Missouri Residents Vote Against Mandate In Healthcare Law.
The New York Times (8/4, A11, Davey) reports, "Missouri voters on Tuesday easily approved a measure aimed at nullifying the new federal healthcare law, becoming the first state in the nation where ordinary people made known their dismay over the issue at the ballot box." Notably, the "measure was intended to invalidate a crucial element of President Obama's healthcare law - namely, that most people be required to get health insurance or pay a tax penalty. Supporters of the measure said it would send a firm signal to Washington about how this state, often a bellwether in presidential elections, felt about such a law."
The AP (8/4, Lieb) notes that, "with about 70 percent of the vote counted late Tuesday, nearly three-quarters of voters threw their support behind a ballot measure, Proposition C, that would prohibit the government from requiring people to have health insurance or from penalizing them for not having it." The measure "would conflict with a federal requirement that most people have health insurance or face penalties starting in 2014."
Nevertheless, the Wall Street Journal (8/4, Landers, subscription required) says that this vote will most likely have little impact immediately since the mandate provision in the healthcare law is not slated to take effect until 2014. Reuters (8/4, Gillam) also covers the story.
Commentary: States' Challenge Of Healthcare Law Politically Motivated. Ann Woolner writes in a Bloomberg News (8/4) commentary, "Virginia Attorney General Ken Cuccinelli, speaking of a case aimed at stopping national health-care reform, declared, 'This lawsuit is not about health care. It's about our freedom.'" Other lawmakers have made similar comments, but Woolner says that they are "wrong," that the case is "about politics. It's so obviously about politics that most folks take that fact for granted." She adds, "These cases are another way for Republicans to try to defeat a Democratic initiative and score points while doing it. Whether you think the lawsuits are worthy probably depends more on your political views than on your constitutional interpretation."
Legislation and Policy
Several Provisions In Healthcare Law To Take Effect In September.
The AP (8/4, Murphy) reports, "Healthcare reform hits another milestone next month, with new provisions that include a coverage expansion for young adults and restrictions on an insurer's ability to impose annual coverage limits or to reject children with pre-existing medical conditions." The AP adds, "Insurance coverage that starts on or after Sept. 23 will have to comply with these changes and others that were put in place when President Barack Obama signed the health overhaul into law March 23." But, "for most people, the changes won't affect their plans until coverage renews in the weeks or months that follow."
Commentary: Obama Administration Exaggerating Medicare Savings From Health Reform.
Megan McArdle wrote in The Atlantic (8/3), "Last year, the administration grew fond of 'double counting' the savings from the Medicare cuts in healthcare reform -- claiming that they'd reduced the deficit, paid for reform, and extended the life of the Medicare trust fund. Eventually, Republicans got around to asking for an analysis from the CBO, which told us what anyone who ever took first year accounting already knew: this is not true." McArdle said that on Monday, HHS Secretary Kathleen Sebelius "promoted a new report that said the changes made to Medicare would save $8 billion over the next two years, and $575 billion over 10," which was yet another claim by the Administration that "the same money could be used to pay for two different things."
Democratic Representative Says Health Reform Not Paid For.
In a Q&A session, the New York Times (8/3, Mandelbaum) "Boss" blog continued its conversation with Representative Walt Minnick, "freshman Democrat of Idaho and small-business owner," who "voted against" the healthcare reform overhaul. "Without exception," he says that small business owners are "opposed to the bill" because the "mandate to carry insurance is a new cost burden that they don't currently have, and they say, 'We can't afford it.'" However, Minnick's "complaint about the healthcare bill wasn't the insurance reform." He added, "What I disagree with is, I want it paid for -- and I absolutely dispute whether it really is paid for."
Ryan's Plan Considered An Honest Entry Into Healthcare Debate.
