Wednesday, May 30, 2012

Mid week update

The Hill reports that the House of Representatives approved its own bi-partisan Food and Drug Administration reauthorization act (HR 5651) by a wide 387-5 margin. The House and Senate will now form a conference committee to reconcile the difference in their similar bills. Both bills "would extend the FDA's user-fee program for generic drugs and biosimilars." That's a development that could bring down the health care cost curve.

Business Insurance reports that the House Ways and Means Committee is expected to clear at a business meeting tomorrow legislation (HR 5842) that would repeal the Affordable Care Act provision that requires a doctors prescription in order for a health plan, a health savings account, or a flexible savings account to reimburse an over the counter drug.  This is a truly goofy law. If Congress does not want over the counter drugs to be reimbursed just say so, but don't add unnecessary administrative burdens on doctors. This bill would reinstate previous law that permits reimbursement of over the counter drugs when coverage is available.

On a related note Accounting Today reports that the IRS released guidance on the $2500 limitation on health care savings accounts that takes effect next year.

AHIP issued its annual Health Savings Account census report today.

Key findings from the census include:
  • The number of people with HSA coverage rose to more than 13.5 in January 2012, up from 11.4 million in January 2011, 10.0 million in January 2010, 8.0 million in January 2009, and 6.1 million in January 2008.
  • Between January 2011 and January 2012, the fastest growing market for HSA plans was for large-group coverage, which rose by 26 percent, followed by small-group coverage, which grew by 9 percent.
  • In the individual market, 2.5 million people are enrolled in HSA plans, while approximately 3 million people were enrolled in HSA coverage in the small-group market and nearly 8 million were covered in the large-group market.
  • States with the highest levels of HSA enrollment were California (1,001,943 enrollees), Texas (755,432 enrollees), Illinois (717,384 enrollees), Ohio (662,999 enrollees) and Florida (539,778 enrollees).
The FEHBlog guesses that you can file this one under No good deed goes unpunished. The Federal Times reports that "An Office of Personnel Management contractor last October accidentally mailed postcards to about 3,000 federal retirees on which their Social Security numbers were printed, according to an inspector general report released Wednesday. Vangent Inc. [NOT an FEHB plan] sent the postcards to retirees who had suspended their Federal Employees Health Benefits Program enrollment to inform them of their eligibility to re-enroll during the upcoming open season." Here's a link to the IG report.

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