Practice Management Alert

Payer Updates:

Highmark, 2 Hospitals Talk Flat-Rate Reimbursement

Answer: Highmark and two Pennsylvania-based hospitals are in talks to change the reimbursement plans for those hospitals -- possibly to a flat rate for certain groups of people.

Highmark, Beaver-Pa.-based Heritage Valley Health System, and Meadville Medical Center in Crawford County are discussing new payment options, according to the Pittsburgh Business Times. Options include the possibility of offering care to patients with chronic health problems and bundling payments for medical care to "a much larger group."

Highmark's president and CEO, Kenneth Melani, MD, told the Times that he hopes the new payment method will make for better quality care that's more affordable. "We are trying to find integrated delivery systems," Melani said. "We are experimenting, which will become more aggressive in the next five years." No arrangements have been finalized.

In other news: Six of the nation's largest insurers have been lashed by reports that they contributed between $10-$20 million to the U.S. Chamber of Commerce in order to fund advertising which attacked health care reform initiatives.

According to unnamed healthcare lobbyists quoted in the National Journal, money was funneled to the Chamber to underwrite ads for the American Health Insurance Plans (AHIP), a powerful Washington interest group. Aetna, Cigna, Humana, Kaiser Foundation Health Plans, UnitedHealth Group, and WellPoint are all AHIP members, the report said.

Each of the insurance companies involved deny specifically sending any money to the Chamber. The Chamber has reportedly spent approximately $70 to $100 million on the campaign.

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