California Healthline: Business

Calif. Sees Spike in Confined Workplace-Related Fatalities

Thu, 24 May 2012 08:00:00 GMT

In 2011, seven California workers died while working in a confined space, compared with two deaths annually between 2008 and 2010, according to a report by the occupational health and safety advocacy organization Worksafe. Experts attribute the rise in fatalities to low awareness about the dangers of working in confined spaces and inadequate emergency rescue plans. California Watch.

Brown Urges Business Leaders To Support Budget, Tax Plan

Wed, 23 May 2012 08:00:00 GMT

During an address to the California Chamber of Commerce on Tuesday, Gov. Brown urged business leaders to support his revised fiscal year 2012-2013 budget plan and tax hike measure. He warned that if the tax hike measure is not approved, more cuts to services will be necessary. San Jose Mercury News et al.

GAO Report: Overhaul's Tax Credit Not Appealing to Small Businesses

Tue, 22 May 2012 08:00:00 GMT

A new Government Accountability Office report finds that the health reform law's small business tax credit is not large enough to incentivize employers to offer health benefits. According to the report, the credit was claimed by 170,300 employers in 2010, far short of estimates. The Hill's "Healthwatch" et al.

Study: Millions of Small Businesses Not Claiming Reform Law Tax Credits

Thu, 10 May 2012 08:00:00 GMT

A study by Families USA and the Small Business Majority finds that millions of small businesses have not taken advantage of a tax credit under the federal health reform law designed to help them provide health coverage to their employees. The Hill's "Healthwatch," CQ HealthBeat.

Senators Launch Probe Into Drugmakers' Ties With Painkiller Groups

Wed, 09 May 2012 08:00:00 GMT

The Senate Finance Committee has started investigating ties between drugmakers, advocacy groups and organizations that set painkiller prescription guidelines. Meanwhile, the American Pain Foundation said it will dissolve for financial reasons. New York Times, Washington Post.

California Health Care Personnel News Update for April 2012

Mon, 07 May 2012 08:00:00 GMT

Dev GnanaDev plans to resign as medical director of Arrowhead Regional Medical Center at the end of June after serving in the role since 2000. Gov. Brown has appointed Lora Connolly -- former chief deputy director of the California Department of Aging -- as director of the agency.

GOP Report: Employers Would Save Money by Dropping Coverage

Wed, 02 May 2012 08:00:00 GMT

A report by House Republicans contends that the largest U.S. companies could save billions of dollars by dropping coverage and shifting workers into the federal health reform law's insurance exchanges. Democrats called the report's predictions "cynical." The Hill's "Healthwatch" et al.

S.F. Employee Unions, Mayor Wrestle Over Benefits, Taxes

Tue, 01 May 2012 08:00:00 GMT

San Francisco Mayor Ed Lee and 27 city public employee unions are locked in contract negotiations that would affect about 21,000 workers. Service Employees International Union Local 1021, San Francisco's largest union, wants the taxes on businesses to be raised to help keep city workers' wages and health care benefits at 2011-2012 levels. San Francisco Chronicle.

UnitedHealth Group Reports Rise in Earnings, Membership in Q1 2012

Fri, 20 Apr 2012 08:00:00 GMT

Yesterday, UnitedHealth Group reported a 3.1% rise in earnings, a 7.3% rise in revenue and an increase of more than one million members for the first quarter of 2012. The health insurer noted that medical costs are its biggest expense. Wall Street Journal, AP/New York Times.

Kaiser Permanente Launches Wellness Tool for Employers

Thu, 19 Apr 2012 08:00:00 GMT

Kaiser Permanente has released a toolkit that seeks to help employers create a wellness committee for workers. The toolkit provides a checklist for creating the committee, a member recruitment email template, a guide for conducting initial meetings and a pledge for prospective committee members to sign. All employers are able to acquire the toolkit, regardless of whether they offer Kaiser Permanente as a health plan. Sacramento Business Journal.

BLS Report: Health Sector Added 26,000 Jobs in March

Tue, 10 Apr 2012 08:00:00 GMT

According to the Bureau of Labor Statistics' monthly employment report, the health care sector added 26,000 jobs in March, or 22% of the total number of jobs that the U.S. economy added last month. Hospitals added 8,100 jobs, the report found. Modern Healthcare.

California Health Care Personnel News Update for March 2012

Mon, 02 Apr 2012 08:00:00 GMT

Laura Landry is taking on the role of CEO at Cal eConnect -- the agency that oversees health information exchange in California -- after Ted Kremer withdrew from the position. Meanwhile, Earl Greenia resigned from his post as CEO of the Gold Coast Health Plan last month.

Small Businesses Unlikely To Claim Reform Law Tax Credit

Thu, 29 Mar 2012 08:00:00 GMT

Most small businesses that qualify for a tax credit under the federal health reform law are unlikely to claim it. According to several industry experts, many small employers are unaware the credit is available, while others say health benefits are too costly even with the credit. U-T San Diego.

Sutter Health Reports Nearly 28% Drop in 2011 Net Income

Mon, 26 Mar 2012 08:00:00 GMT

On Friday, Sutter Health reported a 2011 net income of $634 million, down 27.8% from its 2010 net income of $878 million. Meanwhile, operating revenue for 2011 grew by 3.4%, from $8.8 billion in 2010 to $9.1 billion in 2011. Sutter officials said the decline in net income stemmed partly from "changes in net unrealized gains and losses from investments." Sacramento Business Journal, San Francisco Business Times.

Medco To Pay $2.7M To Settle Case Involving CalPERS Pay

Mon, 26 Mar 2012 08:00:00 GMT

On Friday, the Office of the California Attorney General Kamala Harris announced that pharmacy benefits manager Medco Health Solutions has agreed to pay $2.7 million to settle allegations that it made improper payments to a former CalPERS board member. Medco did not admit any wrongdoing under the deal. AP/U-T San Diego, Sacramento Bee.

