The problem is that our members are continuing to experience late payment. Yes, fines are imposed. But it remains a serious problem. We hear from physicians that their cash flow is so disrupted that their ability to provide care for patients can be threatened. And it shouldn't matter if a large fine will push a company past the brink of insolvency, he said.
State law requires that insurers show financial stability.
The answer is to ensure that insurers have sufficient reserves to be in the business. Hold them to the reserve requirements. Receivership might even help some companies improve their payment records, some say. Harvard Pilgrim Health Care, based in Brookline, Mass., went into receivership for a few months in January after many physicians complained they hadn't gotten paid in 120 days, said Frank Fortin, spokesman for the Massachusetts Medical Society. A lot of physicians said they got paid better when the plan was in receivership.