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The Power of Purchasers

The U.S. health care system is at a crossroads. Purchasers must think what lies around the bend before they abandon proven tactics in a flurry of short-term cost sharing.

The 10th annual State of Health Care in America is now available online. We've highlighted a few select articles below, or click the link above for the full Table of Contents.

Bioterrorism bill gives MCOs more time to file rates for next year, as payment "give back" deliberations continue

The September terrorist attacks and the subsequent anthrax scare haveprompted managed care organizations, healthcare providers and governmentagencies to expand emergency preparedness efforts and reevaluate policiesand programs. Stung by criticism of its confusing response to the bioterrorismthreat, the Department of Health and Human Services (HHS) has created anew Office of Preparedness and brought in new infectious disease and vaccineexperts to rescue the situation.

Although fewer seniors will be forced to switch to new coverage optionsnext year than did last January, MCOs still are dropping out of the Medicare+Choiceprogram at a disturbing rate. Aggressive efforts by Tom Scully, administratorof the Centers for Medicare & Medicaid Services (CMS), encouraged somehealth plans to stick with the program for now, but dozens of MCOs abandonedor curtailed service areas when they filed cost proposals for contract year2002 in September. Consequently, 536,000 seniors will have to find new coverageby January, much less than the 934,000 affected by MCO departures last year.But many of those plans that remain are reducing optional benefits or raisingpremiums in order to continue coverage.