News in brief - Sept. 14, 2009

HHS gives states more than $70 million to help cover the uninsured

The Dept. of Health and Human Services announced Sept. 3 that $70.9 million in grants have been awarded to 13 states to help support the expansion of health care coverage to their uninsured populations.

The grants are funded under the new State Health Access Program, an outgrowth of a state initiative that operated from 2000-07 and helped states develop innovative programs to cover the uninsured. "These grants build on the success of the earlier program," said HHS Secretary Kathleen Sebelius. "They will help more states provide affordable insurance to specific uninsured groups, such as children and seniors. The funds will also assist states in implementing new initiatives for reaching the uninsured."

The grants, to be made over a five-year period, require a 20% match by each state unless it can demonstrate a financial hardship. In addition, states must show that they will be able to sustain the program after federal funding has expired. The states that received grants are Colorado, Kansas, Maine, Minnesota, Nevada, New York, North Carolina, Oregon, Texas, Virginia, Washington, West Virginia and Wisconsin.

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HHS extends Wisconsin drug program

The Dept. of Health and Human Services in August extended SeniorCare, a Wisconsin prescription drug program and alternative to Medicare Part D, through Dec. 31, 2012.

SeniorCare offers discounted drugs to Wisconsin residents who are at least 65 years old and who pay a $30 annual enrollment fee plus co-pays, depending on income. Nearly 90,000 seniors are enrolled in the program, according to Wisconsin Gov. Jim Doyle.

U.S. Rep. Steve Kagen, MD (D, Wis.), said the program "guarantees that Wisconsin's senior citizens in need have access to the prescription drugs their doctors believe are best for them." HHS last extended the program in June 2007 through the end of this year.

More information about SeniorCare can be found at the Wisconsin Dept. of Health Services Web site (dhs.wisconsin.gov/seniorcare).

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Iowa hospital settles over excessive physician compensation

An Iowa hospital on Aug. 25 agreed to a $4.5 million settlement with the federal government to resolve allegations that the facility illegally overpaid five physicians for patient referrals.

The Justice Dept. accused Covenant Medical Center in Waterloo of compensating the doctors "far above fair market value" for the referrals, in violation of the federal Stark law. The statute prohibits improper compensation deals between doctors and hospitals.

No physicians were named in the case.

Covenant denied any wrongdoing and in a statement said the doctors' compensation "reflected their exceptionally high level of productivity."

This content was published online only.

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