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Most States Ban Shackling Pregnant Women in Custody, Yet Many Report Being Restrained

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Renuka Rayasam
Fri, 17 Nov 2023 10:00:00 +0000

Ashley Denney was about seven months pregnant in 2022 when police handcuffed her during an arrest in Carroll County, Georgia. Officers shackled her even though the bans the use of restraints on pregnant women in custody beginning at the second trimester.

In early July, she said, it happened again.

“I asked the officer, ‘Please, pull over. I'm not supposed to be handcuffed. I'm pregnant,'” said Denney. At the time, she was near the end of her first trimester, though she believed her pregnancy was more advanced. Arresting officers did not know she was pregnant, said an official with the Carrollton Police Department who reviewed footage of that arrest.

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Medical groups, such as the American College of Obstetricians and Gynecologists, widely condemn shackling pregnant people, which they argue is unethical and unsafe because it increases the risk of falls, hinders medical care, and endangers the fetus.

About 40 states, Georgia, have passed laws limiting the use of restraints such as handcuffs, leg restraints, and belly chains on pregnant people in law enforcement custody, according to a Johns Hopkins University research group. Laws that seek to improve treatment of pregnant women in jails and prisons have drawn bipartisan support, including the First Step Act, which was passed in 2018 and limits the use of restraints on pregnant people in federal custody. Yet advocates say they continue logging reports of law enforcement agencies and hospital staffers ignoring such prohibitions and allowing pregnant people to be chained, handcuffed, or otherwise restrained.

Confusion over the laws, lack of sanctions for violations, and wide loopholes are contributing to the continued shackling of pregnant women in custody. But it's nearly impossible to get an accurate picture of the prevalence because of limited data collection and little independent oversight.

“People see laws like these, and they say ‘check.' They don't know how they are being implemented and if they are creating the outcomes intended,” said Ashley Lovell, co-director of the Alabama Prison Birth Project, a group that works with pregnant prisoners. Without oversight, these laws “are words on paper,” she said. “They don't mean anything.”

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U.S. jails admit 55,000 pregnant people each year, according to estimates based on 2017 data from research led by Carolyn Sufrin, a gynecology and obstetrics associate professor at Johns Hopkins University who researches pregnancy care in jails and prisons. “The fact that we don't know what is is part of the story itself,” she said.

Yet reports of shackling continue to surface, often making local headlines.

In January, a Georgia woman, 32 weeks pregnant, was shackled for hours while waiting for a medical appointment and during transport, according to Pamela Winn, founder of RestoreHER US.America, a group that works with people entangled in the criminal justice system. The woman did not want to be identified because she is in state custody and fears retaliation. She said her handcuffs were removed only after a request from medical staffers.

Her experience was echoed by women nationwide in law enforcement custody.

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Minnesota passed an anti-shackling bill in 2014, but six years later a suburban Minneapolis woman sued Hennepin County after a wrongful arrest during which she was shackled while in active labor — an incident first reported by local media.

And despite ' shackling ban, in August 2022 an officer in Harris County, which includes Houston, chained Amy Growcock's ankle to a bench in a courthouse holding area for hours.

“It was pretty painful,” said Growcock, who was eight months pregnant and worried about circulation being cut off in her swollen leg.

Prohibitions on shackling have into the realities of the country's complicated web of penal institutions. Millions of people are held in a system that includes thousands of county jails, state and federal prisons, and private facilities with varying policies. Facilities often operate with little or no independent oversight, said Corene Kendrick, deputy director of the ACLU National Prison Project.

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Some ACLU chapters have been logging complaints about violations of state bans on shackling pregnant people in jails and prisons. It appears, from complaints and oversight reports, that officials are usually left to interpret the law and police their own behavior, said Kendrick.

