Medicare HMOs hit for lavish spending

Article Abstract:

Two federal reports have singled out some Medical health maintenance organizations for spending huge amounts on administrative costs such as parties, gifts and tickets to sporting events. One of the reports disclosed $4.7 million in questionable administrative costs among nine Medicare HMOs. A wider study if 232 plans showed wide descripancies in the way the HMOs allot their budgets for the administration of Medicare HMOs.

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California law to allow HMOs to be sued

Article Abstract:

California Gov Gray Davis signed into law a bill that allows patients to sue insurers if they suffered 'significant harm' from insurers' decision. Harm is defined as severe disfigurement, substantial financial loss, loss of life or limb, or severe and chronic pain. California joins Texas and Georgia in passing a so-called health maintenance organization liability law. But consumer groups are asking Congress to take action because such state laws can be superceded by a provision in a federal pension law that prohibits some patients from suing.

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Medicare HMOs strong, officials insist

Article Abstract:

Federal health officials insisted that the Medicare HMO program is still viable and growing despite the decision of about 100 plans to eliminate 327,000 beneficiaries in 2000. The withdrawals will affect some 5% of the 6.2 million Medicare HMO beneficiaries covered. About 79,000 of those affected will have to revert to traditional Medicare. Health administrators announced that 39 plans will join or enlarge their services next year and that enrollment has grown to 200,000 since Jan 1, 1999.

Government domestic functions, Administration of Public Health Programs, Health Care Services

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