Thursday, January 16, 2003

States Look to Lower Medicaid Drug Costs
ABC News story - "As states face large budget shortfalls from rising Medicaid costs, several are forming a nonprofit organization to negotiate lower prices for prescription drugs. The organization, which is not expected to be operational before the end of the year, marks a growing trend by states to try new and innovative ways to deal with drug costs." The states involved are Connecticut, Hawaii, Maine, Massachusetts, New Hampshire, New York, Pennsylvania, Rhode Island, Vermont and the District of Columbia.  
  

GHA drops mental health services (Ohio)
Cincinnati Enquirer story - "Group Health Associates, Greater Cincinnati's largest multispecialty physician group, plans to discontinue providing mental health services in about three months. The decision will affect several thousand patients who have been receiving treatment and counseling from three psychiatrists and about 25 other professionals, including psychologists, social workers and nurses. Group Health Associates has been reorganizing itself because fewer health insurers are selling 'capitated' managed care plans..."  
  

Bankruptcy is closing in on Magellan
SunSpot story - "Magellan Health Services Inc. reached a deadline with its lenders yesterday, but had no announcement last night on whether it had reached an agreement or been granted another extension. Without an extension on its debt agreements, the Columbia-based mental health insurer could be forced into a bankruptcy filing, it had said in a filing Tuesday with the Securities and Exchange Commission."