In a move characterized by Massachusetts’ largest insurer, Blue Cross/Blue Shield as a negotiation tactic, Tufts Medical Center announced today that it will no longer accept BCBS HMO patients starting in February.
According to a Boston Globe report, the teaching hospital claims it has lost $25 million over the last 5 years as the result of Blue Cross’ reduced payments.
You may recall that a Boston Globe report in 2008 revealed that higher reimbursement payments were going to the Partners HealthCare affiliated hospitals.
Partners HealthCare includes Massachusetts General, Brigham & Women’s, and Newton-Wellesley Hospitals.
According to the Wall St. Journal, Blue Cross has increased payments to Partners by 75% since 2000. Hospital negotiations with insurers commonly are influenced by reputation, quality, and volume.
A state probe into this matter is reportedly underway…
BCBSMA Files Third Quarter 2008 Financial Results
Blue Cross Blue Shield of Massachusetts, Inc. (BCBSMA) and Blue Cross Blue Shield of Massachusetts, HMO Blue Inc. (BCBSMA HMO Blue) filed statutory third quarter 2008 financial results, after-tax net income of $57.6 million. This total is comprised of an after-tax net income of $28.3 million for BCBSMA and net income of $29.3 million for BCBSMA HMO Blue.
BCBSMA earned premiums of $546.2 million and incurred $460.6 million in health care claims. BCBSMA experienced $25.7 million operating income and earned $3.5 million in investment income. BCBSMA incurred $3.7 million in federal income taxes for the reporting period.
BCBSMA HMO Blue earned premiums of $1.1 billion and incurred $969.8 million in health care claims. For the reporting period, BCBSMA HMO Blue experienced $29.8 million operating income and a $528 thousand loss in investment income.
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Filed under: Metrowest | Tagged: Blue Cross and Blue Shield Association, blue cross hmo, Boston, boston globe, BostonKayakGuy, brigh and women's hospital, health care costs, healthcare reimbursement, insurance costs, insurance reimbursement, john prescott top metrowest real estate agent, John Prescott's The MetWest Scene, mass general hospital, massachusetts general hospital, Newton-Wellesley Hospital, Partners HealthCare, patients, third quarter financial results blue cross, Tufts Medical Center |