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Montefiore Buying Sound Shore Hospital

Montefiore Buying Sound Shore Hospital

 

Montefiore Buying Sound Shore Hospital

Sound Shore Hospital – New Rochelle, NY

Montefiore  Buying Sound Shore Hospital.  According to the PR release Sound Shore Health System (“SSHS”) announced today it has entered into an Asset Purchase Agreement with Montefiore Health System for Montefiore to acquire its assets. The transaction, which is expected to close by the end of this year, subject to Bankruptcy Court and regulatory approval, will enable Montefiore to continue, and enhance, the provision of care at Sound Shore and Mount Vernon Hospitals as well as at the Schaffer Extended Care Center.

Earlier in May, negotiations between Westchester Medical Center and the Sound Shore Health System broke off after Westchester Medical ended the merger talks.

Sound Shore system was facing a $3 million to $5 million year-end loss when talks with Westchester Medical began late 2012.

Westchester Medical Ceneter has been in the news in recent years embattled with insurance carrier stand-offs.   The first was with Empire Blue Cross in Nov 2010 which had been resolved but not with  Oxford Health Plans which had terminated its contract  in May 2012.

While the move was necessary and Sound Shore Hospital is certainly better off now than some hospitals such as Interfaith Hospital which declared bankruptcy recently.

Still, there are concerns of Hospital and Provider consolidations changing the market place. The Hospital will possibly be transitioned into an ambulatory/multi-specialty center/urgent care center.

Urgent Care have been the good news in bending of the health care cost curve.  Approximately 45% of acuities in a hospital ER  can be done at an Urgent Care Center.  Urgent Care Centers  will be filling in the gap between regular family doctors and sitting in an ER.  Cost of Urgent Care are up to half of ER.  The patient also avoids high ER copays that average $200 aside form possible high in-network deductible. Yet if the Hospital indeed transitions to ambulatory surgery/multi speciality  Westchester Hospital available area-hospital beds may further be reduced.

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Health Insurance Mandates 2012

Health Insurance Mandates 2012

 Medical and Dental Expenses

Health Insurance Mandates 2012. The Councel for Affordable Health Insurance in VA released their annual  “Health Insurance Mandates in the States” for 2012 last week.  While NYS did not crack the top 5 they did come close at number 7 this year.

NYS Mandates were discussed in our posting Empire Leaving Small Groups Nov 2011.   ” Today, we have so many State mandates that many of the mandates(overage dependents coverage, preventive care, pre-existing for kids) in PPACA didnt even affect NY since they were already in place. Mandates account for approx 17% of the costs of which Small Businesses pay more than fair share. Large corporations and Unions can self insure and avoid some mandates as they are governed by ERISA and not State. To the relief of of our struggling clients on subsidized Healthy NY the State doesn’t play by their own rules and instead opts out of its very own mandates.”

According to the study CAHI Identifies 2,271 State Health Insurance Mandates  “The sheer number of state mandates will make it difficult for states to deliver on one of the key promises repeatedly made by supporters of Obamacare: it would provide all Americans with affordable health coverage. The essential health benefit plan design was supposed to give states the flexibility to craft benefit packages which would be suitable and affordable for their unique populations. But HHS shackled the states to the full load of mandated benefits on their books, and the prices of next year’s offerings in the health insurance exchanges are going to bear witness to the free-wheeling mandate craze of the last twenty years. Recent studies have predicted double digit increases in health insurance premiums next year — the mandates are coming home to roost,” said Roy Ramthun, CAHI’s Director of Federal Affairs.”

Most Mandated Benefits
Least Mandated Benefits
Most Popular Mandates
Least Popular Mandates
Rhode Island 69 Idaho 13 Mammography Screening 50 Breast Implant Removal 1
Maryland 67 Alabama 19 Maternity Minimum Stay 50 Cardiovascular Disease Screening 1
Virginia 66 Michigan 24 Breast Reconstruction 49 Circumcision 1
Minnesota 65 Iowa 26 Mental Health Parity 48 Gastric Electrical Stimulation 1
Connecticut 65 Utah 26 Alcohol & Substance Abuse 46 Organ Transplant Donor Coverage 1

The rest of the study can be downloaded Executive Summary.

