Morning Breakouts

Latest California Healthline Stories

Health Care Reform News Around the Nation for Jan. 26, 2009

An expansion of Maryland’s Medicaid program would be delayed under Gov. O’Malley’s budget proposal.  Meanwhile, the governor of Massachusetts has proposed shifting oversight of eldercare services to the state agency that oversees its Medicaid program.

Columnist Criticizes Health Plan Rescission Settlements

Los Angeles Times columnist Michael Hiltzik argues that state Insurance Commissioner Steve Poizner’s settlement with Blue Shield of California over health insurance policy rescissions did not go far enough. He writes that “the Blue Shield settlement shows that for the insurer there’s almost no downside to rescission. Blue Shield’s Settlement just restores the status quo — 700 restored policyholders are now presenting claims the company should have paid all along.” Los Angeles Times.

Health Programs Set To Take Hits in Orange, Sacramento Counties

Officials in Orange and Sacramento counties have put forward plans to eliminate staff positions, lay off workers and scale back health care services because of mounting budget deficits.  Advocacy groups warn that the service cuts could trigger lawsuits. Orange County Register, Sacramento Bee.

Officials Reviewing Medi-Cal Mail-Order Rx Service Plan

CenCal Health’s plan to require Medi-Cal beneficiaries in San Luis Obispo County to use Long Drugs’ mail-order prescription drug service is being reviewed after health care providers and patients raised concerns. Opponents of the plan argue that it would result in lost business for local pharmacists and would prevent Medi-Cal beneficiaries from receiving additional support from pharmacists. San Luis Obispo Tribune.

Prescription Drug Costs Pushing Many Adults To Go Without Medications

A survey by the Center for Studying Health System Change indicates that one in seven adults younger than age 65 has skipped medications because of high prescription drug costs.  The survey also found that more kids’ prescriptions went unfilled because of cost in 2007 than in 2003. New York Times.

Audit Faults California Prison Receiver’s Office for No-Bid Contracts

The California Bureau of State Audits concluded that staff at the prison receiver’s office made 49 purchases in 2007 and 2008 without seeking bids in violation of state contracting rules. The infractions occurred during the tenure of former receiver Robert Sillen. AP/San Jose Mercury News et al.

UnitedHealth Group Reports Sharp Drop in Q4 Earnings

On Wednesday, UnitedHealth Group reported that fourth-quarter earnings decreased by 40% to $726 million, or 78 cents per share. However, Q4 revenue increased by 9% to $20.45 billion. Despite the significant drop in earnings, the Q4 numbers met analysts’ predictions. Minneapolis Star Tribune.

House Stimulus Plan Would Send More Than $7 Billion to Medi-Cal

An economic stimulus plan under consideration in the U.S. House of Representatives would funnel more than $7 billion to California’s Medicaid program in the upcoming fiscal year.  Funding for health care and education in the plan could take a big bite out of the state’s projected budget deficit. Los Angeles Times et al.

CDC Official Named Acting Director of Agency

On Thursday, Richard Besser, CDC’s director of the Coordinating Office for Terrorism Preparedness and Emergency Response, was named acting director of CDC until the congressional confirmation of Tom Daschle as HHS secretary is complete. Daschle then will appoint the CDC director. Atlanta Journal-Constitution.

California Hospital News Roundup for the Week of January 23, 2009

Providence Saint Joseph Hospital in Burbank and Tulare District Hospital have announced job cuts, and San Joaquin Community Hospital said the opening of its new burn center would be delayed.  Meanwhile, Tenet Healthcare inked a deal with Blue Shield of California.