The Georgia law bans restraining pregnant women in their second and third trimesters and allows restraints in certain circumstances immediately postpartum. The state Department of Corrections maintains an anti-shackling policy for pregnant people in state custody and requires violations to be reported. But agency officials, in response to requests from KFF Health News, said there were no incident reports regarding shackling in 2022 and through late October.

The Georgia Sheriffs' Association asks county jails to voluntarily submit data on shackling, but only 74 of the 142 jails sent reports in 2022. Those jails reported holding 1,016 pregnant women but only two inmates who were restrained in the immediate postpartum period.

Association officials contend that shackling is rare. “Our jail people have a lot of common sense and compassion and do not do something to intentionally somebody,” said Bill Hallsworth, director of jail and court services for the association. Many rural jails don't have medical staffers to immediately verify a pregnancy, he added.

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The Carrollton Police Department, whose officers handcuffed Denney, maintain that the law didn't apply during her arrest, before her booking into a facility, according to public information officer Sgt. Meredith Hoyle Browning.

“It sounds like, to me, that there has been wide interpretation of this bill by the people we are asking to enforce it,” said Georgia state Rep. Sharon Cooper, a Republican who authored the state's bill. Cooper said she hadn't been notified of any incidents but added that if pregnant incarcerated women are still being shackled, legislators may need to revise the law.

In addition, some incidents in which jailors shackle pregnant people fall into legal loopholes. In Texas, as in many other states, officers can make exceptions when they feel threatened or perceive a flight risk. Last year 111 pregnant women reported being restrained in jail, according to a Texas Commission on Jail Standards in April. In more than half the cases, women were shackled during transport even though that's when they are most likely to fall.

The Texas commission has sent memos to jails that violate the shackling policy, but documents reviewed by KFF Health News show the agency stopped short of issuing sanctions.

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Most states don't allocate funding to educate correctional officers and hospital staff members on the laws. More than 80% of perinatal nurses reported that the pregnant prisoners they care for were sometimes or always shackled, and the vast majority were unaware of laws around the use of restraints, as well as of a nurses association's position against their use, according to a 2019 study.

Even when medical professionals object to restraints, they generally defer to law enforcement officials.

Southern Regional Medical Center, just south of Atlanta, handles pregnant incarcerated patients from the Georgia Department of Corrections, the Clayton County Jail, and other facilities, said Kimberly Golden-Benner, the hospital's director of business development, marketing, and communications. She said clinicians request that officers remove restraints when pregnant incarcerated patients arrive at the center for labor and delivery. But it's still at the officers' discretion, she said.

The Clayton County Sheriff's Office didn't return a request for comment. The state Department of Corrections maintains a policy of limiting the use of restraints on pregnant incarcerated people to only extreme cases, such as when there is an imminent escape risk, said Joan Heath, public affairs director. All staff members at facilities for women are required to complete an annual training course that outlines the policy, she said.

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Strengthening the laws will require funding for implementation, such as creating model policies for hospitals and law enforcement staffs; continuous training; tighter requirements; and sanctions for violations, advocates say.

“The laws are a necessary step and draw attention to the issue,” said Sufrin, the Johns Hopkins professor. They are “by no means enough to ensure the practice doesn't happen.”

Winn wants states to allow pregnant women to bond out of jail immediately and defer sentences until after they give birth. In Colorado a law took effect in August that encourages courts to consider alternative sentences for pregnant defendants. Florida lawmakers considered but did not pass a similar measure this year.

The use of restraints is a window into mistreatment that pregnant women face in jails and prisons.

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Denney said that in August she was mistakenly given medication for depression and anxiety instead of nausea; her morning sickness worsened, and she missed a meal.

The medical staff doesn't have a record of Denney being given the wrong medication, said Brad Robinson, chief deputy of the Carroll County Sheriff's Office.

“They don't take you seriously,” Denney said of the pregnancy care she has received while incarcerated. “They should at least make sure the babies are all right.”

