State News

The federal government has approved Florida’s Medicaid waiver, giving the state authority to use out-of-state providers and hospitals to treat Medicaid patients and ensure that they qualify for reimbursement, according to Health News Florida. The providers and hospitals must either be Medicare providers or part of another state’s Medicaid network of providers to be eligible for reimbursement from Florida’s Medicaid program.

An arrangement between UK HealthCare and the Kentucky Department of Revenue has come under scrutiny amidst reports that patients with unpaid medical bills are falling prey to predatory debt collection practices, according to WFPL. The Department of Revenue uses a number of methods to collect payment for UK HealthCare patients’ outstanding medical bills that private bill collectors are unable to use without a court order. Strategies include seizing state tax refunds, confiscating lottery winnings and garnishing paychecks. Additionally, the Department of Revenue adds a 25 percent collection fee to the original balance that patients are required to pay, as well as interest ranging from 5-7 percent. State data show that interest payments alone have added $4 million to the commonwealth’s general fund since 2009.

At least three states are reopening their health insurance exchanges amid the coronavirus outbreak in an effort to boost coverage and expand treatment for the uninsured, reports Roll Call. Maryland, Massachusetts and Washington state all announced special enrollment periods for uninsured individuals this week as the outbreak worsens and governors declare emergencies. Twelve states and the District of Columbia operate their own health insurance exchanges, which give local leaders the authority to reopen enrollment on their own in the face of an emergency like the coronavirus. 

VCU Health is halting seizure of patients’ wages and removing thousands of liens against patients’ homes, some dating to the 1990s, according to Kaiser Health News. The moves follow an investigation last year by Kaiser Health News that found VCU Health and Virginia’s other major teaching-hospital system, UVA Health, pursued tens of thousands of patients over the years for overdue bills, sending many into bankruptcy. Liens often reached thousands of dollars and Virginia allows creditors to garnish up to 25 percent of a patient’s earnings.

California is joining several states in scrutinizing alternative health plans, programs that provide limited coverage and are not required to offer many of the protections provided by Affordable Care Act (ACA)-compliant plans, according to the New York Times. State officials ordered a major Christian group to stop offering the arrangement, which pools members’ contributions to cover their medical expenses, because they are not required to meet standards for traditional insurance plans.

Michigan’s proposed budget contains $5 million in funding to create a five-employee office to transform how the state pays for healthcare through Medicaid, according to Modern Healthcare. The ultimate goal of the Medicaid transformation office in the Department of Health and Human Services is to come up with a variety of new or enhanced "value-based" reimbursement systems for health plans, hospitals, physicians, nursing homes and home and community-based providers. The office would evaluate best practices in other states, develop programs and offer recommendations.

Arizona’s Supreme Court unanimously ruled that hospitals accepting payment from the state’s Medicaid program cannot try to collect additional payment by going after money owed to the patient, reports the Arizona Capitol Times. Specifically, the justices voided sections of state law that have allowed hospitals to impose financial liens on people who owed money to the hospital when Medicaid payments were lower than billed charges. This included a situation where a patient was in an automobile accident and the hospital attempted to collect money from the driver of the other vehicle.

Pickens County Medical Center is the most recent rural hospital to close in Alabama, reports WSFA12 News. Alabama Hospital Association Executive Vice PResident Danne Howard said more closures are possible, as this last closure becomes the 17th privately-run hospital to close in the state over the last decade. Howard said one of the most significant factors to hospital closures is the number of uninsured patients - hospitals are picking up the tab without receiving full compensation for caring for those without insurance.  

The Governor of New Mexico signed four significant public health bills designed to reduce the high cost of prescription drugs and develop more affordable healthcare insurance options, the office reported in a press release. Of note is House Bill 292, which caps co-pays and out-of-pocket expenses for insulin at $25 per prescription for a 30-day supply – making them the lowest in the country. Also, House Bill 100 empowers beWellnm, the New Mexico health insurance exchange, to operate as a fully state-based exchange meeting the needs of families seeking health insurance coverage in New Mexico and promoting access to more affordable, higher-quality insurance plans.