News in brief - Nov. 3, 2008

Medicaid spending on the rise

Medicaid spending would more than double by fiscal year 2017 to reach $674 billion under current law and trends, according to a first-ever actuarial analysis of the program released Oct. 17.

The Centers for Medicare & Medicaid Services' Office of the Actuary report projects an average annual spending increase of 7.9% through fiscal 2017.

In fiscal 2007, Medicaid spending reached $333.2 billion, of which roughly 57% came from the federal government. The rest came from states.

The report did not calculate how the ongoing financial crisis could affect Medicaid spending. Typically Medicaid enrollment and spending increase during economic downturns. About 49 million people were enrolled in Medicaid during all of fiscal 2007, but 62 million people were enrolled in the program at one point during that period.

The analysis is designed to parallel similar reports produced on Medicare and Social Security, according to CMS Acting Administrator Kerry Weems. The report is available online (www.cms.hhs.gov/actuarialstudies/downloads/medicaidreport2008.pdf).

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Lawsuit targets Okla. abortion law

Abortion-rights advocates are challenging an Oklahoma law requiring physicians to show an ultrasound to women seeking abortions.

In a lawsuit filed Oct. 10, the Center for Reproductive Rights said the statute violates patients' privacy rights. At press time in October, the statute was set to take effect Nov. 1.

Anti-abortion groups supporting the law said it was intended to ensure that women are fully informed before consenting to the procedure. The Oklahoma State Medical Assn. opposed the measure over concerns that it would interfere with physicians' medical judgment. The association did not take a position on abortion.

At least 12 states, including Oklahoma, have abortion-counseling laws with ultrasound requirements, according to the Guttmacher Institute, an abortion-rights policy group that tracks such legislation.

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New law cracks down on illegal Internet pharmacies

President Bush on Oct. 15 signed into law a bill targeting so-called rogue online pharmacies that sell prescription medications and other controlled drugs without valid doctor approval.

A legitimate prescription under the statute requires at least one in-person medical examination of the patient by a health care professional. Internet pharmacies also must post online information identifying the qualifications of the pharmacists and referring doctors associated with the business, among other notifications.

The law includes increased criminal penalties and fines for illegal sales of schedule II, IV and V drugs and gives state attorneys general the power to close down illegitimate Internet pharmacies.

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Senators want employer health spending disclosed

A bipartisan group of senators last month proposed requiring employers to disclose their employee health care spending on W-2 forms. The proposal follows a recommendation by Congressional Budget Office Director Peter Orszag, PhD, who testified at a Senate Finance Committee hearing in June that workers might demand more efficiency in health care spending if they better understood the amount of money involved. The bill was proposed by Sens. Chuck Grassley (R, Iowa), Max Baucus (D, Mont.), Ron Wyden (D, Ore.), Mike Enzi (R, Wyo.) and Ben Nelson (D, Neb.). Baucus is the Finance Committee's chair, and Grassley is its highest ranking Republican.

Grassley said increased awareness of spending could lead workers to ask for restructured benefits.

The public can submit comments to the Finance Committee until Dec. 31 via (disclosure@finance-rep.senate.gov).

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Florida offers new plans to uninsured

Florida will contract with six health insurers to offer affordable private plans to many of the state's 3.8 million uninsured as part of a new state program called Cover Florida. The plans will be exempted from state benefit mandates and will be available to adults who have been uninsured for at least six months. Premiums could be as low as $150 a month. The plans, which will be available in early 2009, are not subsidized by the state, said Florida Gov. Charlie Crist.

Two companies will offer statewide plans -- United Healthcare and BlueCross BlueShield of Florida -- while the rest will offer regional plans.

Each company will offer at least two plans, one with catastrophic and hospital coverage and one without. Each plan will cover preventive services, screenings, office visits, outpatient and inpatient surgery, urgent care, prescription drugs, durable medical equipment and diabetic supplies, Crist said. The Florida Medical Assn. supports the program.

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