April 1, 2004 Legislation

Malpractice

Appointment

Specialty Hospitals

Pay or Play

Medicaid

Stark Law 

Fetus Protection

Malpractice

The New Jersey Assembly has passed a bill by only the Democrats to raise money for helping physicians especially in the high risk area pay for insurance.  The $90 million would be raised by a $50 licensing fee on each physician and attorney as well as $3 tax on employers for each employees.  The tax supposedly is for three years.  No Republican voted for the bill.

The same Assembly passed by a 78-0 vote a bill to mandate reporting of medical errors and to prohibit the hospital reporting of medical errors to be used in court.  This may also fix the state's problem with JCAHO reporting. 

The Pennsylvania Senate has passed a state constitutional amendment for malpractice non-economical caps.  The bill now goes to the House.  The bill does not state the cap but allows the Assembly to fix a cap.  

The New Hampshire House has passed a bill to require a screening panel of a judge, lawyer and physician to review med mal cases.  If the plaintiff lost unanimously the verdict could be withheld from the jury.  If the plaintiff lost at trial, they would be liable for all costs.  If the plaintiff allowed the negative panel's decision to be introduced, they would not be liable for the costs of the trial if they lost.  

The Arizona malpractice reform bill is now law.  The Governor has signed a law requiring an expert to certify there has been malpractice prior to any action being filed.          Top

Appointment

Governor Schwarzenegger of California has appointed the division manager of self-funded health plans for CalPERS as the director of the Department of Managed Health Care.  The appointee is a Democrat Lucinda Ann Ehnes and the salary is $123,255. She had previously be hired by the past head of the department.       Top

Specialty Hospitals

CMS has issued the guidance for the  specialty hospital moratorium.  This is in effect until June 8, 2005.  The order applies to hospitals that are primarily or exclusively cardiac or orthopedic conditions, patients receiving surgical procedures or any thing else the CMS may designate.  Those hospitals that are specifically exempted are psychiatric, rehab, children's, long term care, and those hospitals not paid under the inpatient hospital prospective payment system.  Those hospitals that were in operation or under development prior to November 18, 2003.  The CMS will look at each individually to see if they had plans, funding, zoning and approvals.  Of course this only holds true for those hospitals who want to bill Medicare or Medicaid.        Top 

Pay or Play

In California there are enough signatures to place a Proposition on the November Ballot to throw out the recently passed SB2.  This is the bill that requires almost all California business to either provide healthcare insurance for their employees or pay into a fund which will provide the insurance.  This anti-business law was passed and signed into law by the Democratic legislature and the now ex-Governor Davis.  One of the mainstays of the law is the California Medical Association even though several of their largest subordinate organizations have voted to ask the CMA to change their backing.  The People will now decide if they want the anti-business law but pro health care law to stand.        Top

Medicaid

The Massachusetts House voted to halt the state's attempted recovery of Medicaid cost from the estates of deceased Medicaid recipients.  This was an override of the Governor's veto.  The Governor wanted the state to be able to reach the assets co-owned with others and not just those owned by the deceased.  The families that were targeted wee those of the patients over 55 who were permanently institutionalized.  The Senate is expected to follow the House's lead.        Top

Stark Law 

Stark II has been released.  It mirrors what has already been known.  The eleven designated health services remained almost the same with nuclear medicine being removed from the list. The new release will permit set in advance compensation percentage arrangements. Physicians may now be paid productivity percentage bonuses but not on ancillary tests. Other changes are the exemption of consultations under the strict rules of consultation.  Hospitals may now give professional discounts to their medical staff providing they give it to all the members and not just those who refer the most to the hospital.  It also mentions the new 18 month moratorium on physician Medicare referrals to specialty hospitals that are not exempt.   The law will go into effect July 24, 2004.  More on this as the over 500 page report is digested.        Top

Fetus Protection

Both Houses of the legislature have passed a Fetus Protection Bill and this is expected to be signed by President Bush.  It is modeled after the California law that makes it a separate crime to harm a fetus during an assault on a pregnant mother.  This only applies to federal crimes and not state crimes.  Abortion is specifically omitted from the law.  I have not read whether the perp must have known the woman was pregnant to be charged under this new law.        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.