Business
Doctors fight insurers' conversion
NEWS IN BRIEF — Posted March 3, 2008
A New York insurance company's move to for-profit status would hurt patients and increase the cost of insurance, Robert Goldberg, DO, the president of the Medical Society of the State of New York, told state regulators in testimony Jan. 29.
The New York Dept. of Insurance held hearings in late January over a request by EmblemHealth, the parent company of Health Insurance Plan of Greater New York (HIP) and Group Health Incorporated (GHI), to change from nonprofit to for-profit status.
Granting the company's request would "increase its financial incentives to avoid making payment for necessary care, and increase the power of the company to achieve such an objective," Dr. Goldberg said.
Emblem, whose plan is posted for public review, says it wants to convert to a for-profit company to remain competitive, and specifically to be able to borrow money through equity markets.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2008/03/03/bibf0303.htm.
