April 6, 2009

IN THIS ISSUE

Editor's Column: Why We Need Government
In My Opinion: Health Care: Philosophy Versus Policy
Task Force Against Violence Open House April 13
Fifth Annual James C. Hazlett, Jr. Memorial Golf Outing
Health Authority Organizes Free Sports Physicals, Well Child Care
Cigna Claims Crunch Begins April 20
WellPoint Targeted In Physician Class Action Lawsuit
AMA to Senate: Make Health Insurer Payments More Transparent


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Editor's Column: Why We Need Government

(Editor's Note: The last three items in this newsletter relate somewhat directly to the points raised in this column and evidence what appears to be a growing problem.)

By JOSEPH WEISS, MDLikely most physicians are aware of the lawsuit filed in January by the New York State Attorney General against United Health Care and its subsidiary Ingenix. The basis of the suit was that United Health Care had set up Ingenix as a front to create an artificially low data base of customary medical fees. The purpose of the rigged data was to underpay doctors and force higher bills on patients who went to out-of -network physicians.

This rigged system existed for years until the New York Attorney General, following the complaints of New York state residents, found that Ingenix set an out-of-network physician visit as averaging $67. Patients in United Health Care, or other insurers such as Aetna who used Ingenix, were told that the insurance companies would pay 70 percent ($48) but the rest of the bill was the patient’s responsibility. The New York Attorney General’s investigation found that $150 was the true average out-of-network fee, and that patients insured by United Health, and Aetna should have received $105, and paid out-of-pocket only $45. Until the New York State Attorney General stepped in, patients received only $48 and paid $102 out-of-pocket. A by-product of the Ingenix scheme was that out-of-network physicians were made to look greedy as their $150 charge seemed unreasonable compared to the $67 that Ingenix reported as the usual and customary fee.

In the settlement of the Ingenix case, United Health paid a fine of $350 million, and Aetna is in court trying to avoid a similar fine for acting in collusion with United Health Care in establishing the bogus pricing.

The Ingenix case illustrates one role of government in health care: to act as an opposing force to excesses in the marketplace. United Health Care’s scheme was exposed only because of a government investigation and stopped because of government intervention. Government stepped in to restore a fair marketplace.  

Few would argue that government alone, without a marketplace, creates an ineffectual economy. However, those who call for an end to government in health care need to tell us who else will prevent and correct corruption in the marketplace.       

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In My Opinion: Health Care: Philosophy Versus Policy

By ALLAN DOBZYNIAK, MD
What is the difference between controlling human (physician) behavior by central edict or controlling human (physician) behavior by economic disincentives? Either way, physicians have lost their freedom and free markets have been ravaged. Physicians can no longer function except by accommodation with government.

The claim is that these decisions pertaining to government-managed, universal health care are made because they are moral and produce the greatest good for the greatest number. I am unaware of the issuance of a patent on morality or that its definition has yet to be fixed in stone. We can only hope the decisions are not driven by utopianism and idealism that is really a wacko visionary plan for the betterment of mankind. A presumption of moral superiority eliminates boundaries in what will not be done in pursuit of “good.” Sometimes the questions are more important than the answers, or we risk being manipulated as we are marched through a labyrinth of deception.

Let us hope that freedom will not become an enshrined illusion. If I remember my history, such systems have only been vivid examples of past failures.

Remember, it can’t be ordered if it is not on the menu.

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Task Force Against Violence Open House April 13

Wayne County Task Force Against Violence Open House
April 13 - Noon-2 p.m.
Lunch Provided

WCMSSM Headquarters
New Center One Building
3031 W. Grand Blvd., Suite 645
Detroit, MI 48202

Please RSVP by April 10, 2009
Peggy Mitchell
(313) 874-1360 ext 10
pmitchell@msms.org

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Fifth Annual James C. Hazlett, Jr. Memorial Golf Outing

Spots are filling up! Register online @
http://www.golfdigestplanner.com/11468-HazlettMemorialGolfOuting 
Payment and registration can also be dropped off at Student Affairs

The 5th Annual James C. Hazlett, Jr.
Memorial Golf Outing


Bringing together students, faculty, alumni, and friends
of Wayne State University School of Medicine

Saturday, May 2, 2009

Twin Lakes Golf and Swim Club
455 Twin Lakes Drive
Oakland Township, MI 48363


Come out for the awesome golf, tasty dinner buffet,
and prizes - including Winning Team, Longest Drive,
Closest to the Pin, and tons of raffle giveaways!!!


Proceeds help to support the James C. Hazlett Jr. Medical Student Scholarship fund, graduation expenses for senior classmen, and the philanthropic student organizations of Wayne State University School of Medicine who actively volunteer in the Metropolitan Detroit community.

An associate professor of anatomy and cell biology, Dr. James Hazlett, Jr. joined the WSU faculty in 1980, and was instrumental in the design and implementation of the medical school curriculum. He served as course director for medical neuroscience and gross anatomy - two critically important comprehensive areas that are required of all medical students. In addition, he taught human body dissection, anatomy, neuropharmacology and neuroanatomy in the School of Medicine. In 2001, he was named assistant dean after serving many years on the Admission and Curriculum Committees, which then allowed him to play a critical role in the development of the Year I and II medical doctorate programs.

