Chris Hunter: Sure. This is Chris. We’ve been working on redetermination since late last year and continued to just be a really major focus for the company across all of our service lines. And as of July 1, every one of our states except for Oregon is now launched. So that said, I would say, only a fraction of our patients under 25% have completed redetermination due to the way that so many of these states continue to spread the disenrollment throughout all the way into 2024. So as we’ve previously discussed, we’re seeing good early results in our patients maintaining coverage. I would say on our RTC service line, those children are increasingly protected because 80% of Medicaid patients are awards of the state. On our specialty service line, those Medicaid recipients are also protected due to the unique county-level backstop funding that we have in place for patients in Pennsylvania where we have most of our specialty Medicaid volume.
And then on the CTC side, I mean we just continue working very closely with our patients to ensure that they have visibility as to whether there could be some disruption. We’re seeing some patients moving to self-pay in a few cases. But overall, we’re really encouraged by our ability to work with these patients to use the hot line we put in place, the kiosks that we put in so many of our centers. And I think it’s done – it’s been very successful in ensuring continuity of care overall. Maybe a couple of other things I’d just point out. I mean, clearly, everyone has read about CMS’s action to pause redetermination in a handful of states. And I would point to some of the Kaiser Family Foundation data that came out early this month that said the three million people that have been disenrolled for Medicaid since redetermination began in April.
Of those disenrolled, 74% were due to procedural reasons rather being disenrolled due to ineligibility for Medicaid. So clearly, CMS is encouraging a number of states to just slow the process down. We continue to see some pretty wide variation in terms of the way that states are handling redetermination. So you have some states that are scheduling members really early in the unwind period like Florida. Others are taking the opposite approach where they’re really back-end loading the disenrollment a member of Michigan and Oklahoma would be examples there. You also have some states that are just doing a great job of giving us transparency into when patients are going to lose coverage. Virginia and Tennessee would be examples there. That gives us an opportunity to be proactive and to reach out to these patients in advance of potentially being removed from the Medicaid roles, and we’ve seen that working really well.
So all in all, I’d say it’s still early. The process does very significantly stay to today. We’re continuing to track it very closely on a number of levels, but we continue to believe the overall impact is going to be more, particularly in 2023, and our early experience just continues to align pretty well with that view.
Unidentified Analyst: Thank you.
Operator: Your next question comes from Gary Taylor with Cowen. Please go ahead.
Gary Taylor: Hi, good morning. Just a couple of questions. One, I just want to clarify. When you talk about wage inflation, how are you defining that? Is that just average hourly rate, excluding benefits, I don’t know if over time or contract labor would be in there. But since we can’t quite reconcile that, we can only look at the reported figure. I just want to make sure I understand how you define that. When you talk about 7.5% going to the 6.3%?
Heather Dixon: You are thinking about that correctly. They are excluded, but I would add that they’re stable across the board.
