Menu Close

Kaiser Patient Portal Deployment Study Shows Good Outcomes

Kaiser Permanente has been experimenting with AI in its patient portal, increasing patient engagement and experience in the process.

“Care is local, but at the same time it’s virtual and it’s become a global commodity,” Khang Nguyen, MD, assistant executive medical director for care transformation at Southern California Permanente Medical Group and chief medical officer of care navigation for the Permanente Federation, told Becker’s. “So patients are really expecting artificial intelligence to support healthcare in a way that is supporting other industries, in the sense that people are able to describe what they want versus being given choices.”

A new study, published in npj Digital Medicine in partnership with Seoul National University Bundang Hospital, focused on the deployment of the Kaiser Permanente Intelligent Integration (KPIN) system by the Southern California Permanente Medical Group (SCPMG), which serves 3.9 million patients. Implemented in October 2024, KPIN is an advanced patient portal system designed to enhance care navigation and patient experience.

KPIN replaced older systems (Microsoft’s LUIS and VSN Query Report) and integrated natural language processing (NLP) to generate clinical alerts for high-acuity cases and recommend appropriate care pathways. It supports multiple channels, including a web-based portal, mobile app, and self-service interactive voice response (IVR) system, ensuring consistent care navigation. The system verifies patient identity and guides them through booking processes, redirecting emergencies to 911 or hospitals.

October 1, 2024, to March 1, 2025, KPIN facilitated 2,960,945 digital visits, with 1,046,504 unique patients interacting with the system. Demographic data showed 36.6% of users were aged 30–49, 47.8% were female, and 38.9% were of Hispanic origin.

The study evaluated KPIN’s Clinical Alert System (CAS) and Virtual Safety Net (VSN) models for detecting high-acuity symptoms (e.g., chest pain, dyspnea) and guiding care navigation. Metrics included accuracy, precision, recall, F1-score, and area under the curve (AUC).

KPIN processed an average of 193,134 encounters daily, with a peak of 19,364. The adjusted successful booking rate was 53.8%, reflecting effective appointment scheduling. The abandonment rate was low at 0.94% (IQR: 2.7–3.1%), indicating high user engagement, attributed to a streamlined interface limiting interactions to nine per page.

Patient surveys showed an 8.6 percentage point increase in positive sentiment, suggesting improved user satisfaction. The system struggles with vague “Reason for Visit” entries, which can affect care pathway accuracy.

The authors of the study concluded that “KPIN’s integration into the patient portal significantly improved care navigation, clinical alert accuracy, and patient satisfaction within an integrated value-based care model, demonstrating the effectiveness of advanced digital tools in healthcare delivery.”

Dr. Nguyen called that the “biggest surprise” from the findings. “We all know with websites, if you want to bury anything on a website, just make it two clicks away, and then no one can ever find it,” he said. And when patients abandon the app because they can’t locate what they need, they typically contact the call center.

Dismissal of Chamber of Commerce Medicare Challenge Affirmed

The U.S. 6th Circuit Court of Appeals, on August 6, 2025, upheld a lower court’s dismissal of a lawsuit filed by the U.S. Chamber of Commerce, along with the Dayton Area Chamber of Commerce, Ohio Chamber of Commerce, and Michigan Chamber of Commerce, challenging the Medicare Drug Price Negotiation Program, a key component of the Inflation Reduction Act (IRA) signed into law in 2022. The program allows Medicare to negotiate prices for certain high-cost prescription drugs, aiming to reduce costs for beneficiaries and save the program an estimated $98.5 billion over a decade.

The lawsuit, initially filed in June 2023, argued that the program violated the First, Fifth, and Eighth Amendments of the U.S. Constitution, as well as separation of powers, claiming it gave excessive authority to the Department of Health and Human Services (HHS) and imposed unfair price controls. The U.S. Chamber sought a preliminary injunction to halt the program, but U.S. District Judge Michael Newman, a Trump appointee, denied this in September 2023, stating the plaintiffs failed to demonstrate a likelihood of success or irreparable harm. Newman also dismissed the case in August 2024, finding that the regional chambers (Dayton, Ohio, and Michigan) lacked standing to sue on behalf of their members, as their interests were not sufficiently aligned with the pharmaceutical companies’ concerns, such as AbbVie and its subsidiary Pharmacyclics, which were involved in the suit. The judge noted that the U.S. Chamber might have standing if it filed a new suit in a different venue.

