Elevance Health reports that states increased Medicaid capitation rates in July, improving the insurer's financial outlook for its Medicaid business. The company now expects its Medicaid margin to come in better than its prior forecast of -1.75% for the year. The improvement reflects states adjusting payment rates upward, which benefits Medicaid managed care organizations facing elevated medical costs. Elevance disclosed the updated outlook as part of its third-quarter earnings commentary.
Why it mattersHigher state-directed Medicaid capitation rates signal easing margin pressure for managed care organizations, a key signal for investors and state agencies negotiating future rate cycles.
Managed Care · Finance
In a National Health Law Program report, researchers analyze doula provider enrollment data across the 28 states, Guam, and Washington D.C. that have implemented Medicaid coverage for doula care. The analysis compares doulas with National Provider Identifier numbers to those actually enrolled as Medicaid providers, finding comprehensive data in only ten states. California and Michigan lead in enrollment numbers and NPI-to-enrollment conversion rates, which the authors attribute to sustained state agency collaboration and dedicated workforce-building initiatives rather than managed care structure. The report finds a persistent gap nationwide between enrolled doulas and Medicaid-financed births, citing New Jersey's 254 enrolled doulas against roughly 30,000 Medicaid-financed births annually as evidence of limited access despite expanding coverage.
Why it mattersState Medicaid agencies and MCOs designing or refining doula benefits need enrollment and workforce data to close the gap between coverage policy and actual access for Medicaid-financed births.
Maternal · Managed Care
Ascension is expanding again after a period of hospital divestitures, with its latest deal being an Oct. 1 agreement by Ascension Seton to acquire three Family Hospital Systems care sites near Austin, including an emergency/inpatient hospital and two urgent care and imaging locations. The move follows Ascension's $3.9 billion Amsurg acquisition in June, which added over 250 ambulatory surgery centers, and a June purchase of full ownership of Cedar Park Medical Center for $436 million. The system reported a narrowed operating loss and improved margins for fiscal 2026 after years of losses and hospital sales. Separately, Ascension agreed earlier this month to sell its stake in Arizona Medicaid managed care plan Mercy Care to Aetna, signaling a pullback from insurance as it reinvests in care delivery and ambulatory infrastructure.
Why it mattersAscension's exit from Mercy Care hands Aetna a larger foothold in Arizona's Medicaid managed care market, while the health system's pivot toward ambulatory and outpatient acquisitions signals reduced health-system appetite for direct Medicaid plan ownership.
Managed Care · Finance
In its October Medicaid Connections webinar, the host organization discussed policies governing Medicaid coverage for immigrants, including recent changes that have reduced that coverage. The session reviewed eligibility rules and other information advocates need to understand to help immigrant populations access health coverage and care. An audio transcript of the discussion is available for download. The webinar does not report a new policy action but serves as an educational resource on existing and recently changed immigrant eligibility rules.
Why it mattersAdvocates and enrollment assisters need current, accurate information on immigrant eligibility rules to help eligible individuals maintain or obtain Medicaid coverage amid recent restrictions.
Managed Care
The Commonwealth Fund released a report finding 10 states, including Arkansas, Hawaii, Iowa, Kentucky, Mississippi, Missouri, Nebraska, North Dakota, Rhode Island and Vermont, have no birth centers, while eight more have only one. Birth centers, typically staffed by midwives, serve low-risk pregnancies and are linked to better maternal and infant health outcomes, with disproportionate use by Black, Indigenous and Hispanic patients who face higher rates of poor birth outcomes. The report attributes recent closures to tight state regulations, rising malpractice insurance costs and low Medicaid reimbursement rates, noting about 40% of birth center patients pay out of pocket. Researchers suggest pairing birth centers with community health centers, which can share malpractice coverage, billing infrastructure and patient populations, as a model to expand access and improve outcomes, particularly for Medicaid-insured patients.
Why it mattersState Medicaid agencies and health plans face mounting pressure to raise birth center reimbursement rates and streamline licensing to prevent further closures that disproportionately reduce maternity access for Black and rural Medicaid enrollees.