Ezra Klein wrote in the Washington Post (8/3) that "Kevin Drum took aim at Rep. Paul Ryan's admirers last night, arguing that Ryan's vaunted honesty about spending cuts simply obscures a different sort of vagueness." He said, "His plan merely caps various kinds of spending: there's a cap on Medicare, a cap on Social Security, and a cap on domestic spending." That is, however, "how single-payer works, too: It puts healthcare spending into a single budget and caps its increase." It is also "how the strong public option would've worked, as payment could only grow using Medicare's formula, which doesn't permit the cost increases of the private market. At the end of the day, that's why Ryan's plan is a more honest entry into the debate."
Massachusetts Governor Signs Bill Mandating Insurance Coverage For Autism.
The AP (8/4, LeBlanc) reports, "Massachusetts insurance companies will now be required to offer autistic people coverage for a range of treatments, under a bill (pdf) Gov. Deval Patrick (D) signed into law on Tuesday." Specifically, "the legislation...mandates" that "insurers cover the cost of diagnosis and treatment of autism spectrum disorder if it is deemed medically necessary by a doctor. Those treatments include rehabilitative, psychiatric and therapeutic care, diagnostic tests, applied behavioral analysis as well as the cost of pharmaceuticals. Insurers would not be required to pay for in-school services."
Public Health and Private Healthcare Systems
Florida Orders Firm To Stop Selling Unauthorized Health Insurance.
The AP (8/4) reports, "Florida has ordered the Association of Independent Managers to stop selling unauthorized health insurance." Apparently, the "company has marketed unauthorized policies under several names, including AIM Health Plans, AIM Health Solutions, AIM Guaranteed Health Insurance, CEO Club Benefits, Chief Executive Officers Club and CEO Health Select." To date, "the state has received complaints from 96 consumers involving 49 agents."
And "as many as 1,800 consumers may have purchased what" may be "bogus health insurance plans," the South Florida Business Journal (8/3) reported. "Consumers who believe they have bought coverage from an unlicensed insurance operation should call the CFO's Consumer Helpline at 1-877-MY-FL-CFO (1-877-693-5236) or go to www.myfloridacfo.com."
Senate Plans Cutting Food Stamps To Help Pay For Medicaid.
The Columbus Dispatch (8/4, Torry, Candisky) reports "the US Senate will attempt to pass a bill Wednesday that would provide $26 billion to recession-battered states to help pay for Medicaid costs and avoid teacher layoffs," but "to help pay for the measure, Senate Democrats want to cut $11.9 billion from the federal food-stamp program." The proposal "has infuriated advocates for the poor," who "warn that starting in June 2014, a family of four could lose $59 a month in food benefits from what is now called the Supplemental Nutrition Assistance Program."
Incoming Florida Senate President Searching For Ideas To Reduce Soaring Medicaid Costs.
The AP (8/3) reported, "Incoming Florida Senate President Mike Haridolopos is leading a three-day bus tour in search of ideas for cutting soaring Medicaid costs." Notably, "both chambers of the Republican-controlled Legislature this spring passed bills to expand managed care by private companies -- the House statewide and the Senate to a lesser extent -- but they were unable to reach a compromise."
North Carolina Governor Signs Bill To Fight Medicaid Fraud.
The Asheville (NC) Citizen-Times (8/4) reports North Carolina Gov. Bev Perdue signed a bill, "the Medicaid Anti-Kickback law," as part of her "proposed package of initiatives to fight fraud, waste and abuse in the state's Medicaid system." The actions could "potentially save millions by ferreting out unethical providers that bill Medicaid for services their patients did not need." Medicaid officials "have identified the unethical – and illegal – scheme" of "providing kickbacks," including "turkeys, appliances, even cash," to "encourage patients to use services they do not need." The "provider then files for Medicaid reimbursement."
Utah Tentatively Settles Medicaid Class-Action Lawsuit.