The 6th Circuit, in a 12-page opinion written by Senior Judge Ronald Gilman (a Clinton appointee), affirmed the dismissal, agreeing that the regional chambers lacked associational standing. The court emphasized that the Dayton Chamber’s purpose of promoting regional business was not germane to the lawsuit’s focus on the constitutionality of a federal program affecting pharmaceutical manufacturers. The court also criticized the lawsuit as a potential “stalking horse” for forum shopping, as the plaintiffs lacked a direct connection to Ohio. However, the ruling clarified that regional chambers could challenge federal laws with broader impact in some cases, and a lack of corporate headquarters in a region is not necessarily fatal to standing, though it was insufficient here due to the disconnect with the Dayton Chamber’s purpose.

The decision marks the 10th court ruling in favor of the Medicare Drug Price Negotiation Program, which has faced multiple legal challenges from the pharmaceutical industry, including lawsuits from companies like AstraZeneca, Bristol Myers Squibb, Johnson & Johnson, and the trade group PhRMA. None of these challenges have succeeded in blocking the program, which has already negotiated price cuts ranging from 38% to 79% for 10 drugs, set to take effect in January 2026, with projected Medicare savings of $6 billion in the first year. Advocacy groups like Patients For Affordable Drugs hailed the ruling as a victory for over 9 million Medicare beneficiaries who will benefit from lower drug prices.

The U.S. Chamber could appeal to the U.S. Supreme Court, though no comment from them was reported immediately following the ruling. Meanwhile, other lawsuits against the program are ongoing in various federal courts, with potential appeals in the Second, Third, Fifth, and D.C. Circuits, which could lead to conflicting rulings and elevate the issue to the Supreme Court. The program’s voluntary nature – allowing drugmakers to opt out of Medicare entirely – has been a key factor in courts rejecting claims of unconstitutional price controls or takings, as participation is not mandatory.

This ruling reinforces the program’s legal standing, allowing Medicare to continue negotiating drug prices, a process that began with the first 10 drugs announced in August 2023, including treatments for diabetes, blood clots, and cancer from companies like Merck, Novo Nordisk, and AbbVie. The program remains a significant policy achievement for the Biden administration, despite ongoing industry opposition.

Glendale Woman Sentenced to 9 Years for $10.6M Hospice Fraud

A Glendale woman was sentenced to 108 months in federal prison for participating in a scheme in which hundreds of thousands of dollars in illegal kickbacks were paid and received for patient referrals that resulted in the submission of approximately $10.6 million in fraudulent claims to Medicare for purported hospice care.

Nita Almuete Paddit Palma, 75, of Glendale, was sentenced by United States District Judge Dolly M. Gee, who also ordered her to pay $8,270,032 in restitution.

At a separate hearing, Judge Gee sentenced Percy Dean Abrams, 75, of Lakewood, to three years of probation, which will include two years of home confinement.

At the conclusion of a six-day trial, a federal jury in December 2024 found Palma guilty of 12 counts of health care fraud and 16 counts of paying illegal kickbacks for health care referrals. The jury also found Abrams guilty of six counts of receiving illegal kickbacks for health care referrals.

Palma was excluded from Medicare, a federal health insurance program for people aged 65 and older, because of prior federal convictions for receiving illegal kickbacks. While she was excluded from Medicare, Palma purchased Magnolia Gardens Hospice through her daughter and bought C@A Hospice through her husband in 2015 and concealed her ownership interest in both hospices from Medicare.

Palma then paid “marketers”, including Abrams, hundreds of thousands of dollars in illegal kickbacks for patient referrals that Palma could bill to Medicare for purported hospice care.

Hospice is only for those who are terminally ill and have a life expectancy of six months or less. Hospice provides comfort care to a patient instead of trying to cure the patient’s illness, and a patient forfeits certain benefits under Medicare when electing hospice.

Consistent with instructions provided by Palma, Abrams falsely represented to prospective patients that they did not need to be dying to be on hospice. After collecting personal identifying information from prospective patients that were not dying, Abrams sent the information to Nita Palma so she could bill Medicare for purported hospice care.

