OIG Nixes Medicare Advantage Gainsharing Payments

The U.S. Department of Health and Human Services, Office of Inspector General (the “OIG”) posted an unfavorable Advisory Opinion (24-08) prohibiting a Corporation offering Medicare Advantage (“MA”), MA-Prescription Drug (“PD”), and MA/MA-PD Employer Group Waiver Plans (“EGWPs”) from sharing a percentage of its savings with its covered groups via a gainshare payment (“Payment”).  

Update on Change Healthcare Class Action Litigation

The cybersecurity attack on Change Healthcare (“Change”), a subsidiary of the UnitedHealth Group, has caused widespread disruption, impacting health care providers and individuals whose personal data was compromised. This breach has led to numerous class action lawsuits, divided into two main groups: providers affected by the claims processing shutdown and individuals whose data was leaked. In June 2024, approximately 50 lawsuits were centralized into a Multi-District Litigation (MDL) in federal court in Minnesota. On September 17, 2024, the first conference in the matter occurred. As the litigation progresses, motions to dismiss, potential mediation, and class certification are expected to shape the case.

New Jersey Issues Medicaid Update on FQHC Billing for LCSWs

In June 2024, the New Jersey Department of Human Services, Division of Medical Assistance & Health Services (the Division), issued a Newsletter announcing the ability of Licensed Clinical Social Workers (LCSWs) to enroll as billing providers in NJ FamilyCare/Medicaid for claims with service dates on or after July 1, 2024. This month, the Division issued a Medicaid Alert advising Federally Qualified Health Centers (FQHCs) how they are affected by this change.