Growcock said her initial shackling in Houston was the first sign that officers weren't equipped to handle pregnant people. She gave birth in a jail cell and nearly lost her son less than two weeks after her arrest. The Texas Commission on Jail Standards acknowledged that Growcock, who photographed her ankle in restraints, had been shackled. But the jail overseer admitted no other wrongdoing in her case, according to a memo the commission sent to the Harris County Jail.

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“I felt like if I wasn't getting treated right already, then the whole experience was going to be bad,” she said. “And it was.”

——————————
By: Renuka Rayasam
Title: Most States Ban Shackling Pregnant Women in Custody, Yet Many Report Being Restrained
Sourced From: kffhealthnews.org/news/article/pregnant-women-prison-handcuffs-restraints-laws/
Published Date: Fri, 17 Nov 2023 10:00:00 +0000

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https://www.biloxinewsevents.com/beyond-insulin-medi-cal-expands-patient-access-to-diabetes-supplies/

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‘Forever Chemicals’ Found in Freshwater Fish, Yet Most States Don’t Warn Residents

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Hannah Norman, KFF News
Fri, 01 Dec 2023 10:00:00 +0000

Bill Eisenman has always fished.

“Growing up, we ate whatever we caught — catfish, carp, freshwater drum,” he said. “That was the only real source of fish in our diet as a , and we ate a lot of it.”

Today, a branch of the Rouge River runs through Eisenman's property in a suburb north of Detroit. But in recent years, he has been wary about a group of chemicals known as PFAS, also referred to as “forever chemicals,” which don't break down quickly in the environment and accumulate in soil, water, fish, and our bodies.

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The chemicals have spewed from manufacturing plants and landfills into local ecosystems, polluting surface water and groundwater, and the wildlife living there. And hundreds of military bases have been pinpointed as sources of PFAS chemicals leaching into nearby communities.

Researchers, anglers, and environmental activists nationwide worry about the staggering amount of PFAS found in freshwater fish. At least 17 states have issued PFAS-related fish consumption advisories, KFF Health News found, with some warning residents not to eat any fish caught in particular lakes or rivers because of dangerous levels of forever chemicals.

With no federal guidance, what is considered safe to eat varies significantly among states, most of which no regulation.

Eating a single serving of freshwater fish can be the equivalent of drinking water contaminated with high levels of PFAS for a month, according to a recent study from the Environmental Working Group, a research and advocacy organization that tracks PFAS. It's an unsettling revelation, especially for rural, Indigenous, and low-income communities that depend on subsistence fishing. Fish remain a large part of cultural dishes, as well as an otherwise healthy source of protein and omega-3s.

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“PFAS in freshwater fish is at such a concentration that for anyone consuming, even infrequently, it would likely be their major source of exposure over the course of the year,” said David Andrews, a co-author of the study and researcher at EWG. “We're talking thousands of times higher than what's typically seen in drinking water.”

Dianne Kopec, a researcher and faculty fellow at the University of Maine who studies PFAS and mercury in wildlife, warned that eating fish with high concentrations of PFAS may be more harmful than mercury, which long ago was found to be a neurotoxin most damaging to a developing fetus. The minimal risk level — an estimate of how much a person can eat, drink, or breathe without “detectable risk” to health — for PFOS, a common PFAS chemical, is 50 times as low as for methylmercury, the form of mercury that accumulates in fish, according to the federal Agency for Toxic Substances and Disease Registry. But she emphasized, “They're both really nasty.”

Just like mercury, PFAS bioaccumulate up the food chain, so bigger fish, like largemouth bass, generally contain more chemicals than smaller fish. Mercury is more widespread in Maine, but Kopec said PFAS levels near contamination sources are concerningly high.

‘Fishing Is a Way of '

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The Ecology Center, an environmental group in Michigan, educates anglers about consumption advisories and related health impacts. But Erica Bloom, its toxics campaign director, noted that for many people out on the river, “fishing is a way of life.”