Union Merger Could Affect Entertainers' Health Plans

Thu, 22 Mar 2012 08:00:00 GMT

Members of the Screen Actors Guild and the American Federation of TV and Radio Artists have until March 30 to return ballots on a proposed merger of the two unions. A pending lawsuit against the merger argues that SAG's board has breached its fiduciary duty because it has not analyzed how the merger would affect members' pensions and health plans. KPCC's "KPCC News."

Supreme Court Rejects Patent Protections for Certain Diagnostic Tests

Wed, 21 Mar 2012 08:00:00 GMT

Yesterday, the Supreme Court ruled that companies cannot obtain patent protection for screening tests that help doctors determine dosages, treatment options or disease risks. The case stems from a lawsuit that Prometheus Laboratories filed against Mayo Clinic. Reuters et al.

Incoming Cal eConnect CEO Withdraws From New Post

Tue, 20 Mar 2012 08:00:00 GMT

On Monday, Cal eConnect -- the agency that oversees health information exchange in California -- announced that Ted Kremer has decided to withdraw as the next CEO of the organization. Kremer will continue serving as executive director of the Rochester Regional Health Information Organization in New York. Cal eConnect did not provide a reason for Kremer's decision but said that Laura Landry -- the organization's interim CEO -- will assume the permanent CEO position. Modern Healthcare et al.

Workers' Comp Costs Up Slightly in 2011, Report Finds

Tue, 13 Mar 2012 08:00:00 GMT

The average cost of workers' compensation insurance for California employers increased slightly from $2.32 per $100 of payroll in 2010 to $2.37 in 2011, while payouts to injured workers and their health care providers increased from $7.8 billion in 2010 to $8.1 billion in 2011, according to the Workers' Compensation Insurance Rating Bureau's annual report. Sacramento Bee's "Capitol Alert."

Survey: Small Business Owners Worry About Health Care Costs

Tue, 13 Mar 2012 08:00:00 GMT

A survey finds that most California small business owners are worried about rising health care costs. However, findings show that many respondents were unaware of federal assistance for offering worker health benefits. Sacramento Business Journal.

Health Care Lobbying in California Tops List in Record Year

Mon, 12 Mar 2012 08:00:00 GMT

Health care issues generated $35.7 million in lobbying last year in California, leading the way to a record year. Lobbyists earned more money from more clients in California in 2011 than ever before, according to the secretary of state.

Federal Judge Dismisses Medical Marijuana Suit

Wed, 07 Mar 2012 08:00:00 GMT

On Monday, U.S. District Judge Dana Sabraw dismissed a lawsuit filed by San Diego medical marijuana advocates seeking to stop authorities from shutting down dispensaries. The federal judge already had rejected the plaintiffs' requests for a temporary restraining order and a preliminary injunction against U.S. attorneys' actions against the dispensaries. U-T San Diego.

California Health Care Personnel News Update for February 2012

Mon, 05 Mar 2012 08:00:00 GMT

David Perrott -- former vice president and chief medical officer at Salinas Valley Memorial Hospital -- has been named the new senior vice president and chief medical officer of the California Hospital Association. Darwin Remboldt -- president of Simi Valley Hospital -- recently announced his resignation.

California Health Exchange Taps Ogilvy for PR Campaign

Fri, 02 Mar 2012 08:00:00 GMT

The California Health Benefit Exchange has selected Ogilvy Public Relations Worldwide to develop a statewide marketing, outreach and education campaign. The contract is tentative, pending a five-day protest period set to end March 7. The $900,000 contract is valid through October 2013 and could lead to an additional contract worth tens of millions of dollars to launch the exchange. Sacramento Bee's "Capitol Alert."

Blue Shield of California Seeks Damages From Monarch HealthCare

Wed, 29 Feb 2012 08:00:00 GMT

Blue Shield of California alleges that actions by physician group Monarch HealthCare after it entered into an acquisition agreement with UnitedHealth Group violate its contract with Blue Shield. Blue Shield has filed a demand for at least $10.5 million in damages. Wall Street Journal.

Small Businesses Turn to High Deductible Plans To Cut Costs

Tue, 28 Feb 2012 08:00:00 GMT

Some of California's small business owners are attempting to reduce their share of insurance premium costs by shifting employees into high deductible health plans. Advocates of using high deductible plans say that workers will be compelled to take greater responsibility for their health care when they have to pay more for treatment. However, critics say high deductible plans can cause cash-strapped residents to delay medical care and become sicker. Riverside Press-Enterprise.

California Hospital News Roundup for the Week of February 24, 2012

Fri, 24 Feb 2012 08:00:00 GMT

Children's Hospital of Orange County is being investigated by the California Department of Public Health after the facility reported a surgical error. A status report on San Gorgonio Memorial Hospital shows that construction on the two-story, 37,500 square-foot facility is 80% complete.

Republican Lawmakers Support Gov. Brown's Pension Reform Plan

Thu, 23 Feb 2012 08:00:00 GMT

State Republican lawmakers have introduced several bills based on Gov. Brown's pension reform plan and called on Democrats to support the proposals. Democrats said they are in the process of reviewing Brown's plan. Los Angeles Times, Los Angeles Times' "PolitiCal."

Physician Files Lawsuit Against 1-800-GET-THIN President for I.D. Theft

Wed, 22 Feb 2012 08:00:00 GMT

An anesthesiologist is claiming that the president of the 1-800-GET-THIN marketing firm stole the physician's identity to establish a corporation that billed insurers for anesthesia administered during Lap-Band procedures. The executive has denied any wrongdoing. Los Angeles Times.