Maternal · Managed Care
Becker's Hospital Review compiles state and health system announcements showing how 12 rural hospital systems are spending Rural Health Transformation Program awards ahead of states' Oct. 30 deadline to obligate first-year funds. The five-year, $50 billion CMS program, created under HR 1, gives states broad discretion over spending, and a CMS report on funds obligated through July 31 shows large sums going to technology: Missouri committed $24.4 million to EHR upgrades and $4.2 million to ambient AI, while Mississippi set aside $47.5 million for a rural provider technology grant program. Individual systems including Ascension, Baptist Health, Mercy, Ochsner and Vandalia Health are using awards ranging from roughly $150,000 to $9.6 million for AI-enabled virtual care, remote patient monitoring, smart rooms, telehealth hubs and EHR modernization. Project details come from state and system announcements and may change before grant agreements finalize.
Why it mattersRural hospitals and state Medicaid agencies should track how these technology investments reshape care delivery capacity and infrastructure readiness ahead of the Oct. 30 fund-obligation deadline.
LTSS · Behavioral Health · Maternal · Finance
At Skilled Nursing News' RETHINK Conference, REIT and operator executives described how aging building stock, renovation costs, and Medicaid reimbursement sustainability are slowing nursing home expansion despite rising demand. Omega Healthcare Investors' Daniel Miltner said the REIT is prioritizing "future-proofing," including unit configuration and sustainable state Medicaid rates, before committing capital. Operator executives Kimberly Green (Sage Integrated Health) and Steve LaForte (Cascadia Healthcare) said right-sizing rent, negotiating seller-funded repair reserves, and building a sustainable workforce are key to making deals work amid aging infrastructure and regulatory and reimbursement pressures, including the 2025 federal reconciliation law (OBBBA).
Why it mattersSlower nursing home expansion and renovation investment, tied partly to state Medicaid reimbursement adequacy, directly affects long-term care bed capacity and access for Medicaid LTSS beneficiaries.
LTSS · Finance
A new report from the Institute for Clinical and Economic Review and West Health finds the median annual net launch price of new drugs rose 35% from 2022 to 2025 after adjusting for inflation, though prices dipped 2% from 2024 to 2025. The 2025 median net price was about $257,000 annually, with roughly a quarter of new drugs priced above $500,000 and two exceeding $2 million. The report also found access problems: only 36% of outpatient prescriptions for recently launched drugs were filled within 30 days, with Medicare the weakest payer at just 20% filled and 58% rejected for lack of coverage. PhRMA disputes ICER's methodology, arguing it ignores long-term pricing trends and generic competition.
Why it mattersRising launch prices combined with high coverage-denial rates, especially in Medicare, signal growing pharmacy budget pressure and utilization management friction for Medicaid managed care plans administering drug benefits for dually eligible and other high-cost populations.
Pharmacy · Finance
In its Q3 drug shortage report, ASHP finds chemotherapy shortages worsened even as total active U.S. drug shortages held steady at 225. A Pfizer manufacturing facility flood in India, affecting generic chemo agents for several cancers, is expected to disrupt supply into 2028, compounding existing shortages of drugs like ifosfamide and carboplatin. Cancer centers and children's hospitals cite chemotherapy as their top shortage concern due to limited alternatives, and 16% of active shortages involve controlled substances affecting chronic pain and ADHD patients. ASHP recommends reshoring manufacturing and long-term purchasing contracts, while noting a federal initiative aims to relocate production of 86 essential medicines to the U.S. within 18 months.
Why it mattersProlonged chemotherapy and contrast agent shortages threaten treatment delays for Medicaid-covered cancer patients and strain providers' and pharmacies' ability to source critical medications.
Pharmacy
A JAMA-published secret-shopper study of Blue Cross Blue Shield plans in New Jersey, Delaware, Montana, Rhode Island, and Virginia found fewer than a quarter of answered calls to psychiatrists or psychologists resulted in an appointment. More than half of calls uncovered directory errors such as providers no longer in-network, retired, or at the wrong address, and 22% found providers too busy to accept new patients. Horizon Blue Cross Blue Shield of New Jersey performed best among plans studied but still averaged three-week wait times for a first appointment. Researchers from Ohio State and Stanford conclude that access barriers long documented in public insurance programs like Medicaid also extend to commercially insured populations, undermining assumptions that private coverage guarantees timely mental health care access.