A Health Summary on Mandates by New York State’s Employer Alliance for Affordable

 

The United Hospital Fun estimates that approximately 2.2 million New Yorkers lacked insurance coverage in 2009, (Health Insurance Coverage in New York 2009.)
The collective cost of paying for New York’s health insurance mandates equates to 12.2% of overall premium cost. Based on 2008 premiums, this translates into $1,538 expense per year for an average family policy and $566 per year for a single person policy. (Employer Alliance, NYS Mandated Health Insurance Benefits, 2003)
Higher health care costs increase the number of uninsured. In New York, it is estimated that for every 1% increase in premiums, 30,000 New Yorkers lose health insurance. (Barents Group, 1999)
Mandates have a cumulative impact on premium costs. It is estimated that the cost of the 12 most common mandates can increase the cost of health insurance by as much as 30%. (Milliman and Robertson 1996)
Rising health care costs have the biggest impact on the small business sector. For every 1% increase in premium costs, small business sponsorship of health insurance drops by 2.6%. (Morrisey et al., 1994)
The percentage of US small business workers receiving insurance through their employer declined 5% between 1996 and 1998 – from 52% in 1996 to 47% in 1998. (KPMG Peat Marwick, 1999)
Nearly one of every four uninsured Americans has no health care coverage as the direct result of state mandates. (Jensen, Morrisey, 1999)
Health insurance premiums for New York’s working families skyrocketed between 2000 & 2007
increasing by 80.7 percent. (Families versus Paychecks, Families USA 2008)
Since 1999, family premiums for employer-sponsored health coverage have increased by 131 percent, placing increasing cost burdens on employers and workers. (Kaiser Family Foundation and Health Research and Educational Trust. Employer Health Benefits 2009 Annual Survey. September 2009).

 

Small Business Helpful links:


Stop the HIT:

the HIT is actually a hidden tax on small business. PPACA assesses a tax on all health insurance companies based on their “net premiums” written. The tax will raise $8 billion starting in 2014, $14.3 billion in 2018 and more in later years. This is [aid for by fully insured health plans which are comprised mostly by small businesses.

Business Council of NYS
http://www.bcnys.org
Coalition for Affordable Health Insurance
http://www.cahi.org
National Center For Policy Analysis
http://www.ncpa.org
New York Blue Cross and Blue Shield
http://www.nysblues.org
North East Business Group on Health
http://www.nebgh.org
National Federation of Independent Business
http://www.nfib.com
New York State Assembly
http://www.assembly.state.ny.us
New York State Senate
http://www.senate.state.ny.us
NY Health Plan Association
http://www.nyhpa.org
Pennsylvania Health Care Cost Containment Council
http://www.phc4.org
Small Business Survival Committee

http.//www.sbsc.org

NYS Department of Financial Services
http://www.dfs.ny.gov

Health Reform Resource

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Hurricane Sandy Recovery Assistance Resources

Hurricane Sandy Recovery Assistance Resources

Hurricane Sandy Recovery Assistance Resources. Department of Small Business Services (SBS) and the New York City Economic Development Corporation (NYCEDC), is coordinating a set of services to assist small businesses in recovering from Hurricane Sandy.

Below is an outline of available programs & relevant contact information:

For small- to mid-sized businesses that have experienced business interruptionHurricane Sandy Recovery Assistance Resources

An emergency loan for businesses will be available, patterned after similar programs deployed in past emergencies. Loans will be capped at $10,000. Please click this link to contact an NYC Business Solutions Account Manager or call 311 and ask for NYC Business Emergency Loan.

