healthcare coverage

Moody's says healthcare's vulnerable to economy's ills

Anne Zieger — Thu, 20 Nov 2008 23:06:30 -0500

Classical economics suggests that healthcare enjoys a unique status as an industry--that it's essentially recession-proof given the constant and sometimes rising demand for healthcare services. But that assumption may not hold water during this economic downturn, suggests a new set of reports from Moody's Investors Service.

Moody's has issued reports on a group of healthcare sectors this month, including hospitals and medical devicemakers to health plans, and has revised the 12- to 18-month outlooks from "stable" to "negative." It notes that many discouraging trends are in play, including that less patients are seeking medical care, and many are avoiding elective surgeries. It also notes that more people may lose their healthcare coverage as jobs disappear, potentially leading to a rise in bad debt among some providers.

Non-profit hospitals, in particular, are expected to face struggles, as it's become harder to gain access to tax-exempt bond financing to buy equipment and make capital improvements. Health plans are also in the bullseye, says Moody's, which argues that the plans are likely to see lower margins and slower growth for a number of reasons.

To learn more about Moody's predictions:
- read this Chicago Tribune piece

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Obama healthcare plan a plus for hospital, Moody's says
Moody's ratings changes could raise healthcare credit ratings
Not-for-profit hospitals financially stable in '07, says Moody's

3 million children, adolescents slip into coverage gap

Molly Bernhart — Wed, 22 Oct 2008 12:02:05 -0400

At some point during the year, approximately 3 million U.S. children and adolescents will have a gap in healthcare coverage, even though at least one of their parents is insured. A new study by the Agency for Healthcare Research and Quality, and the National Center for Research Resources, a division of NIH found that 1,380, or 3.5 percent, of the 39,588 children and adolescents surveyed were uninsured with at least one insured parent. On a national scale that amounts to approximately 3 million children.

These children were most likely Hispanic and from low- or middle-income households. They were also likely to live in the South or West, and have a parent with private coverage, as opposed to public insurance. Many of the gaps are the result of holes in employer-sponsored coverage, where adding family coverage is either too expensive or prohibited by the plan.

For more:
- read the Modern Healthcare.com article

SEC backs universal health insurance ballot measure

Tue, 27 May 2008 06:59:55 -0400

While most of the discussion of universal healthcare coverage takes place outside of the corporate arena, some activist shareholders may have succeeded in forcing the discussion into stockholder debates. Of late, groups of public company shareholders such as religious groups and labor unions have pushed a proposal asking shareholders to vote on a statement endorsing universal health insurance coverage. The statement asks companies to offer official support for universal, continuous, affordable health insurance. Many companies have resisted vigorously, including, interestingly enough, health insurer UnitedHealth.

Their tactic may be working. Over the past several months, the Securities and Exchange Commission has told a group of large public companies--including Boeing, General Motors, United Technologies, Wendy's International and Xcel Energy--that they must include the proposal in their proxies. Generally speaking, companies don't have to let shareholders vote on proposals if they don't relate to a company's ordinary business operations. However, the SEC said that it sometimes is appropriate for shareholders to express views by voting on significant social policy issues--and that it feels healthcare has reached the level of importance necessary to meet such a standard.

To learn more about this issue:
- read this piece in The New York Times

Survey: Universal healthcare would boost MD shortage

Thu, 15 May 2008 06:59:57 -0400

When it comes to universal healthcare coverage, it would appear that a significant minority of physicians find the idea to be intolerable, according to a new survey. The survey, by physician recruiter LocumTenens.com, found that of roughly 1,400 doctors who responded, 11 percent would change occupations and 9 percent would retire if a universal health insurance scheme was put into place. Meanwhile, 63 percent said that their practice patterns wouldn't change.

Given that the federal government already projects a shortfall of 55,100 physicians by 2020, this can't be good. However, it remains to be seen whether any potential health reforms might do something to discourage doctor flight; perhaps policymakers, aware of such concerns among doctors, will come up with incentives that slow such an exodus?

To learn more about the study:
- read this Atlanta Business Chronicle piece

Related Articles:
Doctor shortage slows Massachusetts health reform
Community clinics face doctor shortage
Congress under pressure to address MD shortage
Study contradicts idea of physician shortage

PA hospitals won't charge for 'never events'

Wed, 23 Jan 2008 06:59:58 -0500

Pennsylvania's hospitals said yesterday that they won't charge for care related to serious medical mistakes that occur during an inpatient stay at an acute care hospital, such as wrong-body-part surgery and substantial medication errors. The announcement, which follows similar stands by hospitals in Massachusetts and Minnesota, takes effect this month. Unlike some initiatives, it only applies to patients who are on public healthcare coverage, in this case the state's Medical Assistance program. The move, which was announced by the Hospital & Healthsystem Association of Pennsylvania, comes on the heels of pressure from the state's Department of Health and Human Services, which would like to refuse payment certain never events.

