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| SPONSOR
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SPONSOR MESSAGE: 2nd
Annual Managing Health Care Costs Healthcare Web Summit
2nd Annual Managing Health Care Costs
Healthcare Web Summit
November 3rd through November 14th, 2003
http://www.healthwebsummit.com/manhcc.htm
The second annual web summit on emerging trends and solutions in dealing with
double digit cost increases is a web-only event that you won't want to
miss!
Summit Faculty include:
William A. Bennett, Senior Vice President/Marketing & Communications, Mercy Health
Plan
Michael Carter, Vice President, Hay Group
William J. DeMarco, President & CEO, DeMarco and Associates
Sam Ho, SVP & Chief Medical Officer, PacifiCare Health Systems
Max Jack, President & CEO, Direct Health Networks, Inc.
Paul H. Keckley, Senior Fellow, Vanderbilt Center for Better Health
Jennifer Kingsley Wilson, Vice President, AEL RX
Vince Kuraitis, Principal, Better Health Technologies
Henry Loubet, Senior Vice President, Strategic Planning, Keenan and Associates
Jerry Reeves, President and CEO, WorldDoc, Inc.
Dan Rhodes, Vice President, Sales & Marketing, Delta Health Systems
Lisa Rubino, SVP, Chief Executive Individual & Gov't Bus. Unit, Blue Shield of
California
Dennis Streveler, Ph.D., Professor, Medical Informatics, University of Hawaii
Craig S. Stern, PharmD, MBA, President, Pro Pharma Pharamceutical Consultants, Inc.
Claire Thayer, Vice President Research and Development, MCOL
Eric Zimmerman, Vice President, Product Marketing, RelayHealth
Live AudioConference/ Webcasts:
For no additional fee (other than any long distance phone charges) attendees can
participate in Live Audioconference / Webcasts of selected presentations during the web
summit. Each session is scheduled at separate times and dates for 45 minutes each. Live
sessions include: Tiered Networks and Benefits, Sam Ho, MD, PacifiCare Health
Systems; A Comprehensive Strategy for Controlling Health Care Benefit Costs; Michael
Carter, Hay Group; Past, Present and Future, Evolution of the Health Plan through
2013, William DeMarco; DeMarco and Associates; Leveraging Emerging Consumer
Technologies To Improve ROI for Disease Management, Vince Kuraitis, Better Health
Technologies; and What Happens When Doctors and Patients Can Connect Online using
webVisits?, Eric Zimmerman, RelayHealth Corporation; Updates and Predictions for
Pharmacy Benefit Issues, Craig S. Stern, PharmD, MBA, Pro Pharma Pharamceutical
Consultants, Inc.
Registration: Individual
Registration Fee: $95; Web Summit CD-ROM: $20 for attendees; $115 for non-attendees after
November 14th.
To Register go to https://www.managedcarestore.com/summit.htm
or call the Healthcare Web Summit office at 209.577.4888 for additional information.
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| WEEKLY NEWS |
1. Solving
The Health Care Insurance Mess
After four years of double-digit increases in health care costs, companies and workers
alike are pining for a lull. Unfortunately, the whirlwind of climbing premiums is showing
no sign of abating. Just as last year's 13.9% increase is starting to sink in, new reports
are already predicting further double-digit growth in 2004.
Forbes, October 16, 2003
http://www.forbes.com/2003/10/16/cx_al_1016healthcare.html
2. Tenet gets another subpoena from Justice Department
Tenet Healthcare Corp. said it has received another subpoena from the Justice Department
requesting information about certain Medicare payments.
San Francisco Chronicle, October 17, 2003
http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2003/10/17/financial0917EDT0031.DTL
3. Health
care costs spark Calif. strikes
Daniel Lucra, 19, just wants to keep his health care in case he gets sick or hurt on his
job behind the deli counter at Albertson’s, where slippery floors and sharp blades
can cause injuries. Cashier Linda Young, who has worked 10 years for Albertson’s, has
two kids, 8 and 10, and will have to pay $40 for every doctor visit if the company
succeeds in cutting health benefits.