Through Magnolia Gardens Hospice and C@A Hospice, Palma caused the submission of approximately $10.6 million in fraudulent claims to Medicare beginning in 2015 for purported hospice care for patients that were not dying. Palma received approximately $6,000 each month a patient was billed to Medicare for hospice. In turn, Palma paid Abrams and other marketers up to $1,000 per month in illegal kickbacks for each patient referred to her that was billed to Medicare for hospice. Many of the patients that were billed to Medicare through Magnolia Gardens Hospice did not know they were signed up for hospice, and some patients only found out after they were denied medical coverage for services they needed.

During the health care fraud scheme, Medicare requested additional documentation from Magnolia Gardens Hospice to support the purported hospice claims. In response, Palma and her husband directed employees to create fake patient charts and had those fake patient charts submitted to Medicare. Court documents allege that while awaiting trial in this matter, Palma took control of three other hospices and caused the submission of approximately $4.8 million in claims for purported hospice care.

The United States Department of Health and Human Services Office of Inspector General and the FBI investigated this matter.

Assistant United States Attorney Roger A. Hsieh of the Major Frauds Section and Matt Coe-Odess of the Domestic Security and Immigration Crimes Section prosecuted this case.

National Hospital to Pay $2.9M for Unlawful Nurse Training Repayment

The California Attorney General announced a settlement with HCA Healthcare, Inc. and Health Trust Workforce Solutions, LLC (together, HCA), resolving allegations that HCA unlawfully required entry-level nurse employees to repay the cost of a mandatory training program if they did not remain employed with the company for two years. HCA is one of the nation’s largest hospital systems and has several hospitals in northern and southern California.

The settlement is the result of a years-long investigation by the California attorney general and the attorneys general of Colorado and Nevada, working in partnership with the Consumer Financial Protection Bureau. The states’ investigation found that HCA violated California employment and consumer protection laws as well as the federal consumer financial protection laws by using training repayment agreement provisions (TRAPs) in nurses’ employment contracts.

These TRAPs are a form of employer-driven debt, or debt obligations incurred by individuals through employment arrangements.

As a condition of employment at an HCA hospital, HCA generally requires that entry-level nurse employees complete the Specialty Training Apprenticeship for Registered Nurses (StaRN) Residency Program. The company has advertised StaRN as an avenue for entry-level RNs to get the education and training they need to land their first nursing jobs in an acute-care hospital setting, although StaRN does not provide nurses with education or training necessary for licensure as an RN.

Until the Spring of 2023, HCA required that RNs hired through the StaRN program at facilities in several states, including California, sign a TRAP agreement in their new-hire paperwork. The TRAPs purported to require nurses to repay a prorated portion of the StaRN “value” if they did not work for HCA for two years. If a nurse left HCA before the end of the two-year period, then the TRAP loan was typically sent to debt collection.

HCA imposed TRAPs on nurses who worked at their five hospitals in California: Good Samaritan Hospital in San Jose; Regional Medical Center in San Jose; Los Robles Regional Medical Center in Thousand Oaks; Riverside Community Hospital in Riverside; and West Hills Hospital & Medical Center in West Hills (no longer under HCA ownership).

Under California’s settlement, HCA will:

– – Pay approximately $83,000 to provide full restitution to California nurses who made payments on their TRAP debt to HCA.
– – Be prohibited from imposing TRAPs on nurse employees and attempting to collect on the approximately $288,000 in outstanding TRAP debt incurred by California nurses who signed TRAPs with HCA.
– – Pay $1,162,900 in penalties to California.

HCA will pay a total of $2,900,000 in penalties under settlements filed in California, Colorado, and Nevada today.

Employer-driven debt refers to debt incurred by individuals through employment arrangements. This can include arrangements where an employer provides training, equipment, or supplies to a worker, but requires the worker to reimburse the employer for these expenses if the worker leaves their job before a certain date. Employer-driven debt has grown not only in the healthcare industry but also in the trucking, aviation, and the retail and service industries, among others. However, California workers are protected by state law that restricts the use of employer-driven debt, as Attorney General Bonta highlighted in a legal alert issued in July 2023 and a consumer alert in October 2024. Workers who believe their rights have been violated are encouraged to file a complaint at oag.ca.gov/report.

Court Approves Settlement of San Diego Prisoner ADA Claims

U.S. District Judge Anthony Battaglia has finally approved a sweeping settlement requiring the San Diego Sheriff’s Office to make major changes to jail conditions for people with disabilities. The case is Darryl Dunsmore et al. v. San Diego County Sheriff’s Department, et al.; S.D. Cal. No. 3:20-cv-00406-AJB-DDL.

