Sep
28

Matt 1, NYTimes 0

I was going to post a blistering riposte to an amazingly lousy article in the NYTimes (registration required), but Matt Holt beat me to it.
The Times article says words to the effect that the reason health care costs so much is because it makes us live longer. Boy is that misinformed, superficial, ineptly researched, and just plain wrong.
Health care costs so much in the US because prices are high and practice pattern variation prevails and there are too many uninsured and cost-shifting is rampant and Congress and the White House would rather grand stand about Terry Schiavo than address real problems.
Good work Matt.


Sep
28

Ugly ugly ugly

Payer-provider interactions are getting downright pugnacious. Perhaps a more accurate characterization is the big health plans and health care systems are raising pugnacity to new levels.
Denver is the scene of one highly public row featuring United Healthcare and HCA’s HealthOne, one of the largest health care systems in the Denver metro area. The ongoing contractual dispute has led to lots of nastiness:
– termination of the UHC-HealthOne contract,
– filing of a temporary restraining order on the part of UHC to force HealthOne to enable UHC members to access some HealthOne facilities, and
– efforts by HealthOne to tightly control UHC case managers’ access to their facilities after reports that case managers were tring to get UHC patients to transfer out of HealthOne facilities.
This is not an isolated issue. Recent disputes have arisen in Rhode Island, Tennessee, and western Florida. Notably, several of the more contentious battles are between UHC and HCA.
Hospital and facility costs are the largest single contributor to health care cost inflation, and hospitals’ negotiating power, and willingness to use same, has grown significantly in recent years. It’s likely that the recent announcement that HCA will be bought out by private investors will lead to an increase in the number and intensity of contractual battles.
What does this mean for you?
As United and others seek to constrain medical inflation, and hospitals work to maintain their margins in the face of increasing numbers of uninsured patients expect to see more of these battles hit the news around the country.


Sep
27

Workers comp’s top problem drug

Actiq, the lollypop pain killer, is rapidly becoming the biggest problem drug in workers comp. FDA approved only for treating cancer pain, the potent narcotic is now on most payers’ top 5 drug list (ranked by dollars spent).
There are likely several factors that have enabled a drug clearly not approved for musculo-skeletal conditions to achieve this high “honor”.

Continue reading Workers comp’s top problem drug


Sep
25

California Blue Cross gets hit and concedes.

The PR and financial fallout from the recent reports of inappropriate retroactive denial of coverage is starting to take its toll on California’s Blue Cross plan. From Fierce Healthcare comes the latest news; the State of CA has levied a $200,000 fine against BX for their actions in one specific case.
And that’s just one case. Reports indicate there are as many as 19 more.
What does this mean for you?
If David is doing battle with Goliath and the venue is the court of public opinion, you’d best bet on the little guy.


Sep
21

Blue Cross – Brand v. Underwriting

The Blues have decided to get smart. Perhaps not smart, but at least smarter. Blue Cross of California’s much-publicized PR disaster arose when the LATimes published an article decrying the plan’s policy of trying creative ways to cancel policies for individuals who had the nerve to ask BX to pay for their medical problems.
Actually, the problem arose when the State of CA took legal action against BX.

Continue reading Blue Cross – Brand v. Underwriting


Sep
18

Why HSAs won’t help the uninsured

One of the oft-cited rationales for Health Savings Accounts and Consumer Directed Health Plans (HSAs and CDHPs) is their potential to reduce the number of individuals without health insurance (or, as my neighbor says, the “individually self-insured). While HSAs may have some benefits in terms of increasing consumer awareness of costs, for two rather obvious reasons, HSAs will not help reduce the number of uninsured in the US.

Continue reading Why HSAs won’t help the uninsured


Sep
14

National Consumer Directed Healthcare Summit – report from the scene

I went to the National Consumer Directed Healthcare Summit in DC yesterday skeptical but with an open mind. And after Paul Ginsburg’s opening talk, I was thinking there may well be a pony in here somewhere. Unfortunately, I left after three more presentations still searching for the pony.

Continue reading National Consumer Directed Healthcare Summit – report from the scene