California Health Safety Net Holding Up, But Straining!

Bolstered by millions of dollars of aid from Washington, California managed to hold its healthcare safety nets together last year despite the fallout from the recession. Now, however, with emergency federal aid schedule to end this year, it is unclear how much longer California’s financially strained government will be able to head off cutbacks. Driven by poverty and expanded eligibility, enrollment in Med-Cal. The Medi-Cal programs is jointly funded by federal and state governments using a complex formula that varies from state to state.

The Medi-Cal expansion – coupled with growth in the Healthy Families program for children in low to moderate-income families provided much-needed coverage and peace of mind to families while they looked for jobs and struggled to pay the bills.

Read more…

Jul 06, 2011


Posted by Jeremy Allen | No Comments »
Tags: Net, Safety Net

CA Insurance Commissioner Heightens Scrutiny of Rate Hikes

California’s new Insurance Commissioner Dave Jones (D) is preparing to combat major rate hikes that have characterized the state’s individual health insurance marketplace in recent years, the Wall Street Journal reports. Jones already has started putting pressure on several health insurance companies that recently announced rate increases for individual policies.

Recent Rate Hikes

On Jan. 6, Jones asked Blue Shield of California to delay a planned series of rate hikes that could total as high as 59% for individual policyholders.

Read more…

Jul 04, 2011


Posted by Jeremy Allen | No Comments »
Tags: Hikes, Insurance Commissioner, Rate Hikes

California’s Health Care System Needs Change

According to a new survey by the Public Policy Institute of California, nearly 60% of Californians believe major changes are needed in the state’s health care system.

Changes to Health System

The poll found that 62% of Democrats and 61% of independents thought major changes were needed in California’s health care system, compared with 53% of Republicans.

Researchers also found that:

  • 91% of respondents said that universal children’s health coverage is important for preventing illness:
  • 60% of respondents said they wanted more emphasis on preventive health care rather than treatment;
  • 40% of respondents said they were very satisfied with the quality of their health care; and
  • 22% said they were dissatisfied with the quality of their health care.

In addition, 53% of respondents said they were very concerned that California’s budget deficit would lead to major cuts in health and human services, while 31% of respondents said they were somewhat concerned.

Federal Health Reform Law

When asked about the federal health reform law, 51% of respondents said they support the overhaul and 36% said they oppose it.

Read more…

Jul 03, 2011


IRS Guidance on Reporting Group Health Insurance

Today, the Internal Revenue Service issued interim guidance to employers on informational reporting on each employee’s annual Form W-2 of the cost of the health insurance coverage they sponsor for employees. The IRS is also requesting comments on this interim guidance. The IRS emphasized that this new reporting to employees is for their information only, to inform them of the cost of their health coverage, and does not cause excludable employer-provided health coverage to become taxable; employer-provided health coverage continues to be excludable from an employee’s income, and is not taxable.

Reporting is Voluntary for All Employers for 2011 and Small Employers for 2012

The Affordable Care Act provides that employers are required to report the cost of employer-provided health care coverage on the Form W-2.

Read more…

Jul 02, 2011


Posted by Jeremy Allen | No Comments »
Tags: Health Insurance, Insurance

Employers Buying “Narrow Network” HMO Plans

Narrow Network HMOs

Thousands of employers in California and across the U.S. are eliminating costly physicians and hospitals from their health care provider networks in an effort to reduce health care costs. Since the recession started in 2008, more than 10,000 California employers and public agencies have opted for so-called narrow network HMOs. Such health plans offer fewer choices in health care providers but can reduce an employers spending on insurance premiums by nearly 25% in some cases.

Small Business Favorites

Insurers and employers say the narrow networks are growing fastest among small businesses.

Read more…

Jun 28, 2011


Massachusetts Tackles Medical Costs

Massachusetts became the first state to move toward universal health insurance five years ago. Now, the state is debating how to replace the fee-for-service medical system. Mass Governor Deval L. Patrick (D) is trying to push the health care system here into a new era of cost control. He is proposing a new way of paying for care that would give lump payments to teams of doctors responsible for almost all the care of a group of patients, with bonuses for saving money and dispensing high-caliber services that keep people healthy.

We did access first, said state Senate President Therese Murray (D).

Read more…

Jun 28, 2011


Posted by Jeremy Allen | No Comments »
Tags: Medical, Tackles Medical