In June 2023, the Sheriff’s Office and plaintiffs reached a partial ADA settlement agreement that focused on incarcerated persons with mobility disabilities at San Diego Central Jail, as well as incarcerated persons with hearing disabilities who use sign language at all county jails.

Between August 25, 2023, and November 20, 2024, the parties participated in seventeen settlement conferences with Magistrate Judge David D. Leshner including several all-day, in-person conferences.Moreover, in coming to agreement on the ADA Settlement terms, the parties exchanged numerous draft written proposals over six months. The San Diego County Board of Supervisors approved the ADA Settlement as to Plaintiffs’ third claim on December 11, 2024. On December 12, 2024, the parties filed the ADA Settlement Agreement as a joint motion. The final approved settlement agreement resolves the remainder of the ADA claims.

The Sheriff’s Office said it has taken significant steps to increase access for persons with disabilities in county jails. This includes the creation of a dedicated Sheriff’s ADA Unit, updating policies, procedures and training, construction renovations and acquiring assistive technologies such as video phones with video relay services or closed captioning.

The Sheriff’s Office also created a process for identifying and providing necessary accommodations to incarcerated persons with disabilities, including housing accommodations and effective communication.

In addition to specific construction modifications at the Las Colinas Detention and Reentry Facility, George Bailey Detention Facility, Vista Detention Facility, Rock Mountain Detention Facility and South Bay Detention Facility, some of the other changes that will be or have already been made include:

– – Informing incarcerated persons with disabilities of their ADA rights and providing effective communication during the booking and orientation process.
– – Revising policies and training as necessary to ensure compliance with the ADA and the terms of the settlement agreement.
– – Providing initial and annual ADA training to county jail staff and contractors.
– – Identifying and tracking incarcerated persons with disabilities who report and/or have been identified as requiring disability accommodations while in custody.
– – Ensuring that incarcerated persons with disabilities are properly placed in housing that is safe and appropriate for their disability.
– – Providing reasonable accommodations to ensure that qualified incarcerated persons with disabilities are able to participate in all programs, services and activities while in custody.
– – Practicing effective communication with incarcerated persons with disabilities.
– – Making sure that incarcerated persons with disabilities who require assistive devices, health care appliances, or durable medical equipment have access to these accommodations, subject to removal for individualized safety or security reasons.
– – Developing policies, procedures and training to ensure that incarcerated persons with disabilities are accommodated during evacuations and other emergencies in the jails.
– – Ensuring that incarcerated persons with intellectual, learning, and developmental disabilities are identified and provided appropriate accommodations, including adequate support.
– – Making sure that incarcerated persons with disabilities receive reasonable accommodations during searches, counts, application of restraint equipment and transport.
– – Providing reasonable accommodations to persons with mental health disabilities, including during the discipline process.
– – Developing a quality assurance and auditing program to ensure ADA compliance.

As part of the settlement agreement, the County of San Diego will hire neutral experts to ensure compliance with the agreement. The ADA Settlement Agreement does not involve monetary damages and none will be awarded. The ADA Settlement Agreement allows Plaintiffs’ counsel to ask the Court to have Defendants pay for their attorneys’ fees and costs in obtaining the ADA Settlement Agreement.

The Sheriff’s Office operates a system of seven detention facilities throughout San Diego County with a combined average daily population of approximately 4,000 incarcerated persons. According to the ACLU the San Diego County jails have the highest death rate of any large county in California. Well over 200 people have died in Sheriff department custody since 2006.

In 2018, Disability Rights California released a report highlighting the factors that contribute to the high suicide rate in San Diego County jails. These factors include over-incarceration of people with mental health needs, failure to provide adequate mental health treatment, overuse of solitary confinement, and lack of meaningful, independent jail oversight.In 2021, county jail deaths were largely attributable to suicide, overdoses, homicide and medical neglect – deaths that are often preventable with adequate policies, practices, training and supervision in place.

After a comprehensive audit by California State Auditor, it reported in February 2022 that “Given the ongoing risk to the safety of incarcerated individuals, the Sheriff’s Department’s inadequate response to deaths, and the lack of effective independent oversight, we believe that the Legislature must take action to ensure that the Sheriff’s Department implements meaningful changes. Until the Sheriff’s Department makes such changes, the weaknesses in its policies and practices will continue to jeopardize the health and lives of the individuals in its custody.”