San Diego Health Care Jobs Will Increase, Forecast Says

Tue, 21 Feb 2012 08:00:00 GMT

San Diego County's employment rate will see moderate but accelerating growth through 2013, in part because of more hirings in the health care sector, according to the latest projections from the Los Angeles County Economic Development Corporation. Growth in area health care jobs will be fueled largely by the implementation of the federal health reform law, the report predicts. U-T San Diego.

EMSA Says State Law Negates Riverside Ambulance Rule

Wed, 15 Feb 2012 08:00:00 GMT

The state Emergency Medical Services Authority last month said that California law overrules Riverside's policy requiring non-emergency ambulances to apply for franchise agreements to operate in the city. For 40 years, the city has restricted "retail" ambulances by requiring them to prove there is a need for their services in Riverside. However, Howard Backer -- director of EMSA -- said, "The justification for 'need and necessity' cannot be used by the city of Riverside to limit the provision of ambulance services." Riverside Press-Enterprise.

Study Finds Job Growth in Biomedical Sector Stalls Across Calif.

Mon, 13 Feb 2012 08:00:00 GMT

A study by the California Healthcare Institute and other groups finds that growth in biomedical jobs has stalled as industry investors wait out the uncertain economic climate. Employment in the industry has fallen back to 2006-2007 levels. Sacramento Bee, CHI release.

Democrats Pledge To Contine Pursuing Pension Reform

Fri, 10 Feb 2012 08:00:00 GMT

California political observers say the suspension of a conservative group's campaign to place a public employee pension reform proposal on the November ballot should not absolve Democrats of the responsibility to lead on the issue. Meanwhile, Senate President Pro Tempore Darrell Steinberg on Thursday said that Democrats are "committed to getting pension reform done" and that they will address Gov. Brown's 12-point pension reform plan. Contra Costa Times.

Report Looks at SHOP Exchange Viability

Fri, 10 Feb 2012 08:00:00 GMT

The first series of forums put on by Small Business Majority went to small towns and cities across California to raise the notion of a business-specific health insurance exchange -- the Small Business Health Options Program, known as SHOP. The idea is to pool small business resources and buying power -- separate from the California Health Benefit Exchange's individual market -- so business owners can get a better, more financially stable option for health insurance.

Now, a second set of forums -- with experts from California, as well as from other states that have tried similar projects -- has finished. This week the Small Business Majority released a report summarizing the points brought up in those forums.

"Affordability is the number one issue to small business owners," according to Terry Gardiner of Small Business Majority. "Most companies who have not offered insurance say it's because it's too expensive, they cant afford it. And the ones who actually are providing coverage, they are struggling."

Study: Calif. Retirees Have Less Access to Employer Benefits

Wed, 08 Feb 2012 08:00:00 GMT

A study by UC-Berkeley finds that retired Californians have less access to employer-sponsored benefits compared to most U.S. residents. Researchers note that California retirees as a result rely more heavily on government programs. HealthyCal.

Judge: S.D. Can Deny Licenses to Medical Pot Distributors

Wed, 08 Feb 2012 08:00:00 GMT

Last week, a California Superior Court judge ruled that San Diego officials can deny business licenses to medical marijuana distributors. The ruling was in response to a lawsuit filed by Wisdom Organics after the city treasurer refused its application for a business tax certificate. U-T San Diego.

California Health Care Personnel News Update for January 2012

Mon, 06 Feb 2012 08:00:00 GMT

Margaret Vosburgh of Tufts Medical School in Boston has been named COO of Stanford Hospital & Clinics, effective Feb. 13. Meanwhile, Gov. Brown named Pamela Lane as deputy secretary of California's health information exchange, based at the state Health and Human Services Agency.

BLS Data: Health Care Sector Added 30,900 Jobs in Jan.

Mon, 06 Feb 2012 08:00:00 GMT

The U.S. health care sector added 30,900 jobs in January, according to the latest Bureau of Labor Statistics employment data. Ambulatory health care services added 12,900 positions, and hospitals added 12,700 positions, according to the data. New York Times, Wall Street Journal.

Few People Aware of Medical Review Program

Fri, 03 Feb 2012 08:00:00 GMT

It has been 11 years since California launched its Independent Medical Review program, an appeals process that allows Californians to challenge denial or delay of coverage by private health care insurers.

In the Capitol Building in Sacramento yesterday, a policy briefing laid out the findings of a new report on IMR that includes praise for its effectiveness and some recommendations on how to make the program stronger.

The briefing was sponsored by the California HealthCare Foundation, which commissioned the report and publishes California Healthline.

FDA OKs Genentech Drug To Treat Advanced Skin Cancer

Wed, 01 Feb 2012 08:00:00 GMT

On Monday, FDA approved the first drug to treat an advanced form of basal cell carcinoma, the most common type of skin cancer. The drug -- known generically as vismodegib -- will be marketed as Erivedge by California-based Genentech. The company estimates that a 10-month treatment course would cost about $75,000. New York Times' "Prescriptions," Wall Street Journal.

WellPoint Reports Drop in Q4 Profit; Cites Calif. Plan Loss

Fri, 27 Jan 2012 08:00:00 GMT

On Wednesday, health insurer WellPoint -- the parent company of Anthem Blue Cross in California -- announced that it earned $335.3 million in the fourth quarter of 2011, a 39% decline from the $548.8 million in earned during the final quarter of 2010. The company attributed the drop to a $50 million loss in the quarter through a Northern California plan that drew more customers with higher risk profiles who generated more in claims than the premiums they paid. The plan was discontinued on Jan. 1. AP/Sacramento Bee.

