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Democracy Dies in Darkness
The Health 202

A newsletter briefing on the health-care policy debate in Washington.

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WHY MEDICAID’S ‘UNDERCOUNT’ PROBLEM COUNTS

Analysis by Phil Galewitz

with research by McKenzie Beard

May 14, 2024 at 8:03 a.m. EDT

A newsletter briefing on the health-care policy debate in Washington.

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Good morning. I’m Phil Galewitz, a senior correspondent at KFF Health News who
plays pickleball in his spare time. Send story and pickleball tips to
pgalewitz@kff.org  Not a subscriber? Sign up here.

Today’s edition: The Biden administration is set to unveil new tariffs on
Chinese medical supplies. A House panel is pressing the Drug Enforcement
Administration for an update on its work to address ongoing shortages of
prescription stimulants. But first …



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MILLIONS LOST MEDICAID COVERAGE – BEFORE REALIZING THEY HAD IT


Experts say the disconnect likely prevented some patients from accessing
health-care services. (iStock)

Millions of people were surprised to find themselves booted from Medicaid over
the past year after pandemic-era protections expired that had prevented states
from terminating their coverage.

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Turns out, millions of them were also unaware they had been covered by the
government program.

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Nearly 1 in 3 people enrolled in Medicaid in 2022 — or 26 million people —
didn’t know it, according to a study by Harvard and New York University
researchers published in Health Affairs this month. 

The report estimated that of those who didn’t know they were on Medicaid, about
3 million thought they were uninsured.

They almost certainly had coverage, though, because the federal government from
March 2020 to April 2023 prohibited states from dropping anyone from Medicaid
rolls in exchange for billions of dollars in pandemic relief money.

“What this means is people could have been accessing health-care services and
probably did not because they thought they were uninsured,” said Jennifer
Tolbert, deputy director of the KFF Program on Medicaid & Uninsured. “People not
understanding that they have Medicaid is not a good thing.”

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This lack of awareness has implications for efforts to predict how much the
nation’s uninsured rate has changed as a result of the Medicaid “unwinding” —
the process that began last year in which states redetermine whether people
enrolled in the program since the pandemic unfolded remain eligible.

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States have dropped about 22 million people from Medicaid in the past year,
often for procedural reasons like failing to return paperwork. A KFF survey in
April found about 1 in 4 adults who were disenrolled from Medicaid a year ago
remained uninsured.

One group enjoys some upside from Americans’ ignorance about their insurance
coverage: the companies that administer Medicaid for most states, including
UnitedHealthcare and Centene. 

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States pay them a monthly fee for every person enrolled in their plans. But if
people don’t know they’re insured, they’re less likely to seek health services —
which means higher profits for the companies.

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“Insurers reaped windfalls from this reality,” said Brian Blase, president of
the Paragon Health Institute and a former health policy adviser to President
Donald Trump. “People who are enrolled but don't know they are enrolled receive
no benefit from the program.”

In March 2022, the Centers for Medicare & Medicaid Services reported that about
88 million people had Medicaid coverage. But census survey data found about 62
million people self-reported Medicaid coverage — an undercount of 26.4 million,
the study said. 

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Several factors explain why enrollees may not realize they’re on Medicaid.

They don’t pay monthly premiums, so the cost of the coverage can be invisible.
Because it’s administered by private insurers, many Medicaid recipients may
believe they have commercial coverage. And states often market their Medicaid
programs with a consumer-friendly name, like Husky Health in Connecticut or
SoonerCare in Oklahoma. 

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“Medicaid having different names should not lead people to think they are
uninsured,” said Benjamin Sommers, a health economist at Harvard who was one of
the study’s authors. 

KFF Health News is a national newsroom that produces in-depth journalism about
health issues and is one of the core operating programs at KFF — an independent
source of health policy research, polling, and journalism.

WHITE HOUSE PRESCRIPTIONS

BIDEN SET TO ANNOUNCE NEW TARIFFS ON CHINESE MEDICAL SUPPLIES



New this a.m.: The Biden administration is flexing its trade muscles by
implementing major new tariffs on medical products imported from China. 

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The move follows a three-year review by the Office of the United States Trade
Representative, with Biden officials describing the latest tariffs as “carefully
targeted” to protect only the strategic sectors that the president seeks to
cultivate. The plan includes: 

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 * A 50 percent tax on Chinese-made syringes and needles. 
 * A 25 percent tariff on certain imported personal protective equipment,
   including some respirators and face masks, up from 7.5 percent or less. 
 * A 25 percent tax on Chinese-manufactured rubber medical and surgical gloves,
   more than tripling the current tariff of 7.5 percent. 

The bigger picture: The move aligns with the administration’s broader strategy
to combat what the White House calls “unfair trade practices” by China and to
bolster U.S. defenses against supply shortages seen during the coronavirus
pandemic. 

Despite efforts by the federal government and private sector, the administration
says American businesses continue to struggle to compete with an influx of
low-cost Chinese medical supplies saturating the market. Some products are poor
quality, Biden officials say, raising safety concerns for health-care workers
and patients. 

