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BayCare, Aetna sign new contract

December 24th, 2008 sbrennan No comments

December 24, 2008, 11:22am EST BayCare, Aetna sign new contract

Tampa Bay Business Journal - by Margie Manning Senior staff writer

BayCare Health System Inc. and Aetna have signed a new contract, ensuring Aetna members will continue to have access to BayCare hospitals.

The new contract is effective Jan. 1 and has a three-year term, said Isaac Mallah, president and chief executive of BayCare’s St. Joseph’s Hospital. Mallah also handles managed care negotiations for BayCare.

He would not discuss specific financial terms but said Aetna would reimburse rates comparable to the reimbursements paid by other major insurers.

Under the agreement, BayCare hospitals will continue to participate in Aetna’s provider network, Aetna said in a release.

“The BayCare facilities are an important part of our area network, and we’re happy to be extending that affiliation,” Stuart Kilpinen, Aetna’s network vice president for the Tampa Bay area, said in the release.

Aetna (NYSE: AET), based in Hartford, Conn., and with about 400, 000 members on Florida’s west coast, and BayCare, the largest health care system in the area, had been at a stalemate over contract negotiations, snaring local employers in their dispute. Both had waged a public relations battle, sending letters and e-mails to companies that sponsor Aetna health plans for their employees and in some cases to the workers themselves.

An option in the current agreement would have raised rates Aetna currently pays to BayCare by 8 percent in 2009, but Aetna said it wanted to negotiate more favorable terms. BayCare said Aetna was paying substantially lower rates than other large payors but BayCare said it had been willing to continue under the current contract. When Aetna notified BayCare it was terminating the contract, BayCare then asked Aetna to pay the same level of reimbursement that other large insurers were paying.

Aetna said it was concerned that higher reimbursement rates would adversely impact the premiums employers pay for workers.

Mallah said the premium impact under the new contract was a question best addressed by Aetna but said he did not expect the new contract to have more than a 1 percent impact on premium rates.

BayCare plans to send letters to employers and workers notifying them of the new contract, said Mallah, who admitted he heard from employers about the issue during the negotiations, including from the chairman of the St. Joseph’s Hospital board, Stephen Buckley. Buckley also is president of RTG Furniture Corp., the Seffner-based company that operates Rooms to Go furniture stores and his company provides workers health insurance through Aetna.

“There’s always been feedback but the boards were very supportive of the actions, regardless of the impact on them,” Mallah said.

Although health system and insurer negotiations can be viewed as a “no-win proposition”, in this case, “I think the community in general was very supportive,” Mallah said.

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December 18th, 2008 sbrennan No comments

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Steps you take now can ease pain later if you lose your job

December 18th, 2008 sbrennan No comments

Are you worried about your job? You probably should be.

The Federal Reserve Board expects the economic downturn to last through 2009. Some economists believe unemployment could hit 9% before the economy improves.

If you’re feeling insecure about your job, there are steps you can take now that will make a layoff less painful. Some suggestions:

•Avoid borrowing from your 401(k) plan. Since the economic crisis began, nearly 20% of employers have seen an increase in loans from 401(k) plans, according to Watson Wyatt.

That’s not surprising, because many Americans are cash-strapped, and other forms of loans — such as home equity lines of credit — have become much harder to get.

But in an uncertain job market, a 401(k) loan is a bad idea. Most companies require workers who leave — voluntarily or not — to repay the balance within 60 to 90 days, says James Cox, financial planner at Harris Financial Group in Colonial Heights, Va. Otherwise, the amount you owe will be treated as a distribution, which means you’ll have to pay income taxes on the balance, plus a 10% early-withdrawal penalty if you’re under age 55.

•If your company is still offering open enrollment, consider signing up for the lowest-cost health insurance option. That will reduce the cost of continuing your coverage if you’re laid off.

Under the Consolidated Omnibus Budget Reconciliation Act of 1985, or COBRA, employers with 20 or more workers must allow laid-off employees to continue their coverage for up to 18 months.

However, you’re required to pay 100% of the premium, plus administrative fees.

In addition, you must stay with the plan you signed up for while you were working, says Blaine Bos, senior health and benefits consultant for Mercer, a health care consulting firm.

Many employers offer their workers plans that charge a lower premium in exchange for a higher deductible. Ordinarily, such a plan may not be your first choice. But if you think you’re going to lose your job, signing up for one of these plans could reduce your COBRA premiums.

If you’re young and healthy, you may be able to find an individual insurance policy that’s less costly than COBRA.

But if you or your dependents have a pre-existing condition, individual insurance will likely be very expensive, or you may not be able to buy it at all.

•Exhaust the funds in your health care flexible spending account. A health care flexible spending account allows you to contribute pretax dollars to pay for unreimbursed medical and dental expenses, such as deductibles and co-payments.

The accounts are funded by deductions from your paycheck, and you must decide during open enrollment how much you want to contribute during the year.

