Business
R.I. AG blasts plan giveback
NEWS IN BRIEF — Posted April 12, 2004
The attorney general of Rhode Island is criticizing a $21 million giveback by Blue Cross & Blue Shield of Rhode Island to doctors, plan members and hospitals, saying all of the money should be refunded to patients.
Attorney General Patrick C. Lynch said giving part of the surplus money back to doctors and hospitals is an improper attempt to "mollify" them because they're unhappy with insufficient insurance reimbursement rates, according to the Providence Journal.
The attorney general has no power over the funds, however, and much of the rebate money already has been paid out, the newspaper reported.
The insurer had a $70 million profit in 2003, and of the $21 million that it opted to disburse as a giveback, $7 million is going to physicians as reimbursement increases, $7 million is going to hospitals and $7 million is going to individual policyholders and employers who are plan sponsors.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/04/12/bibf0412.htm.
