News in brief - April 21, 2008

Federal court rejects Illinois abortion consent law

Illinois officials are seeking to overturn a federal court decision striking down the state's law regarding parental consent for abortion. The 1995 statute, which has never taken effect due to the ongoing legal challenge, requires physicians to notify a minor's parent or legal guardian at least 48 hours before performing the procedure, except in cases of medical emergency, or physical or sexual abuse.

But the U.S. District Court for the Northern District of Illinois on Feb. 28 said the law lacked the rules necessary for courts to waive the notice requirement in such situations, effectively leaving minors in "legal limbo" and without a way to access the procedure. Illinois Attorney General Lisa Madigan is appealing the decision to the 7th U.S. Circuit Court of Appeals. Madigan argued in court papers that the state Supreme Court in September 2006 resolved the federal trial court's concerns when it issued rules for judicial bypass of the abortion notification statute.

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U.S. senators introduce two association health bills

Congressional bills to allow small businesses to form pools to buy health insurance at more affordable rates were introduced earlier this month by Senate Majority Whip Dick Durbin (D, Ill.) and Sen. Mike Enzi (R, Wyo.). Enzi's bill, the Small Business Health Plans Act of 2008, would allow businesses, trade associations, unions and churches to form insurance-buying pools. Enrollees could not be asked to pay different rates based on health status. The Dept. of Health and Human Services would issue rating rules for the health insurance pools.

Durbin's bill, the bipartisan Small Business Health Options Program, also would allow small businesses to form insurance-buying pools and would restrict health plans' ability to set premiums based on enrollees' health. But, in addition, it would provide $1,800 tax credits to self-employed individuals or $3,600 for families for buying health insurance. Small businesses that cover 60% of their employees' premiums would receive tax credits of up to $1,000 per employee or $2,000 for family coverage. "Contrary to popular belief, most people who don't have insurance are not out of work -- in fact, they work full time in small businesses that cannot afford health insurance for their workers," Durbin said.

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Physician-owned hospital wins antitrust settlements

In a case spotlighting tensions between specialty and community hospitals, a Missouri physician-owned facility recently settled its antitrust lawsuit with the remaining hospital and managed care defendants in the case. Heartland Spine & Specialty Hospital accused HCA Midwest Division, St. Luke's Health System, Shawnee Mission Medical Center, Carondolet Health, Aetna and Coventry Health Care of conspiring to keep the specialty hospital from competing in the Kansas City, Mo., market. Heartland finalized the last of the confidential agreements over a six-month period ending in March, just weeks before an April 1 trial date. Legal experts believed the case to be the first of its kind to win approval to go to trial.

Despite the settlements, Patrick J. Stueve, Heartland's attorney, said the case still can serve as a model for other doctor-owned hospitals in similar circumstances.

Heartland also sued North Kansas City Hospital, BlueCross BlueShield of Kansas City, UnitedHealthcare, Humana and Cigna, which all settled before the U.S. District Court for the District of Kansas green-lighted the case for trial last October. Stueve said Heartland has since negotiated in-network contracts with United and the Blues. HCA, Aetna and the Blues denied any wrong-doing. At press time, the remaining defendants either had not returned calls or could not be reached for comment.

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