Limo in Paragon, IN

This Paragon Pic demonstrates how states and public providers use intergovernmental transfers (IGTs) to inflate Medicaid spending and inappropriately pass higher costs to federal taxpayers. In 2022, California’s Medicaid program (Medi-Cal) paid both public and private ambulance providers the same rate: $339 per emergency transport.

In 2023, California established the Public Provider Ground Emergency Medical Transport Intergovernmental Transfer (PP-GEMT IGT) program, which resulted in Medicaid payments to public ambulance providers more than tripling. Private providers, who are excluded from the program, continue to receive $339 per transport, while public provider payments increased to $1,065 in 2023 and $1,168 in 2024.

California has proposed further increasing these payments under State Plan Amendment 25-0002, which is currently pending federal approval. If approved by the Centers for Medicare and Medicaid Services, public provider payments would rise to approximately $1,597 per transport in 2025. This means public providers would be paid nearly five times the private provider rate.

California’s public EMT providers are paid more because of the state’s use of IGTs. Through IGTs, public providers send funds to the state, and the state uses those funds to make Medicaid payments back to the provider, essentially using “laundered” funds to claim federal matching dollars—negating any actual state contribution. With those federal matching dollars, the state pays the public provider and often has money left over for unrelated purposes.

In 2023, providers were expected to contribute approximately $321.95 per transport through the IGT. They eagerly provide this amount because the use of recycled dollars to obtain federal funds guarantees them a higher payment.

The IGT contribution is designed to cover the nonfederal, or state, share of a massive add-on payment, plus a 10 percent administrative charge levied by the state on the transferred amount. In return, the state pays public providers a significantly higher total reimbursement, funded in part by the provider’s own contribution and in part by federal matching funds. Comparable data for 2024 and 2025 have not been publicly released, so we don’t know precisely how much provider contributions have changed alongside rising payment rates.

This is just one example of the Medicaid money laundering schemes states use to shift the cost of Medicaid to the federal government. California’s policy creates a stark disparity: public providers benefit from a high-dollar reimbursement mechanism that burdens the federal government, while private providers who deliver the exact same service receive far less. Over time, such payment gaps may weaken the financial viability of private ambulance services and reduce patient access, especially in areas where public providers do not operate. The policy solution is for the federal government to require payment parity and prevent states from paying government providers more than private providers for the same service.

Competition in the buy to let sector continues to heat up as three major lenders – Landbay, Paragon Bank and Market Financial Solutions – have announced fresh rate cuts, new product launches and improved features designed to help landlords refinance or expand portfolios.

Landbay has reduced rates across its five-year fixed Premier range, with pricing now starting from 4.09%.

The lender’s largest reductions apply to those products up to 75% loan-to-value (LTV), with all four five-year fixed options cut by 0.15%.

Remortgage products with free valuations have also dropped by 0.13%, now beginning at 4.14% for loans up to 75% LTV.

Product transfer options have fallen by as much as 0.14%.

Landbay’s Premier range

Launched last month, the Premier range targets landlords operating through limited company SPVs with up to 15 properties, offering a variable fee structure to support affordability.

The lender’s sales and distribution director, Rob Stanton, said: “It is great to be able to announce rate reductions across our Premier range of five-year fixed products.

“This range serves a critical part of the market and provides valuable options to those looking to expand and scale, as well those in the process of refinancing.”

He added: “Our data tells us that five-year options remain the preferred choice of landlords, so it’s important that we not only meet this demand, but ensure our rates are as competitive as possible.”

Paragon’s new two-year fixes

Meanwhile, Paragon Bank has introduced a new series of limited-edition two-year fixed-rate products, with rates starting at 3.29%.

The lender’s 75% LTV deals cater to landlords investing in single self-contained properties, HMOs and multi-unit blocks.

A 3.29% option is available for single-unit properties with EPC ratings of A-C, increasing to 3.34% for less energy-efficient stock. For HMOs and MUBs, rates start at 3.64%.

All options come with a 5% fee, free mortgage valuation and £500 cashback.

The SSC products have no application fee, while HMO and MUB options carry a £299 charge.

Paragon’s mortgages product manager, James Harrison, said: “There remains strong demand for energy efficient homes in the rental sector and landlords are responding to that trend.

“Our green options, which are available for properties with EPC ratings of A to C, offer great value for those landlords seeking energy efficient properties.”

MFS unveils title insurance

Market Financial Solutions (MFS) has expanded title insurance across a broader range of its residential bridging and buy to let mortgage products.

The move is intended to streamline the application process and reduce completion times.

Title insurance protects both lenders and borrowers from financial losses linked to title defects and allows transactions to proceed without the need for multiple searches or lengthy conveyancing checks.

MFS will now offer title insurance on residential BTL and bridging loans up to £3 million, subject to eligibility.

The firm’s chief executive, Paresh Raja, said: “We are always looking for ways to reduce friction, improve speed and make brokers’ lives easier.

“Title insurance is a great example – we first introduced this in early 2024 and are pleased to expand its coverage across our residential products, both bridging and BTL.

“The time and costs involved in legal processes can be a significant pain point for brokers and borrowers.”

For assistance with any type of buy to let (BTL), property or commercial finance please complete the contact form below:

SME lender and broker Love Finance has secured £45m in a debt financing arrangement, with Paragon and LGB Capital Markets contributing, allowing it to grow its loan book.

The debt financing arrangement comprises a £35m revolving credit facility from Paragon and a £10m junior medium-term note (MTN) programme from LGB Capital Markets.

Each loan will be principally supported by Paragon Bank’s senior RVF and LGB Capital Markets, and the remainder will be provided by the company itself, Love Finance said.

The funding arrangement will allow Love Finance to lend directly from its own book, in turn “accelerating decision-making and widening access to essential capital for SMEs”.

Love Finance was launched in 2016 and grew its revenue to £9.2m in 2024 and offered £300m in funding to over 7,000 SMEs across the UK.

Jamie Pickering, co-head of structured lending at Paragon Bank, said: “Paragon’s structured lending division is designed to support high-growth businesses with bespoke funding solutions that enable them to scale at pace. Our latest partnership with Love Finance reflects this mission.

“By backing innovative lenders like Love Finance, we’re proud to be helping strengthen the resilience and creativity of the UK’s vibrant SME sector, which plays a vital role in driving economic prosperity and regional development.”

Jack Smith, founder and CEO of Love Finance, said: “Securing our first debt financing is a major milestone for Love Finance. With the support of Paragon Bank and LGB Capital Markets, we can scale our own book lending, reach more SMEs across the UK, and continue driving innovation in business finance. This funding brings us another step closer to our goal of being the UK’s most trusted and accessible SME lender.”

Fergus Rendall, director at LGB Capital Markets, added: “We’re delighted to be supporting Love Finance at such a pivotal stage in their growth. Their data-driven approach to SME lending, combined with a clear vision and strong execution, makes them a standout in the market.

“This funding structure, combining Paragon’s senior facility with our MTN programme, provides a scalable and robust platform for the next phase of expansion. We look forward to seeing the business continue to go from strength to strength.”