Union Bank Awards $50K Grant to Hospital
For Nurse Training
Kaiser Permanente recently said rising health care costs is forcing the HMO to boost health insurance premium rates by 11.6 percent in 2002 for Southern California.
During the past three years, Kaiser has raised premium rates by about 10 percent a year, said Sylvia Wallace, Kaiser spokeswoman in San Diego.
Wallace said starting in January 2002, premium rates will go even higher to offset rising prescription drug and hospitalization costs.
“Prescription costs have risen by 19 percent amid the (rising) aging population (and) new, more expensive drugs (being launched on the marketplace),” Wallace said.
Other factors contributing to the premium rise are the high costs of buying sophisticated medical equipment, insufficient reimbursements for Medicare patients, and money needed for infrastructure improvements, she said.
A relatively new law that forces HMOs to cover more mental health services and longer mandatory hospital stays for certain procedures also add costs, she said.
Wallace agreed with consumer groups that fear employers may pass the costs of premium increases to employees.
Yet, Kaiser doesn’t expect membership to decline as a result of higher premium costs.
“In general, when costs go up, it makes it more difficult to insure employees and families,” Wallace conceded. “But we don’t anticipate a drop in membership.”
As of last week, Kaiser listed 520,000 members in San Diego.
Wallace said it remains to be seen how employers will react to the premium hike, although open enrollment is just around the corner.
Kaiser won’t be the only HMO raising its premium rates next year, she said.
Many of the major health care plans have yet to release their premium rates for 2002.
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Financial Boost For Nursing Students:
The Union Bank of California Foundation approved a $50,000 grant to Scripps Memorial Hospital, La Jolla to help ease the way into a health care career.
Dr. Joan Burritt, chief nurse executive and associate administrator at Scripps Memorial Hospital, predicts by the year 2004, California will have a severe shortage of registered nurses.
Hospitals expect more than 25,000 vacancies in jobs ranging from radiology technicians and pharmacists to laboratory techs and nurses.
Providing health care students with the financial means to enter the field now creates a work force for later.
“At Scripps Memorial we have a very strong commitment to the education of our staff,” Burritt said. “As patients and patient care becomes more complex, the need for highly educated staff makes itself more and more clear.”
Please fax health care news to (858) 571-3628 or e-mail mwebb@sdbj.com.