Why it mattersThe findings reinforce that provider directory inaccuracy and behavioral health network inadequacy are industry-wide problems, strengthening the case for stricter network adequacy enforcement that regulators apply to both commercial and Medicaid managed care plans.
Behavioral Health · Managed Care
Centene, Oscar, and UnitedHealthcare are adding new counties to their 2027 Affordable Care Act marketplace offerings even as a wave of insurers scales back exchange participation nationally. For Centene and UnitedHealthcare specifically, the new county additions mask larger overall state-level exits, meaning their net exchange footprint is shrinking despite the targeted expansions. The moves reflect insurers recalibrating ACA strategy amid shifting enrollment and risk dynamics heading into 2027. Consumers in dropped states and counties will need to find new marketplace plans during open enrollment.
Why it mattersFor Medicaid stakeholders, these ACA marketplace shifts matter because the same insurers managing exchange exits and entries often run Medicaid MCOs in overlapping markets, signaling broader shifts in their risk appetite and geographic strategy that could affect churn between Medicaid and marketplace coverage.
Managed Care · Finance
Oklahoma City-based Integris Health has signed a definitive agreement to join Risant Health, a nonprofit created by Kaiser Permanente in 2023 to expand value-based care, pending regulatory approval. Integris would become Risant's third member system alongside Geisinger and Cone Health, with Risant becoming its corporate parent while Integris retains its name, brand, medical staff and leadership. The system, which operates 20 hospitals and 13,000 employees, will continue contracting with other health plans and independent physicians. Integris leadership cited access to capital and technology investments it could not achieve independently as the rationale for the deal.
Why it mattersHealth plans and providers contracting with Integris should watch for governance and network changes as the system transitions to a new value-based-care-focused corporate parent.
Managed Care
At Home Health Care News' FUTURE conference, home-based care executives described rising expectations from payers and referral partners, including rapid referral acceptance, same-day or next-day starts of care, and granular outcomes data such as rehospitalization rates tied to medication errors. Executives from LifeCare Home Health Family, Cornerstone Medical Supply, and Riverside Home Care said providers must build compliance into daily operations and remain selective about payer relationships rather than chasing every contract. LifeCare's CEO said AI scribe technology cut start-of-care time from roughly two and a half hours to 45 minutes, freeing clinician time for patient care and additional visits. Executives recommended providers first evaluate AI capabilities within existing EMR systems before purchasing new tools.
Why it mattersHome health and personal care providers serving Medicaid managed care members must build compliance and data-reporting infrastructure or risk exclusion from preferred-provider networks and value-based contracts.
LTSS · Managed Care
In an interview with Hospice News, Elara Caring board chair Paul Kusserow discusses his return to home-based care after leading Amedisys through its $3.3 billion acquisition by Optum. Kusserow, now an operating partner at Ares Management, which owns roughly 60% of Elara Caring alongside co-investor DaVita's 40% stake, says consolidation among top home health and hospice players, including Amedisys, LHC Group, Gentiva, and Enhabit, has left remaining payers like CVS/Aetna and Elevance likely to pursue home-based care acquisitions. He notes Elara Caring operates in home health, hospice, and a smaller Medicaid-focused personal care business, and flags heightened industry scrutiny of fraud, waste, and abuse since his prior tenure. No specific transaction or regulatory action is announced.
Why it mattersState Medicaid agencies and MCOs overseeing personal care and home-based LTSS benefits should watch for continued payer consolidation that could reshape provider networks and ownership structures in home health, hospice, and personal care services.
LTSS · Managed Care · Finance
Hackensack Meridian Health and Hunterdon Health have signed a merger agreement that still requires regulatory approval. As part of the deal, Hackensack Meridian will invest roughly $230 million to upgrade Hunterdon's facilities and implement Epic's electronic health record system. The merger would expand Hackensack Meridian's New Jersey hospital network and bring Hunterdon onto a shared EHR platform, though no closing timeline was specified.