To find out more about the announcement:
- read this Healthcare Finance News piece

Related Articles:
MN hospitals won't charge for major errors. Report
Many MA hospitals waive charges for errors. Report
By 2008, Medicare won't pay for some hospital errors. Report
Other payors may follow CMS's 'no pay' lead. Report
Business say 'no pay' for major mistakes. Report

SPOTLIGHT: Candidates should push treatment effectiveness

Wed, 06 Jun 2007 20:01:32 -0400

It's all well and good to advocate for universal healthcare coverage, but unless we trim costs universal coverage is not sustainable, suggests New York Times columnist David Leonhardt. If they really want to fix the U.S. health system, presidential candidates should encourage the industry to focus on which treatments really work, he says. Article

ALSO NOTED: Leavitt plans state-by-state tour; MA woman faces miscarriage charges; and much more...

Wed, 24 Jan 2007 19:01:30 -0500

> See Leavitt run! The HHS head plans to spend 100 days zipping form state to state to help them develop proposals for expanded healthcare coverage. Article

> An 18-year-old Massachusetts woman who took ulcer drug misoprostol late in her pregnancy, then miscarried, now faces felony charges. Article

> Texas medical license applications now take a painfully-slow 105 days to be processed, backlogged by a large jump in doctor interest after tort reform passed. Article

> A St. Louis physician group running a competing health plan has dropped its UnitedHealthcare contract. Article

> The healthcare and medical device market in Poland is taking wing, spurred in part by the country's admission into the European Union. Release

And Finally... New sneakers, anyone? A group of New York state healthcare workers have taken a 320-mile walk to protest planned hospital closures. Article

Bush focuses on healthcare in speech

Tue, 23 Jan 2007 19:01:38 -0500

President Bush joined the national debate on universal healthcare last night with two proposals outlined in his State of the Union speech. In a previous radio address, Bush had revealed his plan to control healthcare costs by tax breaks to help low-income people buy insurance and a tax boost for employees whose health coverage costs more than average. Last night he also announced a policy to support the universal health efforts of several states. The so-called "Affordable Choices Initiative" would divert some federal money now going to hospitals and other facilities and give the money to the states. The plan would give governors more legal leeway in using Medicaid dollars if they develop smart healthcare coverage expansion strategies, moving $40 billion in disproportionate share payments away from hospitals.

Many health industry wonks are happy to see the President turn the national focus to healthcare, but Bush's plan has already drawn criticism from a number of groups. Democrats and other groups are attacking the tax deduction, which would lower taxes for 100 million citizens but raise taxes on about 30 million Americans with more expensive health plans. They also fear that employers will be less likely to provide health coverage for employees due to the tax change. And hospitals are protesting the Affordable Choices Initiative, suggesting that it could undermine their already fragile relationship with the Medicaid program and possibly push some poorer hospitals further underwater financially. Finally, the State of the Union address was important for what it didn't mention. Though the President mentioned the future financial problems Medicare and Social Security face, he didn't offer any proposal on how to deal with the problems.

For more information on the initiative:
- check out this article from the New York Times
- read the White House press release on its health proposals
- find out more about the hospital industry's lobbying efforts to block DSH program changes

Related Articles:
Bush to address health coverage. Report
Universal health model emerges. Report
Mass. objects to $380 minimum coverage price. Report

Mass. objects to $380 minimum coverage price

Mon, 22 Jan 2007 19:01:38 -0500

Massachusetts' Commonwealth Health Insurance Connector--the state-run organization charged with implementing the state's healthcare reform plan--is asking insurers to lower their proposed monthly premiums in order to make basic healthcare coverage truly affordable for lower-income adults. Last week the Connector outlined the requirements for coverage. They found that this coverage would cost a minimum of $380 a month, which critics say is much more than many people can afford. "Clearly, $380 is not what we consider affordable," Jon Kingsdale, executive director of the Commonwealth Health Insurance Connector, told the Boston Globe. The Connector has delayed voting on minimum required coverage for two weeks. In the meantime, they've asked insurers to come up with less expensive options.

For more:
- read this article from the Boston Globe
- and this report from the Boston Business Journal

Related Articles:
Kingsdale likely pick for Massachusetts' Connector. Report
Mass. plan may limit hospital choice. Report

NYC hospitals, union reach agreement

Mon, 22 Jan 2007 19:01:37 -0500

New York City hospitals and the SEIU United Healthcare Workers East have reached an agreement on a new contract designed to save the SEIU's troubled healthcare benefits fund, despite the fact that the current contract doesn't expire for another 15 months. The fund is facing a $700 million deficit over the next five years due to rising healthcare costs. The contract covers to 65,000 employees at 61 hospitals and 20 nursing homes. As part of the agreement, the hospitals will delay a scheduled 3 percent raise until December, which will allow them to contribute $466 million to the benefits fund over the next several years. The union is one of the few whose members contribute no out-of-pocket costs to their healthcare coverage.

For more on the agreement:
- read this New York Times article

Related Articles:
CHW, SEIU reach contract agreement. Report