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U.S. doctors urge transparency on insurer payments

March 27, 2009

Requiring health insurers to be more open about how they set reimbursement rates for out-of-network medical services would save everyone money, the top U.S. doctors group told Congress on Thursday.

 

American Medical Association President Nancy Nielsen said such a move would prevent insurance companies from shortchanging patients and upsetting their relationship with their doctors by underestimating what doctors should be charging for services.

 

“The AMA believes enormous savings would accrue to patients, physicians, health insurers and other third-party payers if there were complete transparency,” she told the Senate Commerce, Science and Transportation Committee.

 

Insurer reimbursement rates for out-of-network services are often set at what are considered “usual” or “customary” charges. The problem for doctors and patients is that insurers have been systematically underestimating those charges, Nielsen said.

 

Read Article: Reuters

 

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