Health Care Warning Issued

The California Public Employees’ Retirement System, the largest purchaser of health care in the state, last week warned that the U.S. Senate version of Medicare reform legislation would have a “drastic” effect on California especially the Los Angeles area.

Margaret T. Stanley, Calpers assistant executive officer for health benefit services, said in a prepared statement that the Senate reform measure would cause California, and especially its urban areas, to be “hit by a disproportionate share of the Medicare payment reductions which would adversely impact our state’s Medicare beneficiaries.”

Under the Senate version, Los Angeles would get no increase in payments to Medicare-risk plans for five years, even though the Congressional Budget Office has predicted that health care costs will rise an average of 6 percent per year for the next five years.

AQMD Passes Solvent Rule

The South Coast Air Quality Management District has passed a new rule requiring 23,000 locally-based business to use water-based solvents that pollute less than traditional petroleum-based solvents.

The rule, approved by a 9-1 margin by the AQMD board, is one of the most sweeping pieces of legislation ever passed by the agency and is expected to reduce hydrocarbon emissions in the district by 40 tons a day by 2101.

Business opposition to the rule was relatively small, since a wide variety of water-based solvents are currently available on the market.

Warner Nixes New Regency Purchase

Without public comment, Warner Bros. took a pass on its option to buy New Regency Productions Inc., which has produced 36 films for Warner over the past seven years.

New Regency was reportedly seeking an equity investment of $180 million to $200 million terms that Warner deemed too high. Burbank-based Warner is a division of Time Warner Inc.