Peoples Weekly World, October 17, 2003
http://www.pww.org/article/articleview/4233/1/185/-
4. Minnesota Governor Announces Plan to Import Drugs
In a move designed to pressure national leaders to tackle high prescription drug prices,
Minnesota Gov. Tim Pawlenty on Thursday announced a landmark plan to help Minnesotans
import U.S.-manufactured drugs from Canadian pharmacies.
[St. Paul] Pioneer Press, October 17, 2003
http://www.twincities.com/mld/pioneerpress/news/local/7032399.htm
5. Massachusetts Lawmakers Ask FDA To Reverse Position on Prescription Drugs
Reimportation
FDA officials should reverse their current position on the reimportation of lower-cost
U.S.-manufactured prescription drugs from Canada and develop a system to allow the
practice, according to a letter to FDA Commissioner Dr. Mark McClellan from members of the
Massachusetts congressional delegation, the Boston Globe reports.
KaiserNetwork.org, October 16, 2003
http://www.kaisernetwork.org/daily_reports/rep_index.cfm?DR_ID=20387
6. U.S. still top
health-care spender
The United States continues to far outspend other developed nations on health care,
according to data released Thursday. Americans’ health costs now account for 13.9
percent of gross domestic product, or $4,887 per person. Yet Americans continue to lag in
certain key indicators of health.
MSNBC, October 16, 2003
http://www.msnbc.com/news/980802.asp
7. 'Developing consensus' to have wealthy pay more for Medicare
Lawmakers negotiating a Medicare prescription drug bill report a growing consensus for
higher-income seniors to pay more than other Medicare beneficiaries for their health
coverage.
USA Today, October 16, 2003
http://www.usatoday.com/news/washington/2003-10-16-means-medicare_x.htm
8. Ousted
HealthSouth Chief Taking the Fifth
Saying he was denied "a fair hearing" by Congress, ousted HealthSouth chief
Richard Scrushy invoked his constitutional privilege Thursday and refused to answer
lawmakers' questions in their investigation of the $2.5 billion accounting scandal
engulfing the major medical services company.
Miami Herald, October 16, 2003
http://www.miami.com/mld/miamiherald/7026947.htm
9. The Hidden Snags in Health-Care Pools
In theory, small businesses banding together for cheaper rates makes sense. In practice,
legal constraints and limited bargaining power are big obstacles
Business Week, October 16, 2003
http://www.businessweek.com/smallbiz/content/oct2003/sb20031016_6581_sb025.htm
10. Medicare Premium to Increase by 13.5 Percent Next Year
The Medicare premium will shoot up next year to $66.60 a month, an increase of 13.5
percent, or $7.90 a month, the Bush administration said on Wednesday. That is one of the
largest increases in the history of the program.
New York Times, October 15, 2003
http://www.nytimes.com/2003/10/16/politics/16MEDI.html?ex=1066968000&en=479c56834ab9a846&ei=5040&partner=MOREOVER
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| MCOL TIDBITS |
Striking Out
It isn't just the Cubs or Red Sox who have heard "strike"
more often than they wished.
California has been hit by a wave of high profile union strikes over
health benefits. A Southern California strike affecting three chain
supermarkets alone affects 859 stores and 70,000 workers. The Los
Angeles Times notes in an October 15th article, "In fact, at
least half the strikes in California this year have been staged over
health benefits, according to Ken Jacobs, a researcher at the UC
Berkeley Labor Center. He counted 11 such work stoppages in a
four-month period this year in Northern California." Jacobs also
noted "unionized workers in California were 42% more likely to be
covered by health insurance than those who were not in unions."
The California strikes are making significant national news. Why?
Because the health benefits strike issue is spreading around the
country. The LA Times article quotes said Kate Bronfenbrenner,
director of Labor Education Research at Cornell University. "It's
at the core of every major contract struggle. And it's going to be an
issue until we see some national solutions." The New York Times
quotes Greg Denier, director of communications for the United Food and
Commercial Workers (UFCW) union: "This battle is growing
nationwide. What's happening is that contracts are up across the
country in different areas. The employers are dedicated to eliminating
affordable health care for employees, so the national health care
crisis is being played out on the picket line." And in fact, a
new UFCW strike over health benefits has just hit the Kroger stores in
Kentucky, Ohio and West Virginia.
