Latest California Healthline Stories
Editorial Warns GOP Reform Plan Would Harm Consumers
As an alternative to the federal health reform law’s state-based health insurance exchanges, House Republicans have proposed a plan that would allow “health insurance companies to sell policies across state lines,” a Sacramento Bee editorial states. The editorial continues that under this proposal, “insurance companies get to designate which state ‘shall govern the health insurance issuer’ in the sale of coverage,” adding, “You’d be on your own if you had a complaint or dispute.” Sacramento Bee.
Insurers Limit Brokers’ Fees To Cut Administrative Costs
Health insurance companies are reducing commissions for brokers in an effort to comply with health reform rules requiring that insurers spend a certain amount on health care and less on administrative tasks. On Jan. 1, commissions were reduced to as low as 4% at Aetna, 9% at Anthem Blue Cross and 12% at Blue Shield of California. In 2010, brokers received 20% of the yearly premium on new policies. Sacramento Business Journal.
Insurers’ Q4 Earnings Could Illustrate Reform’s Impact
Health insurers’ fourth-quarter financial reports could be an early indicator of how much the federal health reform law will affect the industry. Several reform law provisions took effect in September 2010, meaning that the fourth quarter was the first in which the overhaul affected insurers’ finances. Researchers from Goldman Sachs estimate that the top four publicly traded health insurers will report on average a 21% increase in earnings over the same period one year earlier. Wall Street Journal.
Editorial: Give New Health Reform Law ‘A Chance’
A Sacramento Bee editorial argues that “House Republicans prematurely voted to repeal” the health reform law, adding, “In its first major vote, the new majority in the House has shown a penchant for hasty impetuous action — when patience and persistence is what’s needed.” According to the editorial, “Despite the political theatre in Washington, the real action is in the states. And here in the state capital, things are moving in the right direction.” It concludes, “For Pete’s sake, give the new federal health law a chance.” Sacramento Bee.
New State Law Aims To Help Consumers Avoid Health Plan Rescissions
AB 2470, which took effect this month, requires insurers to notify policyholders at least 30 days before canceling coverage. The new legislation aligns with provisions of the federal health reform law that prohibit insurers from rescinding coverage in most cases. Sacramento Bee.
California Hospital News Roundup for the Week of January 21, 2011
Scripps Memorial Hospital La Jolla is launching a 25-year construction project to meet rising demand and comply with state seismic safety standards. Children’s Hospital & Research Center Oakland also plans to retrofit portions of its hospital to meet seismic mandates.
HHS Announces More Grants To Bolster State Insurance Exchanges
The federal government has made new grants available to help states develop health insurance exchanges under the federal health reform law. According to HHS Secretary Kathleen Sebelius, states can apply for short-term funding or multi-year grants. The Hill‘s “Healthwatch.”
Attorneys General Plan To File Amicus Briefs Supporting Reform Law
Democratic attorneys general from California and five other states plan to file amicus briefs to support the federal government in response to a Michigan lawsuit challenging the constitutionality of the federal health reform law’s individual mandate. Politico‘s “Ben Smith” et al.
California Gets Mixed Grades on Tobacco Control Efforts
The American Lung Association’s 2010 State of Tobacco Control Report gives California an A rating in its smokefree air efforts, but a D grade in cigarette tax and an F rating in tobacco prevention and control spending, and cessation categories. In August, California lawmakers approved a bill to place a $1 tax — up from 87 cents — on each pack of cigarette to raise more than $500 million to fund anti-tobacco education, and cancer prevention, detection and treatment efforts. Californians might vote on the new tax in a June special election. Ventura County Star.
Baby Boomers Expected To Start Enrolling in Medicare
In its January edition of “Health Dialogues,” KQED’s “The California Report” examines how Medicare could change as more baby boomers become eligible for the program. The edition includes segments on Medicare contracting, physician shortages and efforts to streamline care for Medicare beneficiaries. KQED’s “The California Report.”