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GEN: Local carrier fined for slow paymentFrom: Garry Siegel (garrys@mindspring.com)Tue Jan 30 19:59:11 2001
In Georgia, if an HMO doesn't pay a "clean" claim within 15 days, it is against the law. Our insurance commissioner has been aggressive in pursuing this, and today CIGNA, a big carrier, was fined 300K. Of course, this makes the news, and probably helps the insurance commissioner, who is elected. It makes the docs feel good, of course, as we accept their paltry fees paid after time and hassle. That said, the carrier probably makes more money on interest and withholding payment than the fines, and knows it. I wonder if the carriers have set threshholds of dollars/procedures that they always deny/delay, or what? Like someone said, the premiums go up, the docs and hospitals get paid less, and no one is happy. Where is the money going? Garry
-- Garry E. Siegel, M.D., F.A.C.O.G. Roswell, GA Private Practice
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