Ama Issues First Report Card on Health Insurance

While it is usual for health insurance companiesinsurance, but she has more time with patients.
rate doctors on their performance, it is nowUnitedHealthcare had the lowest rate of contract
becoming the other way round. American Medicalcompliance, according to the AMA report. About
Association issued its first health insurance report62 percent of medical services billed were paid by
card at the group's annual meeting Monday. TheUnitedHealthcare at the contracted rate,
primary focus is on how quickly and accuratelycompared with 71 percent for Aetna and 98
doctors get paid.  "Physicians are spending 14percent for Medicare.
percent of their total revenue to simply obtainUnitedHealthcare spokesman Gregory Thompson
what they've earned," said Dr. William Dolan, ansaid doctors and their billing services share
AMA board member.responsibility for prompt payment. "Data show
Dr. Dolan explained that the report card is anthere is often a significant lag time between when
effort to reduce the cost of claims processing toservices are provided and physician claims are
doctors and help them as they negotiatesubmitted," he said.
contracts with insurance companies; adding thatHe said UnitedHealthcare has improved its
the report card will help patients if it reduceselectronic claims systems and noted the AMA
wasteful administrative costs. The report cardgave the company higher ratings on other
compares Medicare and seven national commercialmeasures.
health insurers on the timeliness and accuracy ofMedicare performed better than the private
claims processing. It is based on a random sampleinsurers in most areas, said Dr. Lawrence Casalino,
drawn from 3 million claims.a University of Chicago health economist and
There are no grades like A, B and C, and manyformer physician. Commercial insurance plans
of the technical measures may not mean muchcompete by promising employers that they are
to most patients. But business leaders and healthtough on holding down the cost of claims, he said.
policy makers are interested in cutting an"There's no question that administrative costs for
estimated annual $210 billion in wasteddoctors and the country would be a lot lower in a
administrative claims processing costs, AMAsingle-payer system," Casalino said in an interview
leaders said.after the meeting. But a market-based system
Four years ago, Dr. Marcy Zwelling got sohas advantages of competition, choice and
frustrated with the time and cost of making sureinnovation, he said. "Are the benefits enough to
she was paid accurately by insurers that shejustify the cost?"
stopped dealing with them. She now runs aPeter Lee of the Pacific Business Group on Health
so-called "boutique" practice. Most of her patientswelcomed the report card, but said he hoped the
pay her an annual fee out of their own pockets.AMA would look at a broader range of areas that
"The best thing is, I get to be a doctor" insteadwould be helpful to consumers.
of a claims processor, said Zwelling, of Los"Increased payments to physicians means
Alamitos, Calif. She says she doesn't make anyincreased premiums and increased costs in a
more money than she did when she acceptedsystem that is spiraling out of control," Lee said.