July 23, 2007
Blue Cross cuts causing pain
Lisa Girion
Los Angeles Times
Blue Cross of California's latest antidote to rising healthcare costs isn't going down very well with physicians.
The state's largest for-profit health plan is set to roll back its payments for about half the services and procedures provided by physicians next month.
And many of the 53,408 physicians in Blue Cross' preferred provider organization (PPO) networks say that's a prescription for disaster.
Doctors say the health plan imposed the new rates unilaterally. In most cases, they say, Blue Cross will get its way because it controls the lion's share of their patient base.
But other physicians say they've had it with Blue Cross. More than 300 of them have sent notices threatening to dump the insurer if the rates take effect as scheduled Aug. 6. Some say the new rates won't even cover the cost of supplies.
"I don't know how anybody can afford to stay in practice and accept Blue Cross rates," said Dr. Charles Fishman, a San Luis Obispo dermatologist who sent a letter telling Blue Cross he would drop its contract if his rates were not improved.
