News in brief - Feb. 20, 2012

Study finds more patients paying greater share for prescriptions

The number of people spending a significant proportion of their incomes on prescription medications declined from 2003 to 2007 because of the increased use of generics and tiered formularies. But then it inched upward in 2008 because of the economic downturn.

This is according to a study in the February issue of Health Affairs by researchers at the RAND Corp. The U.S. recession officially started in December 2007, and the unemployment rate had risen to 7.3% by December 2008.

The authors analyzed data from the Agency for Healthcare Research and Quality's Medical Expenditure Panel Survey. In 2003, 10.8 million people, or 4.3% of the under-65 population, spent at least 10% of their family income on prescription drugs. That is considered high. The percentage bottomed out at 2.8%, or 7.4 million people, in 2007 and went up to 3.1%, or 8.3 million people, in 2008.

People with employer-sponsored health insurance were the least likely to spend a high proportion of their incomes on prescription drugs. Patients with chronic health conditions or on public insurance were the most likely to spend a significant proportion of income on drugs.

Data for later years are not available, but researchers caution that the numbers may increase further as more expensive drugs are introduced and the prevalence of chronic conditions grows.

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Report: Mobile devices' portability contributing to data losses

An analysis of breaches affecting 500 or more people reported to the Dept. of Health and Human Services by Redspin, an IT security and auditing company, found that the portability of data is increasing the risk of breaches. Redspin published its "Breach Report 2011" in January.

Of the 385 breach incidents reported to HHS from 2009 to November 2011, 151 occurred from a laptop or other portable device. Redspin predicts that because of the popularity of tablet computers and smartphones, "the problem is likely to get worse before it gets better."

Of these incidents, 55% involved unencrypted devices or files. "The federal government is unlikely to mandate that all portable devices that store [electronic personal health information] be encrypted, but it's an obvious and sensible policy for a health care organization to adopt," the report said.

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United pays $250,000 to settle with Vermont regulators over ads

UnitedHealth Group has paid a $250,000 penalty to the Vermont Dept. of Banking, Insurance, Securities and Health Care Administration over allegedly misleading ads for its Medicare supplement coverage. The department announced the agreement Feb. 8.

In a filing Dec. 5, 2011, Vermont regulators found that the ads circulated during enrollment season in the fall of 2011 suggested that Medicare supplement coverage would be available at no cost to subscribers. The ads had not been cleared by the department ahead of time as required by state law.

"The size of the penalty imposed on United is intended to express BISHCA's concern with United's alleged behavior," Stephen Kimbell, the department's commissioner, said in a statement.

United spokesman Matthew Burns issued a statement saying: "We are pleased our differing interpretations of state and federal regulations have been resolved. We will continue serving Vermont Medicare beneficiaries in alignment with the state's expectations."

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