News in brief - Jan. 24, 2011

Medical inflation continues to outpace price growth

Inflation in the economy as a whole was soft in 2010 compared with 2009, but growth in the amount of money paid for medical care continued to grow at a faster clip than prices overall, according to the monthly report on the consumer price index released Jan. 14 by the U.S. Bureau of Labor Statistics.

The consumer price index grew by 1.5% in 2010 but by 2.7% in 2009. The BLS said most of this change was due to a slowing in growth of the price of gasoline.

But growth in the cost of medical care played a role. The price of medical care increased 3.3% in 2010 and 3.4% in 2009.

Prices paid for professional services, a category that includes physicians, went up 2.7% in 2010 and 2.5% in 2009. Expenses related to hospital care grew by 6.7% in 2010, but 7.1% in 2009.

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Cigna pays $40,000 fine in Virginia

Cigna's Virginia HMO has paid the state Bureau of Insurance $40,000 to settle allegations of regulatory violations found in a routine market conduct examination, the bureau said in January.

The bureau found that Philadelphia-based Cigna failed to pay interest on late claims payments, didn't follow state law governing insurance forms and policies, broke agent licensing rules and "failed to comply with the minimum fair business standards in processing and payment of claims for health care services."

Cigna did not admit wrongdoing, but paid the $40,000 fine in October 2010 and agreed to change its business in accordance with the bureau's findings.

A company statement said, "Market conduct examinations are standard reviews by insurance regulators in a state, and Cigna sees these examinations as an opportunity to strengthen how we work with regulators in a market."

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California commissioner asks insurers to delay rate hikes

On the heels of multiple rate increases imposed on Blue Shield of California, California Insurance Commissioner Dave Jones has asked other insurers to hold off on any further rate increases.

Blue Shield customers face cumulative rate hikes as high as 59% from the insurer during the last five months, but Jones does not have the authority to reject or approve the increases. However, state and federal laws allow the Dept. of Insurance to examine whether insurers are spending a minimum amount of premiums on medical care.

After asking Blue Shield to put off its latest increase by 60 days, Jones asked Aetna, UnitedHealth Group and WellPoint subsidiaries in California to delay their most recent planned increases by at least 60 days.

The three health plans that received the letter did not immediately respond.

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Calif. REC surpasses 3,000 doctors

The California Health Information Partnership and Services Organization, designated as the regional extension center for California, has signed up more 3,000 physicians, the first in the nation to enroll that many.

The organization, which operates 10 local centers throughout the state, has been tasked with helping more than 6,000 eligible professionals. It is waiving enrollment fees for all who sign up before June 30. RECs were established to help physicians select and implement an EMR system to qualify for either the Medicare or Medicaid incentive programs for meaningful use of electronic medical records.

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Doctor reclaims Donkey Kong record

Hank Chien, MD, used another snowstorm to reclaim the record for most points scored in the arcade version of Donkey Kong.

On Dec. 27, 2010, as New York was paralyzed by a 20-inch snowfall, Dr. Chien earned 1,068,000 points in about 2 hours and 45 minutes to get back a record he had set in February 2010 during a previous snowstorm. His earlier record was broken in August 2010.

Similar to the first time he won, Dr. Chien said he doesn't expect to hold on to the title for very long. The reign could end in March, when Dr. Chien will participate in the first-ever "Kong Off" in New Jersey. The event will bring Dr. Chien and other top players from around the world under one roof, where they will vie for the top spot.

The print version of this content appeared in the Jan. 31 issue of American Medical News.

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