Eisenman participated in an Ecology Center community-based study published this year, which tested fish from Michigan's Huron and Rouge rivers for PFAS that poured out from auto and other industry contamination. Across 15 sites, anglers caught 100 fish samples from a dozen species, and what they found scared him.

“There were no sites that registered zero,” said Eisenman, noting that some had significantly higher levels of chemicals than others. “You need to make a value judgment. I'm going to still eat fish, but I don't know if that's a good thing.”

Last year, the National Academies of Sciences, Engineering, and Medicine published a sweeping federally funded report that associated PFAS exposure with health effects like decreased response to vaccines, cancer, and low birth weight.

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There are thousands of PFAS, or perfluoroalkyl and polyfluoroalkyl substances, many of them used to make both household and industrial products stain-resistant or nonstick. They're in fire-retardant foam used for decades by fire departments and the military, as well as in cookware, water-repellent clothing, carpets, food wrappers, and other consumer goods.

In late October, the EPA added hundreds of PFAS compounds to its list of “chemicals of special concern.” This will require manufacturers to report the presence of those PFAS chemicals in their products — even in small amounts or in mixtures — starting Jan. 1.

Sparse Testing Leaves Blind Spots

About 200 miles north of Detroit, in rural Oscoda, Michigan, officials have warned against eating fish or deer caught or killed near the former Wurtsmith Force Base because of PFAS contamination.

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“We have a 9-mile stretch of river system in which the state determined way back in 2012 that it wasn't safe to even eat a single fish,” said Tony Spaniola, an advocate for communities affected by PFAS. He owns a home across a lake from the shuttered military site.

In Alaska, several lakes are designated catch and release only because of PFAS contamination from firefighting foam. A study by the U.S. Geological Survey and Pennsylvania Department of Environmental Protection released in August led to a warning to avoid eating fish from the Neshaminy Creek watershed.

Nationwide, use of firefighting foam and other PFAS-loaded products by the Department of Defense alone has led to the contamination of at least 359 military bases and communities that need to be cleaned up, with an additional 248 still under investigation as of June.

But many lakes and streams haven't been tested for PFAS contamination, and researchers worry far more sites hold fish laced with high levels of PFAS.

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Federal efforts to curb PFAS exposure have focused mostly on drinking water. Earlier this year, the EPA proposed the nation's first PFAS drinking water standards, which would limit contamination from six types of chemicals, with levels for the two most common compounds, PFOA and PFOS, set at 4 parts per trillion.

But the EWG researchers found that one serving of fish can be equivalent to a month's worth of drinking water contaminated with 48 parts per trillion of PFOS.

Store-bought fish caught in the ocean, like imported Atlantic salmon and canned chunk tuna, appear to have lower PFAS levels, according to FDA research.

A biomonitoring project focused on the San Francisco Bay Area's Asian and Pacific Islander community measured PFAS levels in the blood and found higher amounts of the compounds compared with national levels. The researchers also surveyed participants about their fish consumption and found that 56% of those who ate locally caught fish did so at least once a month.

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Eating a fish's fillet is often recommended, as it accumulates fewer chemicals than organs or eggs, but many participants reported eating other parts of the fish, too.

California is one of many states with no fish consumption advisories in place for PFAS. Jay Davis, senior scientist at the San Francisco Estuary Institute, said that's in part because of “limited monitoring dollars” and a priority on legacy chemicals like PCBs as well as mercury left over in particularly high concentrations from gold and mercury mining.

Wesley Smith, a senior toxicologist with California's Office of Environmental Health Hazard Assessment, said the state is reviewing the latest scientific literature but needs more data to develop an advisory that is “neither too restrictive nor too permissive.”

States like New Hampshire, Washington, Maine, and New Jersey have some of the most protective guidance, while other states, such as Maryland and Michigan, lag when it comes to designating fish unsafe to eat.

