Wednesday, December 08, 2004

Small Steps Could Be Key To Reforming Medicaid
Psychiatric News article - "Governors recognize a host of problems with the Medicaid program, particularly with finding dollars to fund it, and suggest small-scale efforts by state governments to bring about reform. Governors are advocating the power of 'common-sense principles' to maintain the viability of the Medicaid program. Matt Salo, director of the Health and Human Services Committee of the National Governors Association, told attendees at a meeting on prospects for Medicaid reform, 'I want to reassure people that.. .we do not have a Medicaid reform agenda, or proposal, or clandestine work group trying to figure out how best to deal with Medicaid.' "  
  

Hospitals Wait to See New Payment System's Effects
Psychiatric News story - "Inpatient psychiatric facilities have operated outside Medicare's prospective payment system since the system began a little more than 20 years ago. That exemption is now ending. Prospective payment has come to inpatient psychiatry. Last month the Centers for Medicare and Medicaid Services (CMS) published a final rule implementing a new prospective payment system (PPS) for the nation's inpatient psychiatric facilities. The new system will go into effect for payment periods beginning on or after January 1, 2005. .."  
  

Aetna Ends Magellan Mental Health Deal
Reuters story - "Aetna Inc. on Wednesday said it will end its contract with Magellan Health Services for mental health coverage and bring those services in-house, pushing shares of Magellan down about 3.5 percent. Hartford, Connecticut-based Aetna, one of the biggest U.S. managed care companies, said it made the decision after "extensive analysis," and concluded bringing physical and mental health coverage together would be most efficient. To do that, Aetna will exercise its option to acquire Magellan's assets that service the Aetna behavioral health business for more than $50 million..."