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Yahoo
7 days ago
- Business
- Yahoo
Judge nixes Biden-era rule removing medical debt from credit reports
This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Dive Brief: A federal judge has vacated a rule from the Biden administration that would have removed medical debt from credit reports, in a win for the credit reporting industry. Judge Sean Jordan, a Trump appointee, said that the rule exceeded the authority of the Consumer Financial Protection Bureau, an independent agency that's been carved out by cuts under the Trump administration. The CFPB had finalized the rule in January, weeks before former President Joe Biden left office. The Biden administration estimated the regulation, which never went into effect due to legal challenges, would have removed almost $50 billion of medical debt from the credit reports of some 15 million Americans. Dive Insight: Two credit reporting trade associations, the Cornerstone Credit Union and the Consumer Data Industry Association, sued to overturn the CFPB's rule earlier this year. The rule would cut into revenue such groups earn from training providers on how to submit medical debt data to credit reporting agencies. Credit reporting agencies also argued that the rule would make it hard for lenders to get an accurate picture of a consumer's financial status in making loan determinations. The hollowed-out CFPB under Trump declined to defend its regulation in court. Though a group of clinics and individuals with medical debt stepped up as intervening defendants in the litigation, their arguments were unsuccessful in swaying Jordan that the rule should go into effect. According to the judge, the Fair Credit Reporting Act of 1970 allows reporting agencies to include information about consumers' medical debt and lenders to consider such information when making credit decisions. The CFPB overstepped in seeking to prevent that, Jordan wrote in his Friday opinion. The judge's decision to vacate the rule is a stumbling block for those advocating to reduce the burden of medical debt. More than 100 million Americans struggle with medical debt, which is the largest source of debt in collection across the country, the Biden administration said in January. Roughly 1 in 12 adults have unpaid medical bills of $250 or above, according to an analysis from the Peterson Center on Healthcare and KFF last year. The bills can weigh on patients' credit scores, suppressing financial opportunities, patient advocates say. That's despite such bills being prone to errors and often the result of one-time medical emergencies, instead of evidence of long-term financial mismanagement. The rule was part of a larger effort from the Biden administration to crack down on medical debt. A handful of states have also tried to ease the burden of medical debt in recent years, including North Carolina and New Jersey. 'The facts are clear: Medical debt is not predictive of creditworthiness,' said Allison Sesso, the president and CEO of nonprofit Undue Medical Debt, in a statement Monday. 'This decision will hurt people's financial futures, including their ability to buy a home, care for their families, or even get a job — all because they got sick, injured or were born with a chronic condition through no fault of their own. It will also further decrease their willingness to get the care they need,' Sesso added. The pullback of the rule comes amid a larger Trump administration push to roll back the U.S. safety net, including steep Medicaid cuts in the 'One Big Beautiful Bill Act' passed earlier this month. An estimated 12 million people are expected to lose health insurance as a result of the bill. Recommended Reading New rule wipes medical debt from consumer credit reports
Yahoo
7 days ago
- Health
- Yahoo
Teladoc to launch employee assistance program
This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Dive Brief: Teladoc Health is launching an employee assistance program as the virtual care giant looks to boost its mental healthcare offerings. The program, called Wellbound, includes online therapy through its direct-to-consumer mental healthcare unit BetterHelp, as well as additional psychiatry and medication management services provided through Teladoc, the telehealth vendor said Tuesday. The EAP will also be able to connect users to Teladoc's other services, like primary care and chronic condition management programs. Dive Insight: EAPs, which provide short-term counseling and services for workers managing mental health or personal problems, are a common benefit offered by mid-sized and large employers. However, EAPs often go underutilized, even though employees say they want a range of mental healthcare benefits. More than 80% of workers who know they have an EAP available to them have never used it, according to a survey published last year by Gallup. Stigma surrounding mental health conditions may prevent some from accessing care, while others may be stymied by a busy schedule or other commitments, experts say. Additionally, many workers aren't aware of their options. One poll published early