Motion Picture Fund To Keep Nursing Home Facility Open

Thu, 26 Jan 2012 08:00:00 GMT

On Wednesday, the Motion Picture & Television Fund announced that it is reversing a decision to close its long-term health care facility in Woodland Hills. The facility was set to close after board members in 2009 announced a $10 million-a-year budget shortfall, but MPTF said the facility's finances have improved and it immediately will start admitting new and former residents. Los Angeles Times' "Company Town," Los Angeles Daily News.

Fresno County Labor Walkout Affects Neediest Residents

Thu, 26 Jan 2012 08:00:00 GMT

Some of the neediest Fresno County residents were unable to access welfare workers, family counselors or health care providers during a three-day strike this week involving about 2,000 county workers. Members of the Service Employees International Union and California Nurses Association went on strike over pay cuts of at least 9%. Fresno Bee.

S.D. Supplement Firm Suing Walgreens for Coupon Fraud

Tue, 17 Jan 2012 08:00:00 GMT

In a federal lawsuit filed Nov. 18, 2011, Imagenetix, a San Diego-based nutritional supplement company, accused Walgreens of coupon fraud. According to the lawsuit, Walgreens billed the company for $533,000 "for coupons purportedly redeemed" by consumers for discounts on a new health-joints supplement product, as well as $188,000 for scanning fees. However, the stacks of coupons submitted by Walgreens for reimbursement had no marks or creases. The lawsuit is seeking class-action status and damages that could exceed $5 million. U-T San Diego.

Sutter Health, Aetna Agree to Two-Year Contract Renewal

Fri, 13 Jan 2012 08:00:00 GMT

On Thursday, Sutter Health and Aetna announced that they have reached a two-year contract renewal agreement. Under the agreement, northern California members of Aetna's commercial plans will continue to receive in-network rates at Sutter Health hospitals and ancillary facilities. In addition, physicians and health care providers at Sutter facilities will keep their designation as participating network providers. Sacramento Bee.

Survey Finds Biomedical Firms Delaying Research, Seeking Funding Options

Wed, 11 Jan 2012 08:00:00 GMT

A new survey finds that many California biomedical firms are delaying projects as they encounter difficulty in obtaining funding. Some firms say they might consider corporate partnerships. San Jose Mercury News, Silicon Valley/San Jose Business Journal.

Bayer Eyes S.F. Lab Space for Startup Life Science Firms

Tue, 10 Jan 2012 08:00:00 GMT

On Monday, Bayer HealthCare announced plans to create a 6,000 square-foot shared lab, called CoLaborator, to house startup life science companies that have technology platforms, drug targets or drug candidates that align with Bayer's portfolio. The move comes one year after the drug developer launched its Innovation Center in San Francisco's Mission Bay area. The new CoLaborator will launch in the summer in Mission Bay and is expected to house three to four small companies. San Francisco Business Times, Healthcare IT News.

California Health Care Personnel News Update for December 2011

Mon, 09 Jan 2012 08:00:00 GMT

Gov. Brown has appointed Michael Bishop of UC-San Diego Medical Center and Dev GnanaDev of Arrowhead Regional Medical Center to the Medical Board of California. Meanwhile, Mt. Diablo Health Care District has hired Daymon Doss as its first executive director in nearly 15 years.

Two Coachella Valley Blood Suppliers Join Forces

Thu, 05 Jan 2012 08:00:00 GMT

On Tuesday, officials at two competing blood providers in Coachella Valley -- Community Blood Bank in Rancho Mirage and LifeStream, which serves Riverside and San Bernardino counties -- announced that the two groups will partner in the spring to form a new, single, not-for-profit blood supplier. The two groups will maintain equal ownership of the new entity, which will be called Desert Blood Services. However, LifeStream will oversee Desert Blood Services' daily operations and retain its identity outside of the valley. Officials said the groups' decision to join forces is the result of rising costs and other challenges facing the blood and health care industries. Palm Springs Desert Sun.

Survey: Fewer Calif. Employers Offer Health Benefits for Workers

Thu, 05 Jan 2012 08:00:00 GMT

Fewer employers in California are offering their workers health insurance, according to the California Employer Health Benefits Survey. The survey also finds that some employers that do offer coverage plan to make workers pay more. Los Angeles Times.

Gov't Programs Account for More of Private Insurers' Revenue

Thu, 05 Jan 2012 08:00:00 GMT

A new Bloomberg Government study finds that the top U.S. private health insurers have experienced substantial revenue growth in recent years, in part because they are playing a larger role in government health insurance programs such as Medicare and Medicaid. Washington Post.

Opinion: Health Reform Law 'Is Backfiring in Its Goals'

Wed, 04 Jan 2012 08:00:00 GMT

"President Obama's health overhaul law already is driving up health insurance costs for businesses and consumers and will inflict even higher costs on American taxpayers in the years ahead," Grace-Marie Turner -- president and founder of the Galen Institute -- writes in an Orange County Register opinion piece. "The experience in Massachusetts, which passed legislation in 2006 similar to the national law, shows that costs are continuing to soar," and the rest "of the country faces the same threat under the new law," Turner writes, concluding, "We needed health reform, but the Affordable Care Act tried to do too much too fast and it is backfiring in its goals." Orange County Register.

New California Laws Will Affect Maternity Leave, Public Health

Wed, 21 Dec 2011 08:00:00 GMT

Of the new state laws that take effect next year, some affect how employers offer health insurance to women on maternity leave and change how officials address public health issues. San Francisco Chronicle, Capital Public Radio's "KXJZ News."

Memo Points to Possible Mismanagement of CalOptima Health Plan

Thu, 15 Dec 2011 08:00:00 GMT

An internal document from a health care consultant suggests that CalOptima, Orange County's Medi-Cal managed care plan, might be mismanaged. According to the document, CalOptima's board and management have not given the organization a strategic direction. Payers & Providers.

