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 July Swelling malpractice rates make hospitals nervous As the malpractice crisis rages through Oregon, hospitals are the latest victim. Faced with escalating premiums — some reaching the $2 million mark — they’re crying out for help. “We really need to get some legislative activity to take a look at this or we’re facing a pretty critical situation. Hospitals may have to discontinue programs; that’s not the way the state has historically dealt with issues,” said Larry Mullins, CEO of Samaritan Health Services. His five- hospital network is looking at rate increases topping $1 million, which could push him over the $2 million mark. Mullins is exploring self-insurance options to avoid the homogenous increases. Arthur Andersen closes its doors With its infrastructure rapidly disintegrating, the consulting firm of Arthur Andersen closed its Portland offices on July 19. However, none of its clients disappeared. They simply moved over to Ernst & Young, with Jim King leading the way. King, a partner with Andersen in charge of health care advisory services, brought along his six-member team. “It fits like a glove,” he said about the new relationship. Until now, Ernst & Young hasn’t had a strong presence in the region. “I’m looking forward to a new dimension in my career.” Opposition cranks up to defeat single payer initiative An army of bulldozers cranked to life when campaign officials for Health Care for All Oregon turned in 98,001 signatures to get a single payer initiative on the fall ballot. Insurance companies and hospitals are expected to spend $17 million to defeat the measure, said campaign manager Dan Issacson. In California, the same opposition outspent advocates by a 3 to 1 margin ($6.9 million to $2.3 million) in 1994 and are still bragging about their successful campaign. Safety net clinics walk away with $1.2 million The carnivorous third special session took meaty chunks out of hundreds of agencies to balance Oregon’s ailing budget. Rep. Greg Smith, (R-Heppner), and Sen. Avel Gordly, (D-Portland), condemned the feasting frenzy's effects on the safety net clinics whose budget got slashed from $2.2 to $1.2 million. “When you consider that it’s the net and there are already so many people who fall through the cracks in the health plans, it’s people who need access who will suffer,” Gordly said. Wave of waivers When Oregon applied for a federal waiver to start the Oregon Health Plan, few predicted it would spark a national firestorm of applications. But as Oregon awaits approval to launch its latest expansion effort, applications are pouring into the feds from every corner of the union. Recently, Arizona, California, Utah and Tennessee were approved for Medicaid waivers to expand coverage to more low income citizens. Meanwhile, Illinois, Michigan, New Mexico, Maine, Minnesota, Delaware, Colorado and Washington have either sent in applications or are drafting proposals. Smith aids Bradbury? Bill Bradbury claims he’s found support in his bid for the U.S. Senate from a most unlikely source — his opponent. “I think Gordon Smith is helping,” he said. By pushing away Oregonians with his stances on health care — notably aligning himself with John Ashcroft in a failed attempt to overturn Oregon’s death with dignity law — Smith has steered Oregonians into the Bradbury camp. But despite his rosy interpretation of Smith’s positions, he’d be best served by a fat check from the better funded Smith campaign. For that, Bradbury better not hold his breath. In a race where he could be outspent as much as 4-to-1 by the popular incumbent, the fact that Bradbury is attracting the advertising ire of the national Republican party is a tribute to a candidate many Democrats considered second choice to Kitzhaber. An animated Bradbury recently took time to talk to OHF Associate Editor Rory Carroll about abortion in the military, “untouchable” pharmaceutical companies and taking the work of the Health Resources Commission national. OHF: How much does the abortion issue weigh on this campaign? BB: We’ve shown over and over that Oregonians are very supportive of a woman’s right to make her own reproductive decisions. Gordon is exactly the opposite. He won’t even allow our brave women serving in the military to get an abortion they pay for at an American military hospital. Instead he said to people who are defending our rights at home, ‘No, you’re serving in the military, so you have less rights. Go out into Istanbul and find your health care because you can’t buy it at a military hospital.’ Stalwart HMOs immune to layoffs A blizzard of pink slips in the first quarter dropped Oregon’s HMO membership by 15 percent, but each of the six Oregon HMOs still celebrated a significant increase in their net worth. Regence HMO Oregon rocketed from a net worth of $79 million to over $116 million. Kaiser Permanente wins the gold star for the quarter for recording the only positive growth in membership with 7,913 new members in addition to its $18.8 million jump in net admitted assets. Both Health Net and Providence Health Plans overcame considerable amounts of red ink to post positive levels of net income. Overall, net admitted assets for the six carriers dropped by 4.4 percent as only Regence Health Maintenance of Oregon and Kaiser Permanente posted positive gains. Only Health Net and Kaiser Permanente spent more on their medical and hospital expenses than the first quarter of 2001. CIGNA holds up checks The Oregon Medical Association is back on the attack against delinquent insurance companies that have fallen more than 30 days behind in writing a check. Since January, it’s filed 174 complaints with the Insurance Division. CIGNA, by far, outpaced its competitors, with 51 complaints, followed by PacifiCare, which had 34 and United Health Care with 16 — during the first seven months of 2002. Interestingly, all three are for-profit insurance companies headquartered outside Oregon’s borders. External review granted for some Consumer advocates threw a subdued celebration following the July 1 enactment of an Oregon law that requires insurance companies to pay for an independent second opinion. But the lights aren’t shining on everyone. A significant number of people, covered by self-insured health plans, won’t benefit until Congress gives them the same rights. It’s time for Congress to wake up, said Jim Davis, who chairs the Campaign for Patient Rights. “It shows there’s a real movement on the state level by patient advocates in that direction. Nationwide people are strongly supporting this.” Nationally, 60 million people belong to self-insured health plans that fall under the federal Employee Retirement Income Security Act (ERISA) of 1974. ERISA mandates internal review but does not establish a binding independent external review process. MHOs keep money tucked away Before legislators stormed out of the state capitol for the third time this year, they inserted a budget note that has caught the eye of mental health officials. After discovering Coos County had slightly over $6.5 million in a reserve account, amassed since 1995, legislators turned up the heat. “I’m interested in finding out the facts,” said Sen. Ken Messerle, R-Coos Bay. “Let’s find out what we’re dealing with here. I want to get services to the people, to make sure the money is getting to the ground.” Also in this issue...
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