ON THE HILL

FIRST IN THE HEALTH 202: HOUSE REPUBLICANS PUSH DEA FOR INFORMATION ON
CONTROLLED SUBSTANCES SHORTAGES



New this a.m.: Republicans on the House Committee on Oversight and
Accountability are pressing the DEA for an update on its effort to tackle
ongoing shortages of Adderall and other controlled substances like it. 

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In a letter sent yesterday to DEA Administrator Anne Milgram, lawmakers noted
that the agency hasn’t adjusted the caps it imposes on the annual production of
the prescription stimulants, despite a rise in demand and fewer manufacturers.
The decision, they argue, has exacerbated shortages that have persisted for over
18 months.

Next steps: The committee is asking the DEA for information about its
quota-setting process, as well as access to documents and communications related
to the agency’s response to the shortages, in particular Adderall, Vyvanse and
related generics. The letter was signed by full committee Chair James Comer
(R-Ky.) and health subcommittee Chair Lisa C. McClain (R-Mich.). 

The DEA didn’t immediately respond to a request for comment. 

IN OTHER NEWS FROM CAPITOL HILL …

On our radar: A bipartisan group of senators led by Majority Leader Charles E.
Schumer (D-N.Y.) are set to unveil a long-awaited “road map” this week for
regulating artificial intelligence, including in the health-care industry, The
Post’s Cat Zakrzewski reports. 

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The initiative is intended to provide direction to the Senate committees
increasingly crafting bills regulating the technology. The plan is expected to
call for individual sectors to develop specific rules for AI, as well as the
development of testing and transparency measures to help explain its potential
harms. The road map will also call for about $32 billion in funding for AI
research and development. 

DEEP DIVE

BIDEN NEARLY DIED OF AN ANEURYSM. RISKY SURGERY CHANGED HIS LIFE.



The Post’s Michael Kranish is out with a deep dive this morning into the
aneurysms that nearly killed President Biden in 1988 and the risky procedure
that saved him – and how the incident helps explain the 81-year-old’s
motivations today. 

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Why it matters: The near-fatal experience highlights the depth of Biden’s
resilience. But it also underscores how he initially downplayed a serious health
issue for fear of the political repercussions and, as he later acknowledged,
sometimes failed to heed the advice of his doctors. 

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The politics: For years, Biden’s triumph over the aneurysms was the subject of
bipartisan applause. But during the 2020 campaign, Trump began raising doubts
about Biden’s mental acuity. Now, as Biden seeks reelection amid voter concerns
about his health and age, 78-year-old Trump has alleged without medical evidence
that his Democratic opponent is “cognitively impaired.” 

Doctors who treated Biden dismissed the allegation, saying he fully recovered
and suffered no brain damage. And while some people who have had aneurysm
surgery experience longer-term health repercussions, experts say, there is no
evidence that Biden has suffered such consequences — though he has said it
significantly changed his outlook on life.

STATE SCAN

ARIZONA SUPREME COURT DELAYS ENFORCEMENT OF NEAR-TOTAL ABORTION BAN



The Arizona Supreme Court granted Attorney General Kris Mayes’s (D) request to
delay the enforcement of a 160-year-old abortion ban, giving her time to
consider appealing the case to the nation’s top court, Stacey Barchenger reports
for the Arizona Republic. 

Yesterday’s ruling said the earliest the Civil War-era law could be enforced
would be Aug. 12. Combined with a separate court order, that could mean the ban
repealed by the state legislature earlier this month is never enforced — though
that depends on when lawmakers wrap up their work for the year. 

 * Planned Parenthood Arizona said after the court's ruling it would continue
   providing abortions up to 15 weeks of pregnancy at its clinics in the state
   “for the next several months.”

IN OTHER HEALTH NEWS

 * On the move: The Food and Drug Administration’s Center for Tobacco Products
   has selected John Verbeten as the next director of its Office of Compliance
   and Enforcement. Verbeten most recently served as deputy director for import
   operations enforcement at the agency’s Office of Regulatory Affairs. 
 * The FDA is urging health-care providers and consumers not to use at-home
   coronavirus tests manufactured by Cue Health, following a warning letter to
   the company last week that said the product could deliver false results. 
 * About 63 percent of Americans say abortion should be legal in all or most
   cases, according to a new Pew Research Center survey that represents a 4
   percent increase since 2021, the year before the Supreme Court overturned Roe
   v. Wade. 

HEALTH READS

What the results of Wegovy’s longest clinical trial yet show about weight loss,
side effects and heart protection | CNN (By Meg Tirrell | CNN)

After decades fighting Big Tobacco, Cliff Douglas now leads a foundation funded
by his former adversaries (By Nicholas Florko | Stat)

Mississippi lawmakers move to limit the jail detentions of people awaiting
mental health treatment (By Kate Royals | ProPublica and Mississippi Today)

SUGAR RUSH

Thanks for reading! See you tomorrow. 

Share
35 Comments
By McKenzie Beard
McKenzie Beard is a researcher for The Health 202, a morning newsletter and
daily guide to Washington's health-care policy debate. She started at the Post
as an American University practicum student on the investigative desk in 2021
and has previously reported for Voice of America and Teen Vogue. Twitter


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