Vested Interest - News and Notes - January 2002 Issue

HMOs not providing accurate information on switching plans

The Medicare Rights Center has released a study finding 80 percent of the 20 HMOs surveyed in seven states provided callers with inaccurate information about the new “lock-in” law which goes into effect on January 1, 2002. Although individuals with Medicare have been able to change their plans on a monthly basis, they will only be allowed to make one Medicare health plan change in the first six months of 2002 and will be locked into whatever plan they selected for the last six months of the year. Beginning in July, they cannot get out of their HMOs at all. (Liability & Insurance Week – November 26, 2001)

Obesity may soon kill more than cigarettes

According to U.S. Surgeon General David Satcher, some 300,000 Americans a year die from illnesses caused or worsened by obesity, a toll that may soon overtake tobacco as the chief cause of preventable deaths. The surgeon general has called for major steps by schools, communities and industry to fight fat. Lifestyle changes must be made. He is calling for schools to provide daily physical education for every grade and more healthful food options. Communities must create safe playgrounds, sidewalks or walking trails, particularly in inner cities. Industry should promote more healthful food choices, including “reasonable portion sizes.” (AP – December 14, 3001)

Surgical Mistakes on the rise

The Joint Commission on Accreditation of Healthcare Organizations is warning of an alarming increase in cases in which doctors operated on the wrong body part or the wrong patient. In 1998, the group reported 15 “wrong-site” cases. Since then, 136 have been reported – 108 in the past two years and 11 in the past month alone. Of the 126 cases analyzed by the group, 76 percent involved operating on the wrong body part, 13 percent involved surgery on the wrong patient and 11 percent involved the wrong surgical procedure. (MSNBC –December 5, 2001)

St. Paul’s exiting medical malpractice field

St. Paul Insurance announced they will discontinuing, nationwide, to write any additional medical malpractice liability policies. In September 2001, Charles Kolodkin, International Risk Management Institute, said “Throughout the 1990’s and reaching a peak around 1997 and 1998, insurers were on a quest for market share, that is, they were driven more by the amount of premium they could book rather than the adequacy of premiums to pay losses.” ATLA’s response to St. Paul’s announcement: When the insurance industry competes for market share, and artificially cuts premiums to engage in pricing wars, the industry runs a tremendous risk of having inadequate revenue to cover their losses. (ATLA Press Release – December 13, 2001)

Federal rule change allows e-filing

The Committee on Rules of Practice and Procedure of the Judicial Conference of the United States has adopted amendments to allow lawyers representing clients in federal court to exchange pleadings, motions and briefs by e-mail, fax or other electronic means. The amendments also allow courts to serve court orders electronically in civil or bankruptcy cases, but not criminal matters, if the parties agree. The parties’ consent to the use of high technology must be given in writing, but the “writing” may consist of an electronic transmission as well as an old-fashioned paper document. (Chicago Daily Law Bulletin – December 4, 2001)