MedChi, Maryland's largest health insurer has cut down payments for health care providers. Angered by this the state medical society has requested investigation in to this matter. The insurers reduce payment to physicians and other providers due to which independent physician are forced out of practice and have to turn towards hospitals for support.
In reply to this MedChi said in a letter to Attorney General J. Joseph Curran Jr. that they were losing clients because competitors were paying less. And hence they were forced to cut some rates it payments towards health care providers. T. Michael Preston, executive director of MedChi, said that pressure on reimbursement, coupled with costs of malpractice insurance, are making Maryland an unattractive place to practice medicine.
He also said that a number of doctors in Maryland are engaged in research rather than patient care. Valentine said that there would be no reductions in routine exam fees for primary care doctors or in payments to obstetricians for delivering babies. But in case of rural areas there would be some reduction in payment as they are being paid in excess than the urban and suburban sections of the state. But they are not sure of the impact of this on the society.
Valentine said that none of the doctors have rejected CareFirst's new rates. Out of the 25,000 doctors only less than 200 doctors had called to object or to ask questions. Calvin Pierson, president of the hospital association said that hospitals are having difficulty attracting primary care and specialist doctors into Maryland. MedChi said that UnitedHealthcare had previously cut rates then only CareFirst followed.