Current Events in May 2004

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2004

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    Study Finds Health Care Substandard


    Patients in the United States are receiving substandard health care about half of the time, according to a recent RAND study in the journal Health Affairs. The researchers define substandard care as lack of preventive care or wrong or unnecessary care, including tests.

    The study was based on medical records of almost 7,000 people in 12 metropolitan areas. Researchers concluded:

    • Based upon treatment of 30 of the top chronic and acute conditions, patients received substandard care about 50 to 60 percent of the time.
    • Care for high blood pressure was ranked among the best, while care for diabetes ranked among the lowest.
    • Researchers also discovered that the causes were most likely to be inadequate record keeping, cultural bias toward expensive technology, and a system that rewards intervention instead of prevention.

    Some states are already taking steps to provide improved health care. Medical groups and hospitals in Minnesota, for example, are developing standard practice guidelines which will apply to all of the state's public health plans. In New York, increased monitoring and public reporting of deaths resulting from heart bypass surgery has helped to decrease death rates from the procedure.

    Patients in the United States are receiving substandard health care about half of the time, according to a recent RAND study in the journal Health Affairs....

    Sprint to Pay Florida $2.4 Million for Slamming

    Switched consumers without their permission

    Sprint will pay Florida $2.4 million to settle charges that it switched consumers to Sprint long-distance telephone services without permission, a practice known as "slamming."

    "This is a case where consumers were victimized by a process specifically designed to deceive them," said Florida Attorney General Charlie Crist. "This $2.4-million payment should serve as a warning that Floridians will not tolerate deceptive business practices."

    Consumers were unknowingly switched to Sprint long-distance services after purchasing unrelated items at electronics stores. A customer might visit a store to purchase batteries, for example, and then at checkout be asked to sign what looked like a typical sales receipt but was in fact a letter of authorization. As a result, the customer would leave the store having unwittingly approved a change in his long-distance provider.

    Investigations that began in January 2002 also uncovered evidence that sales personnel forged consumer signatures on these letters to meet sales quotas and receive bonuses.

    Nearly 4,000 Florida consumers complained about the unsolicited switches and received restitution from Sprint at the time of their complaints. Consumers who believe they are victims of slamming may contact Sprint directly for restitution at 1-800-795-1149.

    Florida consumers may also file complaints with the Florida Public Service Commission online at www.psc.state.fl.us or by calling 1-800-342-3552, or they can call the Attorney General's Fraud Hotline at 1-866-9-NO-SCAM (1-866-966-7226).

    Sprint will pay Florida $2.4 million to settle charges that it switched consumers to Sprint long-distance telephone services without permission, a practice...

    Lawsuit Challenges Carfax Claims

    A class-action lawsuit against Carfax claims the company doesn't have access to police accident data in 23 states

    A class-action lawsuit against Carfax claims the company doesn't have access to police accident data in 23 states -- and therefore doesn't live up to its promise of disclosing hidden problems in used vehicles.

    Carfax claims its search service is "your best protection against buying a used car with costly, hidden problems." But in their suit, Tennessee attorneys Frank Watson and David McLaughlin charge that Carfax's ads promise more than it can deliver. Carfax fails to disclose the limitations of its database, they said.

    McLaughlin and Watson charge that auto dealer Mid-South Motors purchased a 1995 BMW 525i from another wholesaler in 2002 after buying a CARFAX report that showed no salvage brands and no police accident or damage disclosure records.

    A subsequent check of a database maintained by the National Insurance Crime Bureau (NICB) revealed that the BMW had been declared a total loss three separate times after accidents in New York, Florida and Georgia that were reflected in police accident records, according to court documents.

    Similar incidents have been reported to ConsumerAffairs.com. "My daughter totaled a car that was resold to me by my insurance company and I ran It and It came back clean," said Dennis of Destrehan, La., in a recent complaint.

    Another consumer, Mitchell of Newport News, Va., said he paid $38,000 for a car that got a clean bill of health from Carfax, only to be told by police that it was stolen.

    Critics also charge that some unscrupulous dealers are hiding behind a clean Carfax, using it to pass off damaged cars to customers, then claiming ignorance if the consumer complains.

    Carfax says its information is as timely and complete as possible, but insists that it has always suggested that customers should use the Carfax history in combination with a complete inspection by a mechanic.

    Lawsuit Challenges Carfax Claims...

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