February 8, 2012

News

AMA Urges End to “Purging” Health Plan Subscribers Through Higher Fees Than Data Supports

Cheree Cleghorn | June 16, 2010

This ABC News story reports on a vote at the American Medical Association’s annual meeting. Members voted to oppose a health plan practice called “purging,” which prices some subscribers out of the market by design.

The AMA leadership says that health plan executive testimony in Washington alerted them to this problem.

The story also says that America’s Health Insurance Plans vigorously denies that this practice occurs.

ABC News

…”At its annual policy-making meeting, the (American Medical Association) association voted to include in its health care agenda a policy against “purging,” a practice that includes charging certain subscribers much higher premiums with no financial data to back up the need for such increases as a way to get them off the subscriber rolls. .

“Health plans charge fees for health insurance above what the actuaries say they should be charging with the intent to discourage or price certain people out of the market,” said Dr. Steven Stack, a member of the AMA’s board of trustees.

“The AMA’s policy on purging is just one part of what it calls a health insurer code of conduct to safeguard the rights of patients and physicians whenever they deal with insurance companies. It’s also just one of about 200 policy proposals under consideration at its annual meeting.”

Source: ABC News, June 16, 2010

Topics: News

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