05/11/2010 – 6 Important Healthcare Updates - provided by United HealthCare.
Health Care Modernization News update provided by United Health Care.
1. Coverage for Recent College Graduates:
UnitedHealthcare is the first company in the health sector to announce that it would extend insurance coverage to graduating seniors currently on their parents’ policies but whose coverage would end once they graduate and before the new health reform law requiring dependent coverage up to age 26 goes into effect in September. The U.S. Department of Health and Human Services (HHS) praised the move and Senator Baucus (D-MT), Chairman of the Senate Finance Committee called the decision “the right one ,” emphasizing that UnitedHealthcare “set the right example” by extending coverage to new graduates.
Next Steps – Communications to Employers on Program: On April 19 we announced that we will work with customers that wish to extend the health coverage that graduating college students currently have under their parents’ plans. As a result, we are mailing letters beginning May 5 to all fully insured customers regarding our graduate coverage initiative. The mailing includes a letter, customer notice, opt-out form, and frequently asked questions. Fully insured customers who do not wish to participate in this program complete a form and send it back. While no formal communications are being mailed to self insured customers, those who wish to participate are asked to contact their UnitedHealthcare representative and complete a form to participate.
2. An Immediate End to Rescissions:
UnitedHealthcare also moved quickly to end the limited use of rescissions, except in cases of fraud or intentional misrepresentation of material fact, well ahead of the September implementation date.
3. A New Approach to Diabetes:
As part of its continuing fight against chronic disease, UnitedHealth Group launched a landmark initiative aimed at fighting diabetes which the New York Times described as a possible “glimpse of the future of health insurance.”
According to the Centers for Disease Control and Prevention, diabetes costs the United States an estimated $174 billion in 2007. By launching a first-of-its-kind diabetes prevention model, the Diabetes Prevention and Control Alliance , UnitedHealth Group is using its national presence and broad capabilities in technology, health data and evidence-based medicine to fight an epidemic that threatens lives and health resources.
4. New Study Highlights Billions in Savings Through Medicaid Modernization:
A new working paper released by UnitedHealth’s Center for Health Reform & Modernization focuses on modernizing Medicaid, identifying $366 billion that states and the federal government could save over the next decade through three broad areas of Medicaid modernization:
• Wider use of coordinated care techniques to improve access to high quality care for low-income Americans.
• Greater use of managed care to support people with long-term care needs.
• Streamlining Medicaid’s administrative and transactional processes.
If these proven approaches are implemented across the Medicaid system, it is estimated that states’ share of potential savings could be as high as $146 billion over ten years.
5. CMS Chief Actuary: Health Spending to Increase Under Reform Law:
A new report issued by the Centers for Medicare & Medicaid Services Office of the Actuary predicts that the total federal cost of new health reform legislation will be about $828 billion during fiscal years 2010 through 2019.
The report said that the new demand for health services could result in price increases and cost-shifting with new fees and excise taxes likely to be passed on to consumers in the form of higher drug and device prices and higher premiums.
By 2019, an additional 34 million Americans are expected to gain health insurance coverage, with about 23 million remaining uninsured. Eighteen million of the projected uninsured group will likely be those individuals who choose not to purchase insurance and instead pay a penalty. The remaining five million uninsured would be undocumented aliens.
6. Deadline Arrives for States on High-Risk Pools:
Responding to an HHS request, thirteen states chose not to partner with the agency to establish or expand high-risk insurance pools mandated under the new health reform law, one state chose to administer the benefit on behalf of the federal government, one asked for more time to decide, and the remaining states elected to contract with HHS, according to America’s Health Insurance Plans. States were asked to respond to the HHS request by April 30. The new pools, which will provide coverage to uninsured people with pre-existing conditions, must be up and running by June 21. The pools will be established with $5 billion in federal funds.
An HHS spokesperson said the agency was pleased by the response and looked forward to working with the states, calling the Affordable Care Act a “state-friendly law that is designed to give states the resources and flexibility they need” to implement the reform provisions. Many states that opted out of the program expressed concern that they would be responsible for the additional costs associated with the pools once initial federal funding for the program was depleted.