Morning Briefing
Summaries of health policy coverage from major news organizations
Hospital Sleuths Unearth Surprise: Knee Surgery Bills Are 5 Times Its Cost.
For nearly a decade, Gundersen Health System鈥檚 hospital in La Crosse, Wis., boosted the price of knee-replacement surgery an average of 3% a year. By 2016, the average list price was more than $50,000, including the surgeon and anesthesiologist. Yet even as administrators raised the price, they had no real idea what it cost to perform the surgery鈥攖he most common for hospitals in the U.S. outside of those related to childbirth. ... Prompted by rumblings from Medicare and private insurers over potential changes to payments, Gundersen decided to nail down the numbers. ... The actual cost? $10,550 at most, including the physicians. The list price was five times that amount. (Evans, 8/21)
The number of people joining so-called health-care sharing ministries鈥攔eligion-based cost-sharing plans鈥攔ose 74 percent from 2014 to 2016, according to the latest Internal Revenue Service data. An alliance for the groups said that more than 1 million people now participate in such programs. Similarly, primary-care clinics like the one Julie Gunther started in 2014 have grown to almost 900 from聽just a handful in the early 2000s, according to the Direct Primary Care Coalition, a trade group for the clinics. (Tozzi, 8/22)
Maryland lawmakers say a federal waiver has been approved to hold down consumer costs to Maryland鈥檚 individual market for insurance in the state鈥檚 health care exchange. Sen. Thomas Middleton and Del. Joseline Pena-Melnyk said Tuesday the federal government has approved Maryland鈥檚 plan to create a reinsurance plan. The lawmakers, both Democrats, sponsored legislation for the plan. (Witte, 8/21)
State officials plan to announce Wednesday that the Trump administration has approved a federal waiver that is expected to stave off increases in health insurance costs for more than 200,000 Marylanders. ... The plan imposes a one-year state tax on insurance companies and uses that revenue to subsidize the most expensive health insurance claims from policies sold through Maryland鈥檚 health exchange. By lowering the risk to insurers selling on the individual market, state leaders hope to lower premiums enough to make them affordable next year. (Dresser, 8/21)
Related KHN coverage:聽States Leverage Federal Funds To Help Insurers Lower Premiums (Findlay, 8/15)
Delaware regulators have approved a 3 percent rate increase for the lone insurer offering coverage under the Affordable Care Act in Delaware. Highmark Blue Cross Blue Shield of Delaware initially sought an average rate increase of 5.7 percent for individual plan coverage next year. The request was revised to 3.7 percent because the initial filing erroneously contained a risk adjustment factor. (8/22)