this year found only about half of employees knew how to access mental health benefits, and more than one-quarter didn't know if their employer offered mental health benefits, an EAP, flexible work arrangements or sick days for mental health concerns. Wellbound, Teladoc's first EAP, wants to help address challenges with the programs that employers and health plans have reported to the telehealth vendor, Matthew Sopcich, SVP of mental health solutions at Teladoc, said in a statement to Healthcare Dive. Employees sometimes face a fragmented benefits experience, and they aren't sure where to go when they run of out allotted therapy sessions or when they have different needs, Teladoc said. To that end, the company's offering include navigation support, as well as access to other resources like legal consultation, financial planning services and referrals for elder or child care. Wellbound is available to health plan sponsors today, and the EAP will be accessible to users in January, according to a press release. Teladoc has embarked on a business strategy to increase its offerings and advance its position in virtual mental healthcare under the leadership of CEO Chuck Divita, who took the helm at the company last summer. The telehealth vendor has inked two acquisitions this year: virtual mental health company UpLift and preventive care firm Catapult Health. Last month, executives said M&A would play a key role in Teladoc's strategy as it expands its services. Additionally, Teladoc launched a cardiometabolic health program in April and added partnerships with other digital health companies like Carrot Fertility and digestive health firm Oshi Health. Recommended Reading M&A to play 'important role' at Teladoc: CEO Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-07-2025
- Business
- Yahoo
UnitedHealth names new chief of government programs, Medicaid unit
This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. UnitedHealth has tapped longtime insurance executive Mike Cotton to lead its Medicaid business, filling a role that has stood empty since the company reshuffled its executive team earlier this year, the company confirmed to Healthcare Dive. Meanwhile, Bobby Hunter, who leads the healthcare juggernaut's Medicare division, is stepping up as CEO of government programs, with oversight of both Medicare and Medicaid. The changes follow board chair Stephen Hemsley returning as the company's CEO this spring after UnitedHealth pulled its financial outlook, citing an unexpected step-up in medical spending. The move sent UnitedHealth's shares plummeting. The executive appointments are the latest leadership changes at the beleaguered healthcare behemoth, which operates the largest private insurer in the U.S., a major pharmacy benefits manager, an extensive physician network and other businesses. But UnitedHealth's value has plummeted this year as the company struggles to adjust to an unforeseen increase in medical spending. Higher utilization in Medicare Advantage plans has been spreading to more complex patients, like people dually eligible for Medicare and Medicaid, and popping up in traditionally healthier populations as well, like people enrolled in Affordable Care Act plans. Pressure in government programs is also hitting Centene and Molina, two payers with a heavy presence in Medicaid and the ACA that pulled and cut their 2025 guidances, respectively, this month. But UnitedHealth is also facing intense regulatory scrutiny. According to reports, the Minnesota-based payer faces a criminal investigation by the Department of Justice, with the Wall Street Journal reporting on Wednesday that prosecutors are questioning former UnitedHealth employees over the company's billing practices. The pressures have led multiple investment banks to downgrade UnitedHealth's stock, which has lost more than 40% of its value year-to-date. UnitedHealth plans to report second quarter earnings on July 29. Recommended Reading UnitedHealth downgraded by investment banks Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-07-2025
- Business
- Yahoo
Nursing home operator Genesis Healthcare files for bankruptcy
This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Genesis Healthcare, one of the largest providers of skilled nursing facilities in the country, filed for Chapter 11 bankruptcy protections on Wednesday. Pennsylvania-based Genesis, which operated about 175 skilled nursing facilities across 18 states at its filing, said it struggled with post-pandemic challenges, legacy liabilities and inadequate Medicaid reimbursement. Staff will retain their positions and the filing is not expected to impact patient care, a Genesis spokesperson told Healthcare Dive. Affiliates of Genesis' investor ReGen Healthcare, a private equity firm, have entered into a deal to acquire Genesis, according to bankruptcy court documents filed Thursday. ReGen's deal to acquire Genesis is a 'stalking horse bid,' which sets the floor price to buy Genesis in the event of an auction. The private equity firm has invested in Genesis before, when it was on the verge of filing for bankruptcy for the second time in 2021, according to court documents. The operator had filed for Chapter 11 before in 2000 and emerged from restructuring in 2001. ReGen's initial $50 million investment in 2021, paired with a lease restructuring agreement with Genesis' largest landlord, allowed the operator to 'narrowly' avoid a bankruptcy filing, according to court documents. The private equity firm continued to invest in Genesis, and its investment totaled about $100 million. However, liabilities related to past expansions, 'years of financial stress and deferred capital expenditures,' pressures from the COVID-19 pandemic and inadequate Medicaid reimbursement prompted Genesis to file for Chapter 11 protections again on Wednesday. 