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Advisory levels for at-risk groups — such as children and women of childbearing age — are usually lower, while “do not eat” thresholds for the general population range from 25.7 parts per billion in New Hampshire to 300 ppb in Michigan, 408 ppb in Maryland, and 800 ppb in Alabama.

“That's wicked outdated to have levels that high and consider that safe for folks to eat,” said Kopec, the University of Maine researcher.

Though it is no longer made in the U.S., PFOS remains the most commonly found — and tested for — PFAS chemical in fish today.

The primary maker of PFOS, 3M, announced it would begin phasing the chemical out in 2000. This year, the company said it would pay at least $10.3 billion to settle a class-action brought by public water system operators. But in July, attorneys general from 22 states asked the court to reject the settlement, saying it was insufficient to cover the damages.

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The military first documented health concerns surrounding PFAS chemicals in the 1970s yet continued to use firefighting foam made with them. Mandated by Congress, the Defense Department was required to stop buying retardant containing PFAS by Oct. 1 and phase it out altogether by 2024. A recently published study linked testicular cancer among military personnel to PFOS.

Tackling Pollution at the Source

Pat Elder, an activist and director of the environmental advocacy group Military Poisons, has tested water for PFAS up and down the East Coast, including in Piscataway Creek, which drains from Joint Base Andrews, the home of Air Force One.

In 2021, after testing fish from Piscataway Creek, Maryland officials released the state's sole PFAS fish consumption advisory to date. But Elder worries Maryland has not gone far enough to protect its residents.

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“People eat the fish from this creek, and it creates an acute health hazard that no one seems to be paying attention to,” Elder said.

Since then, Maryland's Department of the Environment has conducted more fish monitoring in water bodies near potential PFAS sources, as well as at spots regularly used by subsistence anglers, said spokesperson Jay Apperson. He added that the state plans to put out more advisories based on the results, though declined to give a timeline or share the locations.

Part of the challenge of getting the word out and setting location-specific consumption advisories is that contamination levels vary significantly from lake to lake, as well as species to species, said Brandon Reid, a toxicologist and the of Michigan's Eat Safe Fish program.

Michigan set its screening values for fish consumption advisories in 2014, and the state is in the of updating them within the next year, Reid said.

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But to see the chemicals dip to healthier levels, the pollution needs to stop, too. There is hope: Andrews, the EWG researcher, compared EPA fish sample data from five years apart and found about a 30% drop on average in PFAS contamination.

Bloom has watched this cycle happen in the Huron River in southeastern Michigan, where PFAS chemicals upstream seeped into the water from a chrome plating facility. While the levels of PFAS in the water have slowly gone down, the chemicals remain, she said.

“It's very, very hard to completely clean up the entire river,” Bloom said. “If we don't tackle it at the source, we're going to just keep having to spend taxpayer money to clean it up and deal with fish advisories.”

——————————
By: Hannah Norman, KFF Health News
Title: ‘Forever Chemicals' Found in Freshwater Fish, Yet Most States Don't Warn Residents
Sourced From: kffhealthnews.org/news/article/pfas-forever-chemicals-freshwater-fish-regulatory-gap/
Published Date: Fri, 01 Dec 2023 10:00:00 +0000

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In Congress, Calls Mount for Social Security to Address Clawbacks

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David Hilzenrath and Jodie Fleischer, Cox Media Group
Thu, 30 Nov 2023 18:55:00 +0000

An investigation by KFF Health News and Cox Media Group gained further traction on Capitol Hill this as additional members of formally demanded answers from the Social Security Administration about billions of dollars it mistakenly paid to beneficiaries — and then ordered they repay.

Two members of a Senate panel that oversees Social Security sent a letter to the agency's acting commissioner, Kilolo Kijakazi, urging her to do more to prevent overpayments and “limit harm to vulnerable beneficiaries” when to recover the money.

As KFF News and Cox Media Group television stations jointly reported in September, the Social Security Administration routinely sends notices to beneficiaries saying they received to which they weren't entitled — and demanding they pay the back, often within 30 days.

