Health Policy and Legal Experts Discuss U.S. Supreme Court’s Upcoming Ruling on Health Reform

NASHVILLE, Tenn.--(BUSINESS WIRE)--

Nearly 300 members of the Nashville Health Care Council and Leadership Health Care heard from a diverse panel about the future potential implications of the U.S. Supreme Court’s pending decision on the constitutionality of the Patient Protection and Affordable Care Act.

"The highly anticipated Supreme Court decision on health reform is much more than a legal opinion, it’s a defining event in the health care marketplace," said panel moderator Dick Cowart, chairman, Health Law & Public Policy Department, Baker, Donelson, Bearman, Caldwell & Berkowitz. "These historic proceedings have the potential to change the way health care companies do business."

The Court will hear arguments on the Affordable Care Act from March 26-28, just over two years after the bill’s passage into law. The Act made sweeping changes to the nation's health care system, including individual and employer insurance provisions, payer requirements around preexisting conditions, age thresholds and preventative care, along with Medicaid expansion.

The panel, Supreme Decision: The High Court on the Affordable Care Act, discussed views on how the Court’s decision could impact health care providers, payers and consumers. Participants included Lyle Denniston, journalist and dean emeritus of the U.S. Supreme Court Press Corps; Paul Heldman, senior health policy analyst, Potomac Research Group; Tony Hullender, senior vice president and general counsel, BlueCross BlueShield of Tennessee; and Tevi Troy, senior fellow, Hudson Institute, and former Deputy Secretary, U.S. Department of Health and Human Services.

View panel member interviews on YouTube and event photos on Flickr. Photo credit: (c) 2012, Harry Butler, Nashville.

The Court has established an unprecedented six hours for the oral arguments. During the March proceedings, the Court will evaluate four issues relating to the law, including: 1) the “individual mandate,” or requirement that every American citizen purchase health insurance; 2) “severability,” whether the overall health care law can stand even if the individual mandate provision doesn’t; 3) the law’s new Medicaid requirements for states and 4) the Anti-Injunction Act, whether it’s appropriate for courts to currently hear challenges to the law given that its mandates do not take effect until 2014.

“The Court is taking this matter very seriously, as it should, given the scope of the law and the kinds of changes it represents, not only to the health care system but also to matters as grand as the separation of powers and the very structure of our constitutional republic,” said Troy.

According to Denniston, the case is multi-layered and historically significant. “The Court could have only focused on the constitutionality of the individual mandate,” he said. “But the Court has chosen broader deliberations around severability and the implications of the law’s expansion of Medicaid.”

The health insurance industry, a sector integral to health reform’s impact, is poised for implementation regardless of the outcome. "The individual health insurance mandates are a key part of health care reform's goal to control the cost of care,” said Hullender. “With this in mind, our industry understands the need for their inclusion in the original law."

Heldman said he leans toward the view that the law's requirement that individuals buy insurance will be upheld. "It’s our thinking that the Supreme Court will leave much of the health reform law standing, even if it finds unconstitutional the requirement that individuals buy coverage. But, in my opinion, removing the individual mandate could destabilize the insurance market and negatively impact providers who might be exposed to increased bad debt.”

The panel discussion comes on the eve of the Leadership Health Care’s 10-Year Anniversary Delegation to Washington, D.C. The annual trip will feature industry perspectives on key components of health care reform, discussions on federal reimbursements and budget issues, and expert views on the likely outcomes and industry impact of both the March Supreme Court hearing on reform and the November elections.

“Today’s discussion was an exceptional opportunity to hear from experts and key stakeholders on this highly anticipated decision,” said Council President Caroline Young. “The outcome will have an unprecedented impact on the future of the Affordable Care Act, the national landscape of the health care industry and Nashville as a health care capital.”

About the Nashville Health Care Council

The Nashville Health Care Council, founded in 1995 as an initiative of the Nashville Area Chamber of Commerce, is an association of health care industry leaders working together to further establish Nashville’s position as the nation’s health care industry capital. Worldwide, Nashville’s health care industry generates more than $70 billion in revenue and over 400,000 jobs, and is Nashville’s largest and fastest growing employer. For more information on the Council, please visit www.healthcarecouncil.com.

About Leadership Health Care

Leadership Health Care (LHC) is an initiative of the Nashville Health Care Council started in 2002. LHC fosters the next generation of health care leaders by providing educational and networking opportunities for over 650 motivated professionals. Learn more at www.leadershiphealthcare.com.

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Magellan Health Services to Present at Upcoming Investor Conferences

AVON, Conn.--(BUSINESS WIRE)--

Magellan Health Services, Inc. (NASDAQ: MGLN - News) announced today that René Lerer, Chairman and Chief Executive Officer of the Company, will present at two upcoming investor conferences:

The Raymond James 33rd Annual Institutional Investor Conference on Tuesday, March 6, 2012, 2:50 p.m. Eastern time in Orlando, FL at the JW Marriott Grande Lakes Hotel. The Barclays Capital 2012 Global Healthcare Conference on Wednesday, March 14, 2012, 1:30 p.m. Eastern time in Miami, FL at the Loews Miami Hotel.

