California regulators halt plan’s confidentiality agreements
California insurance regulators ordered the state Blues to stop using “confidentiality agreements” they said deprive physicians and hospitals of their rights to fair representation during contract negotiations. But doctors worry the cease-and-desist order the state Dept. of Managed Health Care issued Nov. 1 does not go far enough.
The mandatory agreements had given Blue Cross of California “sole and absolute discretion” as to whether doctors could use an attorney or consultant during contract discussions. Doctors and their representatives had to sign the document before negotiations began. The provisions also required that “any confidential information” generated during the process be returned to Blue Cross.