Employer Faces Murder Charges for Illegal Cannabis Lab Explosion

Six people were charged today as part of a multi-agency investigation dubbed “Operation Sugar Diamond” that targeted an illegal cannabis extraction business where four people were killed in a fiery explosion at a warehouse in Irwindale in 2023 and another man died at a South El Monte facility last year.

Ted Chien (dob 2/10/72) of Temple City is charged with five counts of murder with the special circumstance allegation of multiple murders. He also faces two felony counts of arson causing great bodily injury, eight felony counts of manufacturing a controlled substance and three felony counts of maintaining a place for selling or using a controlled substance.

If convicted as charged, Chien faces a possible maximum sentence of life in prison without the possibility of parole or death.

Chien’s partner and co-defendant Han Quan Jiao (dob 7/28/70) of Rosemead is charged in the same case with one count each of murder and arson causing great bodily injury, eight counts of manufacturing a controlled substance and three counts of maintaining a place for selling or using a controlled substance.

If convicted as charged, Jiao faces up to life in prison.

Xiaolong Deng (dob 9/19/88), Chengyan Xu (dob 11/23/63), Christopher Reyes (dob 12/30/94) and Frank Herrera (dob 3/30/90) each face one count each of conspiracy to manufacture a controlled substance. Xu was charged with two counts of manufacturing, compounding or producing a controlled substance, while the other three defendants were charged with one count of the same offense.

Deng, Reyes and Herrera each face up to seven years in prison if convicted as charged, while Xu faces up to eight years and eight months.

On Oct. 9, 2023, a massive blast erupted at a warehouse in the 1400 block of Arrow Highway in Irwindale, killing Yi Luo, 47, of Baldwin Park; Xin Chen, 59 of Rosemead; Guangqi Fu, 35, of Chino; and Quizhuo Liang, 35, of Monterey Park. All four worked at the warehouse that was allegedly being used for honey oil extraction by Chien and Jiao.

On Nov. 18, 2024, a fire broke out at a laboratory in South El Monte that was allegedly run by the two defendants. Bordin “Tony” Sikarin, 57, of Buena Park, who also was an employee was killed.

Despite the deaths of five employees, Chien and Jiao are accused of continuing their operation to illegally extract and distribute concentrated cannabis in Los Angeles County.

Deng, Xu, Reyes and Herrera also worked for Chien and Jiao and are accused of producing concentrated cannabis. Herrera also allegedly transported the product within Los Angeles County, according to the criminal complaint.

More than 150 law enforcement agents served search warrants at nine locations in Los Angeles County earlier this week, including a large-scale lab in La Verne that abuts the San Gabriel Mountains.

The case remains under investigation by the District Attorney’s Bureau of Investigation, the Drug Enforcement Agency, the Los Angeles High Intensity Drug Trafficking Area, the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (LA Impact) and the U.S. Postal Service.

Outside Salesperson is “Exempt Employee” From Sick Pay Law

Bradley Hirdman sued Charter Communications, LLC in October 2019, asserting a single cause of action for civil penalties under PAGA based on alleged violations of sections Labor Code § 246 (failure to pay sick time at the correct rate of pay), 201 to 204 (failure to timely pay wages upon termination), and 2802 (failure to reimburse necessary work-related expenses).

In September 2020, Hirdman filed his first amended complaint against Charter, asserting the same cause of action and clarifying that he sought to represent other commissioned employees in his PAGA action. In February 2023, the parties filed cross-motions for summary adjudication on the issue of Charter’s alleged failure to pay sick time at the correct rate of pay.

The material facts upon which the parties based their cross-motions are undisputed. Charter employed Hirdman as a sales representative, and it classified him as exempt from overtime requirements under the outside salesperson exemption pursuant to Labor Code.§ 1171.

The relevant statute, Labor Code § 246, subdivision (l), provides three methods by which employers may calculate paid sick leave. For “nonexempt employees,” employers must calculate paid sick time either “in the same manner as the regular rate of pay for the workweek in which the employee uses paid sick time” (§ 246, subd. (l)(1)) or “by dividing the employee’s total wages, not including overtime premium pay, by the employee’s total hours worked in the full pay periods of the prior 90 days of employment” (id., subd. (l)(2)). For “exempt employees,” paid sick time “shall be calculated in the same manner as the employer calculates wages for other forms of paid leave time.” (Id., subd. (l)(3).)

