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For decades, runaway Medicare spending was the story of the federal budget. Now, flat Medicare spending might be a bigger one. Something strange has been happening in this giant federal program. Instead of growing and growing, as it always had before, spending per Medicare beneficiary has nearly leveled off over more than a decade. The trend can be a little hard to see because, as baby boomers have aged, the number of people using Medicare has grown. But it has had enormous consequences for federal spending. Budget news often sounds apocalyptic, but the Medicare trend has been unexpectedly good for federal spending, saving taxpayers a huge amount relative to projections. (Sanger-Katz, Parlapiano and Katz, 9/4)

Congress poured money into the U.S. economy throughout the COVID-19 pandemic. But for a few hospitals, one of the lifelines that Medicare threw to the medical industry ultimately became another stone around their necks. Medicare flooded hospitals with cash after the virus prompted the Trump administration to halt elective care — a crucial source of revenue — but not all of that money was a giveaway. In fact, $107.3 billion came through advances on Medicare claims that were doled out between April and October of 2020.  (Clason, 9/6)

States will give participating hospitals a fixed payment each year, known as a hospital global budget, under a new 11-year experiment. (Goldman, 9/6)

Much of the growth experienced by Medicare Advantage over the last two decades can be attributed to beneficiaries switching from traditional Medicare to MA, a trend that’s accelerated in recent years, according to a study published today in Health Affairs. (Diamond, 9/5)

The Centers for Medicare and Medicaid Services will offer as many as eight states up to $12 million each to implement a new payment model designed to improve population health, the agency announced Tuesday. (Kacik, 9/5)