Capitol Desk

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Parts of Health Care Reform Begin in California This Week

The national health care reform law was signed by President Obama six months ago, and a few provisions of that law go into effect in California and the rest of the nation this week, beginning Sept. 23.

In California, many of the laws recently passed in the Legislature are similar or even identical to federal reform — maternity care mandates, coverage for dependents till age 26, coverage of pre-existing conditions, for instance — so a question arises:

Why do we even need all of those matching state laws?

Deep in the Pile of Health Bills To Be Signed

So quick, tell me what the Maddy Fund is, and why it needs a new law to fix it. Or what’s the big problem with the peer review system in California?

These questions and more will be answered this month by Governor Schwarzenegger, who has until Sept. 30 to sign or veto hundreds of bills passed by the Legislature, dozens of them health care-related.

The Maddy Fund is an emergency medical services fund set up by counties to reimburse physicians, hospitals, poison control centers and other emergency expenses.

It May Be Arcane, But It’s Also Vital

Almost everyone in the health care world knows how important the Medicaid waiver is to California — and really, to the nation.

As the first state to implement national health reform ideals on such a large scale, what happens in California by Oct. 31 with the $10 billion waiver is something that will affect how health care reform is put in place in many other states.

But not everyone in the health care world understands all of the complex give-and-take involved in so many rule changes and manipulations of the health care market.

Hope, Fear in State’s Community Clinics

There are some in the health care world who contend clinics caring for Medi-Cal patients and the uninsured are doomed to failure. Not so, according to a study released yesterday by the California HealthCare Foundation, which publishes California Healthline.

The report, Financial Health of Community Clinics, found that financially stronger clinics serve a high number of low-income patients and manage to have high reimbursement levels compared to financially weaker clinics.

Carmela Castellano-Garcia can explain that one. She’s president and CEO of the California Primary Care Association which represents more than 800 clinics and health centers in the state.

Little Concern About Waiver Timing

When the state Assembly and Senate gather to vote on a budget for California — whenever that may be — members will also vote on the $10 billion Medicaid waiver.

The Medicaid waiver is the plan California has laid out in months of negotiations with CMS to implement the revised Medi-Cal program in California, and to prepare the state for health care reform.

Since California is ahead of the national curve on getting set for the health care reform law, many other states are watching what happens here — which puts additional pressure on federal approval of this large and innovative waiver plan.

One Passes, the Other Doesn’t

The best thing that happened to health insurance rate regulation was the last thing its proponents wanted to see.

When Anthem Blue Cross announced it planned to raise individual rates by as much as 39% back in February, it was the type of steep rate hike regulation proponents had been warning against for many months.

The public scorn and outrage prompted by that rate hike proposal was insurance regulation’s best friend — but, it turned out, was not enough to propel legislation.

Post-Mortem on Physician Hiring Bills

A pilot program that has allowed some direct hiring of physicians in rural areas of California apparently generated a lot of interest in Sacramento. Three different bills were introduced to expand the scope of that pilot program, and all three of those bills failed.

In California, hospitals are not allowed to employ physicians directly, in order to maintain a kind of firewall between hospital administrators and the health care providers who make medical decisions.

But there is also a shortage of primary care physicians in rural areas of the state, so some medical centers were granted an exception to the no-direct-hiring rule, so that they could hire on their own doctor for their own facility. Many hospital administrators felt that suspension of the rule gave them a competitive hiring advantage.

Medicaid Waiver Bills Still in Play at Capitol

The legislative deadline passed more than week ago, but at least two health care bills are still at play in the Legislature.

Not only are two bills dealing with Medi-Cal waiver certain to get a vote when the legislature reconvenes to take up the budget, the legislation has several big factors in favor of its passage, according to health care expert Peter Harbage of Harbage Consulting.

“At the end of the day, the policy changes in the waiver and its funding are too valuable for California to pass up.”

End of Session Winners Wait on Governors Desk

The governor is expected to sign legislation into law that would create the state Health Benefits Exchange legislation. He has till the end of September to make up his mind about the exchange and other health care-related issues.

This is some of what’s pending:

• Seven other bills related to the pending federal health care law and coverage issues are before the governor (in addition to the two exchange bills, SB 900 and AB 1602).

California Set To Insure High-Risk Patients

On April 29, Governor Schwarzenegger signed legislation that established the state’s federally funded high-risk insurance pool. This week that insurance pool is accepting its first enrollee applications.

That means the government set up a complicated government program in about four months. In state bureaucracy terms, that is the blink of an eye.

“We’ve been working nights and weekends trying to make this happen,” Deputy Director for Legislative and External Affairs at the Managed Risk Medical Insurance Board Jeanie Esajian said.