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In the 2022 federal fiscal year, for example, the agency sent overpayment notices to more than 1 million people, Kijakazi told Congress in mid-October.

Alleged overpayments can continue for years before the government notifies a recipient and seeks repayment. By then, the amount a beneficiary allegedly owes the government can reach tens of thousands of dollars or more. People living check to check likely would have spent the money.

To recoup money owed, the government can reduce or stop people's monthly benefit checks.

“[W]e have been deeply concerned by stories from our constituents and recent reports of the extreme financial hardship placed upon beneficiaries who are asked to quickly repay in full or whose payments are halted, reduced, or reclaimed as the agency attempts to correct improper payments, many of which occurred due to agency error,” Sens. Maggie Hassan (D-N.H.) and Bill Cassidy (R-La.) wrote in a Nov. 28 letter to Kijakazi.

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Citing the news ' reporting, the senators asked what Kijakazi is doing to prevent harm to beneficiaries and what Congress can do.

Hassan and Cassidy are on the Senate Finance Committee's Subcommittee on Social Security, Pensions, and Family Policy.

Meanwhile, Sen. Rick Scott (R-Fla.) sent Kijakazi a letter on Nov. 17 calling the agency's actions “unacceptable.”

“If anyone intentionally defrauded the system or lied to payments at other taxpayers' expense, they should absolutely be held accountable and repay this debt to taxpayers,” Scott wrote. “But it's completely wrong for the federal government to go after well-intentioned Americans who did all the right things and trusted that their government was doing the right thing, too.”

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Many of the people affected are disabled, low-income, or both and are enrolled in the Social Security Administration's Disability Insurance or Supplemental Security Income programs.

In the 2022 fiscal year, the agency issued an estimated $4.6 billion in SSI overpayments, which represented 8% of payments in that program, according to the agency's latest annual financial report.

Kijakazi recently told a House subcommittee the 8% was “a small percentage.”

In other programs administered by the agency, there were an estimated $6.5 billion in overpayments in fiscal 2022, which amounted to one-half of 1%. Kijakazi called that overpayment rate “extremely low.”

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During the 2023 fiscal year, which ended on Sept. 30, the agency recovered $4.9 billion in overpayments, according to a recent statement by Social Security's inspector general. At the end of that period, an additional $23 billion of accumulated overpayments remained uncollected, the statement said.

Since KFF Health News and Cox Media Group TV stations published and broadcast news reports on overpayment clawbacks in September, several members of the House and Senate have written to the Social Security Administration calling for change or answers.

“Many of these overpayment notices as a complete surprise to SSA beneficiaries, leaving them confused, shocked, and scared that they cannot pay what SSA says they owe,” Rep. Ruben Gallego, an Arizona Democrat and Senate candidate, said in a Sept. 29 letter. “And, because of an indefinite ‘look-back period', SSA can collect funds from a recipient for an error going back decades,” he added.

Asked about the latest letters from lawmakers, Social Security spokesperson Nicole Tiggemann said the agency “will respond directly to the requestors.”

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Kijakazi said in October that she ordered a “top-to-bottom” review of how the agency handles overpayments.

Under federal , the agency must seek recovery of overpaid amounts unless circumstances warrant waiving the debts, Kijakazi said in recent testimony to Congress. There's no time limit on efforts to collect the debts, she said.

In their letter to the acting commissioner, Cassidy and Hassan asked what the agency is doing to make it less burdensome for beneficiaries to appeal or seek a waiver when an overpayment is the government's fault.

In response to questions for this article, Tiggemann, the Social Security spokesperson, said, “We will examine our policies and procedures — including our regulations — to determine where administrative updates to the overpayment recovery and waiver process may reduce the complexity and burden for the people we serve.”

