News in brief - Oct. 20, 2008

Medicare names permanent RACs

The Centers for Medicare & Medicaid Services on Oct. 6 announced the four recovery audit contractors that will review physician and hospital Medicare claims on an ongoing basis to find improper payments.

The program divides the country into four regions and assigns a permanent RAC to each one: Diversified Collection Services Inc. of Livermore, Calif., in region A; CGI Technologies and Solutions Inc. of Fairfax, Va., in region B; Connolly Consulting Associates Inc. of Wilton, Conn., in region C; and HealthDataInsights Inc. of Las Vegas in region D.

The contractors' jurisdictions can be viewed online (www.cms.hhs.gov/RAC/01_Overview.asp).

Physicians who underwent RAC audits during a three-year demonstration project in selected states complained that overly aggressive reviewers made questionable overpayment accusations and created bureaucratic headaches for practices.

CMS officials said they have greatly improved the auditing process in advance of the nationwide rollout.

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Calif. governor vetoes insurance bill

A bill backed by the California Medical Assn. that would have required insurance companies to seek a state review before cancelling their customers' health insurance policies was vetoed Sept. 30 by California Gov. Arnold Schwarzenegger.

CMA President Richard Frankenstein, MD, said thousands of Californians have had their coverage cancelled by insurance companies after they became sick. The governor is reneging on promises he made to protect consumers from such actions, Dr. Frankenstein said. "Californians need health care coverage they can count on when they get sick. This veto denies them that security."

In his veto message, Schwarzenegger said he could not sign the bill because it lacked several consumer protections included in comprehensive health legislation that he pushed for unsuccessfully earlier this year.

Schwarzenegger did sign a CMA-backed measure requiring restaurant chains with 20 or more locations in California to display food calorie content on menus. The law goes into effect Jan. 1, 2011.

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Michigan doctors oppose medical marijuana

A ballot measure to legalize medical marijuana use in Michigan has been targeted by a newly formed coalition of physicians, law enforcement officials and community organizations.

The Michigan State Medical Society, Michigan Osteopathic Assn. and two dozen anti-drug advocates in October joined Citizens Protecting Michigan's Kids to oppose the initiative, which would shield seriously ill patients from criminal prosecution when they use cannabis with a physician's recommendation. The coalition warned the measure could undermine anti-smoking efforts and give teenagers greater access to the drug. Physicians also noted the availability of scientifically proven medications to treat patients effectively.

The Michigan Coalition for Compassionate Care collected nearly a half-million signatures to put the initiative on the Nov. 4 ballot.

Advocates said the measure includes safeguards, such as a state registry and severe fines, to ensure only qualified patients can access the drug.

Twelve states allow medicinal marijuana use.

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