Brown Launches Independent Inquiry into HMOs' Handling of Health
Insurance Claims
Los Angeles - Attorney General Edmund G. Brown Jr. today announced that
deputies in his office are launching an independent inquiry into how Health
Maintenance Organizations review and pay insurance claims submitted by doctors,
hospitals and other medical providers.
This investigation is prompted by
reports that California's five largest health-insurance providers are denying
insurance claims at rates of up to 39.6 percent.
"These high denial
rates suggest a system that is dysfunctional, and the public is entitled to know
whether wrongful business practices are involved," Brown said.
In the
coming days and weeks, deputies will review records and will speak with
individuals who have relevant knowledge of the issues raised.
