Day: September 27, 2010

Texas Hospital System Threatens 52 Texas Employer Groups

A Texas hospital system has threatened 52 employers by demanding cash upfront on all non-emergency hospital admissions.

Affected employers who sponsor group health insurance for their employees are angry. They plan a concerted effort against the hospital system to include legal action, legislative intervention and publicity.

Regarding the later, public opinion will be an important element in their overall strategy to expose core issues to what is wrong with our current healthcare delivery system.

For the first time the general public will understand why health care costs are out of control.  That is a good thing.

Details will be posted on this website later this week as this story unfolds. We expect the national press will run with this.

Editor’s Note: ERISA mandates that Plan Sponsors  have a fiduciary responsibility to pay only fair and reasonable fees. Are hospital fees fair and reasonable? Should a hospital charge $12,000 for an MRI when their cost is less than $300? What is fair and reasonable, and who decides?

Carriers Under Assault From Politicians – Big Government Dictates Status Quo

 
Lawmakers Warn Insurers About Blaming Reform Bill For Costs
 

Sens. Max Baucus (D-Mont.) and John D. Rockefeller IV (D-W.Va.) on Monday sent a letter to the
largest health insurers warning them about raising premiums and blaming it on the health reform
law.
 
 WellPoint, UnitedHealthcare, Aetna, Health Care Services Corporation, and CIGNA received the
letter. Despite the requirement to add additional benefits under the law, the senators said the
costs should only increase premiums by 1 to 2 percent.
 
The lawmakers’ letter mimicks one sent to the industry September 9th by HHS Secretary Kathleen Sebelius that said the agency will have “zero tolerance” for insurers that blame premium increases on the reform law.