Investors and the public are invited to access audio and presentation materials through Magellan’s investor relations page at www.MagellanHealth.com. Those who plan to access the webcasts should log on to the website approximately 15 minutes before the scheduled start time of the conference to register and download and install any necessary software. The audio will be available for one week following each presentation.

Those who plan to access the webcasts are encouraged to read Magellan's Annual Report on Form 10-K for the year ended 2011, to be filed with the Securities and Exchange Commission prior to the conference, for material information regarding Magellan's operational and financial results, including the section entitled “Risk Factors.”

About Magellan: Headquartered in Avon, Conn., Magellan Health Services, Inc. is a leading specialty health care management organization with expertise in managing behavioral health, radiology and specialty pharmaceuticals, as well as public sector pharmacy benefits programs. Magellan delivers innovative solutions to improve quality outcomes and optimize the cost of care for those we serve. As of September 30, 2011, Magellan’s customers included health plans, employers and government agencies, serving approximately 31.2 million members in our behavioral health business, 16.3 million members in our radiology benefits management segment, and 5.5 million members in our medical pharmacy management product. In addition, the specialty pharmaceutical segment served 41 health plans and several pharmaceutical manufacturers and state Medicaid programs. The company’s Medicaid Administration segment served 25 states and the District of Columbia. For more information, visit www.MagellanHealth.com.

Cautionary Statement: Certain of the statements made in the presentations may constitute forward-looking statements contemplated under the Securities Exchange Act of 1934 and the Securities Act of 1933, as amended, that involve a number of risks and uncertainties. These forward-looking statements are based on management’s analysis, judgment, belief and expectations as of the date of such statements and are subject to known and unknown uncertainties and risks which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Any forward-looking statements made in the presentations are qualified in their entirety by the more complete discussion of risks set forth in the section entitled “Risk Factors” in Magellan’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, filed with the Securities and Exchange Commission. Magellan undertakes no obligation to publicly revise such forward looking statements to reflect events or circumstances that arise after the date of such statements.

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Health group sounds alarm over upcoming Drummond report on Ontario cost-cutting

TORONTO - A public health advocacy group is accusing the Ontario government of manufacturing a crisis to justify billions of dollars in health-care cuts expected in the highly anticipated Drummond report.

The Ontario Health Coalition issued a report Friday in a pre-emptive strike against the long-awaited blueprint for tackling the province's deficit.

The government's restructuring plans contain serious costing errors and inadequacies that put Ontario's most vulnerable patients at risk, the organization said.

But Health Minister Deb Matthews said health care remains a priority in the province.

"Ontario families can rest assured that we are not reducing health spending," she said Friday.

The advocacy group's director said information surrounding the Drummond report and the changes that will follow has been presented in a "very manipulative" way.

"Almost all of the government's PR messages have been about creating a crisis to justify major restructuring and cuts," Natalie Mehra said. "But the truth is that health-care spending is not actually out of control."

The coalition's data show Ontario's health spending is among the lowest in the country in terms of the amount spent per person and the proportion of provincial gross domestic product.

The province spent $3,911.7 per person on health care in 2010, the data show. Meanwhile, the other provinces spent an average of $4,351.

The Drummond Commission report on reforming Ontario's government to trim a $16-billion deficit will be released Feb. 15.

Former TD Bank economist Don Drummond was hired by the Liberals to review all government programs and services and find ways of lowering costs.

Drummond told Premier Dalton McGuinty last fall that Ontario would have to cap the overall increase in government spending at one per cent a year until the deficit is eliminated in 2017-18.

The Liberals hope to cap the growth in health spending at three per cent, but it eats up 42 per cent of every dollar so that could mean cuts of up to 30 per cent in some ministries.

Matthews reaffirmed those plans Friday when asked about the coalition's report.

"Health spending will continue to grow but the fiscal challenge demands that the rate of increase will slow significantly," she said in a statement.

Drummond has also mused about eliminating OHIP coverage of some medical procedures and operations, and warned many of his several hundred recommendations will be unpopular.

But Mehra argued dwindling revenue, rather than rampant spending, is hobbling the health-care system.

Deep tax cuts are depriving the province of much-needed funds, she said.

"It means that we can't afford services we need and it means there's already a big backlog of patients with urgent and unmet health-care needs that is only going to get worse if we continue to cut services," she said.

Closing a loophole in the Employer Health Tax would create a "more equitable funding system" that could generate $2.4 billion per year to help alleviate some of the cost pressures in the health system, the report reads.

Drummond's talk of sweeping reform has stirred some apprehension over his upcoming recommendations.

Fuelling those fears is the lack of transparency surrounding the decision process, said NDP health critic France Gelinas, noting health-care workers haven't been consulted.

"People in the health-care field are on pins and needles right now," she said.

Media reports Friday suggested all-day kindergarten — a program the premier considers one of his crowning achievements — could be on the chopping block.

The province's elementary school teachers were quick to pan the possibility, saying it would be "short-sighted and counterproductive."

A spokesman for the minister of education said that while officials look forward to Drummond's advice, "the government will be moving forward with its own plan."

Meanwhile, Progressive Conservative Leader Tim Hudak has said it's time for the Liberals to stop hiding behind Drummond and start taking real steps to reduce the size and cost of government.

Hudak wants a legislated public sector wage freeze to save money and has said the government should also shut down Local Health Integration Networks and the Ontario Power Authority.

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