Federal Aid Programs for State of New York Disaster Recovery Loans are available up to $2 million for business property losses not fully compensated by insurance, and for small businesses, small agricultural cooperatives and most private, non-profit organizations of all sizes that have suffered disaster-related cash flow problems and need funds for working capital to recover from the disaster. More information can be found at www.DisasterAssistance.gov, or 1-800-621-FEMA (3362). Information from the Federal Small Business Administration on disaster recovery assistance is also available at www.sba.gov. 

For mid- to large-sized businesses that need to undertake rebuilding 

An emergency sales tax letter from New York City Industrial Development Authority (IDA) will be available allowing businesses to avoid payment of New York City and New York State sales taxes on materials purchased for rebuilding. IDA will also waive all fees and, while following State law, look to streamline its normal procedure. This program is expected to offer economic benefits to reconstruction projects costing $500,000 or more. Please contact Shin Mitsugi at smitsugi@nycedc.com for further information on this program.

For any business that is temporarily displaced from its space

Short-term “swing” office space at Brooklyn Army Terminal available free of charge for the next 30 days. NYCEDC has approximately 40,000 square feet of warehouse space at the Terminal that can be used for this purpose. Please click this link to contact an NYC Business Solutions Account Manager or call 311 and ask for NYC Business Solutions.

For any business in need of other emergency assistance

The SBS Business Outreach Team and Emergency Response Unit’s Large Scale Response Team will be deployed after the storm to help all impacted small businesses. This team is currently on-call for any storm-related business inquiries and is closely coordinating with the NYC Office of Emergency Management.  Please click this link to contact an NYC Business Solutions Account Manager or call 311 and ask for NYC Business Solutions.

Federal Aid Programs for Disaster Recovery 

Click here for information from the Federal Small Business Administration on disaster recovery assistance.

State resources

    • State of New Jersey – The state website has a Hurricane Sandy resource center with emergency hotlines, updates from the power companies and how you can volunteer.

If you would like to help those hurt by this storm, here are a few ways:

Visit www.redcross.org, call 1-800-RED CROSS (1-800-733-2767), text the word REDCROSS to 90999 to make a $10 donation, or mail a contribution to a local Red Cross chapter or the American Red Cross, P.O. Box 37243, Washington, D.C. 20013. The Red Cross is providing food and shelter to storm victims.

Visit salvationarmyusa.org, text the word STORM to 80888 to make a $10 donation, confirming the donation with the word, “Yes.” The Salvation Army is providing food and shelter to storm victims.

Visit www.humanesociety.org to support the group’s pet rescue team.

Visit www.redcrossblood.org to find the nearest blood drive site. The Red Cross said more than 360 Red Cross blood drives were canceled due to the storm.

Anti Mandatory Mail Order Victory

Anti Mandatory Mail Order Victory

Anti Mandatory Mail Order Victory

Anti Mandatory Mail Order Victory. A little noticed  NYS Healthcare Law has gone under the radar  amidst  fast changes in Affordable Care Act tumult.   AMMO – Anti-Mandatory Mail Order passed late Dec 2011 effective for groups renewing  after Jan 11, 2012.  A significant signal by Governor Cuomo to stand up to the billion dollar industry no doubt.

According to trade group Pharmacists United for Truth the PBM (pharmaceutical benefits managemnt) claim that mandatory mail order lowers costs proves otherwisee. Plan sponsors are routinely charged far more than retail price in mandatory mail order plans, and their lack of transparency keeps plan sponsors to detecting the unreasonable prices.

After spending a  good part of a day in early March helping a NYS client  faced with mandatory mail order I learned of this change.  For certain medications the insurer limits retail pharmacy coverage.  While the incentivisation of  90 day supply at 2 copays was attractive this has now declined to 2.5 copay.  With few exceptions such as specialty pharmaceuticals retail pharmacists are given the same advantages and evening the playing field.

The National Community Pharmacists Association’s blog post below offers a helpful FAQ.  Additionally with the steady decline of the local independent pharmacist a quality of personalized care has been eroded.  The price paid in patient compliance and safety has received little attention. Independent Pharmacists  have been the canary in the mine for fellow small businesses competing with large copra big box chain stores. At least now NYS is finally listening.

