Latest California Healthline Stories
Bills Propose Medical-Loss Ratio Parity for Medigap Plans
On Tuesday, Sen. John Kerry and Rep. Pete Stark introduced legislation in the Senate and House that would require Medicare supplemental insurance plans, or Medigap policies, to meet the same medical-loss ratio standards as other health plans under the federal health reform law. The MLR rule requires private insurers to spend at least 80% of their premium dollars in the individual market, or 85% in the group market, on direct medical costs. If passed, the companion bills would require the plans to meet the standards beginning in 2014. Modern Healthcare.
WellPoint Links Dip in Profits to Calif. Medicare Enrollees
WellPoint recently released a financial report showing that the health insurer’s profit dropped by 3% in the second quarter of 2011, partly because of higher-than expected medical costs among Northern California seniors. WellPoint said it earned $701.6 million during Q2 2011, down from $722.4 million during the same period last year. The company noted that it experienced an 8.5% increase in medical claims during Q2 2011, driven largely by Northern California policyholders with Medicare Advantage plans. Los Angeles Times, Reuters.
Editorials Urge Congress To Reach Deal on Debt Ceiling
“With as little as a week remaining until the federal government runs out of money to cover all its bills, it’s time for Republicans and Democrats to scale down their partisan ambitions and get a deal done to raise the debt ceiling,” a Los Angeles Times editorial states. Meanwhile, a New York Times editorial states that the plan proposed by House Speaker John Boehner likely would involve cutting benefits for Medicare and Medicaid beneficiaries, “or gutting health care reform, or savaging the safety net for low-income Americans, or some combination of all three.” According to a Sacramento Bee editorial, “It is lunacy to threaten to send the U.S. economy into a tailspin so a conversation can take place on long-term entitlements spending.” Los Angeles Times et al.
Kaiser Unveils Mobile App To Help Users Find its Facilities
On Tuesday, Kaiser Permanente announced the launch of a new mobile application, called KP Locator, that uses GPS technology to help users locate, contact and obtain information about Kaiser health care facilities. Kaiser said the no-cost app marks the first phase of the health system’s planned expansion in mobile services. Sacramento Bee.
Republicans Delay Vote on Boehner’s Debt Plan Following CBO Report
After the Congressional Budget Office reported that House Speaker John Boehner’s proposal to raise the federal debt ceiling would fall $150 billion short of its projected savings, Republican leaders rescheduled a floor vote on the measure to Thursday. New York Times et al.
Study: Medicare Drug Benefit Helped Reduce Overall Program Costs
A study finds that the Medicare prescription drug benefit has saved the program $12 billion annually by helping beneficiaries avoid the need for hospital or nursing home care. According to the study, much of the savings came from improved drug adherence. AP/Washington Post et al.
Treasurer Secures $5B in Loans To Avoid Federal Debt Crisis Effects
State Treasurer Bill Lockyer has taken out $5.4 billion in private loans to avoid a possible stoppage to Medi-Cal and Medicare payments if federal officials cannot resolve negotiations to raise the debt ceiling by Aug. 2. AP/Sacramento Bee et al.
Report: Rural Americans Face Poorer Quality of Care, Physician Shortage
A report by the UnitedHealth Center for Health Reform and Modernization finds that patients and physicians in rural areas face greater challenges than their urban and suburban counterparts. Rural physicians say chronic disease is a major issue in their communities. Reuters, CQ HealthBeat.
San Mateo County Approves Pay Raises for Nurses, Police
On Tuesday, the San Mateo County Board of Supervisors voted to increase salaries for county nurses and sheriff’s sergeants. The 340 county nurses, who are represented by the California Nurses Association, will receive 2% annual pay raises over the next three years. Sheriff’s sergeants will receive a 3% salary increase in 2015. Both labor agreements include employee concessions designed to curb the county’s pension and health care costs. San Jose Mercury News.
Brown Defends Veto of ADHC Legislation While Advocates Raise Concern
Gov. Brown is defending his veto of a bill that would have established an alternative to adult day health care services, which lost funding under the state budget package. Advocates say there are no adequate alternatives for beneficiaries of ADHC. Los Angeles Times‘ “L.A. Now” et al.