The Healthy Muse
Coronavirus emergency funding - is Trump creating his own Medicaid program? Struggling healthcare firms, furloughed employees, and everything in between.

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This week’s healthcare stories.

Your need-to-know coronavirus stories:

Health insurance stuff. Is Trump creating his own Medicaid?

Despite the administration’s fight against Obamacare in the Supreme Court, total ACA enrollees remained steady (WSJ paywall) at about 11.4 million people in 2020. The exchange is notably stable amidst all of the political noise.

  • The WSJ report comes at a time when many wanted the ACA exchanges to re-open for those who had just lost jobs (and health insurance) amid the pandemic. Despite criticisms, the administration opted to keep the exchanges shut.
Trump creates his own Medicaid

Why didn’t they re-open enrollment? The Trump Administration opposes the ACA and decided not to defend the healthcare law in court.

  • Because of the pending SCOTUS ACA case review and the Admin’s position, it makes sense why they wouldn’t want to re-open something they’re trying to shutter.

Okay, so what about uninsured people? Instead of opening back up the exchanges, the Trump administration is actually considering using the emergency $100 billion in healthcare funding to cover uninsured cases. I would argue that this policy is essentially the emergency version of Medicaid.

Some are comparing this policy to Medicare-for-All. But the two policies really aren’t all that similar apart from the government funding aspect.

  • In fact, this policy is MUCH narrower in scope than fully-fledged M4A and is simply a pseudo-expansion of Medicaid. Private health insurers still exist and are even fully covering out of pocket costs related to COVID-19.

From the White House.

The Trump administration is touting the potential effectiveness of hydroxychloroquine to treat COVID-19. Pence told us that trials for the anti-malaria drug are underway.

  • Meanwhile, there seems to be an internal rift in the White House over hydroxychloroquine and the potential for misrepresenting how effective the drug actually might be.

Other White House things. The White House tried to slip in a simple surprise billing solution into the third stimulus package, but in the end, the proposal was left out altogether.

The create-your-own Medicaid edition

Struggling healthcare firms.

A hoard of healthcare firms – especially on the outpatient side – announced slowing growth, furloughed employees, and other restrictive measures to counteract the financial impact of COVID-19 and stay afloat operationally. To name a few:

  • Select Medical (Post-acute facilities, outpatient physical therapy) withdrew its 2020 guidance.
  • Tenet (hospitals and outpatient elective surgery) pulled its guidance and is furloughing employees.
  • Walgreens is seeing markedly lower foot traffic despite its increase in healthcare related sales.
  • HCA Healthcare (hospitals, elective surgeries) is cutting executive pay to avoid layoffs.
  • Radnet (diagnostic imaging) withdrew its 2020 guidance and is cutting executive pay.
  • Staffing firms are cutting physician pay.
  • Finally, Quorum Health (hospitals) is facing bankruptcy. RIP (almost).
  • Nonprofits aren’t immune, either. Large names like Trinity Health and Bon Secours Mercy Health are unfortunately furloughing employees.

Of course, the broad economy is the most affected right now. People are losing jobs and filing for unemployment at unprecedented rates. Last weeks’ jobless claims totaled a record 6.6 million people. Outpatient healthcare jobs in particular were destroyed on the latest jobs’ report.

Read more: hospitals and providers are feeling the financial squeeze during the COVID-19 pandemic. (WSJ)

What to look for: healthcare firms report first quarter earnings reports next week, starting with UnitedHealthcare on April 15th.

  • Fortune Teller: Be prepared for a slew of M&A across industries as businesses fail and get snatched up.

Other things to know.




Quick Hits

Biz Hits

State Hits

Other Hits

  • Taxpayers paid millions to design a low-cost ventilator for a pandemic. Instead, the company is selling versions of it overseas. (ProPublica)
  • The simulations driving the world’s response to COVID-19. (Nature)
  • At risk: the geography of America’s senior population. (Visual Capitalist)
  • The 7 best COVID-19 resources we’ve seen so far. (Visual Capitalist)
  • COVID-19 is projected to be the #7 cause of death in the US in 2020 (based on annualized data)
  • Autism rates continue to increase.

Thought-Provoking Editorials

  • World Health Coronavirus Disinformation. (WSJ)
  • Bet big on coronavirus treatments – certain therapies are showing promise. (WSJ)
  • The real tragedy of not having enough COVID-19 tests. (NY Times)
  • The pandemic’s most powerful writer is a surgeon.



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