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Morning Briefing

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Tuesday, Dec 16 2014

Full Issue

Boeing, Starbucks Demand And Get Better Health Care For Workers

Seattle's big companies have pushed local hospitals and doctors to meet the kinds of rigorous standards they use to build airplanes or brew coffee, reports The Los Angeles Times. Also in the news are a look at the SHOP exchanges for small businesses and the rate increases some of those employers are facing.

Forty miles north of Seattle, in the largest building in the world, Boeing assembles its biggest commercial airliners. Thousands of workers on a 98-acre factory floor piece together hulking wings and fuselage pieces, miles of electrical wiring and millions of rivets on a production line so precisely choreographed that Boeing can roll out a new jet every other day. The largest plane built here, the 747, has some 6 million parts. With similar attention to detail, Boeing has helped shape medical care in and around Seattle, one of the healthiest regions of the country. ... Boeing and other major employers here, including Starbucks and Costco, have aggressively pushed local hospitals and doctors to meet the kinds of rigorous standards they use to build airplanes or brew coffee. (Levey, 12/15)

[Mike] Brey owns four Hobby Works toy stores in Maryland and Virginia, and hes got about 50 full and part-time workers. ... Theres no time to sleep around the holidays if you own a toy store, and no time to look over health insurance plans one of his least favorite chores. ... Still, Brey does provide insurance for his employees. ... [Brey has] been noodling around on Marylands SHOP website, which was set up under the Affordable Care Act to connect small businesses with health insurers. ... Brey says he used to have only a couple of plans to choose from. But on the SHOP exchange, You have CareFirst offering, Coventry, Evergreen, Kaiser, United. But heres the thing: Breys just browsing, not buying. And hes not alone. Its been, admittedly, a little slow getting out of the starting gate, says Sabrina Corlette, a senior research fellow at Georgetown Universitys Center on Health Insurance Reforms. (Marshall-Genzer, 12/16)

Last year, the administration decided to give businesses more time to stay on their current grandfathered coverage before moving to plans that comply with the Affordable Care Act. But the relief of being able to keep the same plan was short-lived for some small business owners. Kurt Barks, the CEO of Complete Auto Body, found that the premiums for his company plan that covers about 40 workers would rise about 38 percent, even though its the same coverage he has had for the last few years. (Shapiro, 12/16)

In other insurance news, WellCare names a new CEO -

WellCare Health Plans Inc. has appointed Chief Operating Officer Kenneth A. Burdick as its new chief executive, a year after firing Alec Cunningham over differing perspectives. Mr. Burdick, who was 55 years old as of Aprils proxy filing, replaces Chairman David J. Gallitano, who has served as interim CEO since November 2013. ...Tampa, Florida-based WellCare focuses on government-backed health-care programs, expanding its business with several acquisitions of Medicaid-focused plans in recent years. Drug costs have weighed on health insurers results, in general, particularly with expensive hepatitis C treatments hitting the market. (Chen, 12/15)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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