The Department of Managed Health Care (DMHC) ordered Blue Cross of California to stop using its controversial confidentiality agreement, calling the agreement an “unlawful and unfair business practice” that threatens patients’ access to care. The insurance giant has been using the confidentiality agreement to force physicians into signing its contracts without consulting a legal or financial advisor, unless that advisor is approved by Blue Cross – a tactic only available to a company with the enormous market clout of Blue Cross.

Under the mandatory confidentiality agreement, Blue Cross had the right to determine “at its sole and absolute discretion” whether or not a physician could use a particular attorney or negotiator. In February, CMA notified state CMA notified state insurance regulators of this unfair agreement, which not only violates laws protecting the confidentiality of attorney-client communications, but also prevented physicians from being fairly represented in managed care contract negotiations. CMA also urged Blue Cross to withdraw the unfair agreement.

CMA will request that DMHC modify its cease-and-desist order to nullify any such agreements that have already been signed.

Click here to read the order.

Contact: CMA’s reimbursement help line, 888/401-5911 or drice@cmanet.org.