Financial Oversight / en Tue, 29 Apr 2025 04:19:39 -0500 Thu, 30 Jan 25 13:22:23 -0600 Administration Rescinds Memo Pausing Federal Grants, Loans and Other Financial Assistance Programs <div class="container"><div class="row"><div class="col-md-8"><p>The White House Office of Management and Budget Jan. 29 rescinded a <a href="https://sponsors.aha.org/rs/710-ZLL-651/images/01282025_omb-memo-on-federal-aid-freeze.pdf?version=0)" target="_blank">memo</a> it issued two days earlier directing federal agencies to temporarily pause federal grants, loans and other financial assistance programs implicated by President Trump’s recent executive orders. </p><p>Following the rescission of the memo, White House Press Secretary Karoline Leavitt said, “This is NOT a recission of the federal funding freeze. It is simply a recission of the OMB memo…the President’s EO’s on federal funding remain in full force and effect and will be rigorously implemented.” </p><p>It is AHA’s understanding, this is in reference to <a href="https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.whitehouse.gov%2Ffact-sheets%2F2025%2F01%2Fomb-q-a-regarding-memorandum-m-25-13%2F&data=05%7C02%7Cpdavis%40aha.org%7C9958015c50be43f30a0c08dd415452b0%7Cb9119340beb74e5e84b23cc18f7b36a6%7C0%7C0%7C638738552615932047%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=Lr6dkoes87cT6QSuYqlKFJWSe7afznur9Td6YPnnnG4%3D&reserved=0">seven EOs</a> the administration released, many of which included their own separate funding reviews within them. </p><p>The Jan. 27 OMB memo that has been rescinded directed federal agencies to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”   </p><p>The pause was not going to affect Social Security, Medicare benefits, <a href="https://www.whitehouse.gov/fact-sheets/2025/01/omb-q-a-regarding-memorandum-m-25-13/">Medicaid</a> or “assistance provided directly to individuals.” </p><p>A federal judge in Washington, D.C. had temporarily halted the pause shortly before it was set to take effect on Jan. 28 at 5 p.m. </p><p>In a separate court case brought by some Democratic attorneys general, U.S. District Judge Jack McConnell said Jan. 29 that even though the OMB memo had been rescinded he was considering blocking the freeze, according to reports. “I fear … that the administration is acting with a distinction without a difference.” </p><p>The AHA will continue to monitor as this issue continues to develop. </p><h2>ADDITIONAL INFORMATION ON EXECUTIVE ACTIONS </h2><p>The Trump administration during its first two weeks has issued an unprecedented series of executive orders and administrative actions that reinforce the administration’s priorities. The AHA has compiled a <a href="/system/files/media/file/2025/01/2025-New-Executive-Orders-20250127.pdf">tracker of the actions</a> the administration has taken, including a number that have been released during the past that may be of interest to hospitals and health systems. The tracker will be updated regularly as new actions are released. </p><h2>FURTHER QUESTIONS </h2><p>If you have further questions, please contact the AHA at 800-424-4301. </p></div><div class="col-md-4"><a href="/system/files/media/file/2025/01/administration-rescinds-memo-pausing-federal-grants-loans-and-other-financial-assistance-programs-advisory-1-30-2025.pdf"><img src="/sites/default/files/inline-images/cover-administration-rescinds-memo-pausing-federal-grants-loans-and-other-financial-assistance-programs-advisory-1-30-2025.png" data-entity-uuid="40ec830c-e830-4e00-bbb8-a03ef47423fb" data-entity-type="file" alt="Member Advisory Cover Image" width="679" height="878"></a></div></div></div> Thu, 30 Jan 2025 13:22:23 -0600 Financial Oversight CMS air ambulance audit finds Aetna in Texas failed to properly calculate qualifying payment amount claims /news/headline/2024-07-11-cms-air-ambulance-audit-finds-aetna-texas-failed-properly-calculate-qualifying-payment-amount-claims <p>The Centers for Medicare & Medicaid Services recently released results of an air ambulance qualifying payment amount calculations <a href="https://www.cms.gov/files/document/qpa-final-report-aetna-tx.pdf" target="_blank">audit</a> on Aetna Health in Texas. The report found that Aetna used practices that did not comply with federal requirements, and strongly recommended corrective actions. Specifically, the report found that Aetna failed to "properly calculate the QPA by using claim paid amounts instead of contracted rates, and counting each claim as its own contracted rate, even when the claims were for the same amounts for the same item or service and to the same provider of air ambulance services." Aetna may also be subjected to future audits.</p> Thu, 11 Jul 2024 15:03:18 -0500 Financial Oversight MACPAC recommends increased transparency on Medicaid and CHIP financing  /news/headline/2024-06-11-macpac-recommends-increased-transparency-medicaid-and-chip-financing <p>The Medicaid and CHIP Payment and Access Commission (MACPAC) June 11 released its June <a href="https://www.macpac.gov/wp-content/uploads/2024/06/MACPAC_June-2024-WEB-508.pdf">report</a> to Congress. The first chapter focuses on improving the transparency of financing the non-federal share of Medicaid and CHIP. The commission recommends that states be required to submit an annual report describing their Medicaid and CHIP financing methods, including the amount that providers contribute through health care related taxes and assessments. <br> <br>MACPAC also discusses better care coordination for people dually eligible for Medicaid and Medicare, and examines Medicare savings programs. The final chapter of the report describes the importance of collecting demographic data and federal and state priorities