AP: Medicare insurers' profits exceed expectations

Health insurance companies that serve the elderly and disabled in Medicare are realizing significantly higher profits than they anticipated, resulting in the companies getting $1.3 billion more than projected, congressional auditors say.

This is likely due to an increase in payments to companies by the elderly, without an increase in services by the organizations. This money is now being seen as a profit that the companies in question must diligently work with the government to make sure that the clients served via Medicare are getting the best care that they deserve. We'll keep you posted on any new developments.

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New gun for seniors could be subsidized by Medicare

From The Raw Story:

A New Jersey company says they have gotten federal approval to market a gun to the elderly and hopes to have it subsized by Medicare.Constitution Arms says its Palm Pistol will aid seniors with arthritis who would otherwise have trouble pulling the trigger. The device allows individuals to shoot by squeezing with their thumb.The company's president Matthew Carmel says its "something that they need to assist them in daily living," and has applied to have the gun approved as a Class 1 medical device, the same designation given by Medicare to walkers and wheelchairs.

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Medicare, Social Security Owe Up to $52 Trillion to Current Retirees and Workers

Press Release:

DALLAS, Dec 03, 2008 /PRNewswire-USNewswire via COMTEX/ --

Debts Up To Three and Half Times Greater Than Entire U.S. Economy
If the federal government stopped the Medicare and Social Security programs tomorrow -- collecting no more payroll taxes and allowing no more accrual of benefits -- it would still owe up to $52 trillion to those who have already earned these benefits, according to a new study by the National Center for Policy Analysis (NCPA).
"The numbers are staggering," said Andrew Rettenmaier, an NCPA senior fellow and coauthor of the study. "No one thinks we are going to end these programs," he said, "but if we account for federal obligations the way private pensions and state and local governments are required to, the federal government owes up to $52 trillion (in current dollars) as of today."

To put the numbers in perspective, the size of the entire U.S. economy is $14 trillion. The newly released study determined that: --

An estimated $9.5 trillion is owed to current retirees -- an amount
equal to almost $250,000 per person 65 years of age and older in 2008.

-- Adding the liability owed to those nearing retirement (55 and older)
more than doubles the accrued debt to $20.6 trillion.

-- Adding the benefits accrued by younger workers brings the total to as
much as $52 trillion. The beneficiaries include all retirees, as well as
anyone in the workforce above 22 years of age.

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Bayer to Pay $97.5 Million to Settle Kickback Claim

From Bloomberg.com:

A unit of Bayer AG agreed to pay $97.5 million to settle accusations that it paid kickbacks to diabetic-equipment suppliers, the U.S. Justice Department said.
Bayer Healthcare LLC was accused of giving $2.5 million to Liberty Medical Supply Inc. to persuade Liberty to provide its patients with Bayer diabetic-testing equipment such as testing strips and glucose monitors, the Justice Department said in a statement.
Bayer also was accused of paying $375,000 in kickbacks to 10 other diabetic suppliers and causing them to submit false claims to Medicare, the government said. From 1998 through 2007 the suppliers filed false claims on the sales to get Medicare reimbursements, the statement said.
“Paying health care suppliers to place a particular brand of device with Medicare beneficiaries violates the law and will not be tolerated,” said Gregory G. Katsas, assistant attorney general for the Civil Division.
Bayer spokeswoman Susan Yarin said the payment puts the matter behind the unit, based in Tarrytown, New York.

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Medical News Today: MedPAC Adopts Recommendations To Improve Transparency Of Financial Ties Between Industry, Physicians

The Medicare Payment Advisory Commission on Thursday adopted five recommendations to Congress that would require disclosure of the health care industry's financial ties to physicians and other health care professionals, CQ HealthBeat reports. MedPAC will present the recommendations to Congress in March. According to the recommendations:

• Congress should require all manufacturers, distributors and their subsidiaries to report to HHS financial relationships with physicians, pharmacists, pharmaceutical benefits managers and their employees, as well as with hospitals, medical schools and medical or health organizations;
  
  
• Congress should direct the HHS secretary to post the information on a public Web site;
  
  
• All details regarding no-cost drug samples provided to physicians should be posted on the Web site so researchers can study the impact samples have on prescribing decisions;
  
  
• Congress should require all hospitals and other entities that bill Medicare for services to "annually report the ownership shares of each physician who directly or indirectly owns an interest in the entity (excluding publicly traded corporations)" and post the information on the Web site; and
  
  
• Lawmakers should require HHS to submit a report on the "types and prevalence of the financial relationships between hospitals and physicians."
  

MedPAC Chair Glenn Hackbarth said, "This is about transparency. It's not about condemnation" (Reichard, CQ HealthBeat, 11/6).

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