The statute does not define “exempt employees” or “nonexempt employees.” The parties asked the trial court to determine, as a matter of law, whether section 246, subdivision (l)(3) applies to employees like Hirdman who are classified as outside salespersons.

Hirdman contended that employers cannot calculate paid sick leave using the method provided in Labor Code section 246, subdivision (l)(3) for outside salespersons because the meaning of “exempt employees” includes only those employees who are exempt under the administrative, executive, or professional exemptions. (Lab. Code, § 515, subd. (a); Cal. Code Regs., tit. 8, § 11040.

In support, Hirdman relied on (1) an analysis of the bill from the Senate Committee on Labor and Industrial Relations, and (2) an October 2016 Division of Labor Standards and Enforcement (DLSE) opinion letter based on that report, which concluded that employees like Hirdman and other outside salespersons paid by commissions must be paid for sick leave per Labor Code section 246, subdivision (l)(1) or (l)(2). Hirdman thus argued that Charter was required to calculate paid sick leave for its outside salespersons using one of the methods in Labor Code section 246, subdivisions (l)(1) and (l)(2), which apply to “nonexempt employees.”

Charter, on the other hand, argued that section 246, subdivision (l)(3) applies to all exempt employees, not just those employees classified as exempt under the administrative, executive, or professional exemptions.

According to Charter, the statutory language was plain and unambiguous, and the trial court should therefore end its inquiry there because the plain meaning of the word “exempt” controls. In other words, “exempt employees” in section 246, subdivision (l)(3) means employees like Hirdman who are exempt under any exemption, including the outside salesperson exemption. Charter thus argued that it correctly calculated paid sick leave for Hirdman and other outside salespersons.

The trial court agreed with Charter and thus granted its motion for summary adjudication, ultimately entering judgment in its favor.

The Court of Appeal affirmed the trial court in the published case of Hirdman v Charter Communications -D084304 (August 2025).

The sole issue for determination on appeal is the meaning of the phrase “exempt employees” as used in section 246, subdivision (l)(3).  “Under the facts of this case, we conclude that the statutory language is unambiguous, and “exempt employees” includes employees like Hirdman who are exempt from overtime wages.

“In sum, we conclude that the trial court correctly determined that section 246, subdivision (l)(3) applies to outside salespersons like Hirdman and thus did not err in granting summary adjudication in favor of Charter.”

Insurance Commissioner Files Legal Action Against FAIR Plan

The California Insurance Commissioner announced formal legal action against the California FAIR Plan Association (FAIR Plan), the state’s insurer of last resort operated by the insurance industry, for systematically denying and limiting smoke damage claims from wildfire survivors – particularly in the wake of the Palisades and Eaton Fires earlier this year.

The California Department of Insurance filed an Order to Show Cause against the FAIR Plan after consumer complaints showed a pattern of denying smoke damage claims based on an arbitrary FAIR Plan-defined requirement for “permanent physical damage.” The Department’s legal filing follows hundreds of escalating consumer complaints filed with the Department against the FAIR Plan and builds on a multi-year investigation, which uncovered at least 418 violations of California’s consumer protection laws.

“I’ve spoken with wildfire survivors who would rather lose their homes to flames than endure the stress and confusion of navigating smoke damage claims. This is unacceptable. This issue has persisted after every fire and has become even more urgent in the aftermath of the largest urban fires in history, the Palisades and Eaton fires. These consumers’ message is clear: they need assistance, not obstacles,” said Commissioner Lara. “We will not tolerate insurance companies breaking the law and denying Californians the coverage they deserve, including the FAIR Plan.”

This enforcement action is part of a broader effort led by Commissioner Lara to strengthen consumer protections through oversight, examination, and enforcement across both traditional insurance carriers and the FAIR Plan. The Department is also conducting a Market Conduct Examination of State Farm for its handling of consumers’ wildfire claims.

The California FAIR Plan is operated by the insurance industry, not the state. State law requires all property insurance companies doing business in California to participate in the Fair Access to Insurance Requirements (FAIR) Plan, which provides basic fire insurance coverage when homeowners and businessowners cannot find it in the traditional market. It was first created after the Watts Riots of 1965 and resulting major wildfires. It is designed as a temporary safety net – not a long-term solution.

The Department of Insurance has regulatory oversight of the FAIR Plan to ensure it complies with state law and treats policyholders fairly – the FAIR Plan is not exempt from consumer protection and claims handling requirements in California law.

