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Morning Briefing

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Thursday, Aug 15 2024

Full Issue

Employers Are Suing Aetna After Price Transparency Policies Show True Costs

As employers are gaining insight into insurers' management via new price transparency policies, it's triggering a wave a lawsuits from employers "plagued" by soaring health care spending, Modern Healthcare reports. In other industry news; Allstate, Elevance Health, AdventHealth, and more.

Employers plagued by escalating healthcare spending are suing the health insurance companies that manage their benefits in a trend that could disrupt the group health plan market. A recent spate of policies has given employers greater insights into how insurers acting as third-party administrators manage their self-funded health plans. Several large businesses are using this information to support lawsuits alleging CVS Health subsidiary Aetna is not fulfilling its fiduciary responsibility under the Employee Retirement Income Security Act of 1974, also known as ERISA, to control health benefit costs. (Berryman, 8/14)

Allstate will sell its employer voluntary benefits business to StanCorp Financial Group (The Standard) for $2 billion, the company said in a press release last night. The Northbrook-based insurance giant said the sale was the first in a strategic plan to find other companies to take on the business of its health and benefits holdings. (Asplund, 8/14)

After home care workers complained for years about late paychecks, the state in March hired a new vendor to manage payroll for a network of personal care aides who serve people on Medicaid waivers aging at home. But so far, leaders of SEIU 1199 New England, which represents about 12,000 care aides, say troubles with payroll have persisted since the new agency, GT Independence, took over last spring. (Carlesso, 8/15)

More health industry news 鈥

Elevance Health closed its deal with private equity group Clayton, Dubilier & Rice to form a primary care company, and named the venture Mosaic Health. Mosaic Health will provide primary care services from Millennium Physician Group and digital health services from Apree Health, two businesses of Clayton, Dubilier. (DeSilva, 8/14)

Johns Hopkins All Children's Hospital is taking steps to appeal paying $208 million in damages to a family after a jury ruled it falsely imprisoned a 10-year-old girl, which contributed to her mother's suicide. The award was granted to the family of Maya Kowalski, and her case was profiled in a June 2023 Netflix documentary, 鈥淭ake Care of Maya.鈥 (Schreiner, 8/14)

MetroHealth System pledged to solicit input from neighborhood leaders and its own employees as it finalizes its 鈥渉ospital in a park鈥 building plan, the health system said during a meeting Wednesday with cleveland.com reporters and editors. (Washington, 8/14)

麻豆女优 Health News: Most Black Hospitals Across The South Closed Long Ago. Their Impact Endures

In the center of this historically Black city, once deemed 鈥渢he jewel of the Delta鈥 by President Theodore Roosevelt, dreams to revitalize an abandoned hospital building have all but dried up. An art deco sign still marks the main entrance, but the front doors are locked, and the parking lot is empty. These days, a convenience store across North Edwards Avenue is far busier than the old Taborian Hospital, which first shut down more than 40 years ago. (Sausser, 8/15)

As the Creek Fire scorched central California in September 2020, first responders warned administrators at Valley Children鈥檚 Healthcare they might be forced to shut off power lines and electrical equipment to stop the fire from spreading. ... But the close call聽鈥 and financial incentives from federal tax credits 鈥 helped Ratan Milevoj, assistant chief strategy officer at Valley Children鈥檚 in Madera, convince the board of trustees to invest in renewable energy. (Kacik, 8/14)

Also 鈥

Osteopathic physicians have similar jobs and training to M.D.s. But they say they're lagging far behind when it comes to representation on federal panels that make key recommendations on medical research funding and policy. The disparity could keep federal dollars from programs that teach one-quarter of America's future physicians and perpetuate negative perceptions that hurt newly minted D.O.s' chances of getting into certain residencies. (Goldman, 8/15)

The Kaiser health care system is now using artificial intelligence to listen in on appointments between doctors and patients, the nonprofit said Wednesday. The announcement comes after other Bay Area hospital systems, including Sutter Health, have deployed the technology, and after Kaiser told the Chronicle earlier this month it had been testing similar technology. (DiFeliciantonio, 8/14)

Black men and women are at least two times as likely as white Americans to die from strokes. Hospitals around the country have long sought to bring those numbers down.聽Now, the Cleveland Clinic, a prestigious hospital system, is being accused of illegally discriminating on the basis of race for operating a program to prevent and treat strokes and other conditions among minority patients. (Francis and Evans, 8/14)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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