Blue Cross Won't Reinstate Cancelled Alabama Policies---I Wonder Why?

Blue Cross has announced that it won't reinstate cancelled Alabama policies that don't comply with the Affordable Care Act.  According to a statement released by BC/BS, the reason is that it would "increase costs for customers and increase risk for the company."

Let's examine that statement.  It seems absurd to me.  All we have heard is that the ACA will increase costs and, as such, BC/BS jacks our premiums out the roof because of the unknowns of the ACA and because it will not allow for denials based on pre-existing conditions. HMMM.  So, let me get this straight---Blue Cross increase rates due to the ACA, but after the criticism overwhelms the administration and Obama gives insurance companies the right to extend coverage for another year, BC/BS balks?

This is about money.  Blue Cross owns this state.  If you think this is not about money, then you probably believe that college football is not a business but an academic endeavor.

Hang on, it is going to be a bumpy ride from here.

Latest News on Depuy Settlement

The following is the latest article from the Wall Street Journal regarding the Depuy Hip Settlement:

http://online.wsj.com/news/articles/SB10001424052702304439804579207761883559166

Depuy Hip Settlement Announcement To Come Tuesday; First Stryker Hearing on Thursday

Terms of the Depuy Hip settlement will be formally announced Tuesday, November 19th in Ohio.  An "open status conference" is scheduled in front of United States District Judge David Katz in Toledo Ohio, who is overseeing the litigation.

Media reports are putting the "average" settlement at $300,000 to $350,000 per case.  I think this number is confusing in that it does not break out simple revisions, double revisions, re-revisions, and "extreme" wage loss cases, etc.  Reported failure rates in the United States are 37 percent and in Australia are 44%.

Two days later, the Judge Frank will hold the first hearing in the Stryker Hip litigation in Minneapolis as those claims begin in earnest.

What Does The Depuy Hip Settlement Mean for Stryker Hip Patients, Biomet Hip Patients, Wright Hip Patients, and Smith & Nephew Hip Patients

Now that Johnson & Johnson has reportedly settled the Depuy ASR Hip litigation, or at least a large portion of if, what does that mean for other manufactures facing claims regarding their products.  Prior to this settlement, the only major recall settlement had been the Sulzer hip settlement.  That settlement was roughly $1B.  In size, this settlement dwarfs that settlement.  Johnson and Johnson paid more in attorneys fees to defend these cases than Sulzer paid in settlement.

What this does do is set some sort of value that Stryker and others can use to quantify its risk and develop a settlement strategy.  It also gives Stryker an idea of its cost to litigate these claims.

Johnson and Johnson has decided not to settle non revised cases at this time.  It will be interesting to see if Stryker and other manufacturers opt for a different tactic in trying to buy peace in the form of future payments based on a sliding scale if the implant fails in the future.

Depuy Reportedly Ready To Pay $4 Billion Dollar Settlement of Defective Hip Claims

Bloomberg is reporting that Depuy will agree to a $4 Billion dollar settlement in the recalled ASR hip litigation.  If accurate, this will be one the largest product liability settlements ever.

Bloomberg says that the "average" claim will be $300,000.  The New York Times is reporting "$350,000.  There are several unknowns in that figure.  First, does that include co-pays, deductibles, and medical subrogation paid by Depuy already to some claimants?  Also, since that is an "average" number, it would seem to include people who had bilateral failures that had to be revised and whose claims arguably worth twice that amount.  There are also those people who are re-revisions in that the revision failed.

In the end, I think you will see a number closer to $250,000.

For months, the leadership of the case and the court has been trying to keep a lid on the terms of the settlement that were being negotiated but it appears as if the lid has been blown off now.

Federal Judge Selects Alabama Lawyer to Plaintiffs Steering Committee in Stryker Hip Litigation

Federal Judge Donovan W. Frank, who is presiding over the Stryker hip implant cases centralized from around the country to Minnesota has made his leadership selections.  Chris Hellums, of Pittman Dutton & Hellums in Birmingham, Alabama has been selected to serve on the Plaintiffs Steering Committee.

The Stryker implant MDL was established in June of 2013 and the number of cases continues to climb rapidly, with many believing that the number could reach or exceed 20,000.

