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CA accuses UnitedHealth of 'unfair' practices

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The California Department of Managed Health Care (DMHC) has issued a cease and desist order against UnitedHealthcare division PacifiCare of California, contending the health plan engaged in "dishonest and unfair" business practices. While the scale of the case is relatively small--it involves about 500 patients enrolled with a medical group in Redwood City--the matter is significant. It's only the second time in the DMHC's six-year history that it has issued such an order. What's upset the DMHC is the way in which PacifiCare handled a physician contract termination. According to a complaint filed with the state, PacifiCare sent the 500 patients a letter saying their physicians had decided to leave the plan, when it had actually terminated the physicians itself.  The state contends that PacifiCare knew it was going to terminate the physicians for more than a year, and that it should have let consumers know well in advance so they could choose a different insurance company if they wished.

To learn more about the case:
- read this San Jose Business Journal article

Related Articles:
UnitedHealth faces California legal challenges. Report
Judge dismisses suit against UnitedHealth. Report
UnitedHealth buys PacifiCare for $8.1 billion. Report

Comments

If you did not already know it- Walmart is the US face of Chinese business lobby. If they can dump substandard goods on Americans who are all too eager to buy them standing in long lines, healthcare will be no different. What the AMA needs to do is to ensure that Walmart "docs" are held to the same fire of accountability, outcomes and legal liability for the care they provide as the doctors are now subject to. I would not be surprised if the Chinese lobby cannot convince our highly corrupt lawmkers to give them immunity from lawsuits or limit the liability. A clever lawyer may even draft a legislation that the PAs and nurse practitioners should be held accountable to usual and customary care provided by Nurses rather than doctors. The truth is that a vast majority of illnesses like coughs, running nose and colds DO NOT need to be treated by anyone including "Walmart specialists". For all the rest of the serious probems like hypertension, diabetes, headache, blurred vision- seemingly easy problems but silent killers with a potential for loss of life or earning capacity in the event of misdiagnosis, the public is well advised to seek help from a board certified physicians. Any day nationalised healthcare is better than "Kiosk" care! Unfortunately the dragon is out of the bag, the docs miight have already lost it on this one. ..

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