Workers' Compensation Premiums Rise to $8.3B This Year, Report Finds

Tue, 13 Dec 2011 08:00:00 GMT

The Workers' Compensation Insurance Rating Bureau of California has found that through the first nine months of 2011, worker compensation insurers wrote $8.3 billion in premiums, and employers paid about $2.37 per $100 of payroll for policies. Business Insurance et al.

Briefs Show Downward Trend in Health Spending, Jobs

Tue, 13 Dec 2011 08:00:00 GMT

Last week, the Altarum Institute's Center for Sustainable Health Spending released its December Health Sector Economic Indicators briefs showing that health care industry spending, price inflation and employment growth are trending downward. According to the briefs, total health care spending growth fell from 5.2% in September to 5% in October because of reductions in hospital, physician services and nursing home spending. Meanwhile, health care spending as a share of the total economy -- currently at 18.1% -- shows signs of leveling off around 18% from its all-time high of 18.2% in June 2011. In addition, the briefs found that health care price inflation in October fell to a 13-year low of 1.9% and health care industry jobs grew by 17,000 in November, just below its 24-month average. Healthcare Finance News.

Supreme Court Hears Arguments in Case on Medical Test Patents

Thu, 08 Dec 2011 08:00:00 GMT

Yesterday, the U.S. Supreme Court heard arguments in a lawsuit that could determine the legality of patents for certain medical screening tests. The justices appeared to be split over whether companies should be allowed to patent such diagnostic tests. AP/Washington Post et al.

More Businesses Considering Salary-Based Premium Model

Thu, 08 Dec 2011 08:00:00 GMT

More U.S. companies are considering offering employee health care plans with premiums that are based on workers' incomes. Under the federal health reform law, employers with at least 50 workers in 2014 must provide affordable coverage or face penalties. A plan is considered affordable when an employee's premium for individual coverage does not exceed 9.5% of his or her household income. Steve Raetzman, a partner in Mercer's health and benefits consulting practice, said the strategy might not work for businesses that employ workers for lower wages, like retailers, restaurants and grocery stores. Kaiser Health News/Washington Post.

Senators Hear Testimony on Proposed Merger of Medco, Express Scripts

Wed, 07 Dec 2011 08:00:00 GMT

Yesterday, members of a Senate subcommittee expressed reservations about a proposed merger of pharmacy benefit managers Express Scripts and Medco Health Solutions. The senators heard testimony from representatives of pharmacies and the two companies. Modern Healthcare et al.

California Health Care Personnel News Update for November 2011

Mon, 05 Dec 2011 08:00:00 GMT

Mark Laret, CEO of UC-San Francisco Medical Center, has been elected to serve a one-year term as chair of the board for the Association of American Medical Colleges. Meanwhile, the California Health Benefit Exchange recently appointed three people to senior leadership positions.

How Can California Make Most of Volatile Marketplace?

Mon, 28 Nov 2011 08:00:00 GMT

We asked experts and policymakers how the state can best take advantage of competition and consolidation in the health care industry to ensure that the entire system -- and ultimately California consumers -- benefit.

S.F. Mayor Signs Bill To Adjust City Law on Employee Health Care

Wed, 23 Nov 2011 08:00:00 GMT

San Francisco Mayor Ed Lee has signed into law legislation that adjusts the city's universal health care program. The measure requires that employees have access to up to two years' worth of employer contributions to health benefits. San Francisco Chronicle, San Francisco Examiner.

Survey: Businesses Working To Address Health Care Costs

Mon, 21 Nov 2011 08:00:00 GMT

About 9% of businesses with 500 or more employees said they are "likely" or "very likely" to drop health benefits for their employees in 2014, after state-based insurance exchanges under the federal health reform law become operational, according to a Mercer survey of 2,844 employers. The survey also found that many employers are concerned about escalating health costs for their workers and are developing strategies to lower costs, such as offering a high-deductible plan with a health savings account. Milwaukee Journal Sentinel, New York Times' "Prescriptions."

Report Examines Employer Insurance, Health Exchanges

Mon, 21 Nov 2011 08:00:00 GMT

In its weekend edition of "The California Report Magazine," KQED's "The California Report" examined challenges that small businesses face to offer health insurance benefits. The report also featured a segment on state-based health insurance exchanges that are being implemented under the federal health reform law. KQED's "The California Report."

HHS Unveils Online Tool To Aid Small Businesses in Finding Health Plans

Mon, 21 Nov 2011 08:00:00 GMT

Last week, HHS launched a new Web-based tool that aims to help small-business owners compare the costs and benefits of locally available health plans. The tool provides information from more than 530 insurers about more than 2,700 health plans. Modern Healthcare, CQ HealthBeat.

Poll: Most Calif. Residents Unaware of Paid-Leave Law

Thu, 17 Nov 2011 08:00:00 GMT

A poll released Wednesday found that just 43% of surveyed California residents are aware of the California Paid Family Leave Act, a 10-year-old law that allows most workers to take paid time off to care for a new child or sick relatives. Under the law, more than 13 million state residents are eligible to take up to six weeks off work while still receiving 55% of their pay, according to the California Work & Family Coalition. Workers are paid through the state disability insurance program. The survey found that white and Asian residents generally were more aware of the law than Latinos and blacks and that Los Angeles County residents had the lowest awareness of the benefit. Los Angeles Times' "L.A. Now."