for collection and use. MACPAC makes key considerations for collecting these data and factors affecting data quality. </p> Tue, 11 Jun 2024 15:41:08 -0500 Financial Oversight House defeats continuing resolution as government shutdown looms /news/headline/2023-09-29-house-defeats-continuing-resolution-government-shutdown-looms <p>The House Sept. 29 voted 198-232 to defeat a continuing resolution (<a href="https://docs.house.gov/Committee/Calendar/ByEvent.aspx?EventID=116442" target="_blank">H.R. 5525</a>) that would have funded the federal government through Oct. 31 but would have reduced discretionary spending for most domestic programs by nearly 30%. The bill also would have created a Fiscal Commission tasked with recommending ways to reduce the federal budget deficit, including changes to Medicare. The Senate continues to consider a CR (<a href="https://www.appropriations.senate.gov/imo/media/doc/230926_cr_legislative_text.PDF" target="_blank">H.R. 3935</a>) that would fund the government and delay Medicaid Disproportionate Share Hospital cuts through Nov. 17, while extending until then authorizations for community health centers, the National Health Service Corps, and Teaching Health Center Graduate Medical Education. The Senate is reportedly considering adding border security funding to its CR. Action in the Senate may occur this weekend. Federal funding will expire at midnight Sept. 30. A government shutdown beginning on Oct. 1 remains highly likely.</p> Fri, 29 Sep 2023 14:38:37 -0500 Financial Oversight After White House and Speaker reach debt limit deal, Congress expected to act with House vote possible as soon as Wednesday  /news/headline/2023-05-30-after-white-house-and-speaker-reach-debt-limit-deal-congress-expected-act-house-vote-possible-soon <p>The White House and Speaker McCarthy May 27 announced the <a href="https://rules.house.gov/bill/118/hr-fiscal-responsibility-act">Fiscal Responsibility Act of 2023</a> (H.R. 3746), a deal to suspend the debt limit for nearly two years and make other policy changes. The terms of the deal include suspending the nation’s $31.4 trillion borrowing limit until January 2025; enacting limits on the growth of federal discretionary spending over the next two years; adding some new work requirements for certain recipients of food stamps and the Temporary Aid for Needy Families program; clawing back some money from the IRS and COVID-19 relief; and setting up a new statutory ‘PAYGO’ process for Executive Branch rules that increase spending, with some exceptions and waivers. <br />   <br /> The House Rules Committee is expected to take up the bill today and if it passes, the House of Representatives could vote on it as soon as Wednesday, May 31. The Senate is expected to begin consideration immediately after House passage. Treasury Secretary Janet Yellen said that the government would default if Congress does not increase or suspend the debt ceiling by June 5. </p> Tue, 30 May 2023 14:01:00 -0500 Financial Oversight Statement on Tax Proposal /press-releases/2017-11-02-statement-tax-proposal <div class="outlineContent clearfix"><p>Contact: Marie Johnson, 202-626-2351, <a href="mailto:mwatteau@aha.org">mjohnson@aha.org</a></p><p>Colin Milligan, 202-638-5491, <a href="mailto:cmilligan@aha.org">cmilligan@aha.org</a></p><p># # #</p><p class="text-align-center"><strong>Tom Nickels</strong><br><strong>Executive Vice President</strong><br><strong> Association</strong></p><p class="text-align-center"><strong>November 2, 2017</strong></p><p># # #</p><p>Today’s tax proposal contains several provisions that have consequences to hospitals, health systems and the patients they serve. For many communities, tax-exempt financing, such as private activity bonds, has been a key to maintaining vital hospital services. If hospital access to tax-exempt financing is limited or eliminated, hospitals’ ability to make investments in new technologies and renovations in the future will be challenged. At the same time, we are pleased the proposal maintains current policy on charitable contributions that are critical to funding the services that patients need.</p><p>In addition, we are concerned about the proposed 20% excise tax for certain hospital employee compensation. There is already a rigorous process prescribed by the Internal Revenue Service for setting up executive compensation. The process requires an impartial panel drawn primarily from the board of trustees, which is charged with setting CEO compensation based on the marketplace and documenting deliberations to attract the best talent. Finally, we are troubled that the proposal would eliminate an important deduction for people with high medical costs.</p><p>America’s hospitals and health systems are always open, serving their communities 24 hours a day, seven days a week, 365 days a year. As Congress engages in the important work of reforming the nation’s tax code, we urge them to retain tax code incentives and fair treatment for hospitals that continue to work to provide access to health care in communities all across the country.</p><h2>About the AHA</h2><p>The AHA is a not-for-profit association of health care provider organizations and individuals that are committed to the health improvement of their communities. The AHA is the national advocate for its members, which include nearly 5,000 hospitals, health care systems, networks, other providers of care and 43,000 individual members. Founded in 1898, the AHA provides education for health care leaders and is a source of information on health care issues and trends. For more information, visit the AHA website at <a href="/">www.aha.org</a>.</p></div> Thu, 02 Nov 2017 00:00:00 -0500 Financial Oversight