Pittman Dutton & Hellums has been active in representation of individuals harmed by recalled orthopedic devices, representing clients nationwide.  These devices include products manufactured by Stryker, Depuy, Wright, Zimmer, Biomet and Smith & Nephew.

The Stryker hip implants, like other recalled hip products, have the potential to "fret" or corrode at the neck juncture.  Unlike the Depuy ASR implants, which seemed to fail at the junction between the ball and the cup, the failure of the Stryker Rejuvenate and ABG II implants occurs in the neck, requiring removal of the stem from the femur in what has been described by one surgeon as "removing rebar from concrete."

When the implant frets, metal debris and tiny particles of cobalt and chromium gets into the surrounding issue and the bloodstream, often resulting in necrosis and pseudotumors in the hip cavity. Once this occurs, it will progressively get worse until the implant is removed.

If you have one of these implants, it is imperative that you consult a physician and insure that you have regular blood test for cobalt and chromium.

You should also consult an attorney before you sign any documents allowing Broadspire, a company hired by Stryker, to obtain confidential medical records to help Stryker build their case against you and speak with your physician.

Styker Agrees to Settlement With U.S. Government

The medical device maker Stryker will pay the federal government $13.3 million to settle allegations that it bribed public health officials overseas to secure business, a violation of the Foreign Corrupt Practices Act.

The Securities and Exchange Commission (S.E.C.) said Stryker subsidiaries made $2.2 million in illegal payments to government employees in Argentina, Greece, Mexico, Poland and Romania from August 2003 to February 2008. Stryker made the payments to get or retain business, but it recorded them as legitimate consulting and service contracts, travel costs, charitable donations and commissions.

The S.E.C. claims that Stryker made $7.5 million in illicit profits as a result of the illegal payments. Stryker will pay the Treasury $7.5 million, plus $2.3 million in interest. It will also pay a $3.5 million civil penalty.

According to the S.E.C., Stryker had anticorruption corporate policies, but did not do enough to put them in action and legitimately regulate its operations. The company virtually ignored its internal compliance programs.

The Department of Justice and the S.E.C. began investigating the payments in 2007. The government has since closed its investigation into the matter.

Johnson & Johnson Enters Into the Third-Largest Pharmaceutical Settlement EVER

Johnson & Johnson is paying the third-largest pharmaceutical settlement ever to settle civil and criminal fines that it improperly marketed and promoted the antipsychotic drug Risperdal.  Much of the conduct occurred when current Johnson & Johnson CEO Alex Gorsky was vice president for sales and marketing or president of the pharmaceutical unit.

The United States Attorney General said that the company "recklessly put at risk the most vulnerable members of our society."  In response, Johnson & Johnson's vice president and general counsel said "This resolution allows us to move forward and continue to focus on delivering innovative solutions that improve and enhance the well-being of patients.

However, it is hard to understand the extent to which the company could move on given that Mr. Gorsky is now the CEO.  "Stockholders and patients will pay the price for the fraud," said Partick Burns, co-director of Taxpayers Against Fraud, and advocacy group for corporate whistle-blowers.  Gorsky not only keeps his job, and his lavish benefits and bonuses, but ends up as CEO.

Federal officials said the company knew that Risperdal posed serious risks for older adults, like an increased risk of strokes, but played them down.  Johnson and Johnson also knew that children were susceptible to certain health risk from taking the drug, including the possibility that boys could develop breasts through elevated production of the hormone prolactin, federal officials said.  Despite this, J&J told its sales representatives to visit child psychologists and mental health facilities that mainly focused on children and to promote the drug for defecit hyperactivity disorder and obsessive-compulsive disorder.

Anti-Seizure Drug Potiga Gets Black Box Warning for Vision Loss

English: Logo of the U.S. Food and Drug Administration (2006) (Photo credit: Wikipedia)

Glaxo's anti-seizure drug Potiga now comes with a black box warning.  A boxed warning, sometimes called a black box warning, is an alert that sometimes appears on the package insert for certain drugs. It is the strongest warning the FDA requires and signifies that medical studies indicate that the drug carries significant risk of serious or life threatening adverse effects.

The label chance was announced today after risks were flagged in April.  The warning identifies abnormalities of the eye, vision loss and skin discoloration, all of which may become permanent.