Rapid Pace Of Recent M&A Means Change In 2018

2017 continued a recent trend of acquisitions and consolidation in the healthcare markets, driven by a changing healthcare landscape and uncertainty about policy changes. Providers face pressure from payers to increase value and decrease volume, requiring them to look across the spectrum of care rather than focus solely on hospitals. Termination of two major payer mergers in early 2017, rising healthcare costs, and changes to the traditional relationship between payers and providers have led payers to seek vertical integration. Effects from the mergers and acquisitions announced during the...

Republican Tax Reductions Enacted

Significant new tax policies have been enacted for 2018. Provisions meaningfully affecting the healthcare sector include the corporate rate cut to 21% and repeal of the excise tax on individuals not purchasing qualified health plans (individual mandate). Click to read more.

CMS Releases 2019 MA Advance Notice

On February 1, CMS released the Advance Notice of Medicare Advantage rates and payment policies for 2019. The proposed rates are aligned with previous years’ trends, resulting in an increase in plan payment from 2018 of 1.84%, before taking into account expected payment increases from coding intensity trends. Overall, we believe that finalized policies will generally be friendly for the industry. Separately from rate setting, the Advance Notice proposes to expand the supplemental benefits that MA plans can offer, potentially making MA an even more attractive option for Medicare...