News in brief - Oct. 15, 2001

Judge blocks data release

A judge for the California Superior Court in Sacramento County on Sept. 26 issued an injunction blocking the state Dept. of Managed Health Care's release of medical group financial information.

The judge ruled that disclosure of the information, which the state agency was scheduled to release on Oct. 1, was contrary to the intent of a state law designed to flag medical groups at risk of insolvency. The California Medical Assn. filed a lawsuit on Sept. 5 to prohibit the state agency from releasing the financial data, which the CMA contends go beyond the intent of the law and will hurt medical groups during their negotiations with health plans.

Sutter Health filed a $6.6 million lawsuit on Aug. 30 against Woodland Hills, Calif.-based Health Net.

The lawsuit, filed in the California Superior Court in Sacramento County, alleges that Health Net owes Sutter, a health system with medical groups and hospitals throughout northern California, millions of dollars for patient care that Sutter Health facilities provided to Health Net patients between May and September.

Several consumer groups sent a letter Sept. 25 to Anthem Blue Cross Blue Shield asking the company to sign a pledge of corporate responsibility as it converts from a mutual to a for-profit health insurer.

The consumer groups, including Consumers Union and Community Catalyst, asked Anthem, among other things, to make a commitment to maintain adequate physician networks, include community representatives on Anthem's boards, require public input when changing health benefits and offer health care products for vulnerable populations.

Indianapolis-based Anthem owns Blue Cross Blue Shield plans in Colorado, Connecticut, Indiana, Kentucky, Maine, Nevada and Ohio. It is in the process of merging with Blue Cross Blue Shield of Kansas.