Hospital, Blue Cross impasse leaves many in doubt

Tue, 06/13/2006 - 4:32pm
By: John Thompson

The ongoing dispute between Piedmont Hospital and Blue Cross Blue Shield health insurance company has left many of the county’s residents angry and confused over their healthcare options starting July 1.
The two sides were in negotiations over a new contract, when Blue Cross broke off the talks earlier this month and said that Piedmont was asking for too big an increase in payments.
But last week, the hospital filed suit against the insurance giant claiming the company was engaging in false advertising, unfair and deceptive trade practices and interfering with the hospital’s business relationships.
“Patients are being held hostage by Blue Cross and their misleading communications. Piedmont Healthcare must protect our patients by ensuring that they receive accurate information,” said Piedmont’s vice president of marketing and public relations Nina Montanero.
The issue was addressed at the Fayette County Commission meeting last week as the county braces to provide a healthcare answer for its more than 700 employees.
Insurance consultant Guy Morrison of Strategic Benefit Solutions told the commission the dispute may go right down to the bitter end.
“Historically, the two parties will agree on a contract, but we have to have a contingency plan,” he said.
The insurance company has sent out letters to customers advising that a new doctor needs to be chosen and that all Piedmont physicians and hospitals will no longer be covered.
Morrison said he went back and looked at the most recent request for proposal on insurance coverage and looked at other companies that could match the benefits and premiums, along with most closely aligning with the network of physicians that Blue Cross offers. After going over the facts and figures, he said CIGNA emerged as the winner.
“They have a network that includes all the Piedmont providers,” he said.
Should a deal between Blue Cross and Piedmont not occur, Morrison said the words that all Fayette County employees were glad to hear.
“You will be covered on July 1. It may take some time to get new cards, but you will have coverage.”
The County Commission thanked Morrison for his hard work, but hoped that a deal could be worked out soon.
“It’s just unnerving to me,” said Commissioner Herb Frady.
Commission Chairman Greg Dunn said the same situation occurred a few years ago, and he was getting tired of the process.
“We’ve got people in the hospital. What are they going to do, transfer them on July 1?” he said.
Piedmont Fayette Hospital CEO Darrel Cutts also attended the meeting and offered his opinion on the issue.
“Piedmont is not the one that stopped the negotiations. We’ll gladly compare their earnings to hospital earnings,” he said.
Fayette County’s largest employee, the Fayette County School System, also has Blue Cross Blue Shield insurance for its employees. School officials did not return calls by presstime to offer its contingency plan.

login to post comments

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
mapleleaf's picture
Submitted by mapleleaf on Thu, 06/15/2006 - 9:27am.

Like a one-factory town, Fayette County is getting close to being a one-medical-provider county, namely the Piedmont group (physicians and hospital). It wasn’t that many years ago (about five) that Fayette County didn’t even have a hospital and life went on.

What the dispute between Blue Cross/Blue Shield and the Piedmont group highlights is the sickness of our general health care system. It’s become all about money.

There are other aspects of our life that are all about money too. Professional sports would fall into that category. Corporate CEO salaries too.

The money that goes toward paying for the full-page ads in the AJC about this dispute would better be spent on someone’s health care. So would the fees to lawyers for bringing the dispute into court. And so would a good part of the pay and bonuses of insurance company and hospital executives.

I used to think the way to avoid all the nonsense about insurance company approvals and payment disputes was to pay my own bills. Health care providers called me a “self-pay.” (I had major medical insurance with a high deductible, so I was protected from catastrophic events. I also maintained a healthy lifestyle and thus had few medical problems.)

It took me a while, but I eventually learned that medical providers were taking advantage of me by charging me almost twice as much as they charged insurance companies for the same service. Here I was paying them before I even left the office, causing them no hassle whatever, and they were taking advantage of me.

What I learned is that ordinary people need the protection of insurance companies to avoid gouging from health care providers. But you get the same mixed feelings out of this that you’d get out of belonging to a union. With a union, you’ve got to pay dues and there’s a bunch of rules to put up with. With insurance, you pay premiums that include extra administrative costs and taxes, and you get a bunch of rules you have to put up with. In either case, you’ve bought yourself protection. Protection from being taken advantage of.

We should not need to buy protection. We are being taken advantage of by being forced to pay for this protection.

The Piedmont group should have one price for everybody. For every separate procedure. It should post these prices on its website and on the wall of its lobby. So should all other hospital and medical groups.

As elections approach, we need candidates who are willing to express their views on this and to champion the cause of the ordinary citizen. Hey, I’m more likely to go to the hospital than to marry somebody of my own sex! (A lot more likely.)


Submitted by Sailon on Wed, 06/14/2006 - 12:34pm.

Many of us have BC/BS as a supplement to our Medicare insurance coverage. Is that affected? What about the doctor's offices?

Now it doesn't make sense that Peidmont can afford to drop all county employees and all of the school teachers and employees. This is a scam, but I don't know who is planned to be scammed. You can bet we the public will pay more, without any doubt. There are 10 employees at Fayette Piedmont for every bed? They have people on the overhead who don't ever see a hospital bed! This is for the doctor's benefit. Also, unless you have open heart surgery nowadays you don't stay there, then only two days. It is a racket.

Submitted by Xcheerleader on Thu, 06/15/2006 - 2:55pm.

It will affect you if you see doctors within the Piedmont Healthcare Groups. You should have gotten a letter from Blue/Cross Blue Shield explaining the situation if you will be affected. I live in Fayetteville and I have Blue Cross/Blue Shield insurance coverage through Delta, but I will not be affected since none of my doctor's are within the Piedmont Physician Group. If I have to go to the hospital, I have to go to Southern Regional. I was going to eventually switch all my doctors over here to Fayetteville, and start going to Piedmont Fayette (if I had to go to the hospital), but I'm glad that I didn't now.

So many more people are affected by this other than just the county employees and the Fayette Co. school system. I hope it's settled soon. I don't think this is to the doctor's benefit at all. It's more for the BC/BS's benefit. They are always changing things, fees, rates, what they will pay for different procedures etc. They are driving up the costs of healthcare with all of this junk. What BC/BS is doing is ILLEGAL. The doctors are really at their mercy. The way I see it is that Piedmont Group is trying to take a stand against this. Insurance companies are controlling your medical care, not the doctors.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.