Two Medical Specialty Groups Plan To Merge in January

Wed, 16 Nov 2011 08:00:00 GMT

Two San Francisco Bay Area medical specialty groups -- Pacific Urology, and Diablo Valley Oncology and Hematology Medical Group -- have announced that they plan to merge in January "as a hedge against mounting business challenges." The groups noted that a looming reduction in Medicare payments of about 30% influenced their decision. The new 13-member practice will share infrastructure and resources, such as clinic facilities and information technology. San Francisco Business Times.

S.F. Supervisors Grant Preliminary Approval to Health Care Law Change

Wed, 16 Nov 2011 08:00:00 GMT

The San Francisco Board of Supervisors has preliminarily approved a proposal that would adjust how employers contribute funds for employees' health reimbursement accounts. Final approval is expected next week. San Francisco Chronicle, San Francisco Examiner.

More Employers Turn to Wellness Incentive Programs To Trim Rising Health Care Costs

Wed, 16 Nov 2011 08:00:00 GMT

Tom Hubbard of the New England Healthcare Institute, Steven Noeldner of Mercer Health & Benefits and Joe Woods of HumanaVitality spoke with California Healthline about the growing popularity of employee wellness incentive programs.

Wal-Mart Refutes Plan To Delve Into Primary Care

Thu, 10 Nov 2011 08:00:00 GMT

Wal-Mart Stores has announced that it incorrectly described its interest for partners in an initiative to reduce U.S. health care costs "by becoming the largest provider of primary health care services in the nation." Wal-Mart sent letters to health care providers and companies last month asking them to explain their areas of expertise and provide information on how, as potential partners, they would manage patients with complex chronic conditions. John Agwunobi -- senior vice president and president of Wal-Mart U.S. health and wellness -- said, "We are not building a national, integrated, low-cost primary health care platform." NPR's "Shots," Reuters.

Audit: Few Small Businesses Claim Reform Law Tax Credit

Wed, 09 Nov 2011 08:00:00 GMT

In an audit issued this week, the Department of the Treasury's office of the inspector general for tax administration reported that fewer than expected small businesses have taken advantage of a tax credit under the federal health reform law to help provide health coverage for employees. The credit is available to businesses with fewer than 25 full-time workers whose annual incomes average less than $50,000. It pays 35% of insurance premium costs for an eligible applicant, and not-for-profits are eligible for up to 25% off of their premium costs. By May 2011, only about 228,000 small-business owners had claimed the tax credit, the audit found. IRS anticipated that 4.4 million business owners would be eligible for the subsidies. The Hill's "Healthwatch."

Supermarket Chain Ending Some Retiree Health Benefits

Mon, 07 Nov 2011 08:00:00 GMT

Raley's supermarket chain will stop offering health care coverage to retired hourly employees ages 65 and older beginning in July 2012. In a letter to retirees, Raley's President and CEO Michael Teel said the chain is finding it difficult to maintain profitability while dealing with the economic downturn and increasing health care costs. Jerry Landers, Raley's senior director of human resources, said the chain still will provide medical benefits for retirees younger than age 65. Sacramento Bee.

California Health Care Personnel News Update for October 2011

Mon, 07 Nov 2011 08:00:00 GMT

Tom Jackiewicz is stepping down from his position as CEO of UC-San Diego Health to join the University of Southern California as senior vice president and CEO of USC Health. Meanwhile, Diana Bontá has been named president and CEO of the California Wellness Foundation.

Alameda County Rolls Out New Ambulance Service

Tue, 01 Nov 2011 08:00:00 GMT

Alameda County is rolling out a new emergency transport service operated by Paramedics Plus. For nearly 40 years, American Medical Response had served the county, but supervisors selected Paramedics Plus following a bidding process. The new ambulance service operator will cap net profits and return excess funds to the county's Emergency Medical Services agency, according to Jeff Taylor, head of the company's California operations. Oakland Tribune.

Brown's Pension Reform Plan Receives Mixed Reaction

Fri, 28 Oct 2011 08:00:00 GMT

On Thursday, Gov. Brown unveiled a 12-point pension reform plan that would increase public employees' contributions toward health care costs, raise the retirement age to 67 for most new employees who are not in public safety positions and implement a "hybrid" system featuring a traditional pension combined with a 410(k)-style investment. The California Chamber of Commerce, the California Business Roundtable and some Republican lawmakers praised the plan, while labor groups objected to key proposals of the plan. Brown acknowledged that his plan likely will encounter difficulty in the Legislature, which is controlled by Democrats who have close political ties to labor groups. Los Angeles Times et al.

WellPoint Reports Drop in Q3 Profit, Increase in Revenue

Thu, 27 Oct 2011 08:00:00 GMT

On Wednesday, health insurer WellPoint -- the parent company of Anthem Blue Cross in California -- announced that it earned $683.2 million in net income for the third quarter of 2011, a 7.5% decline from the $739.1 million in profit it earned during the same quarter of 2010. Total revenue for Q3 2011 rose to about $15.4 billion, a 5.7% increase from the $14.57 billion in revenue it reported for the same quarter last year. Los Angeles Times' "Money & Company," AP/Sacramento Bee.

San Francisco Mayor Vetoes Amendment to Health Care Program

Wed, 26 Oct 2011 08:00:00 GMT

San Francisco Mayor Ed Lee has vetoed an amendment to the Healthy San Francisco program that would have changed how employers can recoup unused funds from employee health reimbursement accounts. The issue could be placed before voters. San Francisco Examiner, San Francisco Chronicle.

Employers, Insurers Offering Incentives for Healthier Living

Tue, 25 Oct 2011 08:00:00 GMT

More businesses and insurers in California and around the country are offering employees incentives for adopting healthy behaviors and lifestyles. Such incentives are designed to curb rising health care costs. Los Angeles Times.

