Morning Breakouts

Latest California Healthline Stories

Schwarzenegger Sends Budget With Health Cuts to Legislature

Gov. Schwarzenegger submitted a budget proposal to the Legislature that would tighten eligibility rules for Medi-Cal and seek voter approval to shift funds from Proposition 63 to existing mental health efforts.  Meanwhile, San Diego County’s CFO has voiced concerns about Medi-Cal funding if lawmakers do not approve a budget by the end of the month. San Francisco Chronicle et al.

CMS Seeks To Ban Penalties for Buying Brand-Name Drugs

CMS has proposed a ban on reference-based pricing, a practice that lets private insurers charge Medicare beneficiaries penalties for choosing brand-name drugs instead of less expensive generic drugs. CMS originally supported the practice as a way to control costs but reversed its position after lawmakers and patient advocates argued that reference-based pricing makes it difficult for consumers to calculate drug costs. Wall Street Journal.

Research: COBRA Coverage Out-of-Reach for the Jobless

A new Families USA study found that health insurance premiums under COBRA take up between 30% and 84% of standard unemployment benefits.  COBRA allows recently laid-off workers to retain their group health coverage for as long as 18 months provided that they pay 102% of the premiums. Washington Post, Capital Public Radio’s “KXJZ News.”

Concerns About Kaiser Call Centers Prompt California Investigation

The state Department of Managed Health Care has begun an investigation into Kaiser Permanente call centers where non-medical personnel use scripts to process members’ calls.  Kaiser has refused to provide copies of the scripts to state investigators. Sacramento Bee.

CDC Director Resigns; COO To Serve as Acting Director

CDC Director Julie Gerberding has resigned effective Jan. 20 at the request of President-elect Barack Obama’s administration. CDC Chief Operating Officer Bill Gimson will serve as acting director until a new director is named. Atlanta Journal-Constitution.

Herger Gets Top Republican Spot on Health Committee

Rep. Wally Herger was named ranking member of the House Ways and Means Committee’s Subcommittee on Health. The subcommittee oversees the Medicare program, tax code provisions related to health care and regulations affecting health insurance plans offered by large employers. Redding Record Searchlight.

Columnists Detail Amenities for Proposed Prison Hospitals

Columnists Phillip Matier and Andrew Ross highlight the amenities recommended for California prison hospitals in a draft report for the prison health care receiver J. Clark Kelso. Among the recommendations are aerobics and yoga classes, workout rooms and open-air courtyards. San Francisco Chronicle.

House Vote for Kids’ Insurance Expansion Slated for This Week

Approval of legislation to expand the State Children’s Health Insurance Program is considered likely, presenting an early legislative victory for President-elect Barack Obama.  Some Democratic aides have said that the proposal could be dialed back because of funding limitations. Washington Times et al.

Daschle Lays Out Ideas for Health Care Reform in Confirmation Hearing

A Senate committee began hearings yesterday on the nomination of Tom Daschle as HHS secretary.  In his testimony, Daschle said that members of Congress and the incoming Obama administration would have to work together to overhaul the U.S. health care system. Washington Post et al.

California Supreme Court Bars ‘Balance Billing’ for Care in EDs

The ruling requires hospital emergency departments and physicians to resolve billing issues directly with insured patients’ HMOs, rather than bill patients for charges that HMOs decline to pay.  So-called “balance billing” generally occurs when insured patients receive emergency treatment at out-of-network facilities. Sacramento Bee et al.