'All told, while ReGen's cumulative investment of approximately $100 million (over approximately two years) allowed the Company to avoid bankruptcy and provided a liquidity runway to a business struggling with legacy liabilities and other business challenges, it was unfortunately insufficient to allow the Company to fully transform its business model and achieve long-term viability,' Louis Robichaux IV, co-chief restructuring officer, wrote in court documents Thursday. In initial filings, Genesis said it has up to 25,000 creditors, with liabilities between $1 billion to $10 billion. Genesis has faced other financial challenges in the past, including a nearly $54 million fine in 2017 from the government to settle allegations it violated the False Claims Act for submitting 'medically unnecessary therapy and hospice services, and grossly substandard nursing care.' Genesis joins a growing number of notable bankruptcies this year. In January, health system Prospect Medical Holdings filed for Chapter 11 protections. Last year, both medical center operator CareMax and hospital operator Steward Health Care filed for bankruptcy. Although healthcare bankruptcies declined in 2024, the sector still notched the second-highest number of filings in the past six years. Recommended Reading Healthcare bankruptcies declined in 2024: report
Yahoo
10-07-2025
- Business
- Yahoo
AI startups boost digital health funding in H1: Rock Health
This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Digital health startups raked in more venture capital funding in the first half of the year, signaling the market is stabilizing following pandemic-era investment volatility, according to a report published Monday by Rock Health. U.S.-based digital health companies raised $6.4 billion in the first half of 2025, increasing modestly from $6 billion during the same period last year and $6.2 billion in 2023, the venture capital firm and consultancy said. Artificial intelligence contributed to the boost. Startups that used AI as a core part of their offerings made up a majority of digital health venture capital funding for the first time in the first half, accounting for 62% of the period's funding total. The first half of 2025 included some key developments that hinted the digital health sector — which saw record-breaking investment in 2021 followed by a funding slump in recent years — is seeing some momentum again, according to Rock Health. For example, digital health firms raised $3.4 billion in venture funding in the second quarter alone, compared with the average of $2.6 billion each quarter since the first quarter in 2023. The sector saw fewer deals in the first half, notching just 245 transactions in 2025 compared with last year's 273. However, even with a lower number of transactions, the average deal size grew to $26.1 million from $20.4 million last year as investors poured more money into late-stage rounds, according to Rock Health. U.S. digital health funding 2019 - H1 2025 This embedded content is not available in your region. Startups touting AI products also contributed to the investment increase. On average, AI-enabled firms raised $34.4 million per round, significantly larger than the $18.8 million raised by their non-AI counterparts. Funding rounds by these companies made up the lion's share of mega-deals, or fundraises worth over $100 million, as well. Overall, the first half of 2025 included 11 mega-rounds, on track to exceed the 17 large raises seen through 2024. Nine of the mega-rounds went to AI startups. Completed IPOs and SPACs 2021 - H1 2025 This embedded content is not available in your region. Meanwhile, after a long dry spell of digital health public exits, the sector saw some bright spots in the first half of the year. Digital musculoskeletal company Hinge Health and chronic condition management firm Omada Health completed initial public offerings in May and June, respectively, in positive signals for the industry's nearly dormant IPO market — just two digital health companies notched public exits in the past three years, according to Rock Health. Still, most firms are exiting through mergers and acquisitions. More than 100 M&A deals closed in the first half this year, setting the sector on course to significantly outstrip the 121 digital health purchases recorded last year. Recommended Reading Hinge Health goes public in positive signal for digital health IPOs
