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Bailout Provides Mental Health Coverage

nytimes.com — More than one-third of all Americans will soon receive better insurance coverage for mental health treatments because of a new law that, for the first time, requires equal coverage of mental and physical illnesses. The requirement, included in the economic bailout bill that President Bush signed, is the result of 12 years of passionate advocacy by friends and relatives of people with mental illness and addiction disorders. Most employers and group health plans provide less coverage for mental health care than for the treatment of physical conditions like cancer, heart disease or broken bones. They will need to adjust their benefits to comply with the new law, which requires equivalence, or parity, in the coverage.

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Medicare Won’t Pay for Medical Errors

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nytimes.com — Medicare, which provides coverage for the elderly and disabled, has put 10 "reasonably preventable" conditions on its initial list, saying it will not pay when patients receive incompatible blood transfusions, develop infections after certain surgeries or must undergo a second operation to retrieve a sponge left behind from the first. Serious bed sores, injuries from falls and urinary tract infections caused by catheters are also on the list. Officials believe that the regulations could apply to several hundred thousand hospital stays of the 12.5 million covered annually by Medicare. The policy will also prevent hospitals from billing patients directly for costs generated by medical errors. Because Medicare's decision to refuse payment for preventable conditions has already influenced others — public and private — to set similar criteria.

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Health Care Premiums Rise

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mcclatchydc.com — Premiums for job-based health insurance are up 5 percent in 2008 and have more than doubled since 1999, a growth rate that far outpaces inflation and the increase in workers' wages over the same period, according to an annual survey of employers. Meanwhile, a growing number of workers at smaller firms are getting less coverage for their money as health plans with high deductibles and fewer benefits become more prevalent.

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Mental Health Groups Push For Parity

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hosted.ap.org — Many people battling addiction or suffering from mental health problems could get better health insurance coverage under legislation that has widespread, bipartisan support but still faces some hurdles before getting to President Bush. Patients seeking treatment for depression or schizophrenia often face greater restrictions with their health insurance coverage than do patients getting treatment for physical ailments. For example, they sometimes have to pay more money out of pocket before their insurance will kick in. Also, insurers sometimes cover fewer visits for mental health treatments. Both the House and the Senate passed legislation that would prevent group health plans with 51 or more employees from imposing such unequal standards.

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CAF STAFF

Health Insurance Costs Grow More Gradually in 2008

washingtonpost.com — Over the past decade, insurance premiums have grown much more quickly than wages and inflation. That wasn't the case this year. But to help slow the costs of health insurance, companies are increasingly offering coverage that requires their workers to pay more of their medical expenses before the insurance will kick in.

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Health Care Needs Rise After Ike

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usatoday.com — Nearly a week after Hurricane Ike made landfall, Gulf Coast hospitals continue to deal with the aftereffects as patients suffering from animal bites, infections, carbon monoxide poisoning and other health issues stream into emergency rooms. About 1,000 public health service doctors, nurses and other medical staff are in Texas, helping relieve crews at emergency departments, staffing shelters and traveling with search and rescue teams. Meanwhile, Gulf Coast communities struggled to restore basic services. The total U.S. death toll topped 50, and millions remained without power.

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Uninsured Pay $30 Billion for Health Care

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reuters.com — Americans who go without health insurance for any part of 2008 will spend $30 billion out of pocket for health care and they will get $56 billion worth of free care, according to a new report. Government programs pay for about three-quarters, or roughly $43 billion, of the bills for these uninsured people, Jack Hadley of George Mason University in Virginia and a team at the Urban Institute reported. "The uninsured receive a lot less care than the insured, and they pay a greater percentage of it out of pocket. Contrary to popular myth, they are not all free riders," Hadley said.

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Caught in Donut Hole, Elderly Forego Medicines

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hosted.ap.org — About 3.4 million older and disabled people hit a gap, known as the doughnut hole, in their Medicare drug coverage in 2007. When that happened, they had to pay the entire costs of their medicine until they spent $3,850 out of pocket. Then, insurance coverage would kick in again. About 15 percent of those hitting the coverage gap stopped their treatment regimen. The drug benefit, which began in 2006, has come in under budget. Most participants report they are satisfied with the program. But many lawmakers and health analysts say improvements could be made.

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Feds: No Sanctions For Insuring Children

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hosted.ap.org — The Bush administration is backing down from a threat to penalize states enrolling middle-class children in a health program intended for the poor. The administration unveiled several new requirements last year for states that use a state-federal health program to cover children in families with incomes above 250 percent of the federal poverty level. States were directed to make the changes in their State Children's Health Insurance Program or potentially face financial penalties. Democratic lawmakers criticized the new guidelines as impossible to meet. They said the final result would be that more children would go without health coverage as states rein in their programs.

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Medicare Drug Premiums Up

hosted.ap.org — The typical Medicare beneficiary can expect to see about a $3 increase in their monthly premiums for prescription drug coverage in 2009, federal officials said. Officials made the projection based on bids from private insurers that get the premiums along with a federal subsidy to administer the benefit. The increase of 12 percent will up the monthly premium to $28 for standard drug coverage. Medicare officials cited several factors in the increase. Primarily, people are using more prescriptions, plus the costs of many of those drugs are going up.

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