Latest California Healthline Stories
Opinion Piece Warns Against More Service Program Cuts
Under the automatic cuts included in the state budget package, the “$100 million, first tier trigger cut slated for the Department of Developmental Services will compound the impact of multiple, ongoing cuts to social services for Californians with developmental disabilities,” Christopher Rice — executive director of the California Disability Services Association — writes in a Capitol Weekly opinion piece. According to Rice, a “decade of rate freezes, program closures and devastating budget cuts have destroyed many community-based service programs, leaving the more than 240,000 Californians with developmental disabilities at serious risk,” adding, “The trigger cuts will make this problem even worse.” Rice concludes, “Meaningful reforms to California’s developmental services system are necessary to manage costs,” such as “a careful examination of where California’s service delivery system can be optimized and modernized.” Capitol Weekly.
GOP Proposal To Extend Tax Break Includes Two-Year Medicare ‘Doc Fix’
A GOP tax break extension plan includes a two-year “doc fix” to block scheduled Medicare payment cuts. The plan would pay for the fix in part by limiting Medicare benefits for high-income beneficiaries and redirecting health reform law funding. New York Times, Modern Healthcare.
Four Calif. School Clinics Nab $1.6M in Funding From HHS
On Thursday, HHS announced that it has awarded $1.6 million to four school-based health clinics in California to expand and modernize their facilities in an effort to treat more children. In total, HHS awarded $14 million to 45 school-based health clinics in 29 states. Officials say the grants will help the clinics provide health care services to 53,000 additional children. The California clinics that received funding are the Asian Pacific Health Care Venture in Los Angeles, Valley Community Clinic in North Hollywood, Centro De Salud De La Comunidad in San Ysidro and the Oakland Unified School District. The Hill‘s “Healthwatch,” Los Angeles Times‘ “L.A. Now.”
Supporters of State Stem Cell Agency Might Seek Ballot Measure in 2014
Advocates for the California Institute for Regenerative Medicine might seek a ballot initiative in 2014 to raise more funds for the agency. Meanwhile, CIRM has approved $27 million in funds for new projects. Contra Costa Times, San Francisco Business Times‘ “Biotech SF.”
Medical Supplier Pays $5M To Settle Medi-Cal Lawsuit
On Wednesday, the U.S. Attorney’s office announced that Santa Clarita-based medical supply provider Shield Healthcare has settled a lawsuit in which a whistle-blower alleged that the company overbilled Medi-Cal. Under the $5 million settlement, Shield on Nov. 17 paid $2 million to the federal government and $3 million to the state. Shield was Medi-Cal’s leading supplier of incontinence products, such as adult diapers and waterproof sheeting. According to the whistle-blower, who will receive a share of the settlement, Shield inflated the sale price of the products by as much as double the purchase price. Los Angeles Times‘ “L.A. Now,” AP/San Francisco Chronicle.
Mental Health Officials Announce Proposals for Overhauling State Care
The state Department of Mental Health has unveiled a plan for overhauling its programs. The plan includes creating a Department of State Hospitals to replace the existing mental health department and eliminating 600 state hospital jobs. Los Angeles Times, Sacramento Bee.
Federal Gov’t Backs Generic Drugmaker in Court Case
In a brief filed with the U.S. Supreme Court on Monday, the federal government said that generic drugmakers should be allowed to file legal “counterclaims” against brand-name drugmakers’ patent protections so that it is easier for them to introduce low-cost versions of medications when the patents have expired. The government’s brief was submitted for oral arguments in a case filed by Caraco Pharmaceuticals, the generic unit of Sun Pharmaceuticals, against Danish drugmaker Novo Nordisk. Caraco argues that the patent description of Novo’s diabetes drug Prandin is too broad and prevents any generic version from being introduced into the market. In its brief, the government noted that FDA uses narrowed patent descriptions to grant approval to generic versions of medications that save consumers billions of dollars annually. Reuters.
Poll: Half of Surveyed Voters Support Brown’s Pension Plan
Fifty-one percent of surveyed voters think Gov. Brown’s 12-point pension reform plan “strikes about the right balance,” according to a new Field Poll. Brown’s pension proposal, which he released in October, would increase how much workers pay toward their retirement and health care costs and implement a “hybrid” pension system that combines a traditional pension with a 401(k)-style account. According to the poll, 64% of voters said any pension adjustments should apply to current and newly hired employees. The poll interviewed 515 registered voters from Nov. 15 to Nov. 27 and has a margin of sampling error of plus or minus 4.4 percentage points. Riverside Press-Enterprise et al.
L.A. Care Health Plan Will Not Pass Medi-Cal Cuts to Provider Network
L.A. Care Health Plan has announced that it will absorb the recently approved reductions to Medi-Cal reimbursements and not pass them on to its directly contracted providers. An L.A. Care official says the move could cost between $10 million and $20 million. Payers & Providers.
More Businesses Considering Salary-Based Premium Model
More U.S. companies are considering offering employee health care plans with premiums that are based on workers’ incomes. Under the federal health reform law, employers with at least 50 workers in 2014 must provide affordable coverage or face penalties. A plan is considered affordable when an employee’s premium for individual coverage does not exceed 9.5% of his or her household income. Steve Raetzman, a partner in Mercer’s health and benefits consulting practice, said the strategy might not work for businesses that employ workers for lower wages, like retailers, restaurants and grocery stores. Kaiser Health News/Washington Post.