The UFCW union, representing the Southern California supermarket
workers, has established a web site advocating their health care
benefits strike position, and present their calculations of the impact
of the proposed cost sharing increases at http://www.saveourhealthcare.org/shifting.html
. They claim, even with "no major medical tragedies" a
"single worker, with PPO coverage, would see his or her
out-of-pocket increase from $234 per year to $1,480" or "if
he or she is in the HMO plan would see his or her costs increase from
$54 to $1,200 per year." They also provide figures for out of
pocket increases for family workers and those with major medical
conditions.
On the other hand, these UFCW covered workers currently have no
premium deduction for entire family coverage, which a rich benefit
that a Kaiser Family Foundation study pointed out is only available at
4% of companies nationwide. The stores providing these benefits
compete on price against non-union Wal-Mart, and according to a recent
BenefitNews Connect article "Wal-Mart's health plan does not
cover retirees at all, nor does it pay for employees' everyday health
expenses like flu shots, eye exams and child vaccinations. Further,
plan deductibles can reach as high as $1,000 and (employee) premiums
have risen 50% over the past two years. Considering most Wal-Mart
employees earn less than $10 per hour, the out-of-pocket expenses make
a considerable dent in income."
The UAW announced last week ratification of agreements with GM, Ford
and the Chrysler Group of DaimlerChrysler that severely restrict those
employer's ability to pass along various forms of additional cost
sharing in their benefit packages.
Indeed, the heart of the issue is increased employee cost sharing, or
"cost shifting" as the unions call it. This favored response
during the past two years by employers and health plans to double
digit health care cost increases is running into stiffer opposition as
multi-year union agreements face renewal.
Watson Wyatt earlier this month released an employer survey indicating
that increased cost sharing is expected to slow down significantly in
2004. They noted 56% of respondents indicated they were requiring
employees to bear increased benefit costs in 2003, while only 18%
expected to take further steps along these lines in 2004.
It would appear the significant remaining targets for increased cost
sharing are those with the richest of benefits: little or no payroll
deductions, very small flat dollar copayments for services, etc. In
other words, a number of union plans. The unions, in response appear
to continue to be more willing to strike over these benefits than over
wages.
For more information:
Rising Health-Care Costs at Heart of Labor Strife
LA Times October 15, 2003
http://www.latimes.com/business/la-fi-health14oct14,1,5310682.story?coll=la-home-headlines
California Supermarket Strike Deters Shoppers
New York Times, October 14, 2003
http://www.nytimes.com/2003/10/14/national/14GROC.html
Save our health care web site
UFCW sponsored site
http://www.saveourhealthcare.org
Wal-Mart health plan brings new meaning to bare bones
BenefitNews Connect, October 2, 2003
http://www.benefitnews.com/finance/detail.cfm?id=5145
Benefits at heart of strike
Herald Dispatch, October 15, 2003
http://www.herald-dispatch.com/2003/October/15/LNspot.htm
United Auto Workers Ratifies Contract With GM, Delphi
Kaiser Family Foundation Daily Health Policy Report, October 7. 2003
http://www.kaisernetwork.org/daily_reports/rep_index.cfm?DR_ID=20231
Health-Care Rift Is the Flashpoint for MTA Strike
Los Angeles Times, October 15, 2003
http://www.latimes.com/classified/jobs/news/la-me-medical15oct15,0,922351.story?coll=la-class-employ-jobnews
Southern California Striking Out
CBS News, October 15, 2003
http://www.cbsnews.com/stories/2003/10/14/national/main577902.shtml
More workers strike over healthcare benefits
Christian Science Monitor, October 16, 2003
http://www.csmonitor.com/2003/1016/p03s01-usec.html?usaNav
Fewer Companies Plan Worker Cost-cutting Measures For Next Year,
Watson Wyatt Survey Finds
Watson Wyatt Press Release, October 2, 2003
http://www.watsonwyatt.com/us/news/press.asp?ID=11900
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