Commissioner Lara’s legal action cites violations of California Insurance Code section 790.03 including, but not limited to:

– – Misrepresenting policy terms
– – Failing to investigate claims fairly
– – Denying legitimate claims without reasonable basis

Commissioner Lara expects to file in the coming weeks the Department’s Report of Examination for an ongoing financial examination of the FAIR Plan, including its compliance with recommendations from the Department’s 2022 Operational Assessment Report. The 2022 report called for significant changes in the FAIR Plan’s governance, operations, underwriting and claims handling, risk management, customer service, and financial planning strategies and policies.

Commissioner Lara has also created the Smoke Claims & Remediation Task Force to develop statewide standards for investigating and remediating smoke damage—a gap that has existed for decades. To date, the Department has helped recover more than $74 million for wildfire survivors through formal complaint intervention.

Consumers who believe their smoke damage claim was unfairly denied or delayed are encouraged to file a complaint at insurance.ca.gov or call 800-927-HELP.

Fraud in Federal Employment Law Case Supports Terminating Sanction

Cathie Konyen was employed by Lowe’s Home Centers, LLC, and held various positions in its stores located in Reno, Nevada, San Jose, California, and Newburgh, New York, over a period spanning at least thirteen years. She alleged in a Federal District Court case pending in a Nevada that Defendant Lowe’s Home Centers, LLC, violated her rights under the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101, et seq. (“ADA”) and corresponding state laws by discriminating against her and retaliating against her on the basis of her disability.

Konyen worked in Lowe’s Reno store as an Installed Sales Coordinator from March 2014 to January 2016. In April 2015, Konyen experienced back pain and sought treatment. She was given temporary work restrictions, which Lowe’s accommodated.

In January 2016, Cathie Konyen’s husband, Gary Konyen, who was also employed by Lowe’s, was transferred to Lowe’s East San Jose, California store. Cathie and Gary moved to San Jose, and Cathie was hired as an Installed Sales Coordinator in Lowe’s South San Jose store. In February 2016, Cathie Konyen sought medical care in San Jose. She completed accommodations paperwork and received accommodations lasting one year in the San Jose store.

In April 2018, Cathie Konyen moved with her husband to New York, and Cathie Konyen was hired as an Appliance Sales Specialist at Lowe’s New York store. Cathie Konyen sought accommodations again. Lowe’s granted Cathie Konyen workplace accommodations from at least December 2018 through April 11, 2019.

After receiving the 2019 Accommodation Forms, Lowe’s employees reviewed Cathie Konyen’s restrictions and the Flooring Sales Specialist position requirements and determined that Cathie Konyen would be unable to do half of the key responsibilities of the position and that Lowe’s would be unable to meet her scheduling needs. However, they could meet her accommodations in other store positions at a lower pay. Cathie Konyen failed to decide if she would take these positions, so was placed on leave.

On June 21, 2019, Cathie Konyen began a new position at a different company. She applied for this position while she was still employed at Lowe’s and when she had not yet been placed on leave.

Cathie Konyen dual-filed a charge of discrimination with the Equal Employment Opportunity Commission and the Nevada Equal Rights Commission on February 3, 2020. Cathie Konyen filed this federal Complaint in December 2022. In her Complaint, she alleges three categories of claims: (1) disability discrimination in violation of the ADA and state law, (2) retaliation in violation of the ADA and state law, and (3) a breach of state contract law.

Substantial evidence obtained during discovery indicated that Cathie Konyen’s husband Gary forged the 2019 Accommodation forms provided to Lowe’s, and that Cathie Konyen knew about this forgery. Gary invoked the Fifth Amendment and refused to answer any deposition questions.

Defendant moved for terminating sanctions, and summary judgment as to each of Plaintiff’s claims. The Court found that Plaintiff knowingly submitted fraudulent documentation to Defendant in 2019, and this documentation is the basis for her EEOC Charge and the claims in her Complaint. Accordingly, the Court found that Cathie Konyen had engaged in willful deception and bad faith conduct.

When a party has engaged deliberately in deceptive practices that undermine the integrity of judicial proceedings, dismissal is an available sanction because “courts have inherent power to dismiss an action when a party has willfully deceived the court and engaged in conduct utterly inconsistent with the orderly administration of justice.” See Leon v. IDX Sys. Corp., 464 F.3d 951, 958 (9th Cir. 2006) (citing Anheuser-Busch, Inc. v. Nat. Beverage Distributors, 69 F.3d 337, 348 (9th Cir. 1995)). (NOTE that both of these 9th Circuit decisions are controlling law here in California.)

