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Blue Cross PR Director Responds


9:20 AM  July 30, 2007

Here's an example of how large corporations try to influence the news.

Last week, we reported a story on Blue Cross, the biggest and most profitable health insurer in California.  Next month, the company is cutting its reimbursement rates for some doctors in its Preferred Provider Organization.

Naturally, that is making doctors angry.  Some have threatened to dump Blue Cross. Others say the new rates will make it impossible to stay in practice because the new fees won't even cover the cost of medical supplies for the treatments and procedures they perform.

The PR director at Blue Cross, Peggy Hinz, didn't like how we presented this information.  She writes:

Some reimbursement rates will increase, while many will decrease. In fact, according to projections, approximately 45% of practices contracted with Blue Cross may see an increase in reimbursement, 49% may see a decrease, and 6% may have no change.. 

Whose projections?  Are these Blue Cross figures?  Will the company allow an independent auditor to verify them?  Also, forget about the percentages, what is the dollar amount of the decreases vs. increases?

Hinz also objected to my statement that "several hundred doctors" are threatening to cancel their agreements with Blue Cross.

She argues:

Less than one percent of the physicians in our network have indicated their intention to terminate their contracts due to the new fee schedule.

Again, she's not saying that what I reported is inaccurate.  But she likes the idea of looking at it on a percentage basis, because if you evaluate it that way, the number is more favorable to her employer.

Finally, she wants us to include the following in any future reports on this subject:

Blue Cross of California's priority is always to ensure continued quality care for our members at the right price. In our ongoing efforts to maintain member access to affordable health care coverage, and also balance our participating physicians’ needs for fair and competitive reimbursement, Blue Cross is updating its physician fee schedule.

Here, again, you see a public relations specialist trying to use language to burnish the corporate image.  She wants us to report that Blue Cross isn't "slashing fees" to doctors.  Why, no!  The insurer is just "updating its physician fee schedule."

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