The New York Anti-Mandatory Mail Order Victory and Community Pharmacists Nationwide

By Kevin Schweers

Community pharmacists in New York scored a significant win for their patients, communities and pharmacy choice in late 2011 with the enactment of the Anti-Mandatory Mail Order or AMMO with overwhelming, bipartisan backing. What lessons might the campaign in support of the AMMO law hold for community pharmacists across the country?

To find out, NCPA recently asked one of the legislation’s staunchest supporters and advocates to share his observations on the effort to enact the AMMO law. Craig Burridge, M.S., is Executive Director of the Pharmacists Society of the State of New York (PSSNY). Mr. Burridge credits PSSNY members as most instrumental to enacting AMMO over the fierce opposition of mandatory mail order proponents, principally large pharmacy benefit managers (PBMs). He notes people including Ray Macioci, Charles Catalano, Vinny Chiffy and literally hundreds of pharmacy owners helped win a hard fought battle by gathering tens of thousands of signatures on petitions from their patients and coordinating tens of thousands of phone calls, emails and letters.

What follows is a Q&A with Mr. Burridge, in hopes that his advice would benefit patients and independent community pharmacists in other states advocating for patient choice.

NCPA: When it comes to the forced or mandated use of mail order pharmacies, many of the concerns expressed by patients and the community pharmacists who care for them are not new and have, in fact, been voiced for a number of years. What made 2011 different in New York?

Mr. Burridge: In New York, consumers by the tens of thousands signed petitions at their local pharmacy against mandatory mail order. Patients wrote dozens of letters to the editor of many regional newspapers telling about their horror stories with mail order. Finally, pharmacy owners had had enough of losing their patients to self-dealing PBMs. Tens of thousands of phone calls to the Governor’s Office and to Legislators were made by pharmacy owners, their staffs and their patients in support of passage of the no mandatory mail order bill.

NCPA: One obstacle to ensuring patient choice of pharmacy is the myth of mail order savings. This persists in some minds despite what appears to be rampant mail order waste and studies demonstrating how health plan sponsors that incent or require the use of mail order can end up paying more for drugs. Did you encounter such misperceptions and, if so, what did you do to alter or overcome them?

Mr. Burridge: We did in New York. The PBMs came at us with ads stating that costs would go up and that it was a ‘prescription drug tax’ or that it would ‘prohibit mail order.’ We responded with evidence that exposed the ‘spreads’ being used at mail for generics and the fact that the legislation requires participating pharmacies to agree to the same reimbursement and the same co-pays.

NCPA: The health care benefits of a patient’s face-to-face consultation with a community pharmacist and the preference of most patients for going to a local pharmacy are both well-established. But how did you chronicle and reinforce the economic and tax benefits of buying local when it comes to pharmacies?

Mr. Burridge: According to national data (IMS Health) for 2009, the last year we had data before introducing legislation, 22.8 percent of the national drug spend was for mail order prescriptions. Using New York’s percentage of total drug spend (11 percent), we removed hospital expenditures and Medicaid (which had less than one percent mail order) and came up with a mail order drug spend in NY in access of $5.8 billion annually. New York State has no major mail order facilities so this represents thousands of lost pharmacy jobs.

NCPA: Like PSSNY, NCPA continually stresses to its members the importance of grassroots activism, whether it is at the federal or state levels or with local employers and leaders. Did you find that your memberships became more engaged than usual in 2011 and, if so, what did you do to encourage their further involvement?

Mr. Burridge: It helped to have the PBM industry fly in colleagues from around the country and host their own Lobby Day. They told legislators that New York’s pharmacies could survive on acute medications only. This only caused yet another round of thousands of phone calls from our pharmacists, their staffs and patients. Our grass roots turned into a raging grass fire. Livelihoods were at stake and our opponents showed their hand. They wanted ALL maintenance medications going to their wholly-owned out-of-state mail order facilities. Our legislators saw that too.

