By: Joni L. Landy, Esq. New proposed cafeteria plan regulations were released on August 6, 2007 that replace prior proposed and temporary regulations, which are withdrawn, and consolidate law changes and guidance issued by the IRS over the past twenty years. The regulations preserve much of the existing guidance but clarify some outstanding issues and include a few … Continue Reading
The Internal Revenue Service issued a private letter ruling on April 20, 2007 concluding that captive professional corporations were beneficially owned by the hospital, but that the activities of the professional corporations were conducted on a larger scale then was reasonably necessary for the performance of the hospital’s exempt functions and that the professional corporations’ … Continue Reading
There have been two recent developments regarding the enforcement of expert witness standards, one enforcing standards by a society and one declining to enforce the standards in a private defamation action. The American Academy of Orthopaedic Surgeons suspended one member and censored another for violating the Standards of Professionalism (SOPs) on orthopaedic expert witness testimony. The … Continue Reading
The Internal Revenue Service has issued guidance regarding rollovers from Flexible Spending Arrangements (FSAs) and Health Reimbursement Arrangements (RHAs) to Health Savings Accounts (HSAs). The guidance is necessary because Health Savings Accounts are typically not available to individuals who are covered by standard FSAs and HRAs. The Tax Relief and Health Care Act of 2006 allowed rollovers … Continue Reading
For an amusing satire about managed care, check out www.calhealthplan.org, which was created by California consumer activists ( who else?) to highlight perceived managed care abuses. The Nurse Avenger video game is mildly amusing, but the theme song & video, the "Pirates of the Health Care-ibbean" is biting and hysterical, unless you’re a managed care … Continue Reading
It seems that electronic health records (EHRs) are constantly being touted as the next best way to improve both healthcare quality and medical practice profitability, but adoption of EHRs by physician practices continues to languish. The range for provider adoptions in small and solo practitioners’ offices, as determined by the Robert Wood Johnson Foundation, is somewhere … Continue Reading
The Tax Relief and Health Care Act of 2006 contains provisions to improve health savings accounts (HSAs): 1. HSA Funding Contributions: The Act allows rollover contributions from flexible spending accounts (FSAs) and health reimbursement arrangements (HRAs) into HSAs as long as the contributions are no more than the balance of those accounts as of September 21, 2006 and … Continue Reading
Henry Butler, M.D. asks what the PA MCARE report means in laymen’s language. Although the surchaerges are decreasing, the unfunded liability is $2.33 and rising! Physician migration from PA appears to have remain unchanged during the program. PA desires to end the program and encourage privitization of the excess or second layer of covergage. Worthy … Continue Reading
The Pennsylvania Commission on the Medical Care Availability and Reduction of Error Fund (MCARE Fund) was created in December of 2005 for the purpose of investigating methods to reduce the unfunded liability of the MCARE Fund and the phasing out of the MCARE Program. The MCARE Program was created by Act 13 of 2002 to replace … Continue Reading
On October 27, 2006, Pennsylvania Governor Edward Rendell signed Senate Bill 972, extending the MCARE malpractice subsidy through 2007. Physicians who are eligible for 100% abatement of their assessments are surgeons, neurosurgeons, orthopedic surgeons, obstetricians, emergency physicians, rural doctors who routinely deliver babies, certified nurse-midwives, and nursing homes. All other physicians and podiatrists are eligible for an … Continue Reading
Restrictive covenants are often the most complicated clauses in a physician employment contract. Medical practices and their lawyers are constantly striving to make these non-competition agreements more protective, more comprehensive and more enforceable. Sometimes this "more is better" approach backfires!… Continue Reading
The release of the August 2006 inflation figures has allowed calculation of the 2007 financial limits for health savings accounts (HSAs), according to a press release from HSA Clearing Corporation. § The maximum HSA contribution (excluding catch-up contributions) will be $2,850 for individual coverage and $5,650 for family coverage. § The minimum deductible for HSA-qualified … Continue Reading
Health Savings Accounts (HSAs) offer a unique and perhaps unintended opportunity to create tax-favored savings vehicles similar to IRAs. HSAs were established by the Medicare Modernization Act of 2003 with the intention of encouraging consumer-directed healthcare and providing an alternative source for health insurance coverage. The concept pairs HSAs with High Deductible Health Plans (HDHPs). Individuals and … Continue Reading
The Pennsylvania Legislature enacted the Health Savings Account Act (the "HSA Act") 72 P.S. §§3402b.1-3402b.6, on July 14, 2005, to be effective sixty days thereafter. As enacted, Section 4 of the HSA Act did not provide an exclusion from Pennsylvania tax for contributions by employers and employees to health savings account plans. Accordingly, there were not deductions … Continue Reading
CCHIT was awarded a contract in September of 2005 by the Department of Health and Human Services (HHS) to develop and evaluate criteria and to establish an inspection process to provide certification for electronic health records. CCHIT has been endorsed by the American Academy of Family Physicians (AAFP), the American Academy of Pediatrics (AAP), and the American … Continue Reading
The District Court of Appeal of the State of Florida affirmed a lower state court holding that certain aspects of a restricted covenant were not enforceable. In Florida Hematology and Oncology v. Rambabu Tummala, M.D., the Practice had terminated Dr. Tummala allegedly after he began questioning certain billing practices. Although Dr. Tummala was subject to a restrictive … Continue Reading
Further progress towards malpractice or tort reform was delayed, perhaps permanently, by the failure of the Senate to approve cloture. The Medical Care Access Protection Act of 2006 (S. 22) and the Healthy Mothers and Healthy Babies Access to Care Act (S. 23), both sponsored by Republicans and both of which would impose limits on … Continue Reading
President Bush has included two tax measures in his fiscal 2007 budget proposal intended to encourage the development of health savings accounts (HSAs).… Continue Reading
Electronic Health Records (EHR) are touted by proponents within the healthcare industry as a means to both improve quality and reduce cost through a combination of reduced errors and improved communication. The drive to standardize the process for the utilization of electronic healthcare records gained its greatest impetus from the electronic transaction standards of HIPAA, … Continue Reading
HHS/CMS announce ePrescribing regulations. The Department of Health and Human Services and CMS issued a final rule for ePrescribing standards. The final rules were published in the Federal Register under November 7, 2005 at 70 FR 67568.… Continue Reading
Highmark announces the Highmark E Health Collaborative. The Highmark E Health Collaborative is a joint project between Highmark and the Pittsburgh Foundation to foster the adoption and utilization of electronic prescription systems. The Collaborative will provide funding to eligible physicians who wish to acquire and use electronic technology. Highmark will contribute $26.5 million , $18.5 … Continue Reading
The Pennsylvania Insurance Department announced on October 31, 2005 that the 2006 MCARE assessment will be 29% of the primary prevailing premium. Earlier in the week, Pennsylvania Governor Ed Rendell promised extending the MCARE abatement program for 2 more years.… Continue Reading