Health Costs: ; Preferred Providers

Summary


BRICKSTREET Mutual Insurance Co. - the private carrier now operating West Virginia's workers' compensation system - is creating a preferred provider organization to obtain lower prices for medical treatment of on-the-job injuries. The negotiated rates will save money for BrickStreet's 38,000 policyholders, businesses that buy coverage for sick or hurt employees.

BrickStreet's effort to create StreetSelect is the latest example in an understandable but inadequate effort to control America's insane medical costs. Insurance companies and self-insured employers have been signing PPO agreements for years. The insurers agree to send all their members to certain hospitals and doctor offices, and in return, the medical professionals offer discounts.

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Extract


Health Costs: ; Preferred Providers

Such agreements help control health-care inflation for a time. But they onl...

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