NCPA: What surprised you the most about your 2011 campaign against mandatory mail order?

Mr. Burridge: I’ve been doing this too long to be surprised. We expected the worst from our opponents and they did not disappoint us.

NCPA: What were some of your opponents’ most challenging arguments and how did you address them?

Mr. Burridge: That depends if you consider outright lies as a challenge. Their ads said that it was a “Prescription Tax” or, when that flopped, they said our bill “would prohibit mail order.” These were easily swept aside and only upset legislators who felt the PBM industry was accusing them of passing a tax on prescription drugs.

NCPA: Do you have any other words of wisdom that you would like to share with concerned patients or your colleagues in community pharmacy?

Mr. Burridge: Choosing one’s pharmacy should be a basic right. If the playing field is level, it only makes sense to buy local. Watch out for PBMs calling all maintenance medications so-called ‘specialty drugs’ as a way of getting around no mandatory mail order laws. We’ll have a lot more to say on that in the near future.

Is NY Small Biz healthcare ill?

Is NY Small Biz healthcare ill?

In the wake of Empire Blue Cross’s recent major SMB changes the 2 new Crains article below point to the early shake up results.

Tough Decisions on Health Coverage

Insurance Good Luck

Empire’s  Small Group “simplification”  did indeed  cause groups to escape Empire’s rate increases and reduced plan selections.  Additional, not mentioned in the article was that groups are facing plan modifications such as Rx changes switch to % from fixed $ copay and loss of Walgreen/Duane Reades chains.  By being the largest insurer on the block heavy provider negotiations have been de rigieur as evidenced by loss of Westchester Medical Center for 14 months and counting.

Groups have been fortunate to find comparable alternatives despite these changes but we see little public evidence of concern form NYS legislature.  We are not seeing the long term vision to open up markets to strong national insurance competitors.  On the contrary we have deep concerns of allowing  the past 2 non-profits of GHI and HIP merger and latest talks of going for profit.

Lastly, the article makes mention of possible “Health Exchanges” entering the market and lowering rates.   Where is there  evidence  of this decrease?  I’m not seeing why an insurer working in an oligopoly environment with price controls would be motivated to lower rates.  Would Con Ed or Blue Bell lower rates in the 70s because now SMB can shop online??

Empire Leaving Small Group – delayed 1 year

Empire Leaving Small Group – delayed 1 year

In a pleasant surprise, Empire will delay their April 2012 decision to “simplify” small group plans 1 more year from April 2012 to April 2013 instead.  The Nov 4th Empire announcement to leave  the NY Small Group Business was truly shocking after being in business for 75 years and insuring 35% of the  market.

What this means for consumers is that insured members will now breath a sigh of relief and keep their contracted plan at least until their renewal. Evidentially, Empire was allowed to abruptly  do a “hard shut down of  their plans”  for April and not allow a group to complete their 12 month contract.  The negative  consequence would have affected many unfairly as most members today have some kind of annual deductible and/or coinsurance on Rx plans, hospitalizations and surgeries.  Example: a member signs up for a plan Oct 1 and has already met their deductible responsibilities would suddenly  have to now change plans on April 2012. and start all over again.

A point needing further explanation is are they or they not exiting?  Empire is stating that they are not in fact leaving but merely simplifying their offering to 6 plans but this is actually a red herring as the plans offered are not market friendly and allows Empire to stay within the market without having to really exit. Example:  Their HMO monthly rate is $675/single when you can get the same plan from a leading competitor for $465/single.

So why be in the market without actually being in the market?  The state’s regulation would not permit an insurer to re-enter for 3 years.  With Health Care Reform changes in the subsequent years there are variables that may help NYS  such as add’l federal funding.  Additionally, it is an election year and with many unknown Health Care Reform variables still evolving such as Supreme Court hearing on individual mandate by June 2012 –  WSJ Supreme Test for Health Law.

Either way this is welcome news to our existing clients and for the marketplace at large however short term it is.

Happy Holidays!!

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