Defendant’s motion for terminating sanctions and summary judgment was granted as to terminating sanctions, and summary judgment is granted in the alternative, in the case of Konyen v Lowe’s Home Centers, LLC, Case No. 3:22-cv-00538-MMD-CLB – United States District Court District of Nevada (July 2025)

Vizient Projects Cost Pressures Across Healthcare Supply Chain

Vizient® released its Summer 2025 Spend Management Outlook forecasting a 3.35% increase in pharmaceutical prices in 2026 with healthcare providers seeing increased usage in GLP-1 therapies, specialty medications and high-cost cell and gene therapies. Supply chain prices in products, materials and services are projected to rise 2.41%, led by IT services, capital equipment and surgical supplies. Read the Summer 2025 Spend Management Outlook.

CAR-T therapies and GLP-1s reshape pharmacy market dynamics

An analysis of the Vizient Clinical Data Base shows specialty therapies – particularly CAR-T cellular therapies – emerge as one of the dominant drivers of inpatient drug spend across all acquisition channels. These treatments, such as Carvykti® manufactured by Janssen Biotech, a subsidiary of Johnson & Johnson and Yescarta®, manufactured by Kite Pharma, a Gilead Sciences company, are used for complex conditions such as hematologic cancers.

“These emerging therapeutic technologies are typically obtained through direct-from-manufacturer purchasing models rather than traditional wholesale distribution, which puts additional cost and operational pressures on healthcare organizations and clinical teams,” said Carina Dolan, associate vice president, clinical oncology, pharmacoeconomics & market insights, Vizient. “Health systems must be equipped not only to deliver these therapies, but also to manage their financial impact and navigate the complex acquisition and reimbursement processes associated with them.”

Spend for GLP-1 tirzepatide (Mounjaro® and Zepbound™), both manufactured by Eli Lilly and Company, surged by 167% in 2024 compared to 2023 among Vizient pharmacy program participants, with GLP-1 agents ranking seventh and eighth in total Vizient-tracked wholesaler pharmacy spend. As these therapies help reduce obesity-related conditions, hospitals may see a decline in certain associated procedures, including those for hernias, pressure-related wounds and soft tissue complications. At the same time, providers must prepare for potential increases in surgeries linked to medication side effects, such as cholecystectomies or procedures addressing gastrointestinal complications.

Immune globulin surpasses Humira® amid rising autoimmune treatment costs

Autoimmune and inflammatory therapies have overtaken oncology as the top therapeutic class for the first time, now accounting for 24.83% of total wholesaler-based pharmacy spend among Vizient program participants. Immune globulin is now the number one drug by spend, with a 22% increase since January, driven by expanding use in pediatric and chronic disease segments.

Humira® (manufactured by AbbVie Inc.), a longstanding leader in total Vizient pharmacy spend, has declined 7.6% since January to No. 2 in total Vizient pharmacy program spend due to the increase in biosimilar competition.

Indirect spend category and capital equipment lead supply chain inflation

Indirect spend, encompassing non-clinical goods and services such as security, food services, information technology and construction, accounts for approximately 20-25% of a hospital’s total expenses and is expected to rise 3.34%, driven by IT services prices, projected to rise 5.5% and prices for non-medical capital equipment for purchases such as HVAC and furniture, projected to rise 4.17%.

Rising labor costs, diseases impacting poultry, cattle and produce and weather-related events, such as drought in the Midwest leading to reduced cattle herds, are driving cost pressures across key food categories—contributing to supply instability and continued pricing volatility. Food prices are projected to increase by 3.31%.

“These changes will significantly impact procurement strategies for health systems in the coming year,” said Jeff King, research and intelligence director, Vizient.

Additional areas of focus include:

– – Medical capital equipment—Molecular imaging and nuclear medicine emerged as a newly tracked capital spend category, reflecting growing investment in precision diagnostics and theranostics, therapies that combine therapeutic and diagnostic radiopharmaceuticals, across health systems.
– – Surgical supplies—Prices for surgical supplies are projected to rise 3.28%, driven in part by increases in raw material prices, manufacturing labor costs and fluctuating freight expenses.
– – Physician preference items—This category, including cardiology, surgical services and orthopedic devices, continues to show high variability, underscoring the need for greater standardization and strategic sourcing strategies.