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Scott, the Florida Republican, asked if the review Kijakazi announced in October would be disclosed to the public. In a written response to questions for this article, the Social Security spokesperson didn't say.

Do you have an experience with Social Security overpayments you'd like to share? Click here to contact our reporting team.

——————————
By: David Hilzenrath and Jodie Fleischer, Cox Media Group
Title: In Congress, Calls Mount for Social Security to Address Clawbacks
Sourced From: kffhealthnews.org/news/article/social-security-senators-letter-cox-media-group-kff-health-news/
Published Date: Thu, 30 Nov 2023 18:55:00 +0000

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FTC Chief Gears Up for a Showdown With Private Equity

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Harris Meyer
Thu, 30 Nov 2023 10:00:00 +0000

A recent Federal Trade Commission civil lawsuit accusing one of the nation's largest anesthesiology groups of monopolistic practices that sharply drove up prices is a warning to private equity investors that could temper their big push to snap up physician groups.

Over the past three years, FTC and Department of Justice officials have signaled they would apply more scrutiny to private equity acquisitions in , roll-up deals in which larger provider groups buy smaller groups in a local market.

Nothing happened until September, when the FTC sued U.S. Anesthesia Partners and the private equity firm Welsh, Carson, Anderson & Stowe in federal court in Houston, alleging they had rolled up nearly all large anesthesiology practices in Texas. In the first FTC legal challenge against a private equity purchase of medical practices, the federal agency targeted one of the most aggressive private equity firms involved in building large, market-dominating medical groups.

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In an interview, FTC Chair Lina Khan confirmed that her agency wants to send a message with this suit. Welsh Carson and USAP “bought up the largest anesthesiology practices, then jacked up prices and entered into price-setting and market-allocation schemes,” said Khan, who was appointed by in 2021 to head the antitrust enforcement agency, with a mandate to combat health care consolidation. “This action puts the market on notice that we will scrutinize roll-up schemes.”

The large and growing volume of private equity acquisitions of physician groups in recent years has raised mounting concerns about the impact on health costs, quality of care, and providers' clinical autonomy. A JAMA Internal Medicine study published last year found that prices charged by anesthesiology groups increased 26% after they were acquired by private equity firms.

“Now we're seeing that scrutiny with this suit,” said Ambar La Forgia, an assistant professor of business management at the of California-Berkeley, who co-authored the JAMA article. “This suit will cause companies to be more careful not to create too much local market power.”

The FTC's lawsuit alleges that USAP and Welsh Carson engaged in an anti-competitive scheme to gain market power and drive up prices for hospital anesthesiology services. The FTC also accuses USAP and Welsh Carson — which established the medical group in 2012 and has expanded it to eight states — of cutting deals with competing anesthesiology groups to raise prices and stay out of one another's markets.

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USAP now controls 60% of Texas' hospital anesthesia market, and its prices are double the median rates of other anesthesia providers in the , according to the lawsuit. Learning that USAP would boost rates following one acquisition, a USAP executive wrote, “Awesome! Cha-ching,” the civil complaint said.

In a written statement, Welsh Carson, which also holds sizable ownership shares in radiology, orthopedic, and primary care groups, called the FTC lawsuit “without merit in fact or law.” It said USAP's commercial rates “have not exceeded the rate of medical cost inflation for close to 10 years.”

The New York firm also said its investment in USAP “has allowed independent anesthesiologists to deliver superior clinical outcomes to underserved populations” and that the FTC's action will harm clinicians and patients. Welsh Carson declined a request for interviews with its executives.

“This is a pretty common roll-up strategy, and some of the big private equity companies must be wondering if more FTC complaints are coming,” said Loren Adler, associate director of the Brookings Schaeffer Initiative on Health Policy. “If the FTC is successful in court, it will have a chilling effect.”

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Since the FTC filed the USAP lawsuit, Khan said, the agency has received information from people in other health fields about roll-ups it should scrutinize. “We have limited resources, but it's an area we are interested in,” she said. “We want to focus on where we see the most significant harm.”

