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The proposed pay increase "is a step in the right direction, but it does not negate the compounding effects of rising inflation, record levels of uncompensated care and a growing uninsured population," Charlene MacDonald, president and CEO of the Federation of American Hospitals, said in a statement.

Rising premiums, Medicaid losses and structural gaps are pushing coverage further out of reach.

Overall application numbers were up 14% in the first quarter, according to data from MIB Group.

States that use the model would offer the credit to employers with two to 50 employees.

Democratic Gov. Abigail Spanberger signed a bill this week that sets new rules for how insurance carriers must handle prior authorizations for both drugs and certain health care services.

"The first quarter's $14.5 billion in transacted revenue was the highest Q1 figure we have seen in recent years," the report said.