Aetna begins to deselect physicians (i.e. kick em out of their network)

Written by Reed Tinsley, CPA | May 21, 2012

 

Back in April Aetna informed 130 physicians in Texas that they were being deselected from the Aetna network effective July 1st, 2012. Apparently this action is singular to Texas - it's a program that's national in scope. Over a year ago Aetna warned these deslected physicians of its concern about billing practices primarily involving levels 4 and 5 E&M codes. If you ever receive this type of warning, you must take action immediately. Set up a meeting with your provider representative to discuss and review any and all coding issues raised by the insurer.

This action by Aetna has impact beyond one major insurer dropping a physician - It most likely represents a “sea change”. Aetna’s confidence in eliminating physicians due to researched billing practices is a dramatic escalation of data-based medical management capability, i.e., third party administration with a definite directive to lower expense. Also, the decision to state “billing patterns” as a causative reason for winnowing physician ranks raises questions as to the undisclosed analysis of quality outcomes. Even more important, it also causes anxiety about how other managed care plans will react when it becomes public information that a physician is excluded from medical panel participation by Aetna. Will there be an industry move in aggregate to exclude that physician from other managed care panels?

I wonder which insurer is next to take this action against its physicians.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.

Have questions? I’m here to help.