Morning Breakouts

Latest California Healthline Stories

NUHW Files New Charges in Battle Over Kaiser Workers

On Thursday, the National Union of Healthcare Workers filed new evidence with federal officials alleging that the Service Employees International Union-United Healthcare Workers West and Kaiser Permanente conspired to influence workers in an election for union representation. On Aug. 10, the National Labor Relations Board ordered a re-vote of an October 2010 election after a labor board administrative law judge ruled in July that SEIU-UHW had violated Kaiser Permanente employees’ free choice. Kaiser officials maintain that the health system has remained neutral in the dispute, noting that the judge did not conclude that it tried to influence the outcome of the election. San Francisco Chronicle.

IOM Could Miss Target for Recommendations on Essential Benefits

The Institute of Medicine could miss a September deadline for issuing recommendations on determining the essential health benefits package provided through state health insurance exchanges. An IOM spokesperson said the agency might issue the report after the target date. Reuters.

Tobacco Companies Sue FDA Over Labeling Requirements

On Tuesday, five U.S. cigarette manufacturers, including four of the largest in the nation, filed a lawsuit against FDA arguing that the agency’s new cigarette package warning labels violate free-speech rights. The five companies also said the labels will force them to “engage in anti-smoking advocacy” for the government. The new warning labels are required to be placed on the top half of tobacco packaging and constitute 20% of advertisements no later than fall 2012. The new guidelines comply with a 2009 law mandating larger and more visible graphic health warnings to educate the public about the health risks associated with smoking. AP/Washington Post, Reuters.

Dept. of Finance Opposes Insurance Rate Regulation Bill

At a Senate Appropriations Committee hearing this week, officials from the California Department of Finance expressed opposition to a bill that would authorize state regulators to approve, deny or modify changes in health insurance rates. The Department of Finance cited an analysis of the bill that found “substantial first-year and ongoing costs” as a reason for its opposition. Insurance Commissioner Dave Jones, health advocacy groups and other supporters of the bill say that the measure would protect businesses and consumers from excessive increases in premiums. Gov. Brown has not taken a formal position on the legislation. Sacramento Bee.

SEIU Seeks Quick New Vote To Resolve Kaiser Union Election Issues

The Service Employees International Union is seeking a prompt re-vote in an election for representation of Kaiser Permanente workers, as the National Union of Healthcare Workers plans to file new charges on Kaiser’s conduct. Modern Healthcare, Wall Street Journal.

Health Care Industry Could Lose its Financial Stability, Experts Say

Although the health care sector historically has been a reliable driver of job growth, analysts warn that impending federal budget cuts and expected reductions in Medicare and Medicaid reimbursement rates could threaten the financial stability of the industry. New York Times.

Chiang Blasts Plan To Shift Seniors to SCAN Health Plan

On Tuesday, state Controller John Chiang sent a letter to Department of Health Care Services Director Toby Douglas urging him to recover funds from the Senior Care Action Network Health Plan before shifting former adult day health care beneficiaries to the health plan. A previous investigation by Chiang’s office found that SCAN Health Plan had received about $339 million in improper payments from Medicare and Medi-Cal since 2001. DHCS plans to transition thousands of seniors who no longer will receive ADHC services as a result of the state’s new budget to SCAN. Chiang wrote, “Prior to allowing SCAN to participate in the enrollment and placement process, … the department should first take all actions necessary to ensure recovery of the overpaid amounts.” California Watch.

Report: Children Among Most Affected by Economic Downturn

A report from the Annie E. Casey Foundation finds California children are among those who have been most negatively affected by the economic crisis. The report says promoting health insurance coverage can help families. Sacramento Bee‘s “Capitol Alert” et al.

State’s Mental Health Care Realignment Plan Draws Support, Concern

Advocates are expressing cautious optimism over Gov. Brown’s plan to revamp California’s mental health care system, but others are raising concerns about the possible changes. The governor’s plan involves shifting management duties from the state to counties. Capitol Weekly.

Editorial Urges Quick Review of Federal Health Reform Law

“For those who understand government’s proper role to be limited, it’s clear the [federal health reform law] is a vast overreach,” according to an Orange County Register editorial. The editorial notes that although judges in one federal appellate court have declared the individual mandate — the “linchpin of Obamacare” — unconstitutional, judges at another court have upheld the provision. “The conflicting decisions may hasten the U.S. Supreme Court’s consideration of the case, perhaps as soon as the fall,” the editorial adds. “We prefer the high court resolve this matter sooner, not later,” the editorial states, because “[t]o uphold Obamacare’s mandate would mean there is essentially nothing the government cannot demand of us. That’s simply wrong.” Orange County Register.