On the Margins -- Mar 26: KFF finds 19% in-network denial rate in 2024 H...
On the Margins
Your daily health economics & actuarial brief
Thursday, March 26, 2026
What's happening today
| ■ | KFF found HealthCare.gov plans denied 19% of in-network claims in 2024, with appeal use remaining low. |
| ■ | CMS let New York trim Essential Plan eligibility starting July 1. |
| ■ | Providence put its health plan up for sale as mounting costs strain system finances. |
Key Stories
KFF finds 19% in-network denial rate in 2024 HealthCare.gov plans
KFF's new brief found insurers denied 19% of in-network claims in HealthCare.gov Marketplace plans in 2024. The brief says consumers rarely appealed those denials. The analysis used federal transparency data published by CMS on Marketplace claims denials and appeals. A 19% denial rate with little appeal keeps more claims unpaid, supporting near-term medical cost control in exchange books.
CMS lets New York trim Essential Plan eligibility on July 1
CMS approved New York's rollback of Essential Plan coverage for residents with incomes between 200% and 250% of the federal poverty level. The change was announced in a March 23 New York State of Health release and starts July 1 with termination of the state's Section 1332 Innovation Waiver. This is an eligibility pullback, not a minor benefit edit. For exchange actuaries and finance teams, covered lives and subsidy flows will shift once that 200%-250% FPL segment moves out of the Essential Plan.
Providence puts its health plan up for sale amid cost strain
Providence said in March it plans to sell Providence Health Plan, stepping away from the "payvider" model. MedCity reported rising costs and operational complexity are driving the move, pressures that hit smaller regional insurers harder. The article frames the sale as part of a broader reset, with health systems refocusing on care delivery and using partnerships instead of owning insurance. For provider finance teams, that means less exposure to insurance cost inflation and administrative drag, even if it narrows vertical integration ambitions.
Significant Digit
The IRA redesign did not just reshuffle liability; it blew up Part D bids and raised the cost of keeping premiums politically tolerable.
MedPAC says the national average Part D bid jumped nearly 180 percent in 2025, then another 33 percent in 2026, as IRA benefit redesign shifted more liability to plans and added utilization uncertainty. That matters because bids drive Medicare subsidies and shape premiums, so this is not a technical footnote -- it is federal budget exposure with a formulary. In Part D, "redesign" apparently came with an invoice.
Other Relevant Headlines
Policy & Regulation
| Humana, CommonSpirit lock in 3-year network deal across 24 states | Fierce Healthcare |
| RWJF: Between 5M and 10M people could lose Medicaid coverage in 2028 under work requirements | Fierce Healthcare |
| Iowa bill aims to hike HMO tax, bolster Medicaid | Becker's Payer |
| Faith-based investor coalition sues UnitedHealth to force disclosure of M&A impacts | Healthcare Dive |
Payer Operations
| Utilization dings Highmark Health earnings as Medicaid cuts loom | Modern Healthcare |
Pharmacy & Drug Pricing
| CVS, FTC reach proposed settlement in insulin pricing case | Healthcare Dive |
Provider Economics
| Cencora to buy EyeSouth's retina business for $1.1B | Healthcare Dive |
| PeaceHealth sued over plans to tap out-of-state staffer ApolloMD for Oregon EDs | Fierce Healthcare |
Digital Health & AI
| Qualified Health locks in $125M in fresh funding to scale enterprise AI at health systems | Fierce Healthcare |
| The saga of Utah's Rx Refill Bot: A bold bet on AI and researchers who cried foul | MedCity News |
ICYMI (Recent Key Stories)
- CMS pairs Minnesota Medicaid fix with tougher federal fraud funding threat -- CMS addressed a Minnesota Medicaid issue while warning of stricter federal action tied to fraud funding. (2026-03-25)
- Sutter's Allina acquisition creates a $26B nonprofit across three states -- Sutter's acquisition of Allina would form a $26 billion nonprofit health system spanning three states. (2026-03-24)
- Klomp floats automatic Medicare Advantage enrollment as policy option -- Klomp suggested automatic enrollment into Medicare Advantage as a possible policy approach. (2026-03-23)
- Providence puts its health plan on the block, or close to it -- Providence is exploring a sale or similar transaction involving its health insurance plan. (2026-03-20)
- NIH tells House appropriators it will spend its full-year budget -- NIH told House appropriators it expects to use its entire budget allocation for the fiscal year. (2026-03-19)