Wal-Mart Scaling Back Health Care Benefits for Employees

Mon, 24 Oct 2011 08:00:00 GMT

Last week, Wal-Mart Stores announced that it is reducing health care benefits for part-time employees and raising premiums for many full-time staff members in 2012 by as much as 40%. Citing rising costs, company officials added that all future part-time workers who work fewer than 24 hours weekly no longer will qualify for any health insurance plans. The announcement marks a significant shift for Wal-Mart, which several years ago expanded coverage and agreed to offer health insurance to part-time employees after a year of employment. New York Times.

Study: Most Employers To Continue Coverage Under Health Reform

Mon, 24 Oct 2011 08:00:00 GMT

An Urban Institute study finds that most employers will maintain health coverage for workers after the health reform law is fully implemented. Meanwhile, a Kaiser Family Foundation survey finds that about 16% of employers offer coverage to part-time workers. CQ HealthBeat et al.

Employers Must Fix Health System, Trade Group Says

Mon, 24 Oct 2011 08:00:00 GMT

In a new report, the Bay Area Council -- a trade group that represents more than 275 large employers in California -- called on business leaders to take steps to improve the health care system. The report recommends that health insurers and self-insured businesses offer incentives to health care providers to keep patients healthy. It also calls on employers to implement incentive-based programs that encourage workers to stay healthy to combat chronic diseases. A Los Angeles Times editorial states that the report helps "promote a more affordable, higher-quality [health care] system" by urging California's employers "to use their health care dollars to start fixing the system." That is "a message from the Bay Area that should be heeded throughout the state," the editorial concludes. Becker's Hospital Review, Los Angeles Times.

Editorial Urges S.F. Mayor To Veto Health Care Law Change

Fri, 21 Oct 2011 08:00:00 GMT

A San Francisco Chronicle editorial argues that the San Francisco Board of Supervisors "seems to have lost sight of its mission" to close a loophole in a city mandate requiring employers to provide funds for employees' health care costs. Earlier this month, the board granted preliminarily approval to a measure by Supervisor David Campos that "would leave any unspent money in an individual account for at least 18 months after the employee left the job." The editorial states that this money "might not necessarily increase workers' access to health care," concluding that Mayor Ed Lee "should follow through on his threat to veto the Campos legislation." San Francisco Chronicle.

Getting Business Involved in Health Discussion

Wed, 19 Oct 2011 08:00:00 GMT

Big decisions are being made in health care, many of them affecting California businesses, but the business community won't have much say in those decisions if leaders don't step up and participate in defining the future of the health care landscape.

That's one of the points in a report due out today from the Bay Area Council. The report, "Road Map to a High Value Health System," analyzes the sources of rising health care costs in California and outlines choices to lower those costs.

"The broader business community and organizations representing the business community have run the gamut from hostile to disengaged," according to report author Micah Weinberg. "Our message is, if we don’t participate in this process, we're going to get something we don't like. So we wanted to make sure businesses get involved."

San Francisco-Area Employers Seek Ways To Keep Health Costs Down

Mon, 17 Oct 2011 08:00:00 GMT

Many employers in the San Francisco area are seeking ways to control increasing health care benefit costs. Some of the strategies include encouraging workers to use health savings accounts and adopting population risk management tools. San Francisco Business Times.

Health Care Reform for Small Businesses

Mon, 17 Oct 2011 08:00:00 GMT

The number one key to success for small businesses in the state's Health Benefit Exchange is choice, according to several presenters at a panel discussion last week in Sacramento.

"You have to have choice, that's the big thing," Bill Wehrle of Kaiser Permanente said. "If you don't have choice, people won't sign up."

Wehrle was part of a forum addressing the needs of small businesses in California, and what the state's exchange needs to do to woo both small-business owners and their employees.

S.F. Mayor Forms Task Force on Health Care Law Loophole

Thu, 06 Oct 2011 08:00:00 GMT

On Wednesday, San Francisco Mayor Ed Lee announced the formation of a task force to close a loophole in a city mandate requiring employers to provide funds for employees' health care costs. The loophole allows employers to recoup any unused health care contributions within a year. Lee's announcement comes one day after the San Francisco Board of Supervisors gave preliminarily approval to a measure to strengthen the mandate. The task force will include business and labor officials, low-wage employees, city public health representatives and eight San Francisco supervisors. San Francisco Chronicle.

S.F. Supervisors Give Initial Approval To Adjust Health Care Law

Wed, 05 Oct 2011 08:00:00 GMT

The San Francisco Board of Supervisors has granted preliminary approval to a measure that would affect the health care reimbursement accounts employers set up for workers who do not have insurance. Mayor Ed Lee is expected to veto the legislation. San Francisco Chronicle.

Report: U.S. Workers' Share of Premiums To Rise 10.6%

Tue, 04 Oct 2011 08:00:00 GMT

In 2012, U.S. workers' share of annual health insurance premiums are expected to increase by 10.6%, to $2,306, as employers seek to have their employees pick up more of the cost of health benefits, according to new Aon Hewitt projections. According to Aon, workers' share of health care costs has nearly doubled since 2005, when employees paid an average of $1,192 annually, or about 17%, of total insurance costs. Aon also estimated that out-of-pocket costs for employees will increase by about 13%, to $2,275, in 2012. New York Times' "Prescriptions."

Net Income, Revenue Up at Catholic Healthcare West

Mon, 03 Oct 2011 08:00:00 GMT

On Friday, Catholic Healthcare West reported a net income of $917 million for the fiscal year that ended on June 30, up by nearly 90% from the previous year's total net income of $485 million. The hospital system also reported total revenue of $10.6 billion for FY 2011, up by almost 13% from the previous year's total revenue of $9.4 billion. San Francisco Business Times, Sacramento Business Journal.