The Deseret Morning News (UT) (8/4, Falk) reports that "after 15 years of litigation and four trips to the Utah Supreme Court, state officials have tentatively agreed to settle a multimillion-dollar class-action lawsuit involving roughly 2,000 Medicaid claims." Under the agreement, "the state would pay $5.5 million to the class." The lawsuit "involves personal-injury victims who had medical expenses" covered by the state's Medicaid program. After "the class members sued and recovered damages" from various third parties, "the state recuperated its expenses but failed to fully reimburse the recipients for attorneys' fees, which could be more than 33 percent of the total award."
Group Highlights Efforts To Improve Primary Care In Medicaid.
The Hill (8/4, Pecquet) says in its Healthwatch blog, "The trade association that represents nonprofit safety net health plans released a new report Tuesday on strategies to improve primary care in Medicaid." Notably, the "paper, released by the Association for Community Affiliated Plans, outlines efforts to increase access to primary care, encourage coordination and team-based care, and reward effective primary care. One of the stated goals of healthcare reform has been to transform the US healthcare system to reward quality over quantity of care, and primary care is seen as vital to that effort."
Uninsured
Moody's Says Markets With Higher Uninsured Populations May Become More Attractive To Investor-Owned Hospital Companies.
Modern Healthcare (8/4, Galloro) reports, "As proposed deals in Boston, Detroit and Youngstown, Ohio, show, investor-owned hospital companies are interested in markets that don't fit their traditional targets, and healthcare reform is a prime reason, according to a report by Moody's Investors Service." Modern Healthcare adds, "As healthcare reform goes into effect, markets with higher uninsured populations could become more attractive to investor-owned hospital companies, according to Moody's."
Growing Your Business
Labor Department Withdraws Proposal To Mandate Employer Health Coverage.
The Hill (8/4, Pecquet) reports in its Healthwatch blog, "The Department of Labor has announced it is withdrawing a proposed regulation allowing state and local governments to mandate that businesses provide healthcare for their employees or pay into a government health program." This "regulation was being developed prior to passage of the healthcare reform law, the department says, and the new law may negate the need for it."
Also in the News
Survey: Premiums For Family Coverage In Florida Higher Than National Average.
The Orlando Sentinel (8/3) "Vital Signs" blog reported, "For those who sign up for family coverage, Floridians pay an average of $4,275 a year -- or 33.1 percent of the premium -- for their family policies, compared to the national average of $3,474 or 26.7 percent of the premium toward their family coverage health insurance premiums." Data from an AHRQ survey show that "employees in Pennsylvania pay $2,774 or 21.0 percent of the family premium, while employees in Michigan pay $2,819 or 21.4 percent of the premium. In New York, employees who sign up for family coverage pay an average of $3,034 a year or 22.1 percent of the premium -- less than the national average."
Report: Chronic Diseases Driving Healthcare Costs In US, Michigan.
Crain's Detroit Business (8/4, Greene) writes "chronic diseases like asthma, diabetes and coronary artery disease are driving high health care expenditures in Michigan and nationally," according to a report by the Ann Arbor-based Center for Healthcare Research and Transformation. The paper "also indicated there are opportunities to ease the cost burden through better prevention and medical care management." The report, the third in a series of CHRT issue briefs, "found that average annual spending for a patient with a single chronic condition" can range "from $3,785 to $38,270 more than spending for people without a chronic condition."
Group Says Canada's Health System Must Be Overhauled.
The Toronto Star (8/4, Yang) reports, "The country's largest doctors' group has released a sweeping report warning Canada's healthcare system needs to be 'massively transformed' and allow for changes such as universal access to prescription drugs and improved outpatient services. In a policy report released Tuesday, the 72,000-member Canadian Medical Association called for major changes to Canada's healthcare system, which it criticizes as insufficient for meeting the needs of an aging population." The group said in its report that "Canada's healthcare system is underperforming on several key measures, including timely access to services and ensuring accountability. That is despite the fact Canada is one of the highest spenders of healthcare compared to other industrialized countries with universal healthcare, the report points out."
