State news: N.Y. may change malpractice limits, Calif. considers coverage for undocumented

Here’s a roundup of healthcare news from New York, California, North Carolina, Massachusetts, New Jersey and Texas.

New York bill would push back deadline for malpractice suits

New York health providers could be sued for medical malpractice up to 10 years after the alleged misconduct under legislation being considered by state lawmakers.

The current statute of limitations is two and a half years after the alleged malpractice. Under the proposal, that clock would start when a patient first realizes they were misdiagnosed or mistreated, while requiring any suit to be filed within 10 years of the original incident.

The Associated Press reported the legislation is opposed by the Medical Society of the State of New York, which argued it would make malpractice insurance more expensive and drive up the cost of care.

The bill passed in the Democratic-held state Assembly, but hasn’t been scheduled for a vote in the Republican-held Senate.

Calif. lawmakers advance bills on covering undocumented immigrants, drug price hikes

California’s state Senate has passed two major pieces of legislation affecting healthcare policy in the state.

The first would ask for federal approval to allow undocumented immigrants living in California to buy health insurance off the state’s Covered California exchange. The bill’s sponsor, Democratic State Sen. Ricardo Lara, told the Los Angeles Times it would lead to an estimated 390,000 people who don’t qualify for Medicaid to buy health insurance.

“It is immoral to discriminate against a group of people simply because we are playing politics in D.C.,” Lara said. “Today we are saying give us an opportunity to once again demonstrate that California is a leader … for showing that we care about our most vulnerable Californians.”

The bill is now awaiting action by Calif. Gov. Jerry Brown.

A separate piece of legislation would require drug manufacturers to give advance notice when the cost of a medication increases by more than 10 percent, or will cost more than $10,000 annually. The bill passed the state Senate, and now awaits action by the state Assembly.

BCBS of North Carolina suing over ACA risk-corridor payments

Blue Cross and Blue Shield of North Carolina is the latest insurer to take the federal government to court over reduced payments in the risk-corridor program offered in the initial years of the health insurance marketplaces.

The insurer said in a statement it requested $147 million in payments for the 2014 benefit year, but like other insurers, was given only 12.6 percent of that amount. It estimates it will request an additional $175 million to mitigate losses for the 2015 benefit year.

BCBS of NC is the fourth insurer to sue over the reduced payments after Highmark, Health Republic Insurance of Oregon and Moda Health. BCBS of NC had previously hinted it wouldn’t participate in the exchanges in 2017.

Mass. won’t have ballot measure on hospital pricing

A compromise between healthcare workers and Partners Healthcare means a Massachusetts ballot initiative on hospital pricing is now dead.

The ballot question proposed redistributing $463 million in payments to the state’s more expensive hospitals to community hospitals by limiting disparities in what commercial insurers could pay different hospitals for the same procedure. MassLive.com reported the new deal creates a $45 million trust fund for community hospitals, with hospitals that charge lower prices receiving more money.

The bill signed by Governor Charlie Baker also includes rate adjustments for MassHealth, the state’s Medicaid program, with a new fee on hospitals set to raise up to $15 million annually.

N.J. counties owed $37M by state for Medicaid overpayments

New Jersey has been told by CMS to pay back $37.3 million to its own counties for Medicaid overpayments.

NJ.com said the extra money was paid as a provision of the 2008 economic stimulus package, which temporarily increased the federal contribution to Medicaid. A HHS review in 2014 found New Jersey didn’t fully comply with the law, resulting in counties contributing more to Medicaid than necessary.

N.J. Gov. Chris Christie said he plans on appealing the decision.

HCA North Texas buys Dallas hospital for $135M

Forest Park Medical Center in Dallas is being sold to HCA North Texas for $135 million, according to the Dallas Morning News.

The 84-bed hospital has been shut down since October, preceded by the doctor-owned Forest Park chain declaring bankruptcy at its Frisco, Texas hospital in September 2015. The Dallas facility owed $110 million on its mortgage.

HCA had bought the Frisco hospital in February for $96 million. Before the Dallas purchase, which is expected to close later in June, HCA operated 16 hospitals and more than 50 ambulatory sites in the Dallas-Fort Worth area and Oklahoma.