TAX BILL
Hospitals scramble for cash before Medicaid cuts hit
Congratulations to the states who just received $4 billion in extra Medicaid funds that will be routed to hospitals, doctors, nursing homes and other providers this year. It’s unlikely to happen again, however.
Republicans’ new tax law will phase out “state directed payments,” which were a staple under the Biden administration. These funds allowed states to submit proposals that increased Medicaid payment rates to hospitals and other providers to match higher commercial insurance rates — arrangements that ballooned to more than $110 billion annually. Starting in 2028, the law will require these grandfathered arrangements to be slashed by 10 percentage points per year.
Medical providers based in New Mexico and West Virginia will get the lion’s share of newly disclosed payments. STAT’s Bob Herman has more.
STARVING
Malnutrition expands, despite efforts
Good, healthy food is not just a luxury — it’s essential to a person’s growth and development. But too many children around the world are still malnourished, according to a new report from UNICEF, the World Health Organization, and the World Bank Group.
The report details that 150.2 million children under five are stunted, meaning they will never reach their physical or cognitive potential. Another 43 million children are wasting, meaning they suffer from weakened immunity, are susceptible to long term developmental delays, and face elevated risks of death. While these numbers have improved per capita in recent decades, a recent rise in stunting threatens to undo these gains.
One doesn’t have to look much farther to see the ramifications of malnutrition than in Gaza, where a famine threatens many Palestinians. As skeletal children fill up hospital wards, doctors say many are dying of hunger while life-saving humanitarian aid piles up in nearby countries, its disbursement delayed as Israeli soldiers confine 2 million civilians into an area just 12% of the original Gaza Strip.