My inbox is hot as a hornet's tail, and there's two things that are making it blister. The first is Medicare's "effective immediately" moratorium on granting additional providers or clearinghouses access to its eligibility data. The second is this story about the FBI's raid on WellCare Health Plans Tampa.
The eligibility moratorium was invoked for the explicit purpose of "security," according to my sources. They not only want to know who's connecting to them, they want to know who's connecting to them. People in the industry are worried about restraint of trade, if Medicare opts to limit the number of connectivity relationships, which are now wildly complex, often hopping between three or more entities between the provider and Medicare.
Do You Want to See My Etchings?
Details on the WellCare raid are sketchy. We know that there were three agencies and a lot of agents involved (one report listed 200), and it was dramatic enough to cause about a 70% drop in their stock price before Wall Street halted trading on the issue altogether.
The Invisible Hand at Work
WellCare specializes in administering federal managed care plans for Medicare and Medicaid beneficiaries, competing against other companies trying to sell similar coverage to the same patients. And they must be doing a good job, right? Because they've grown into a $4B a year business doling out healthcare for those privatizing patriots back in DC.
Cold Cash
Of course, they did get into a little trouble recently when some, um, overzealous independent agents happened to enroll some beneficiaries who had, well, deceased prior to their enrollment. In terms of quality outcomes, it's worth noting that 100% of those patients stayed dead under WellCare's management.
Put on Your Belts as I Shift into Hypothetical Drive
Now, if you were having a more significant lapse in regulatory compliance, and you wanted to outdistance your competitors in capturing those Medicare and Medicaid patients with promises of better/faster/cheaper care (as long as we're not talking about the taxpayer, at least), they you might be interested to know all the beneficiaries of a particular program in your area. You know, the kind of answers you might get from, say, sending in an electronic eligibility request. Or maybe a few thousand. Or a few hundred thousand. Whatever.
But of course, that would be wrong. I'm sure the cause of the raid was just a simple misunderstanding, like forgetting to cross an "i" or dot a "t" on their last Medicare provider enrollment form.
Oh, that's right. They're not a provider, they're a payer.
Nothing to See Here, Folks
So that must mean these two stories aren't related. Medicare's new policy is directed at healthcare providers.
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