Kaiser Health News
PBM Math: Big Chains Are Paid $23.55 To Fill a Blood Pressure Rx. Small Drugstores? $1.51.
SUMMARY: In Cuthbert, Georgia, Adams Family Pharmacy co-owner Nikki Bryant offers coffee and baked goods to supplement income, struggling against pharmacy benefit managers (PBMs) that drive up drug costs and complicate access to medications. Despite hopes for state legislation to align reimbursements with chain pharmacies, Governor Kemp vetoed it, citing significant costs. The FTC recently sued major PBMs for manipulating drug prices, which threatens independent pharmacies. Critics argue that PBMs exploit pricing spread, harming local pharmacies like Bryant’s, which daily faces competition with large chains amidst financial pressures. The situation exemplifies ongoing challenges for independent pharmacies nationwide.
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Kaiser Health News
In Settling Fraud Case, New York Medicare Advantage Insurer, CEO Will Pay up to $100M
SUMMARY: Independent Health Association of Buffalo and Betsy Gaffney, CEO of medical analytics firm DxID, have agreed to a settlement of up to $100 million to resolve Justice Department allegations of fraudulent Medicare billing for exaggerated or non-existent health conditions. Independent Health will pay up to $98 million, while Gaffney will contribute $2 million. Neither party admitted wrongdoing. The case was triggered by whistleblower Teresa Ross, highlighting issues of “upcoding” in Medicare Advantage plans. Ross, having faced repercussions for her allegations, will receive at least $8.2 million from the settlement. This case underscores the challenges of regulating billing practices in the Medicare system.
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Kaiser Health News
Employers Press Congress To Cement Health Price Transparency Before Trump’s Return
SUMMARY: Despite regulations requiring hospitals and insurers to disclose negotiated prices for healthcare services, the impact on consumer costs remains unclear nearly four years later. While the Trump administration’s initial rules and Biden’s enhancements aimed to streamline this data, compliance is inconsistent; a 2022 audit found only 63 out of 100 hospitals met requirements. Some lawmakers proposed legislation to protect these regulations amid uncertainty about Trump’s potential return to office, but efforts fell short. Experts note the complexity of the data often leaves consumers struggling to understand their actual costs, emphasizing the need for improved transparency and enforcement to facilitate informed healthcare choices.
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Kaiser Health News
He Went in for a Colonoscopy. The Hospital Charged $19,000 for Two.
SUMMARY: Tom Contos, a 45-year-old runner, sought a colonoscopy due to ongoing rectal bleeding. His insurance covered part of the procedure, but he was shocked by the final bill of $19,206, which included charges for two colonoscopies. Despite an initial estimate of $7,203, the charges were much higher due to multiple procedures and biopsies. Contos appealed the charges, but Northwestern Medicine maintained that the billing was correct. Health experts suggest patients consider alternatives like ambulatory surgery centers for lower costs. Transparency and clear pricing are key to avoiding unexpected medical expenses.
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