Johnson & Johnson Fined for Bribing Doctors

Posted on April 11, 2011 by abby

RAW STORY– US authorities fined cosmetics and drugs giant Johnson & Johnson $70 million on Friday for bribing doctors in Europe and paying kickbacks for contracts under a UN relief program in Iraq.

The Department of Justice and Securities and Exchange Commission said since 1998 the firm had paid doctors and hospital administrators in Greece, Poland and Romania for contracts and to promote its drugs and medical devices.

Johnson & Johnson also paid kickbacks between 2000-2003 for 19 contracts under the UN Oil for Food Program, which provided humanitarian supplies to Iraqis while the country, still ruled by Saddam Hussein.

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Photo by flickr user Be Futureproof

Blue Shield of CA Seeks Rate Hikes of 59% for individuals

Posted on January 6, 2011 by Alicia

LOS ANGELES TIMES – Another big California health insurer has stunned individual policyholders with huge rate increases — this time it’s Blue Shield of California seeking cumulative hikes of as much as 59% for tens of thousands of customers March 1.

Blue Shield’s action comes less than a year after Anthem Blue Cross tried and failed to raise rates as much as 39% for about 700,000 California customers.

San Francisco-based Blue Shield said the increases were the result of fast-rising healthcare costs and other expenses resulting from new healthcare laws.

“We raise rates only when absolutely necessary to pay the accelerating cost of medical care for our members,” the nonprofit insurer told customers last month.

In all, Blue Shield said, 193,000 policyholders would see increases averaging 30% to 35%, the result of three separate rate hikes since October.

Nearly 1 in 4 of the affected customers will see cumulative increases of more than 50% over five months.

While most policyholders received separate notices for the successive rate hikes, others were given the news all at once because they had contracts guaranteeing their rate for a year, Blue Shield spokesman Tom Epstein said.

Michael Fraser, a Blue Shield policyholder from San Diego, learned recently that his monthly bill would climb 59%, to $431 from $271.

“When I tell people, their jaws drop and their eyes bug out,” said Fraser, 53, a freelance advertising writer. “The amount is stunning.”

Click to continue reading the full article from the LA Times on Blue Shield’s intended rate hikes.

Article by Duke Helfand, Los Angeles Times

Photograph by Refracted Moments™

Health Insurance Companies Already Taking Advantage

Posted on April 2, 2010 by abby

HUFFINGTON POST– The insurance industry’s attempt to weasel out of one of the few provisions of the new health care reform law that took effect immediately is a harbinger of what’s to come. But far from being satisfied with a windfall of new customers and massive government subsidies, the nation’s insurance companies appear to already be busy devising ways to game the new system. Their goal, as ever: Maximizing profits by paying out as little on actual health care as possible. And next time they start to weasel, Congress and the White House – and the media – may not be paying attention anymore.

“This is what you’re going to see as each element in this plan comes up for implementation,” said Marcia Angell, a former editor of The New England Journal of Medicine who now teaches at Harvard Medical School. “This insurance industry is going to give up nothing.” In the short run, companies are expected to keep doing what they’ve been doing, which means, among other things, jacking up their rates. “There’s nothing to stop them from raising their premiums, and that’s what they’re going to do,” said Angell, a supporter of “single-payer” health insurance.

The new law’s ban on discriminating against adults with preexisting conditions doesn’t kick in until 2014. “In the meantime, they can continue to cherry pick the healthiest customers, while foisting the sick into the new high-risk pool,” said Wendell Potter, a former senior health insurance executive at CIGNA who went rogue and became a consumer advocate.

That’s only the beginning, though. “They also will continue to try to shift more and more of the cost of health care from them to the people that are enrolled in their plans,” Potter said. That involves moving people currently in managed care, with its relatively modest co-pays, “out of those plans and into high-deductible plans that make people pay thousands of dollars before the company will pay a dime,” Potter said.

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