California Health Care Personnel News Update for September 2011

Mon, 03 Oct 2011 08:00:00 GMT

Kevin Tabb, CMO at Stanford Hospital & Clinics, has been named president and CEO of Boston-based Beth Israel Deaconess Medical Center. Meanwhile, Eric Frykman recently resigned from his post as Riverside County Community Health Agency's director and public health officer.

Breast Tissue Notification Bill Could Benefit Device Maker

Fri, 30 Sep 2011 08:00:00 GMT

A bill awaiting Gov. Brown's signature could be a financial boon for U-Systems, a breast screening equipment manufacturer located in bill author Sen. Joe Simitian's district. The measure would require health care providers to notify women if they have high-density breast tissue, which can obscure the presence of cancerous tumors. After the Legislature passed the bill, Simitian said he had never heard of U-Systems. The company has influenced similar breast tissue notification bills in other states by encouraging breast cancer survivors to advocate for the measures. Los Angeles Times.

UC-Davis Wins Emergency Services Lawsuit

Fri, 30 Sep 2011 08:00:00 GMT

The courts have sided with UC-Davis Medical Center, ruling this week that Sacramento County must pay for emergency services for indigent patients.

Superior Court Judge Lloyd Connelly said the county has a responsibility to pay for indigent care, whether the county contracts with a specific provider of those emergency services or not.

"The judge rejected every defense the county had to not pay us," UC-Davis attorney David Levine said. "He conclusively confirmed that they owe us money, and they have to pay us."

Survey: Employer-Based Health Coverage Costing More, Covering Less

Wed, 28 Sep 2011 08:00:00 GMT

Although many workers are receiving less comprehensive health insurance benefits, premiums for employer-based coverage have continued to rise, according to a survey by the Kaiser Family Foundation and the Health Research & Educational Trust. Washington Post et al.

Business Group Asks SCOTUS To Review Health Reform Case

Wed, 28 Sep 2011 08:00:00 GMT

On Wednesday, the National Federation of Independent Business -- a plaintiff in the multistate lawsuit challenging the constitutionality of the federal health reform law -- petitioned the U.S. Supreme Court to review an appellate court's ruling in the lawsuit. In August, a three-judge panel at the 11th Circuit Court of Appeals in Atlanta upheld most of the reform law but declared the individual mandate unconstitutional. NFIB said the ruling will hurt business and stressed the importance of quickly resolving the issue of constitutionality because many employers face uncertainty about costs and requirements under the overhaul. AP/San Diego Union-Tribune, The Hill's "Healthwatch."

Kentucky-Based Humana To Acquire California's MD Care

Mon, 26 Sep 2011 08:00:00 GMT

On Friday, the Louisville, Ky.-based health insurance company Humana said it reached a deal to acquire MD Care, a southern California HMO, for an undisclosed amount. MD Care was founded in 2007 and offers Medicare Advantage plans to about 15,000 beneficiaries. The deal, which requires regulatory approval, is expected to close late this year. AP/Bloomberg Businessweek, Reuters.

Survey: Workers To Face Smallest Hike in Health Care Costs Since 1997

Thu, 22 Sep 2011 08:00:00 GMT

A new Mercer survey predicts that U.S. workers will pay 5.4% more for their health care in 2012, the lowest increase in health care costs since 1997. According to the analysis, the slowed increase could stem from workers scaling back health care use. AP/Washington Post et al.

Ambulance Agency Accuses San Diego City of Misconduct

Wed, 21 Sep 2011 08:00:00 GMT

Rural/Metro Corporation, which offers ambulance services in San Diego, has filed a claim against the city alleging improper and intentional misconduct stemming from the dissolution of a 14-year partnership known as the San Diego Medical Services Enterprise. The partnership ended earlier this year following a city audit report stating that inadequate oversight allowed the Arizona-based company to improperly keep millions in taxpayer dollars. San Diego Union-Tribune.

Grocery Workers Give Notice To Strike Over Health Benefits

Fri, 16 Sep 2011 08:00:00 GMT

On Thursday, the United Food and Commercial Workers union gave three Southern California supermarket chains -- Albertsons, Ralphs and Vons -- 72 hours notice to cancel their labor contract extension, a mandatory step before striking. Union leaders expressed frustration with the slow progress of contract negotiations, which have stalled over health care benefits. Los Angeles Times, San Diego Union-Tribune.

New 'Benefit Corporation' Status Could Benefit Health Care Companies

Fri, 16 Sep 2011 08:00:00 GMT

Companies that deliver health care services and make products in California should be taking a close look at legislation on the governor's desk that allows creation of a new type of corporation, one that puts social responsibility over profit maximization and shareholder value.

AB 361, by Assembly member Jared Huffman (D-San Rafael), would create a new category of business, one called a "benefit corporation," or B corp as it has become more commonly known.

Huffman says that California is an incubator for businesses that emphasize social responsibility and environmental awareness but that those businesses lack legal protections for directors and officers who put the greater good above their fiduciary duty to maximize profits for shareholders.

Santa Barbara Allowed To Levy Temporary Tax

Wed, 14 Sep 2011 08:00:00 GMT

Santa Barbara County will be able to increase penalties on drunk driving fines in order to fund emergency services as a result of a new state law that barely escaped veto by Gov. Jerry Brown (D).

In the waning hours of the legislative session last week, Brown issued a letter that criticized the method of generating emergency department revenues, although he stopped just short of blocking the bill that had received wide support in the Assembly and Senate.

AB 412 introduced by Das Williams (D-Santa Barbara) becomes law without Brown's signature. And Santa Barbara County can on Jan. 1 begin collecting an extra surcharge on tickets issued for driving under the influence offenses. An extra $5 for every $10 of base fines can be assessed as a penalty to fund ED services.