Sunday, July 15, 2012

Weekend update

The House and Senate will be in session this week. Recently, the FEHBlog discussed a provision in the new transportation authorization law that authorizes OPM to create a phased-in retirement program for federal employees. The FEHBlog was surprised to read this Federal Times report that OPM does not expect many federal employees to elect this option.

AHIP drew the FEHBlog's attention to this Robert Wood Johnson study that belabors the obvious (the FEHBlog's job as a lawyer) -- hospital consolidations in a geographic region raise prices paid by insurers. The Boston Globe reports on Massachusetts legislative efforts to rein in the market power of  health care providers "who demand high prices for their services."  A wise cost accounting expert once explained to the FEHBlog that price and cost are independent constructs. Costs do not necessarily drive prices.

At the OPM FEHBP carrier conference a few months ago, speakers discussed health plan efforts to divert members from hospital emergency rooms to less expensive facilities such as urgent care centers. This AMA News article illustrates the problem - high tech procedures and tests, among other factors, are leading to significant emergency department overcrowding. 85% of the patients have health insurance.




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