• California: Last month, California's Health Care Affordability Board passed a new rule limiting annual price increases from doctors, hospitals, and health insurance companies in the state to 3% starting in 2029. The price gap will be phased in over five years, with the initial limit being set at 3.5% for 2025. A new state agency, the Office of Health Care Affordability, will also collect data to enforce the rule, and noncompliant providers could face fines. Although healthcare organizations in California have supported the idea of a statewide cost target, they say that a 3% price cap is too low and will be almost impossible to meet. Mark Ghaly, chair of the Health Care Affordability Board, said they "want to be aggressive," but acknowledged that the cap "really translates into a major challenge" for the healthcare industry. (Beam, Associated Press, 4/24)
• District of Columbia: CMS last week released draft guidance for the second cycle of Medicare drug price negotiations under the Inflation Reduction Act. CMS announced the first 10 drugs that were eligible for price negotiations last August and sent out initial offers to pharmaceutical companies in February. In the draft guidance, CMS said that 15 additional drugs will be selected for the second round of price negotiations. The agency will announce which drugs are selected for negotiations by Feb. 1, 2025, and negotiated prices will go into effect starting Jan. 1, 2027. "The first cycle of Medicare negotiations continues to proceed, and CMS is committed to transparency and collaboration throughout the Negotiation Program," said CMS Administrator Chiquita Brooks-LaSure. "As we look ahead to additional negotiations that will increase access, promote competition and innovation, and lower costs, we continue to engage drug companies and the public as we build on what we are learning in the first cycle of negotiations." Public comments on the draft guidance will be accepted through July 2, 2024. (HHS news release, 5/3; Phengsitthy/Lopez, Bloomberg Law, 5/3)
• District of Columbia: HHS on Friday said it plans to publish a final rule allowing undocumented immigrants who are part of the DACA program to access health insurance through ACA marketplaces. Currently, one-third of DACA recipients, also known as "Dreamers," are uninsured. According to the Biden administration, 100,000 uninsured DACA recipients could get health coverage under the new rule. "HHS is committed to making health coverage accessible for people DACA recipients—Dreamers—who have worked hard to live the American Dream," said HHS Secretary Xacvier Becerra. "Dreamers are our neighbors and friends; they are students, teachers, social workers, doctors, and nurses. More importantly, they are fellow Americans." The new rule will go into effect November 1, which will open a 60-day window for eligible individuals to sign up for a health plan. (CBS News, 5/3; Goldman, Axios, 5/3; Wingrove, Bloomberg/Modern Healthcare, 5/3; Belloni, Bloomberg Law, 5/3; Aleaziz, New York Times, 5/3)

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