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Wednesday, May 4 2016

Full Issue

UnitedHealth Contract Dispute Causes Confusion For Ariz. Families With High-Risk Pregnancies, Infants

About 6,000 patients who use the Obstetrix Medical Group aren't sure if their insurer, UnitedHealth, will cover their medical bills. Meanwhile, WellCare reports profits higher than forecasted. And media outlets report other regional insurance news from Illinois and Oregon.

A contract dispute between UnitedHealthcare and a doctors’ group that handles high-risk pregnancies and infants has left thousands of parents unsure whether their medical care will be covered. The contract impasse, which began last summer, affects about 6,000 UnitedHealthcare-insured patients who receive medical services from Obstetrix Medical Group. (Alltucker, 5/3)

U.S. health insurer WellCare Health Plans Inc (WCG.N) reported a bigger-than-expected rise in quarterly profit and raised its profit forecast for the year as medical costs decreased. The amount WellCare spent on medical claims out of the premiums it earned, a key measure of costs known as medical benefits ratio (MBR), decreased in both the company's Medicaid and Medicare businesses. The improvement in the ratio – closely watched by investors and analysts for signs of higher medical costs and usage – was largely as WellCare's new contract with pharmacy benefit manager CVS Health Corp (CVS.N) led to better management of pharmacy costs and drug rebates. (5/3)

In the face of losses in the Affordable Care Act marketplace, Blue Cross and Blue Shield of Illinois is looking for new ways to cut spending. Starting June 1, the Chicago-based health insurer will no longer accept credit cards as a form of payment for members who buy their own health insurance on or off the Illinois marketplace. The company began notifying customers of the change last month. Blue Cross will still accept other forms of payment, including debit cards. (Sachdev, 5/2)

Every Oregon health insurance company but one is proposing double-digit percentage rate hikes for the individual market in 2017, with two of the biggest players -- Moda Health Plans and Providence Health Plans -- both seeking to raise rates by nearly a third. (Manning, 5/3)

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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