State's Largest HMO Under Investigation
Peggy Pico, R.N.
NBC-TV San Diego
Watch video of the report
Dozens of protesters and consumer advocate groups showed up at the hearing, chanting, "Hey Blue Cross you can't hide -- we can see your greedy side."
Steep premium hikes, canceled policies, and decreased reimbursement for doctors are among the 1,600 complaints received by insurance regulators against the HMO in the past three years.
Pediatrician Ron Nagel testified, "Over the past years we've seen Blue Cross reimbursements for pediatricians not keep up with the price of office overhead."
Nagel said he knows insurance is a business but believes "Blue Cross is crossing the line."
The consumer watchdog group, Foundation for Taxpayer and Consumer Rights, claims the HMO broke the law and their promise to the insurance commission to keep profits in the state, following a $16 billion merger with an out of state company, approved in 2004.
A pending lawsuit claims the company has recently transferred more than $6 billion out of state to fund the merger. Blue Cross of California denies any wrongdoing.
August 7, 2007 at 04:12 PM | Permalink | Blog Reactions
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