Morning Briefing
Summaries of health policy coverage from major news organizations
Lucrative Commissions For Insurance Brokers Seem Like Normal Business Practices--Until You Realize Who Ultimately Pays For Them
The pitches to the health insurance brokers are tantalizing. 鈥淪et sail for Bermuda,鈥 says insurance giant Cigna, offering top-selling brokers five days at one of the island鈥檚 luxury resorts. Health Net of California鈥檚 pitch is not subtle: A smiling woman in a business suit rides a giant $100 bill like it鈥檚 a surfboard. 鈥淪ell more, enroll more, get paid more!鈥 In some cases, its ad says, a broker can 鈥減ower up鈥 the bonus to $150,000 per employer group. (Allen, 2/20)
Health care prices are garnering attention again, and for good reason. America spends more on health than any country and generally doesn't get better outcomes. In Dallas-Fort Worth, health spending is among the highest anywhere. In January, hospitals were required to start posting their list prices. While a positive step, the numbers don't re铿俥ct negotiated rates with insurers or deductibles and other cost-sharing. (Schnurman and Joseph, 2/19)
It was hailed as a new and innovative model for doctor-owned hospitals, but the Forest Park Medical Center miracle ended in bankruptcy and federal fraud indictments. The once-successful Dallas-based hospital chain that earned tens of millions of dollars from specialty surgeries is now linked in federal court documents to numerous allegations of criminality, involving multiple hospitals, physicians, pharmacies and medical businesses. (Krause, 2/19)
Mayo Clinic鈥檚 operating income held steady in 2018 despite higher expenses with the switch to a new computer system for electronic health records at its largest medical centers. The Rochester-based clinic released 2018 financial results on Tuesday that featured operating income of $706 million, comparable to the 2017 earnings, on $12.6 billion in revenue. (Snowbeck, 2/19)
Catholic Health Initiatives was hit by the sharp year-end downturn in the stock market in 2018, posting a bottom line loss of $424.3 million, a $627 million swing from the year-earlier quarterly profit of $203.6 million. CHI, which just merged with Dignity Health to form CommonSpirit Health based in Chicago, posted a non-operating loss of $362.8 million driven by $331 million in investment losses and $29.8 million in losses tied to interest rate swap agreements, according to the system's fiscal second-quarter earnings report. (Barr, 2/19)
Health insurance plans are required to cover pregnancy and childbirth to a certain extent. But families can easily rack up thousands of dollars in medical bills for extra ultrasounds, tests, and procedures that aren鈥檛 covered in full by their plan. Similarly, the procedure Collier had after her miscarriage, a dilation and curettage (D&C), was covered by insurance 鈥 but not entirely. (Grantz, 2/19)