing a $65 million loss from instability in ACA marketplace enrollment during the second quarter. The hospital operator reported less severe impacts than some competing health systems facing similar exchange headwinds. The revised guidance suggests Tenet expects to offset ACA-related losses through other revenue streams for the remainder of the fiscal year. While ACA exchange disruption affects hospital uncompensated care and payer mix, the story centers on investor-oriented financial performance rather than direct Medicaid program operations.

Why it mattersACA exchange instability can shift uninsured and underinsured patients toward Medicaid or hospital charity care, affecting state budget pressures and provider participation in Medicaid managed care networks.

USHealthcare Dive7:31 AM MT
Finance

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