As an after effect of the accusations and investigation, doctors will be getting letters informing them of reduced compensation, meanwhile the patients will get another letter to announce the increase of premiums...BD
The 2004 deal was criticized at the time because it required an estimated $3.4 billion in debt and because it bestowed payouts to WellPoint executives in California of as much as $600 million.
The combination made the company one of the nation's largest and most profitable health insurers, with net income last year of $3.1 billion on $57 billion in revenue.
This summer, Blue Cross is imposing fee reductions on physicians at the same time it is sending letters to policyholders notifying them that their premiums are going up because of increasing medical expenses, said Karen Nikos, a spokeswoman for the California Medical Assn., the state's largest physician trade group.
"This is exactly what we said would happen," she said. "This is what happens when you only have a few insurance companies controlling all insurance. They do it because they can."
Regulators also are troubled by a $950-million payment Blue Cross made this spring to WellPoint. The department is investigating whether the payment violates the state's terms for the acquisition.
Other issues on the regulator's radar include Blue Cross' retroactive cancellation of sick patients.
Complaints spark state hearing on Blue Cross - Los Angeles Times
0 comments :
Post a Comment