Decision accelerates a trend Representatives of the industry countered that such policies are a pillar of cost controls in managed care. Other companies are non-committal on whether anyone else will follow UnitedHeatlh's lead. The move is expected to be implemented nationwide next month. Ganske is a key supporter of congressional legislation aimed at making health insurers more accountable to patients. Doctors feel vindicated Physician groups have long complained the process of review drives up costs in their offices through administrative overhead, leading to reduced care.
Many doctors feel vindicated.
However, managed care is also intended to protect consumers from falling prey to unnecessary or ineffective procedures. UnitedHealth's new policy could result in higher insurance premiums, said John Erb, a health benefits consultant in Boca Raton, Florida. UnitedHealth said it would cut 20 percent of its administrative review staff. So any increased costs incurred by careful doctors could be made up through cuts in overhead. UnitedHealth trails only behind Aetna in the number of people it covers, about 14.5 million.