State news: 5,000 nurses may strike in Minn., managed care owed $571M in Ill.

Here’s a roundup of healthcare news from Minnesota, Illinois, California, Florida and Alaska.

Alliana Health nurses moving towards strike in Minnesota

Nearly 5,000 unionized nurses are expected to vote to reject a contract offer from Alliana Health and authorize a strike at four hospitals around the Minneapolis-St. Paul area.

Minnesota Public Radio reported the Minnesota Nurses Association ended negotiations with Alliana in late May after the health system insisted the nurses transition away from union-backed health coverage to the plan which covers all other Alliana employees.

“We told Allina Health that we cannot make any proposals on health insurance because we have not received the information we have requested five separate times,” the union said in a May 31 statement.

Alliana argued the cost-sharing in the corporate plan would encourage thriftier choices, like going to an urgent care facility rather than paying a visit to the emergency room. Company spokesperson David Kanihan called the change a “must-have” in negotiations.

"We are committed to transitioning them to our corporate health plan,” he said to Minnesota Public Radio.

If nurses vote to reject the offer, a 10-day notice would be required before a walkout. The hospitals affected would be Abbott Northwestern in Minneapolis, United in St. Paul, Mercy in Coon Rapids and Unity in Fridley.

Illinois hospitals, managed care insurers owed $570M

Managed care companies in Illinois are owed an estimated $570 million by state government, according to Crain’s Chicago Business, keeping reimbursements from some of the state’s largest hospitals.

With the state now having gone without a budget for 11 months, the reimbursement cycle for both Medicaid patients and employees of state government has been unpredictable. The biggest hospital chain in Illinois, Advocate Health Care, is owed at least $81 million, while the biggest Medicaid provider in the state, University of Chicago Medicine, has a $72 million stack of unpaid state bills.

“I think the complexities are very real,” said Alvia Siddiqi, MD, president of the Illinois Academy of Family Physicians. “Patients are struggling, and providers are struggling to help patients with their care.”

Hospitals administrators said without reliable reimbursement, they’ve been forced to cut costs elsewhere by asking their vendors to go unpaid or delaying upgrades to their facilities.

California investigating whether HealthNet stiffed addiction treatment centers

The California Department of Insurance is looking into complaints that Health Net Inc. has improperly withheld payments from drug addiction treatment facilities, reported Kaiser Health News.  

The insurer’s own investigator had sent to a letter to treatment centers in January about concerns of fraudulent claims, including accusations that centers had waived deductibles and co-pays to attract patients. Health Net later sent letters to patients asking for proof they had paid their deductibles or coinsurance.

Some 118 for-profit treatment centers claimed in the complaint that Health Net hadn’t paid them since at least January, saying they can’t afford to admit Health Net patients without being reimbursed.

Florida stores helping customers around imported drugs ban

Fifteen Florida storefront pharmacies are claiming to help thousands of customers buy imported prescription drugs, despite federal agencies saying the practice is illegal.

Kaiser Health News reported the shops date back to 2002, and can be found in cities with large numbers of retirees, like Miami, Orlando and Tampa.

The storefront owners said they can save customers up to 70 percent on certain medications by importing from countries with stricter drug pricing regulations and where certain generic medications are available prior to being sold in the U.S.

Alaska legislators approve new reinsurance program

A $55 million reinsurance program has been passed by the Alaska Senate in an effort to mitigate expected premium increases in its individual insurance market.

Without state assistance, 23,000 Alaskans could see premiums rise, according to according to Alaska Public Radio. The state’s insurance director, Lori Wing-Heier, warned legislators that unless the state stepped in, the individual insurance market could “collapse.”

Three insurers have pulled out of the state since 2013. Only one insurer, Premera Blue Cross Blue Shield, is expected to offer insurance on the individual market in 2017.

Republican State Sen. Mia Costello said many residents already pay more for health coverage than their mortgage.  

“Through this legislation, we’re addressing a crisis,” she said, adding: “Essentially, we’re up against a wall.”