Washington, DC, has launched a subpoena-powered investigation and a lawsuit that asserts the nonprofit CareFirst BlueCross BlueShield is obligated to donate millions to the community. Authorities in Washington, DC, and Maryland have criticized CareFirst BlueCross BlueShield in the past for hoarding its annual surpluses despite its federal charter as a "charitable and benevolent institution."
Animosity between officials and the insurance provider intensified of late because CareFirst did not participate in a universal healthcare program that was counting on it for an annual $5 million contribution.
Independence Blue Cross plans to waive co-pays for 75 generic drugs that treat chronic conditions as a way of encouraging patients to take cheaper medicines. The Rx for Better Health program will be in effect from July 1 through December 31 for IBC and AmeriHealth of Pennsylvania subscribers. The program will not apply to those who have Medicare Part D, Medicare discount cards, or those who are members of the Federal Employees Health Benefits program and AmeriHealth of New Jersey or Delaware. The new initiative follows a broader program offered last year, which prompted a 15% increase in generic drug use.
The number of Californians purchasing their own medical coverage continues to rise, as fewer employers are offering group coverage. Consumer advocates are now making efforts to tighten regulation of the individual health insurance market, which they say is "rife with 'junk insurance' policies that provide minimum benefits, such as hospital-only coverage, and don't set limits on out-of-pocket expenses." And it is often impossible to determine what an individual plan covers, causing the insured to find out too late after running up thousands of dollars in medical costs.
The Pennsylvania governor's administration hopes to take advantage of a law that allows the state to get larger rebates than commercial insurers on the purchasing of medication for its Medicaid program by centralizing the purchasing, something currently handled by HMOs, within the state Department of Public Welfare. Supporters say cost savings could total as much as $95 million per year. However, opponents say hidden expenses could drain the anticipated savings.
The vast majority of hospitals in the U.S. offer high quality healthcare, according to a study, although the costs for the same care varies widely among specific regions and the nation. The 2008 Hospital Value Index, which ranks 1,500 U.S. hospitals based on the value of care offered to patients, also found that numerous hospitals with a reputation for offering high quality care do not necessarily provide high value care.
The U.S. House has overwhelmingly passed legislation that would void a 10.6% cut for doctors who treat Medicare patients. Under the legislation, the voided cuts would be paid for by trimming payments to private health insurers. The legislation passed despite a veto threat by President Bush and protests from the insurance industry. Payment rates are set to drop by 10.6% on July 1 as a result of a formula that calls for cuts when spending exceeds established goals.