Wednesday's health stories

Providers overwhelmingly back Pence's Medicaid expansion
Indiana's conservative twist on Medicaid expansion — approved when Mike Pence was governor — has solid support among health care providers in the state. The two main reasons: It pays better than standard Medicaid rates, and they prefer it to no expansion at all, which would have left them on the hook for more charity care.
Why it matters: A big problem with Medicaid is getting enough doctors and other providers to participate — so when they support the program, they're going to treat more Medicaid patients. That works out better for everyone, and it's more likely to make Indiana a model for for other Republican-led states to change their Medicaid programs.

UnitedHealth's profit surges after Obamacare retreat
UnitedHealth Group's revenue jumped 9% annually to $48.7 billion in the first quarter of 2017, even though it withdrew from nearly all of the Obamacare marketplaces, and its profit soared 35% to almost $2.2 billion. Most of the growth at the health care conglomerate is coming from taxpayer-funded insurance programs (Medicare Advantage and Medicaid) as well as from its services arm, Optum.
UnitedHealth also really wants tax reform: Specifically, the company wants permanent repeal of Obamacare's health insurance tax, which Congress suspended for 2017. UnitedHealth CEO Stephen Hemsley said on an earnings call Tuesday that Congress needed to act before the tax "further worsens consumers' premiums, state budgets and seniors' benefits." Repealing the tax would lower consumers' health care premiums, but it's also one of the easiest ways for insurance companies to juice earnings per share, which funnels money back to shareholders and top executives.

