GAO clears HHS in Twitter investigation
The Government Accountability Office (GAO) says the Department of Health and Human Services did not violate any laws by using its Twitter account to advocate for an ACA repeal, making changes to Healthcare.gov or reducing outreach efforts for the Affordable Care Act.
Following a request from Democratic senators to investigate the agency for posting videos on YouTube and the agency Twitter account, the GAO found HHS did not violate anti-lobbying or propaganda laws. The watchdog group said it was within the agency's scope to modify the content of Healthcare.gov and post tweets advocating the American Health Care Act, the GOP's proposed replacement for the Affordable Care Act.
The GAO had previously ruled that the DOE violated federal law by using its Twitter account to promote an anti-Obamacare column but said it was within HHS' jurisdiction to disseminate information about the ACA. (Decision - PDF)
NY watchdog says CVS-Aetna will raise prices
The superintendent of Connecticut's Department of Financial Services warns that the CVS-Aetna merger will raise prices for consumers.
In a letter to the state's insurance commissioner, Maria Vullo argued that the merger would reduce competition and give Aetna an unfair advantage by incentivizing CVS to give discounts to the insurer. Similar to other state regulators, she also raised concerns about the impact of Part D consolidation.
"The proposed transaction, if approved, would create an incredibly large market share in the healthcare market for the combined company, in an already concentrated marketplace, and is likely to increase prices for members and reduce options for consumers, without any discernible increase in quality," she wrote. (Healthcare Dive)
Moody's: Rising interest rates will help insurers
Following the third interest rate hike by the Federal Reserve this year, Moody's says rising interest rates will be a boon for insurers across the globe.
Gradual interest rate increases will be a credit positive for the profitability of insurers, the credit agency said in a new report.
“Gradually rising interest rates will benefit all global insurers, boosting bond yields, investment income, and profitability," Moody’s Investors Service Vice President and Senior Credit Officer Laura Bazer said in a statement. "With the Fed’s 25 basis point tightening today and portfolio yields already approaching new money rates, U.S. insurers appear better positioned than their international peers to escape from the long-lasting grip of low rates." (Announcement)
ACA is a key issue in attorney general races
The fate of the ACA has become a key talking point in attorney general campaigns around the country, USA Today reports.
One big reason: the Texas case in which attorneys general from red states are facing off against their Democratic counterparts in the latest quest to repeal the law. Political parties expect record-breaking fundraising in attorneys general races this year. Thirty positions are up for grabs, 18 of which are held by Republicans and 12 of which are held by Democrats. (USA Today)
Moody’s: CHS’ $262M fraud, anti-kickback settlement could cause a cash crisis for the system
An analyst for Moody’s Investors Service has warned that Community Health Systems’ $262 million fraud settlement could “severely weaken” the system.
In a comment emailed to FierceHealthcare, Jessica Gladstone, a senior vice president for Moody’s, said that the payout could have a significant impact on the system’s “already constrained liquidity.”
“We expect the company will need to borrow on its revolvers in order to fund the settlement, reducing the cushion under the company’s already tight financial covenant on its revolving financial facility, potentially leading to a covenant breach over the next 12 to 15 months,” Gladstone said.
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CHS’ ongoing financial struggles have been well-documented, although the system did beat its second-quarter expectations this year. (FierceHospitals)