Why it mattersHospital system consolidation of this scale can reshape provider networks and negotiating leverage that Medicaid MCOs rely on for contracting and rate negotiations in New Jersey.
Managed Care
In a Becker's Healthcare Podcast interview, Zuckerberg San Francisco General Hospital CEO Susan Ehrlich, MD, discusses her dual role as a practicing primary care physician and hospital executive, a combination held by only a small share of healthcare CEOs. She reflects on major transitions during her decade-long tenure, including a new facility, an Epic EHR rollout, and the COVID-19 pandemic, which deepened the hospital's community partnerships with the San Francisco Department of Public Health. She also offers leadership advice on balancing strategic and operational focus, and flags healthcare costs and upcoming funding pressures, referencing federal legislation known as HR 1, as an underappreciated issue warranting more attention.
Why it mattersSafety-net hospitals serving large Medicaid populations face mounting financial pressure from federal funding changes, making executive perspectives on cost efficiency and community health infrastructure directly relevant to state Medicaid agencies and provider partners.
Managed Care
Boise-based St. Luke's Health System will enter the Medicare Advantage market for the first time in 2027, becoming one of only a handful of new MA entrants nationally even as more than a dozen payers and several health systems exit the market due to reimbursement pressures and rising medical costs. The new MA-PD HMO plan will cover seven Idaho counties where St. Luke's has established specialist networks, and will offer $0 copays for primary care, outpatient mental health, and preventive care. St. Luke's launched its health plan in 2023 with individual and employer products and has grown to roughly 65,000 members. The move comes as competitors retrench in Idaho, with Saint Alphonsus exiting the MA market entirely and UnitedHealthcare and Humana shrinking their state footprints.
Why it mattersThe launch signals a provider-sponsored health plan betting on vertical integration and member cost-sharing reductions just as larger national insurers retreat from Medicare Advantage amid persistent margin pressure.
CentraCare, a St. Cloud, Minnesota-based health system, plans to bring physician-owned Stellis Health into its organization, according to a news release shared with Becker's. Stellis shareholders have voted to move forward, and the two organizations are finalizing agreements and completing regulatory review with a target closing date of January 1. Stellis has more than 60 providers across locations in Buffalo and Monticello, and its physicians already deliver care at CentraCare-Monticello Hospital. Stellis clinics will continue operating as usual during the transition, and patients can keep seeing their current providers.
Why it mattersThe consolidation expands CentraCare's provider network and care continuum in Minnesota, a shift Medicaid managed care plans and state officials will need to track for network adequacy and contracting purposes.
Managed Care
Becker's Hospital Review compiles a list of 87 U.S. health systems that credit rating agencies Fitch Ratings and Moody's Investors Service identified in 2026 reports as having strong operational metrics and solid financial positions. The list, described as non-exhaustive, includes systems such as AdventHealth, Ascension, Banner Health, BJC Health and Bon Secours Mercy Health, each with specific credit ratings and stable outlooks tied to factors like market share, balance sheet strength, geographic diversification and operating performance. Rating agencies cite drivers including merger integration, ambulatory and outpatient expansion, and disciplined cost management. The compilation offers a snapshot of hospital sector credit health rather than reporting a single new rating action.
Why it mattersCredit ratings and the financial drivers behind them signal which health systems have capacity to absorb Medicaid rate pressures, payer mix shifts, and managed care contracting demands without jeopardizing access or service lines.
Finance
Home Health Care News reports several leadership moves across home care companies. Bayada Home Health Care named Melanie Sponholz chief compliance officer, promoting her from deputy compliance officer. Comfort Keepers hired Jessie Brumbach as chief marketing officer, and VNS Health promoted Thomas Cocozza to senior vice president of personal care. Most notably for Medicaid stakeholders, the Home Care Association of America named Damon Terzaghi as vice president of public policy, a role focused specifically on Medicaid and home- and community-based services policy; he previously led Medicaid and home care policy at the National Alliance for Care at Home. HomeWell and Touching Hearts at Home also announced new franchise operations leaders.
Why it mattersHome care providers and state Medicaid HCBS program staff should expect increased, more organized trade association advocacy on Medicaid home care reimbursement and policy issues under dedicated leadership.
LTSS