Latest California Healthline Stories
ACS Now Operating Medi-Cal Claims Management System
Last week, Xerox-subsidiary Affiliated Computer Services announced that it has fully transitioned into its role as manager of Med-Cal’s claims processing system. In 2010, ACS received the 10-year, $1.6 billion contract. It began assuming operational responsibility from the former contractor — Electronic Data Systems/Hewlett Packard — in October 2011. Sacramento Business Journal.
Supreme Court Starts Hearings in Case Against Health Reform Law
Today, the Supreme Court begins hearing oral arguments in the case against the federal health reform law. Tomorrow, the court is expected to hear arguments centered on the constitutionality of the law’s individual mandate. Los Angeles Times et al.
Court Denies Request To Allow Medi-Cal Pay Cuts While Lawsuit Continues
The 9th U.S. Circuit Court of Appeals has denied California’s request to allow a 10% cut to certain Medi-Cal payments until a formal ruling is made in a lawsuit challenging the cuts. A federal judge in February granted a preliminary injunction to block the cuts. Sacramento Business Journal.
Report Prompts Concern About Solvency of Gold Coast Health Plan
A preliminary report by the Berkeley Research Group finds that Gold Coast Health Plan’s actual costs sometimes have been higher than its reported expenses. The findings have raised concern among state officials about the plan’s solvency. Ventura County Star.
Medco To Pay $2.7M To Settle Case Involving CalPERS Pay
On Friday, the Office of the California Attorney General Kamala Harris announced that pharmacy benefits manager Medco Health Solutions has agreed to pay $2.7 million to settle allegations that it made improper payments to a former CalPERS board member. Medco did not admit any wrongdoing under the deal. AP/U-T San Diego, Sacramento Bee.
Lawmakers Expand Probe Into ‘Gray Market’ Rx Practices
On Wednesday, three Democratic lawmakers expanded an ongoing investigation into pharmacies that allegedly charge significantly higher prices for prescription drugs in short supply when selling them to drug distribution companies, a practice known as “gray market” tactics. The lawmakers sent letters asking various pharmacies and distributors to provide information about their sales and distribution practices. Wall Street Journal et al.
Majority of Calif. Voters Support Compromise Tax Hike Plan, Poll Finds
A new poll surveying about 1,500 registered California voters finds that 64% said they support a compromise tax hike plan developed by Gov. Brown and backers of the “Millionaires Tax.” According to the poll, about 33% of respondents said they oppose the plan. Los Angeles Times.
HHS: Faulty Claims Data Led to Uncollected Overpayments
Medicaid Integrity Contractor audits failed to recoup millions of dollars in overpayments during the first half of 2010 because of incorrect and misinterpreted claims data, according to a new HHS Office of Inspector General report. The report found that 81% of the audits conducted between Jan. 1, 2010, and June, 30, 2010, either were unable or unlikely to identify overpayments. FierceHealthcare, Modern Healthcare.
Sutter Health Reports Nearly 28% Drop in 2011 Net Income
On Friday, Sutter Health reported a 2011 net income of $634 million, down 27.8% from its 2010 net income of $878 million. Meanwhile, operating revenue for 2011 grew by 3.4%, from $8.8 billion in 2010 to $9.1 billion in 2011. Sutter officials said the decline in net income stemmed partly from “changes in net unrealized gains and losses from investments.” Sacramento Business Journal, San Francisco Business Times.
Republicans Promoting Health Care Changes in Ryan’s Budget Blueprint
GOP lawmakers are working to build support for House Budget Committee Chair Paul Ryan’s new budget plan, which would repeal the health reform law and alter Medicare and Medicaid. Republicans aim to present the plan as the only option for saving Medicare. Washington Post et al.