More profits, less service

I got a letter from the dermatology practice I used when we lived in Indiana announcing they won't take Anthem insurance after next March 23. Here's what they said (italics added for emphasis):

According to our records, you are currently covered by Anthem insurance or receive Anthem discounts through your insurance. We are writing to inform you that effective March 23, 2009, we will no longer be participating with Anthem's traditional and Blue Access (PPO) networks.

Over the past several years the Anthem costs to you and your employer for premiums, co-pays and deductibles have increased, and Anthem's profits have more than doubled. However, Anthem's physician compensation has remained at 2001 and/or 2005 rates. Additionally, Anthem has demanded more prior authorizations and other paperwork that has taken time away from caring for patients. We cannot continue to allow Anthem to profit at the expense of our patients and ourselves. We will continue to care for you, but unfortunately you will need to follow Anthem's "out of network" requirements and costs for visits after next March.

Since I'm no longer a patient at Spencer Dermatology Associates, their decision has no effect on me, but this may be the leading edge of a more widespread effort by physicians to boycott Anthem.

AndI can vouch for the increase in paperwork. We get a menacing request almost every week to provide receipts or other documentation for office visits or prescriptions. The letters threaten to suspend the Anthem VISA account we use for medical expenses, so we dutifully run to the doctor's office and pick up the appropriate paperwork to fax to Anthem. This has to be costing them more than they recover from bogus claims.