Morning Breakouts

Latest California Healthline Stories

Health Net Assailed for Giving Bonuses for Canceling Policies

Between 2000 and 2006, Health Net canceled about 1,600 individual health insurance policies, resulting in a total of $35.5 million in medical expenses that it avoided paying. During that time, the insurer awarded bonuses to an employee for meeting cancellation quotas, a policy that violates state law. Los Angeles Times.

Study: Health Care for Iraq Veterans Could Exceed $650 Billion

A study from Physicians for Social Responsibility finds the cost of health care for Iraq war veterans could surpass the cost of combat operations. Meanwhile, a Defense Department report shows many National Guard and Reserve members have lost jobs and benefits. Boston Globe, New York Times.

CVS Caremark Sues Walgreen Over Contract Cancellations

The lawsuit alleges that Walgreen canceled contracts for 70,000 customers’ prescriptions. Walgreen maintains that CVS Caremark reduced prescription drug reimbursements for certain insurance plans. Bloomberg/Boston Globe.

Workers’ Comp Group Releases Data From Insurers

The Workers’ Compensation Insurance Rating Bureau released its report on insurers’ earnings during the second quarter, noting that the system “may have seen the full impact of the reforms” made in 2003 and 2004. Sacramento Business Journal.

Democrats: Concessions on Kids’ Health Might Affect Caucus Support

Some Democrats worry that further concessions to Republicans on the State Children’s Health Insurance Program bill could lead to loss of support from as many as 15 Democrats in the House. Negotiations on the bill continued Thursday. The Hill et al.

Newsom Prioritizes Rebuild of S.F. General Hospital

After being re-elected Tuesday, San Francisco Mayor Gavin Newsom listed several priorities for his next term, including a plan to win voter approval of a bond to pay to renovate San Francisco General Hospital to meet seismic safety standards. San Francisco Chronicle.

Insurers Roll Out Premium Hikes for Medicare Rx Plans

Advocates say premiums will increase for about 75% of Medicare beneficiaries if they do not move into different plans under the Medicare drug benefit. Meanwhile, a federal report faulted insurers for not returning more than $4 billion in overpayments more expeditiously. San Francisco Chronicle, Bloomberg/Indianapolis Star.