Why Is This Insurer Sending Massive Checks To Patients? Lawsuit Claims It’s To Put Pressure On Providers To Join Its Network
The lawsuit highlights part of an ongoing war between insurance companies and providers over payment and billing issues, one that puts the patient right in the middle of the fight by sending payments straight to patients after they seek out-of-network care. In other health industry news: small company's stock surge surprises investors; Johnson & Johnson sets ambitious goals; a CEO's compensation package is revealed; and more.
CNN:
Insurer Skips Doctors And Sends Massive Checks To Patients, Prompting Million-Dollar Lawsuit
A woman received nearly $375,000 from her insurance company over several months for treatment she received at a California rehabilitation facility. A man received more than $130,000 after he sent his fiancée's daughter for substance abuse treatment. Those allegations are part of a lawsuit winding its way through federal court that accuses Anthem and its Blue Cross entities of paying patients directly in an effort to put pressure on health care providers to join their network and to accept lower payments. (Drash, 3/1)
Bloomberg:
Mysterious 138% Jump In Tiny Health Stock Stumps Trading Desks
Traders were puzzled by a mysterious 138 percent surge Friday in NantHealth Inc., a small health-data company run by billionaire Patrick Soon-Shiong. The stock triggered three volatility halts as it rose the most on record. There was no apparent news behind the move, according to traders and sales desks, and a NantHealth spokesperson didn’t immediately respond to an email request for comment. The next known catalyst for the company is fourth-quarter results expected later this month. (Lipschultz, 3/1)
The Associated Press:
Johnson & Johnson Research Head Aims To Block, Cure Disease
Johnson & Johnson, the world's biggest maker of health care products, wants to prevent people from getting sick — or at least stop diseases before they cause harm. Its "World Without Disease" initiative and related projects aim to prevent or cure diseases such as lung and blood cancers and juvenile diabetes. They're run by the New Brunswick, New Jersey, company's head of external innovation, Dr. William Hait, who also oversees augmenting in-house research by licensing science and technology from other companies — or buying them. (Johnson, 3/3)
Detroit Free Press:
Blue Cross Of Michigan CEO Daniel Loepp's Compensation Soars Past $19M
Blue Cross Blue Shield of Michigan disclosed Friday that it paid its top executive a record amount of money last year as he guided the state's largest health insurer to strong overall financial results. Total compensation for Daniel Loepp, CEO of Blue Cross since 2006, hit $19.2 million in 2018. That was up from his $13.4 million payday in 2017 and $9 million in 2015. (Reindl, 3/1)
Boston Globe:
Rents Soar As Health Companies Bloom
All that money, combined with the fact that most biotech companies want to be located in or near Kendall Square, has led to record rents. Two real estate watchers say that some Cambridge rents are edging into the stratosphere. (Kirsner, 3/4)
