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The Regulator · Friday, September 4, 2026

The Regulator

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290,000: that is how many Louisiana Medicaid enrollees just learned their health plan is leaving the program, the second state Medicaid exit by the same insurer in five weeks. The Louisiana Department of Health (LDH) announced September 1, 2026 that Elevance Health’s Healthy Blue will end its Medicaid managed care contract effective December 31, 2026, with members automatically transitioning to one of the state’s four remaining Healthy Louisiana plans, Aetna Better Health, AmeriHealth Caritas Louisiana, Humana Healthy Horizons, or Louisiana Healthcare Connections, on January 1, 2027. LDH Secretary Bruce Greenstein said the state is “planning carefully, communicating directly with members, and coordinating with our health plan partners to protect continuity of care,” with transition letters going out by October 1 and a special enrollment period running October 15 to November 16. The exit follows Elevance’s August 1 departure from the District of Columbia’s Medicaid program and executives’ July comments to investors that the insurer expects a negative 1.75 percent Medicaid operating margin in 2026, driven by elevated spending on behavioral health, specialty drugs, outpatient surgery, and emergency care, and plans to leave several more state Medicaid markets over the next 12 to 18 months. Confidence: High. This run reviewed the Louisiana Department of Health’s own announcement as quoted directly by multiple outlets; LDH’s page itself returned an access block to direct fetch this run. Sources: Louisiana Department of Health announces transition for Medicaid Healthy Blue members, Elevance shuts down D.C. Medicaid business, eyes additional exits after passable Q2, Healthcare Dive.

Third: that is how many federal judges have now thrown out a drugmaker’s attempt to block Colorado’s law forcing manufacturers to honor discounted drug pricing at contract pharmacies. A federal judge in Colorado dismissed AstraZeneca’s lawsuit against the state’s 340B contract pharmacy access law on August 31, 2026, the third such challenge by a pharmaceutical manufacturer that a federal court has rejected, after the judge found the state law does not conflict with the federal 340B drug discount program that lets safety-net providers stretch scarce resources by buying certain outpatient drugs at reduced prices. AstraZeneca has indicated it will appeal. Confidence: Medium-High. This run reviewed trade-press accounts of the ruling; the court opinion itself was not independently retrieved. Sources: Fed Judge Tosses AstraZeneca Challenge to Colorado’s 340B Law, 340B Report, Judge Rejects AstraZeneca’s Attack On Colo. 340B Law, Law360.

$100 million: that is what the Centers for Medicare and Medicaid Services (CMS) started paying out this week for a new Medicare model that funds nutrition, exercise, and sleep coaching instead of pills. CMS’s Innovation Center launched the MAHA ELEVATE model on September 1, 2026, a voluntary program that will award up to 30 cooperative agreements, worth as much as $3.3 million each over a three-year performance period, to organizations that build lifestyle and functional-medicine interventions, nutrition, physical activity, sleep, stress management, and avoidance of harmful substances, alongside conventional care for traditional Medicare fee-for-service beneficiaries. The model does not replace standard medical treatment and applications for the first cohort closed in May 2026, with a second application round expected in 2027. Confidence: High. This run reviewed CMS’s own Innovation Center page directly. Sources: Innovation Insight: Apply Now for MAHA ELEVATE to Build a Healthier America, Centers for Medicare and Medicaid Services.

$6 million: that is what it has cost just to run the bankruptcy case for a two-hospital rural health system in northern New York, with the tab still growing. A bankruptcy court hearing September 3, 2026 for North Star Health Alliance, the nonprofit operator of Carthage Area Hospital and Claxton-Hepburn Medical Center, put the Chapter 11 case’s administrative and professional costs at $6 million since the February 2026 filing, which came after New York’s Department of Health paused state funding over missing financial disclosures. New York State has since propped up the system with bridge financing, while North Star has cut jobs and moved to close maternity services at Claxton-Hepburn, a decision the surrounding community is fighting. Confidence: Medium-High. This run reviewed direct local news coverage of the bankruptcy hearing; the underlying court filings were not independently retrieved. Sources: North Star’s bankruptcy case costs $6 million, WWNY.

Two years: that is how long the Drug Enforcement Administration (DEA) can keep three synthetic kratom-derived chemicals in its strictest drug category under an order that took effect last week, while regulators decide whether to go further. The DEA’s temporary order placing mitragynine pseudoindoxyl, MGM-15, and MGM-16, all synthetic derivatives of the kratom compound 7-hydroxymitragynine (7-OH), into Schedule I of the Controlled Substances Act took effect August 26, 2026, and can run up to two years with a possible one-year extension. DEA Administrator Terrance Cole said the action “targets highly concentrated, synthetic 7-OH products, which pose a growing threat to public safety,” while Department of Health and Human Services Secretary Robert F. Kennedy Jr. called the compounds “dangerous opioids that fuel addiction and put American lives at risk.” A separate, still-open comment period on placing concentrated 7-OH itself, the compound found in many over-the-counter kratom shot products sold nationwide, into Schedule I closes September 10, 2026; natural kratom leaf products with only trace amounts of 7-OH are not affected. Confidence: Medium-High. This run reviewed the Federal Register’s own docket listing and a Congressional Research Service legal analysis; the full text of the August 26 order itself returned an access block to direct fetch. Sources: Schedules of Controlled Substances: Temporary Placement of Mitragynine Pseudoindoxyl, MGM-15, and MGM-16 in Schedule I, Federal Register, Temporary Control of 7-Hydroxymitragynine (7-OH) and Related Substances Under the Controlled Substances Act, Congressional Research Service.

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