AMA issues first report card on insurers' reimbursement rates

The American Medical Association released its first report cards on health insurances companies at the group's annual meeting Monday (Source: "AMA issues first report card on health insurers," Washington Post, June 16, 2008).

The organization rated seven private insurers and Medicare based primarily on the timeliness and accuracy of payments to doctors, based on a random sample drawn from 3 million claims. AMA leaders said the report cards are an attempt to shed light on an estimated annual  $210 billion in wasted administrative claims processing costs.

UnitedHealthcare had the lowest rate of contract compliance, according to the AMA report. About 62 percent of medical services billed were paid by UnitedHealthcare at the contracted rate, compared with 71 percent for Aetna and 98 percent for Medicare.