Most people who sign up for flex accounts are aware that they’re required to forfeit any funds they haven’t used by the end of the year. But many employees don’t realize that this “use it or lose it” rule also kicks in if they leave their jobs. If you’re laid off in July, for example, you can’t take money accumulated in your account with you, or use the money to pay for expenses incurred after your last day on the job.

There is an exception to this rule for employees who sign up for COBRA, Bos says. In that case, you can spend unused funds on eligible expenses, but you can’t use it for COBRA premiums, he says.

There’s also a flip side to the “use it or lose it” rule that could work to your benefit, says Nancy Collamer, author of The Layoff Survival Guide.

Suppose you’ve elected to contribute $1,200 to your spending account during the year, and by July, you’ve submitted claims for the entire amount. If you’re laid off, your company can’t come after you for the balance, even though you’ve contributed only $600.

Once the ax falls, your first instinct may be to set off for the nearest tavern.

But resist this urge. You’ll need all your wits about you for the exit interview, because the terms of your departure could affect your unemployment benefits.

In general, you’re eligible for unemployment benefits if you lost your job through no fault of your own. If you left voluntarily, or were fired for misconduct, you’re usually ineligible.

For that reason, your exit interview “is a great time to clear up any grayness or vagueness” about the terms of your dismissal, says Bruce Clarke, chief executive of Capital Associated Industries, a Raleigh, N.C.-based human resources consultant.

If you were laid off for economic reasons, he says, “You want that message to be very clear.”

Sandra Block covers personal finance for USA TODAY. Her Your Money column appears Tuesdays.

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Governor Crist unveils new low-cost health insurance

December 10th, 2008 sbrennan No comments

Crist unveils new low-cost health insurance
BY MARC CAPUTO
Miami Herald

TALLAHASSEE — The 3.8 million uninsured Floridians will have the option to buy affordable health insurance plans starting Jan. 5 under Gov. Charlie Crist’s Cover Florida health initiative.

Crist said Wednesday that six companies have agreed to offer 25 different health coverage packages around the state. The type and cost of the plans vary, depending on the county and whether a person picks a ”preventive” or ”catastrophic” plan.

Average monthly cost: $155. The most expensive, catastrophic plan that offers the most hospital care would cost about $290 monthly. The leanest package would cost about $51 monthly.

”Today, Floridians are one step closer to having the quality affordable healthcare they deserve,” Crist said. “This is about helping people, helping children, helping seniors and making a difference in their lives. It’s about freedom and choices.”

Crist didn’t mention a high-cost aspect of one of the plans offered in every county: Deductibles. Under Blue Cross/Blue Shield’s catastrophic plan, families would have to pay a $3,000 deductible.

Tough-to-spot costs like this worry advocates for children and seniors. Karen Woodall, who lobbies for social-service agencies, said the Cover Florida plans stop short of universal health coverage and subtly encourage people to act like shoppers rather than patients.

”I appreciate people getting options,” Woodall said. “But healthcare isn’t like shopping for a car, looking for the best deal.”

Woodall said that times are so tough right now that even people in KidCare, the state’s subsidized health program for the working poor, are falling behind on payments as low as $20 monthly.

The Cover Florida plans are available to Floridians age 19 to 64 who have lost their jobs or have been without coverage for more than six months. Miami-Dade County, where nearly a quarter of the residents are uninsured, will have five Cover Florida plans.

The plans cover many of the same items as full-fledged insurance packages, but they offer fewer benefits. For instance, conventional insurance packages might offer more prescription-drug coverage and more hospital stays than a Cover Florida plan.

In return for less coverage, insurers negotiated with the state to offer the less-expensive plans.

www.coverfloridahealthcare.com

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Uninsured Put a Strain on Hospitals

December 8th, 2008 sbrennan No comments

Uninsured Put a Strain on Hospitals
By REED ABELSON

As increasing numbers of the unemployed and uninsured turn to the nation’s emergency rooms as a medical last resort, doctors warn that the centers — many already overburdened — could have even more trouble handling the heart attacks, broken bones and other traumas that define their core mission.

Even before the recession became evident, many emergency rooms around the country were already overcrowded, with dangerously long waits for some patients and the frequent need to redirect ambulances to other hospitals.

“We have no capacity now,” said Dr. Angela F. Gardner, the president-elect of the American College of Emergency Physicians, which represents 27,000 emergency doctors. “There’s no way we have room for any more people to come to the table.”

In a report to be released Tuesday, her group warns that the nation’s system of emergency rooms is in “serious condition.” Dr. Gardner argues that any public discussion of overhauling the current health system must include the nation’s emergency departments.

The number of patients coming to emergency departments has been steadily increasing. Helping push up that volume have been the growing ranks of the uninsured, because emergency rooms are legally obliged to see all patients who enter their doors, regardless of their ability to pay. But even insured patients who have no quick access to regular doctors are also showing up — among them older people, who represent the fastest growing population of emergency room visitors.

