January 15, 2010 Legislation

Healthcare

California Laws

Hospitals

Insurers

Healthcare

The CBO was questioned on their original statement that med mal reform would save about $54 Billion per year.  They replied to the Congressman who asked for the re-look with an eight page response on December 29 proving their claims regarding how reform would save the money.  They agree that caps on non-economic damages reduce spending and reduce insurance premiums.   

Normally when the Senate and the House pass bills that are not alike there is a conference committee that attempts to reconcile the bills.  This committee would be open to CSPAN and would include both parties.  This doesn't seem to be happening the the two versions of the "health reform" bill.  CSPAN is attempting to get permission to televise the proceedings even though all know the real work will be done off camera.  The committee will be only Democrats.  No Republicans allowed.  So much for Obama's promise of transparency.   The informal group that will work on this will be only a few from each chamber and several from the White House.  The methodology is to use the Senate bill as the basis and have the House amend it before it goes back to the Senate.

There are more details in the bills as people are allowed to read each 2000 page bill.  One is that people with HSAs will need physician approval for using their own money to buy over the counter meds.  This will add money to the physicians but will harm the people.  This is supposed to save $5 Billion over ten years for the government but cost the public using HSAs money for physician visits and be a hassle for the public.  There would also be a cap of $2500 per HSA account which will add another $13 Billion to "reform" taxation over the decade.  Another boondoggle is that Medicare money would be shifted from community hospitals to the "Mecca's" where less minorities are served than in the inner cities.  Still another is that the IRS will be taxed with knowing whether all Americans have health insurance.  If they don't the IRS would collect a penalty.  The Service would also pay companies and low income people purchase insurance as well as collecting all the income from fees.  This will cost the taxpayers an additional $11 Billion (double the current budget) for the IRS.  This money was not counted in the cost of the program.  Still another is the prohibition of physician ownership in any hospital, not just specialty hospitals.  Yet another boondoggle is in the construction business.  They would have to purchase insurance for their employees even if they have less than fifty as that is the limit for the rest of the country.  The limit for this group is five people. This was inserted in the Senate bill by unions to make sure non union shops would have to pay and not gain a competitive advantage. 

An important but overlooked part of the Senate bill is a requirement that providers provide equipment for obese patients.  this means exam tables and chairs that can support the weight of obese patients.  Plan on having the office sued that do not comply.  I also wonder where the money will come from to make this unfunded mandate occur.     Top

California Laws

Starting the first of the year several new California laws have begun.  SB 148 requires mammogram centers to publicly disclose violations due to mechanical error or negligence in evaluating test results.  AB 2968 requires a physical exam within the past 30 days on all patients undergoing elective cosmetic surgery procedures.  There must be a note from a licensed practitioner stating the patient is able to undergo the surgery. The long await no rescission bill after 24 months has been signed into law.       Top

Hospitals

UC Irvine continues to be out of compliance with federal rules.  The flunked two inspections in the second half of 2009 and a new plan of correction is due by January 18.  This is a hospital that is trying to just get by and not be a first class institution.        Top

Insurers

Illinois now has a law allowing those that buy health insurance on their own or via a small employer to have denied medical claims reviewed by independent physicians.  These reviews will be paid by the plans.  This will cover about 4 million of the 13 million people in the state.  It will cover PPO as well as HMO patients.  Those insured with large companies are usually ERISA covered so the state can not pass laws regarding them.        Top

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DISCLAIMER: Although this article is updated periodically, it reflects the author's point of view at the time of publication. Nothing in this article constitutes legal advice. Readers should consult with their own legal counsel before acting on any of the information presented.