Some New York physicians join the Teamsters

Doctors fear a rate cut by Excellus BlueCross BlueShield will create access-to-care problems for patients.

By Amy Lynn Sorrel, AMNews staff. May 15, 2006.

Nearly 300 Central New York physicians are seeking a new ally to help them level the playing field in a fight for control over patient care against the area's dominant managed care network -- the Teamsters Union.

Frustrated over recently announced cuts in reimbursement rates and existing restrictions on medical care imposed by Excellus BlueCross BlueShield, the doctors joined the approximately 1-million member Teamsters Local 1149 in Baldwinsville, N.Y., hopeful that the organization will help increase their leverage to negotiate with such large insurers.

Doctors say that Excellus recently informed those in Oswego County, N.Y., that effective June 1, it would implement a minimum 20% reduction in fee schedules, possibly higher depending on a doctor's specialty. Other policies include placing limitations on the types of drugs doctors can prescribe and requiring approval for certain medical procedures. Doctors say their discontent is exacerbated by earlier news that the nonprofit company recorded an 88% increase in profit over the previous year. They are concerned that the earnings exceed statutory requirements for a nonprofit company.

"Insurance companies have created barriers to care, and the concern is that if [they] have monopolies in a marketplace, they can create an unfair advantage against doctors," said Dennis J. Nave, MD, a Syracuse, N.Y., family physician who spearheaded the union effort and is vice president of the newly created Central New York Physician Teamster Alliance.