So far, there are no firm figures on the recent influx. But even two years ago, when a government survey found that the annual volume of visits to emergency departments had reached 120 million — a third higher than a decade earlier — doctors considered many emergency rooms overburdened.

Now the recession, whose full impact is yet to be seen, threatens to make conditions even worse, emergency doctors say. Hospitals are absorbing increasing amounts in unpaid medical bills, and some are already experiencing much higher numbers of patients without insurance.

For example, Denver Health, a public hospital system, had a 19 percent increase in emergency visits by uninsured patients in November — to 3,325, up from 2,792 a year earlier.

“Virtually every time I work a nine-hour shift, I encounter a couple of patients who have never been here before because they’ve just lost their insurance,” said Dr. Vincent J. Markovchick, the director of the hospital’s emergency medical services.

They include patients like Matthew Armijo, 29, who was laid off from his client services job at a technology company in August and could continue his health insurance only through October. He showed up at Denver Health’s urgent care center, a part of the emergency department, suffering from increasing abdominal pain. Mr. Armijo said he went there because he would not have to pay anything.

Denver Health expects the amount of care it delivers for which it will never be paid to grow to more than $300 million this year, compared with $276 million in 2007.

Some patients are people who have delayed seeking medical care as long as they can, like those who arrive during an asthma attack after deferring treatment.

“I am definitely seeing patients coming in presenting worse in their illness because they are further along,” said Dr. Katherine A. Bakes, the director of the program’s emergency services for children.

Other doctors around the country also report treating people who seem to have no other option. One emergency room doctor in Iowa, Dr. Thomas E. Benzoni, said he recently saw a mother come in with her two children for what he thought was routine care. When he asked her why she had not gone to her family doctor, she said she did not have health insurance.

“I don’t know what else she was supposed to do,” Dr. Benzoni said.

The increase is not affecting all emergency rooms. Some emergency physicians, in fact, said there had actually been a recent decline in visits. A report by the American Hospital Association for July, August and September found a slight overall decrease in hospital traffic, including emergency visits, as some people apparently sought to avoid spending money on anything they did not deem absolutely essential.

But as the recession continues, many officials of the college of emergency doctors predict it is only a matter of time until the rising number of uninsured and the delays in getting primary care create a crisis.

“I think we’re seeing the tip,” said Dr. Nicholas J. Jouriles, the group’s current president. Patients, he said, will have no choice but to come to the emergency department when they have no money or insurance. “They will get turned away elsewhere,” he said.

One of the doctors’ major concerns is the long waits by patients requiring a hospital bed. The doctors group, surveying its members last year, learned of at least 200 deaths related to the practice of “boarding” — in which patients on stretchers line the corridors until they can be moved into a bed.

“Crowding is a national public health problem,” said Dr. Jesse M. Pines, an emergency physician in Philadelphia.

Patients forced to wait for hours on end for a bed clearly suffer.

“It was pure hell,” recalled Robert Roth, whose 90-year-old mother, Kato, last year spent 36 hours at the emergency department of a Queens hospital, near her home in Jackson Heights, waiting for a room after going to the emergency room in the middle of the night. Mrs. Roth, who had a recent series of falls, said she had been hearing music in her ears, and both her son and the doctor he called were worried about a possible stroke.

After the first five hours of waiting, she became increasingly disoriented and delusional. Mr. Roth was unable to stay with her during the entire wait. After he left and returned, he said, the hospital staff told him they had no idea where she was. She turned up in an empty room off the emergency department, and her physical and mental condition had clearly deteriorated, Mr. Roth said. She believed that she had been kidnapped.

When she had to go several weeks later to another emergency department in Manhattan, she endured a 20-hour wait for a room, again becoming disoriented after several hours, forcing her to be sedated.

The emergency staffs “just seemed overwhelmed, overwhelmed,” said Mr. Roth, who wondered why emergency departments could not handle the elderly in a special fashion.

Dr. Ann S. O’Malley is a physician and senior researcher for the Center for Studying Health System Change, a nonprofit group in Washington that has studied emergency services in different communities. While some hospitals have taken steps to reduce crowding and move patients more efficiently from the emergency department into rooms, Dr. O’Malley said, others have responded by expanding their facilities — attracting more patients.

“Emergency departments,” she said, “are a kind of barometer of the general health of the rest of the system.”

Dr. Eric J. Lavonas, an emergency physician in Denver, said: “The nation’s emergency rooms are the end of the line. We will strain and stretch and bulge under the weight.”

Dr. Gardner, of the emergency doctors’ group, said the question now is whether the emergency room safety net will break — how often people with heart attacks will not be able to get care in time to be saved. Her group’s report, she said, is meant to alert people to the precarious nature of the system.

“What they don’t understand,” she said, “is that the system is fundamentally flawed and will fail.”

Melinda Sink contributed reporting from Denver.

www.grouphealthflorida.com

To learn more about Florida group health insurance, Tampa group health insurance, Sarasota group health insurance, Miami group health insurance, or Orlando group health insurance, visit Grouphealthflorida.com or call 1-800-873-5713.