Health
SACRAMENTO – Continuing the implementation of Gov. Gavin Newsom’s Executive Order to take on high prescription drugs costs, the California Department of Health Care Services, or DHCS, announced Monday that it will soon begin accepting proposals to implement a significant component of the state’s prescription drug purchasing plan.
Under the proposal, DHCS will be transitioning Medi-Cal pharmacy services from its contracted managed care plans to its directly negotiated fee-for-service system; purchasing on behalf of 13 million enrollees, as opposed to the current 2 million.
“California will use our market power and our moral power to take on drug manufacturers and demand fairer prices for prescription drugs. And we will continue to move closer to ensuring health care for every Californian,” said Gov. Newsom on Monday. “Today’s announcement gets us one step closer to the goal.”
Just moments after being sworn in, Governor Newsom launched a series of first-in-the-nation actions to make health care more affordable for all Californians and to move the state closer toward the goal of health care for all.
Those proposals included Executive Order N-01-19 to create the nation’s largest single-purchaser system for drugs and to, ultimately, allow all Californians and private employers to sit together at the bargaining table across from big drug companies when negotiating prescription drug prices.
This executive order directed state agencies to review opportunities to expand existing bulk purchasing efforts for state, local and private sector entities and transition Medi-Cal pharmacy services from managed care into the fee-for-service delivery system to create significant negotiating leverage and substantial savings for the state.
Monday’s announcement brings the state closer to making that system a reality by creating the framework for a consolidated state negotiation and purchasing system for Medi-Cal pharmacy and a uniform Medi-Cal pharmacy provider network and pharmacy utilization policy while allowing Medi-Cal Managed Care Plans to retain all care coordination, pharmacy adherence and disease management responsibilities.
Earlier this year, the Governor announced that the counties of Los Angeles, Santa Clara, Alameda and San Francisco, among the largest public purchasers of prescription drugs in California, will partner with the state to use our combined market power to take on drug companies and lower the cost of prescription drugs.
Under the proposal, DHCS will be transitioning Medi-Cal pharmacy services from its contracted managed care plans to its directly negotiated fee-for-service system; purchasing on behalf of 13 million enrollees, as opposed to the current 2 million.
“California will use our market power and our moral power to take on drug manufacturers and demand fairer prices for prescription drugs. And we will continue to move closer to ensuring health care for every Californian,” said Gov. Newsom on Monday. “Today’s announcement gets us one step closer to the goal.”
Just moments after being sworn in, Governor Newsom launched a series of first-in-the-nation actions to make health care more affordable for all Californians and to move the state closer toward the goal of health care for all.
Those proposals included Executive Order N-01-19 to create the nation’s largest single-purchaser system for drugs and to, ultimately, allow all Californians and private employers to sit together at the bargaining table across from big drug companies when negotiating prescription drug prices.
This executive order directed state agencies to review opportunities to expand existing bulk purchasing efforts for state, local and private sector entities and transition Medi-Cal pharmacy services from managed care into the fee-for-service delivery system to create significant negotiating leverage and substantial savings for the state.
Monday’s announcement brings the state closer to making that system a reality by creating the framework for a consolidated state negotiation and purchasing system for Medi-Cal pharmacy and a uniform Medi-Cal pharmacy provider network and pharmacy utilization policy while allowing Medi-Cal Managed Care Plans to retain all care coordination, pharmacy adherence and disease management responsibilities.
Earlier this year, the Governor announced that the counties of Los Angeles, Santa Clara, Alameda and San Francisco, among the largest public purchasers of prescription drugs in California, will partner with the state to use our combined market power to take on drug companies and lower the cost of prescription drugs.
- Details
- Written by: Elizabeth Larson
SACRAMENTO – California Attorney General Xavier Becerra announced the recovery of $996,000 for California as part of a multistate settlement against health insurer Premera Blue Cross.
The settlement resolves allegations that the health insurer violated state and federal privacy laws arising from a 2014 data breach.
The settlement was the result of a multistate investigation and includes $10 million in civil penalties, of which California will receive $996,000.
It also includes significant injunctive terms requiring Premera to implement reasonable security to protect consumers’ personal and medical information and to maintain a compliance program.
“Consumers who entrust their health information to companies deserve security in return. Companies have a responsibility to protect consumers’ private information, especially sensitive health information,” said Attorney General Becerra. “Premera’s failure to protect the private information of millions of patients is unacceptable. This settlement should send a strong message to companies with loose data privacy practices: it doesn’t pay to cut security corners.”
The settlement stems from a data breach that was publicly announced in March 2015, where the personal information of 10.5 million consumers, including 400,000 Californians, was breached.
The data included the consumers’ names, Social Security numbers, bank account information, medical information, and health claims-related data. Attackers gained access to patient data by sending fake, targeted emails to Premera employees. These emails contained malware that allowed the attackers to spend months compromising Premera’s inadequately-secured network.
The multistate investigation found that the company lacked basic data security, failed to monitor its network for malicious activity, and disregarded experts’ warnings of security flaws. In addition, it failed to limit access to sensitive information, allowing employees without business need to access the information.
The settlement resolves allegations that Premera violated each state’s consumer protection and medical information laws, as well as the federal Health Insurance Portability & Accountability Act, which established national standards and safeguards to protect personal health information.
A copy of the complaint can be found here and the proposed judgment can be found here.
The settlement resolves allegations that the health insurer violated state and federal privacy laws arising from a 2014 data breach.
The settlement was the result of a multistate investigation and includes $10 million in civil penalties, of which California will receive $996,000.
It also includes significant injunctive terms requiring Premera to implement reasonable security to protect consumers’ personal and medical information and to maintain a compliance program.
“Consumers who entrust their health information to companies deserve security in return. Companies have a responsibility to protect consumers’ private information, especially sensitive health information,” said Attorney General Becerra. “Premera’s failure to protect the private information of millions of patients is unacceptable. This settlement should send a strong message to companies with loose data privacy practices: it doesn’t pay to cut security corners.”
The settlement stems from a data breach that was publicly announced in March 2015, where the personal information of 10.5 million consumers, including 400,000 Californians, was breached.
The data included the consumers’ names, Social Security numbers, bank account information, medical information, and health claims-related data. Attackers gained access to patient data by sending fake, targeted emails to Premera employees. These emails contained malware that allowed the attackers to spend months compromising Premera’s inadequately-secured network.
The multistate investigation found that the company lacked basic data security, failed to monitor its network for malicious activity, and disregarded experts’ warnings of security flaws. In addition, it failed to limit access to sensitive information, allowing employees without business need to access the information.
The settlement resolves allegations that Premera violated each state’s consumer protection and medical information laws, as well as the federal Health Insurance Portability & Accountability Act, which established national standards and safeguards to protect personal health information.
A copy of the complaint can be found here and the proposed judgment can be found here.
- Details
- Written by: Elizabeth Larson
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