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Summaries of health policy coverage from major news organizations

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Friday, Aug 1 2025

Full Issue

CMS Reportedly Will Allow Voluntary Coverage Of Weight Loss Drugs

The Washington Post says it has obtained documents that detail the five-year experiment involving state Medicaid programs and Medicare Part D plans. Plus: CMS has bumped up Medicare payments for inpatient services and long-term care.

Some obese Americans on Medicare and Medicaid could get access to expensive weight loss drugs under a five-year experiment being planned by the Trump administration. Under the proposed plan, state Medicaid programs and Medicare Part D insurance plans will be able to voluntarily choose to cover Ozempic, Wegovy, Mounjaro and Zepbound for patients for 鈥渨eight management鈥 purposes, according to Centers for Medicare and Medicaid Services documents obtained by The Washington Post. (Cunningham, 8/1)

Medicare payments for inpatient hospital services will increase 2.6% in fiscal 2026 under a final rule the Centers for Medicare and Medicaid Services issued Wednesday. CMS offered hospitals a slightly higher boost than the 2.4% raise it proposed in April. The agency also finalized policies to streamline quality measurement and made tweaks to the Transforming Episode Accountability Model, a mandatory initiative known as TEAM that kicks off Jan. 1. (Early, 7/31)

Medicare reimbursements to skilled nursing facilities will rise 3.2% in fiscal 2026 under a final rule the Centers for Medicare and Medicaid Services published Thursday. The agency proposed a 2.8% Medicare rate increase for nursing homes in April. In addition to the higher payments, the final rule includes billing code updates and modifications to quality measurement programs. (Early, 7/31)

In early June, a MAGA influencer named Chuck Callesto launched a social media assault on Sen. Bill Cassidy, a Louisiana Republican who had apparently crossed a line by proposing to reform Medicare plans run by private insurers. In a sharply worded tweet, Callesto labeled Cassidy a RINO (Republican In Name Only) and accused him of undermining President Trump, who had pledged to avoid cutting Medicare in the massive tax and spending package known as the 鈥渂ig beautiful bill.鈥 (Ross and Wilkerson, 8/1)

In other health industry news 鈥

Genesis HealthCare, one of the nation鈥檚 largest nursing home owners 鈥 and operator of 16 skilled nursing facilities in New Hampshire 鈥 has filed for bankruptcy protection. No facilities are expected to close due to the bankruptcy proceedings, a spokesperson for Genesis told VTDigger. (Burch, 7/31)

UnitedHealth Group鈥檚 credit outlook has been downgraded to 鈥渘egative鈥 from 鈥渟table鈥 by Fitch Ratings. Fitch, one of the largest credit rating agencies, said in a Wednesday news release the downgrade is tied to UnitedHealth鈥檚 second-quarter earnings report released Tuesday and the company鈥檚 diminished outlook for operating performance in 2025. (Hudson, 7/31)

CVS Health reported earnings that beat Wall Street鈥檚 expectations and upgraded its projection for 2025, as its health-insurance business showed signs of recovery. The healthcare giant鈥檚 results underscore a split among health insurers. On one side are companies struggling this year with a surprise financial squeeze from higher-than-expected medical costs, a list that includes Centene, Molina Healthcare and the industry bellwether, UnitedHealth Group. (Wilde Mathews, 7/31)

A new medical school in St. Cloud aims to help address a severe shortage of physicians serving rural Minnesota. The University of Minnesota Medical School鈥檚 CentraCare Regional Campus is the first expansion of the U鈥檚 medical school in more than 50 years, since the Duluth campus opened in 1972. (Marohn, 7/31)

Trinity Health is looking for physician partners to boost ambulatory services, President and CEO Mike Slubowski said. Despite looming federal funding cuts, Trinity Health is making investments in surgery centers and imaging sites. The nonprofit health system is also pursuing joint venture opportunities and implementing efficiency efforts to help manage costs, Slubowski said. (Hudson, 7/31)

On hospital food 鈥

Let鈥檚 be honest. Hospital food? It stinks. Always has. Always will. Except maybe not anymore. Because Tampa General Hospital 鈥 the place with the helicopters, 1,000 beds on a downtown island and that blessed AquaFence to keep the hurricanes out 鈥 just partnered with an Iron Chef to fix the menu. (Mayer, 8/1)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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