Morning Breakouts

Latest California Healthline Stories

CMS Pulls Ariz. Co-Op From Federal Insurance Exchange

CMS has removed health plans offered by Meritus Health Partners and Meritus Mutual Health Partners from the federal exchange following an order for supervision filed on Friday by Arizona Department of Insurance, against the cooperative health plan’s consent. State DOI Director Andy Tobin now will oversee the companies, which are prohibited from writing new health coverage policies or renewing existing policies. About 59,000 Arizona residents who have health plans through Meritus will have to find new coverage for 2016. AP/San Francisco Chronicle.

Montana Becomes 30th State To Expand Medicaid Under ACA

Montana has gained federal approval for its alternative Medicaid expansion plan, making it the 30th state to expand the program under the Affordable Care Act. HHS Secretary Sylvia Mathews Burwell said the Obama administration “looks forward” to working with more states on alternative Medicaid expansion plans. However, some observers expressed concern over the amount of flexibility the administration could give to states. AP/Sacramento Bee et al.

Supporters Submit Nearly 550K Signatures for Rx Price Ballot Initiative

Yesterday, supporters of an initiative that aims to reduce the cost of prescription drugs in California said they submitted 542,879 signatures to place the proposal on the November 2016 ballot. Supporters say the measure could benefit about five million Californians, but opponents say it could have unintended consequences. San Jose Mercury News, Capital Public Radio’s “KXJZ News.”

Obama Signs Two-Year Budget Deal With ACA, Medicare Provisions

Yesterday, President Obama signed into law a two-year budget deal that raises the country’s spending limits. The law includes several changes to federal health care programs. For example, it will reduce a premium increase for about 15 million Medicare beneficiaries. The Hill, Roll Call.

Severe Obesity Costs California Billions of Dollars, Study Finds

A new study published in Health Affairs finds that severe obesity — defined as a body mass index of 35 or higher — cost California about $9.1 billion in 2013, with about $1.3 billion covered by the state’s Medicaid program. Nationally, severe obesity cost state Medicaid programs about $8 billion that year. Los Angeles Times‘ “L.A. Now.”

Report: U.S. Telehealth Market To Reach $2.8B by 2022

The U.S. telehealth market is projected to reach $2.8 billion by 2022, according to a report by Grand View Research. The report attributed the projected growth in part to rising consumer demand for telehealth tools and telehealth-related legislation. The report noted that the most growth likely will be among providers, as hospitals and health systems increasingly use telehealth tools. FierceHealthIT.

Los Angeles County Falls Short of Goal To Pay for Undocumented Residents’ Health Care

Los Angeles County officials say they have fallen about 11,000 individuals short of a goal to pay for medical services of 146,000 undocumented residents. The county last year promised $61 million to create the My Health L.A. program, which aimed to provide health care for undocumented immigrants, but $20 million of that funding has not been spent. Los Angeles Times.

China Reportedly Hacked Anthem To Learn About U.S. Health System

Individuals familiar with the investigations into a cyberattack against Anthem that affected nearly 80 million people — including 13.5 million Californians — say FBI and other investigators have concluded that Chinese hackers conducted the attack to learn about the U.S. health care industry and how it deals with medical care to help improve its own system. Financial Times, MedCity News.

State Medicaid Agencies Required To Monitor Effects of Provider Payment Cuts on Care Access

CMS on Thursday released a final rule that requires state Medicaid agencies to monitor how cuts to provider payment rates affect beneficiaries’ access to care. Under the rule, states will have to measure Medicaid beneficiaries’ access to care and providers, beneficiaries’ care needs and beneficiaries’ use of health care services. The states’ assessments must take place beginning the first year of the payment reductions and then every three years. Any state that discovers access issues would need to submit a correction plan within 90 days from when the problem was identified. Modern Healthcare.

CMS Releases Final Two-Midnight Rule

CMS on Friday finalized its two-midnight rule without making any changes to the regulation. Under the final rule, hospital admissions must be initiated by a physician’s signed order and quality improvement organizations will be the first to review shorter patient claims, instead of recovery audit contractors. Meanwhile, RACs will be directed to focus on claims from hospitals with unusually high rates of denied submissions. Modern Healthcare.