News in brief - Oct. 9, 2006

Drug price increases slow down in second quarter - Calif. universal health bill vetoed - Bill would close SCHIP funding hole - Judge throws out challenge to Medicaid proof-of-citizenship rule - Federal advisory group calls for coverage for all by 2012

Drug price increases slow down in second quarter

Manufacturers' prices of prescription drugs commonly used by older Americans increased by 0.5% in the second quarter of 2006, compared with 4.3% for the first quarter, says an AARP survey released in September. But those drug prices still increased by an average of 6.3% for the 12 months ending in June. The inflation rate was 3.8% for the same period.

For the six months ending in June, the 5 mg dose of the sleeping aid Ambien led all price increases, with a 13.3% jump. The survey covered 193 brand-name drugs widely used by Americans ages 50 or older.

"Frustration over this issue will lead to action," said David Sloane, AARP senior managing director of government relations and advocacy. The surveys are online (www.aarp.org/research/health/drugs/).

Calif. universal health bill vetoed

California Gov. Arnold Schwarzenegger late last month vetoed legislation that would have established universal health care in the state. The measure would have done away with private insurance and offered one statewide system.

In a separate move, the governor signed legislation that streamlines enrollment in the Medi-Cal and Healthy Families programs, which are California's Medicaid and State Children's Health Insurance Programs. He also approved a bill, supported by the California Medical Assn., that establishes a new California Dept. of Public Health, effective July 1, 2007.

Bill would close SCHIP funding hole

New legislation would fill the $800 million to $950 million funding gap expected in the State Children's Health Insurance Program for fiscal year 2007. A combined 17 states are expected to need 22% more funding for SCHIP than will be allowed under the block grant that year.

The Keep Kids Covered Act was introduced Sept. 19 by Reps. John Dingell (D, Mich.), John Barrow (D, Ga.) and Leonard L. Boswell (D, Iowa). Dingell is the ranking member of the House Committee on Energy and Commerce, which has jurisdiction over health issues.

Judge throws out challenge to Medicaid proof-of-citizenship rule

A federal judge in September dismissed a lawsuit challenging a law that requires Medicaid patients to prove their citizenship before obtaining or renewing their benefits.

Plaintiffs say the new rules, which took effect July 1, would interrupt coverage for millions of low-income patients who may not have the necessary passport, birth certificate or other original identification records required to document citizenship.

But U.S. District Court Judge Ronald A. Guzman in the Northern District of Illinois ruled that "absent a showing that their injuries can be traced to the regulations, which they have not made, plaintiffs do not have standing to pursue these claims."

Plaintiff attorneys claimed a partial victory, however, saying that Guzman was likely to block the rules from applying to 500,000 foster children on Medicaid. "Many states have produced their implementing rules, and we are starting to hear fears of people being denied or delayed on this basis," said John Bouman, an attorney for the Sargent Shriver National Center on Poverty Law, one of the groups that brought the lawsuit.

Plaintiff attorneys plan to ask the court at an Oct. 5 hearing to reconsider their case "to relieve people of this burden," Bouman said.

Federal advisory group calls for coverage for all by 2012

A government advisory panel on Sept. 25 recommended that the country establish public policy that all Americans have affordable health care. Action should start immediately, with a target of 2012 for ensuring a core set of benefits and services.

In the meantime, a program should be created -- using either private or public insurance models -- that would guarantee financial protection for everyone against very high health care costs, according to the Citizens' Health Care Working Group, which includes among its members Health and Human Services Secretary Mike Leavitt.

The panel also suggested creating "innovative integrated community health networks" to ensure that people have a medical home, promoting efforts to improve health care quality and efficiency, and restructuring end-of-life care so people have access to services in the setting they choose.

The recommendations can be found online (www.citizenshealthcare.gov).

Vote refines AMA stance on health reform
The AMA House of Delegates rejected attempts to rescind support of a U.S. House health reform bill and any new government-sponsored health insurance plan during the 2009 Interim Meeting.
Story - AMA House - Slideshow