AIS's Directory of Health Plans 2010

How to Guarantee PBM Transparency, Reduce Rx Costs and Maximize Pharmacy Benefits; How to Amend HIPAA Business Associate Agreements to Comply With the HITECH Act; New Medicare Advantage Rates: Health Plan Strategies for Bids Due in June - Webinars


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Recording and written materials of
AIS's audioconference on July 29, 2009
UCR Rate Litigation: Health Plan Strategies for Minimizing Financial and Legal Risks

Since the beginning of the year, seven health plans that do business in New York (including UnitedHealth Group, CIGNA Corp. and Aetna Inc.) have paid hundreds of millions of dollars to settle cases tied to their use of two Ingenix, Inc. databases to set “usual, customary and reasonable” (UCR) rates for out-of-network charges. And those lawsuits are just the tip of the iceberg now that Sen. Jay Rockefeller (D-W.Va.) has declared war on the use of such data. Virtually every health plan in the U.S. that relied on Ingenix data to set UCR has become a legal target. Even state regulators are beginning to look into how health insurers in their states have used the data. Find out what to do to minimize your UCR and “prompt-payment” risks and prepare for new payment methods in the near future.

Sponsored by Atlantic Information Services, Inc., publisher of Health Plan Week, The AIS Report on Blue Cross and Blue Shield Plans, Drug Benefit News and Medicare Advantage News

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Health plans argue that their usual, customary and reasonable (UCR) rates are fair and that they shouldn’t be required to accept any fees that out-of-network providers wish to charge. But they face an uphill battle in convincing courts, state regulators and now Congress that their use of Ingenix data did not keep rates artificially low. And lawsuits are extending beyond UCR rates, with some long-pending “prompt-payment” class-action suits given new life by the Ingenix cases. Increased scrutiny of Ingenix data recently changed the focus of a prompt-pay class-action suits involving three Florida health plans.   

But strategies exist that will help health plans minimize these financial and legal risks. Listen in and discover:

  • Why health plans should notify members about the way UCR rates are calculated. And if that process changes, what they should tell members.
  • When health plans should end their use of Ingenix data to set UCR rates. What risks do they face if they continue? Is Medicare a viable alternative? What are the financial and legal implications for plans of various options?
  • Why health plans should conduct a loss analysis now. What are the different levels of exposure? How far back should health plans go in investigating out-of-network claims data?
  • How to deal with the media in explaining UCR rates. Should health plans issue a statement about how rates are calculated?
  • Why insurers that have already settled with N.Y. Attorney General Andrew Cuomo could still face private suits. Which plans are most at risk? What can they do to prepare?
  • How health plans should respond to state regulators who want to know about how health plans in their states used Ingenix data.
  • Why Cuomo’s $100 million database will face many of the same problems as the Ingenix database. Should it become the industry standard? When will it be operational?
  • Should formulas used to set reimbursement rates for out-of-network providers be more transparent? How can transparency help providers and patients make more informed decisions about care?

 

Speakers

EDWARD KAPLAN is senior vice president, national health practice leader in The Segal Company’s New York office. He joined Segal as a managed care consultant in 1993 and in 1996 was promoted to vice president, and became national health practice leader in 2001. Mr. Kaplan has worked with managed care programs since 1986, with special emphasis on pricing and plan design strategies for managed medical, dental and prescription drug programs working with national and local corporations, governments, and collectively bargained plans. He created the Segal Health Plan Trend Cost Survey in 1996, now a standard in the industry.

MATTHEW KATZ is executive vice president/executive director of the Connecticut State Medical Society, the state’s largest physician organization, founded in 1792. He also is the former director of private payer advocacy and director of the Practice Management Center at the American Medical Association (AMA). Mr. Katz previously served as strategy manager for AMA’s Private Sector Advocacy unit, and as a senior health policy associate in health policy development.  Prior to his arrival at the AMA in 1998, he was a financial analyst in the department of managed care at Northwestern Memorial Hospital, where he analyzed the hospital’s case-mix database and provided insight into the potential profitability of managed care contracts and specified services. He also worked for Medica Health Plans of Allina Health System and UnitedHealth Group.

Moderator: Steve Davis, managing editor of AIS’s Health Plan Week

 

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