July 15, 2005 Legislation

Insurance

Hospitals

Malpractice

Insurance

Blue Cross has paid a $150,000 fine to California for its overcharging of premiums.  It charged people $12 million too much when it took more than one monthly payment from those with automatic withdrawal.  Blue Cross also paid back all the overpayments plus all bank charges and late fees.  

Although not strictly insurance, the VA system is asking for an additional $2 Billion.  They have a shortfall of almost $300 million in their non-planning.  They want an additional $1.7 Billion for the next budget year.  This continues to be a never ending sinkhole of funds.  The Veterans that are so bravely fighting for us could be better served by mainstreaming them and paying all insurances and meds.     Top

Hospitals

Yakima Washington Regional Medical Center passed a state investigation of charges that its patients were at risk.  The charges were made by a group of ED physicians who had complained to the administration about unsafe practices.  The physicians were then released and replaced by a Texas group. The hospital was cited for not following its own standards, improper documentation, mislabeled radiograph.  The hospital was cleared of a patient care wrongful transfer.  I hope the hospital believes the 15 day inspection and the costs associated with it were worth less than correcting the same mistakes bought up by the fired ED physicians.  This, along with the case under Legal on Antitrust, show what some physicians harmed by the hospital can do.        Top  

Malpractice

Connecticut Governor Rell signed a med mal law into effect that has no caps but has an automatic review of all cases where non economic damages are over $1 million.  The issue will be revisited in three years.

The Wisconsin Supreme Court ruled 4-3 that caps on non economic damages is unconstitutional.  The rationale for the law was ruled too broad and speculative and the law violated the Wisconsin equal protection standards. Last year the same court held that caps on wrongful death cases were OK.  The Wisconsin law had a cap of $350,000 on non economic damages which was indexed for inflation.  I understand the Court stating the caps violating the equal protection clause, if it does, but using the legislative rationale for their rationale is not sensible.  It seems as if the legislature redefines its reasoning, the law will now pass the equal protection clause.  That will not happen unless the makeup of the court changes.   Top  

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DISCLAIMER: Although this article is updated periodically, it reflects the author's point of view at the time of publication. Nothing in this article constitutes legal advice. Readers should consult with their own legal counsel before acting on any of the information presented.