The James C. Hazlett Jr. Memorial Scholarship Fund and Annual Golf Outing were established in honor of Dr. Hazlett's deep commitment to medical education and student success after his death on February 22, 2005. For more information or to donate to the fund, please contact Terri Larrew at 313-577-8311.

 

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Health Authority Organizes Free Sports Physicals, Well Child Care

April 13-17, 2009 8 a.m. to  2:30 p.m.

Northwestern High School—School Based Health Center  Room A- 300

2200 W. Grand Boulevard

Detroit, Michigan  48202

To Schedule an Appointment Call  (313) 596 0700 x388

Walk-in’s are Welcome

Editor's Note: The following is a letter from Detroit Wayne County Health Authority CEO Chris Allen.

This collaborative effort will support the athletic programs of ThinkDetroit PAL and other school and community based sports programs.  In addition to the free physical, the first 100 youth each day will receive sports backpacks, all youths will be able to attend workshops on nutrition and chronic diseases such as asthma and diabetes, as well as have a chance to take advantage of an array of fun filled activities.

For uninsured and underinsured participants, the Health Authority staff and volunteers will facilitate Medicaid enrollment through information, screening and application assistance.  As many as one in seven adolescents have no health insurance.  One in three low income adolescents are not covered by Medicaid.  More importantly private insurance coverage of adolescents is increasingly restrictive.  The book Great Transitions: Preparing Adolescents for a New Century recommends expanding school-linked health services.   This is one of the reasons the Health Authority will continue to offer support to one of our most valued safety net partners, school based health centers.

During these difficult economic times, it is more important than ever that the Health Authority take a leadership role in ensuring access to health care.   As part of the Health Authority’s Team, we ask you to help “get the word out” about this important event.   The co-sponsors of this event are the southeastern Michigan Medicaid Health Plans:  Health Plan of Michigan, Midwest Health Plan, Molina Healthcare, Great Lakes Health Plan, Omni Care, and Pro Care Health Plan. 

I hope we can count on you!

Sincerely,

Chris Allen
Executive Director and CEO

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Cigna Claims Crunch Begins April 20

It has come the attention of the Detroit Medical News that the major insurer Cigna will begin requesting documentation with certain claims as part of a new software application called "Claim Check 8.5 Knowledge Base Version 42.

The information comes to DMN though Christie Dando, who chairs the Communications Committee for the Michigan Medical Group Management Association.

She stated in an e-mail: "For all claims on or after April 20th, Cigna will start requesting office notes for any claims that have modifier 25 attached on an E/M visit or modifier 59 attached to a procedure.  According to the information we received, Cigna will allow an E/M visit to be billed in addition to a procedure, but they will require 'supporting documentation' before they pay for the E/M visit appended with modifier 25.

"Worse yet, any claims billed with modifier 59 will also require supporting documentation before that procedure is paid.

"This appears to be another way for a payer to delay payments to providers. Being required to send manual claims with office notes and/or op notes attached will delay speedy payment by months and put an undue burden on our billing staff."

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WellPoint Targeted In Physician Class Action Lawsuit

In an expansion of its ongoing effort to expose and prohibit an industrywide health insurance scheme to defraud patients and physicians of proper reimbursement, the AMA announced March 25 it is among several medical societies that filed a class action lawsuit against WellPoint Inc., the largest health insurer in the United States.

The lawsuit, filed in Los Angeles federal court, alleges that WellPoint colluded with others to underpay physicians for out-of-network medical services, resulting in patients paying an excessive portion of the medical bill. The AMA filed similar class action lawsuits last month against Aetna Health Inc. and Cigna.

“Physicians will not tolerate an apparent conspiracy that allows health insurers to play by their own rules without regard to patients, or the legitimate costs required to care for them,” said AMA President Nancy H. Nielsen, MD, PhD.

The Litigation Center of the AMA and State Medical Societies is supporting the WellPoint lawsuit in partnership with the California Medical Association, the Connecticut State Medical Society, the Medical Association of Georgia and the North Carolina Medical Society.

Visit http://www.ama-assn.org/ama/pub/news-events/news-events/class-action-wellpoint.shtml to read more from Dr. Nielsen.

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AMA To Senate: Make Health Insurer Payments More Transparent

The AMA testified today to the U.S. Senate Committee on Commerce, Science and Transportation on the need for increased insurer payment transparency. Congress can help restore reasonable compensation for the patients and physicians who were shortchanged by insurers and promote fair and accurate payments going forward. This follows recent legal settlements with insurers for underpayment of out-of-network care.

“We encourage Congress to pursue increased transparency of all health insurer payments to improve efficiencies and savings throughout the health system,” said AMA President Nancy H. Nielsen, MD, PhD. “Making the insurance payment system more transparent will help keep the patient-physician relationship intact, as it can be threatened if patients perceive that their physician is overcharging for services when in reality the insurer is underpaying.”

Visit http://www.ama-assn.org/ama/pub/news-events/news-events/health-insurer-payments.shtml to read more about the AMA’s testimony.

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