Changes in Medicaid funding could cost Georgia more than $2.6 billion during the next five years and potentially shut down dozens of the state's hospitals, health clinics and nursing homes. Under the proposed changes, state funding to Grady Memorial Hospital in Atlanta would be eliminated, which would virtually guarantee its closure. A report released by the House Oversight and Government Reform Committee showed that Georgia would be among the hardest-hit states, unless congressional Democrats can prevent the administration's orders.
A federal judge on has granted preliminary approval to a settlement between General Motors Corp. and the United Auto Workers that would set up a trust to fund the automaker's retiree healthcare. GM and the UAW agreed to form the trust as part of contract negotiations, but need court approval for it to take effect. The UAW and attorneys representing several retirees sued GM in an effort to get court approval for the change. If they win the approval, the trust would take on $46.7 billion in healthcare costs starting as early as Jan. 1, 2010.
Medicare is a multitrillion-dollar problem that's about to get dramatically worse, and one that nobody--especially the Presidential candidates--wants to talk about, says Fortune senior editor Geoff Colvin. In this piece, Colvin contends the issue is a huge threat to not just the healthcare industry, but the entire U.S. economy.
The city attorney for Los Angeles is asking Blue Cross of California to substantiate claims it made in a news release about the process of canceling a patient's coverage. In the release, Blue Cross claimed that it was developing a third-party review process to consider cases of coverage cancellation, known in the trade as "rescissions." As well as wanting substantiation that the insurer is developing a third-party review process, the city attorney's office asked for proof of several other claims, including that the insurer is simplifying its application process.
States estimate that proposed changes to Medicaid would cost them about $50 billion in federal aid over the next five years, according to a Democratic congressional report. One proposed regulation would limit Medicaid reimbursement to public hospitals to no more than the cost of providing a particular service, and another would prohibit billing Medicaid for the costs of medical interns and residents. Federal officials say the changes are designed to ensure that providers don't bill the program for more than the costs of providing care and that each states pay their fair share.
Oregon will draw names for the chance to enroll in a healthcare program designed for people not poor enough for Medicaid but still cannot afford to buy their own insurance. More than 80,000 people have signed up since registration for the lottery opened, but only a few thousand will be chosen for the program.