In physician acquisition deals, PE firms typically use mostly borrowed money to acquire a controlling interest in a large medical group, pay the physician owners a substantial upfront sum in exchange for sharply cutting their future compensation, and install a management team. Then they seek to acquire smaller groups in the same geographic market and bolt them onto the original medical group for more bargaining clout and operating efficiencies.

The PE firm's goal is to garner at least 20% dividends a year and then sell the group to another investor for at least three times the purchase price in three to seven years. Critics say this short-term investment model spurs the investors and medical groups to boost prices and cut staffing to generate large profits as fast as possible.

“Private equity is trying to extract value quickly and sell the company for a profit, so there's a lot more incentive to increase prices quickly and extract higher revenue,” La Forgia said.

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In the two years after a sale, PE-owned practices in dermatology, gastroenterology, and ophthalmology charged insurers 20% more per claim on average than did practices not owned by private equity, according to a JAMA study published last year.

There are similar concerns about hospital acquiring physician practices, which also have raised prices. “The evidence shows that both private equity and hospital acquisitions of physician practices are bad for consumers, and scrutiny should be applied to all acquirers,” Adler said.

Critics warn that private equity roll-ups of medical groups can jeopardize quality of care, too. Chris Strouse, a Denver anesthesiologist who served on USAP's national board of directors but left the company's Colorado group out of disapproval in 2020, cited patient safety issues arising from short staffing and mismanagement. He said USAP would schedule shifts so that three or four providers would hand off to each other a single surgical procedure, which he said is risky. In addition, USAP frequently asked anesthesiologists to work the day after working a 24-hour on-call shift, he said. “The literature shows that's outside the safety range,” he said. As a result, many providers have left USAP, he added.

The FTC has long been lax in monitoring roll-ups of physician groups, in part because federal law does not require public of these deals unless they exceed $111.4 million in value, a threshold adjusted over time. Lowering the threshold would require congressional action. As a result, regulators may be unaware of many deals that lead to gradual market concentration, which allows providers to demand higher prices from insurers and employer health plans.

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Recognizing that problem, the FTC proposed in June to beef up its reporting requirements for companies planning mergers, in hopes of spotting previous acquisitions of smaller groups that could lead to excessive market power and higher prices. In addition, in a draft of their merger review guidelines, issued in July, the FTC and the Department of Justice said they would consider the cumulative effect of a series of smaller acquisitions.

“The ways PE firms are making serial acquisitions, each individual acquisition is under the radar, but in aggregate they roll up the whole market,” Khan said. “Between the merger reporting form and the new merger guidelines, we want to be able to better catch unlawful roll-up schemes. … This would enable us to stop roll-ups earlier.”

But Brian Concklin, a lawyer with the law firm Clifford Chance, whose clients include private equity firms, said the FTC's proposed reporting requirements would hamper many legitimate mergers. “The notion that they need all that information to catch deals that lessen competition seems overblown and false, given that the vast majority of these deals do not lessen competition,” he said. “It will be a substantial burden on most if not all clients to comply.”

Researchers and employer groups, however, were encouraged by the FTC's action, though they fear it's too little, too late, because consolidation already has reduced competition sharply. Some even say the market has failed and price regulation is needed.

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“Providers have been able to extort higher prices on services with no improvement in quality or value or access,” said Mike Thompson, CEO of the National Alliance of Purchaser Coalitions. “The FTC stepping up its is a good thing. But this horse is out of the barn. If we don't have better enforcement, we won't have a marketplace.”

——————————
By: Harris Meyer
Title: FTC Chief Gears Up for a Showdown With Private Equity
Sourced From: kffhealthnews.org//article/ftc-chair-lina-khan-private-equity-regulation/
Published Date: Thu, 30 Nov 2023 10:00:00 +0000

Did you miss our previous article…
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