shari

Cigna lawsuit over algorithm allegations could be first of many

Cigna lawsuit over algorithm allegations could be first of many

July 25, 2023

NONA TEPPER

Two Cigna members filed a lawsuit seeking class-action status in a California federal court on Monday, alleging the health insurance company leveraged an algorithm to improperly deny claims and systematically shift costs to its 2.1 million Golden State members. Lawyers anticipate more insurers will be hit with similar complaints as carriers increasingly automate their claims management processes.

Enrollees Suzanne Kisting-Leung and Ayesha Smiley sued Cigna in the U.S. District Court for the Eastern District of California, alleging the company used an algorithm called PXDX to review patient claims, which violated its fiduciary duty dictated by state law.

Healthcare industry reacts to affirmative action ruling

Healthcare industry reacts to affirmative action ruling

June 29, 2023

KARA HARTNETT 

The Supreme Court ruling that higher education institutions may not consider race when making admission decisions could have far-reaching consequences for the healthcare industry.

The ruling issued Thursday applies to public and private schools that receive federal funding and culminates legal challenges to the admissions polices at the University of North Carolina and Harvard University. In 2014, applicants sued the colleges, arguing that applying affirmative action to admissions unfairly diminished their chances of being accepted. The Supreme Court’s conservative majority ruled 6-3 in their favor.

Healthcare costs to grow 7% next year: PwC

Healthcare costs to grow 7% next year: PwC

June 29, 2023

ALEX KACIK  

Healthcare costs are expected to rise 7% next year as providers deal with higher expenses and seek rate increases during contract negotiations with insurers.

The projection by PricewaterhouseCoopers’ Health Research Institute tops the consultancy’s estimates in 2022 and 2023, which were 5.5% and 6%, respectively.

For their annual report, PwC researchers spoke with actuaries who work with insurers covering 100 million employer-sponsored members and 10 million Affordable Care Act members to forecast healthcare inflation. The results were weighted by each health plan’s size.

DOJ announces charges in massive healthcare fraud crackdown

DOJ announces charges in massive healthcare fraud crackdown

June 28, 2023

Associated Press

WASHINGTON — The Justice Department has charged dozens of people in several healthcare fraud and prescription drug schemes, including one totaling $1.9 billion and a doctor accused of ordering fake ankle braces for a patient whose leg had been amputated, officials said Wednesday.

The scheme involving the submission of nearly $2 billion in bogus claims is one of the largest healthcare fraud cases ever brought by the Justice Department, the agency said. It’s one of several announced as part of a crackdown in states around the country.

Snooping in Medical Records by Hospital Security Guards Leads to $240,000 HIPAA Settlement

Snooping in Medical Records by Hospital Security Guards Leads to $240,000 HIPAA Settlement

Yakima Valley Memorial Hospital in Washington settles breach that affected 419 people

 

June 15, 2023

 

Today, the U.S. Department of Health and Human Services’ Office for Civil Rights (OCR) announced a settlement with Yakima Valley Memorial Hospital, a not-for-profit community hospital located in Yakima, Washington resolving an investigation under the Health Insurance Portability and Accountability Act of 1996 (HIPAA).  OCR investigated allegations that several security guards from Yakima Valley Memorial Hospital impermissibly accessed the medical records of 419 individuals.  HIPAA is a federal law that protects the privacy and security of protected health information.  The HIPAA Privacy, Security, and Breach Notification Rules apply to most health care organizations and set the requirements that HIPAA-regulated entities must follow to protect the privacy and security of health information.

U.S. health spending projected to exceed $7T in 2031

U.S. health spending projected to exceed $7T in 2031

June 14, 2023

VICTORIA TURNER 

National health expenditures will surpass $7 trillion and consume nearly one-fifth of the U.S. economy in 2031, according to projections the Centers for Medicare and Medicaid Services’ Office of the Actuary published Wednesday.

Healthcare spending will rise by an average of 5.4% a year from 2022 through 2031, when it will reach $7.17 trillion, or 19.6% of gross domestic product. “Health spending over the course of the next 10 years is expected to grow more rapidly, on average, than the overall economy,” CMS actuaries wrote in the journal Health Affairs.

Supreme Court rules Medicaid enrollees can sue states

Supreme Court rules Medicaid enrollees can sue states

June 08, 2023

NONA TEPPER 

Medicaid beneficiaries have the right to sue state agencies they allege break federal law, the Supreme Court ruled Thursday.

The 7-2 decision reaffirms previous precedent that U.S. District Court for the Northern District of Indiana challenged in 2020 when it dismissed a case against a county-owned nursing home accused of violating federal patient protection laws. The high court decision upholds a 2021 ruling by the U.S. Court of Appeals for the 7th Circuit. The case now returns to the district court.

U.S. debt default could endanger provider payments

U.S. debt default could endanger provider payments

May 24, 2023

CAROLINE HUDSON 

Hospitals and health systems hope for a resolution to the federal government’s debt ceiling standoff, warning that a failure to reach an agreement could have a catastrophic impact on provider payments.

Republicans and Democrats continue to haggle over a deal to raise the $31.4 trillion national debt limit and keep the U.S. from defaulting on its agreements, potentially in early June.