Reneging on a Contract


Here is a nice little diddy from Pennsylvania. High mark is forcing health care providers to take reimbursement cuts of 4.5 percent for Obamacare insurance products only a few months into an insurance contract year.  Imagine that?  Who has the leverage here?  Obviously, they broke the contract and now the Pennsylvania Medical Society is responding with a very stern……letter.  I am sure the insurer will backtrack on this.  LOL.  The story gets more fun. While Highmark plans to cut provider reimbursements for ACA-related insurance products, the insurer also raised premiums to consumers “well beyond the state’s average.” This proves that the insurers alway get theirs. It is similar to working for a hospital employer. I interviewed with one hospital group in Virginia years ago and the contract and salary just seemed to good to be true.   It also came with a 25 mile radius non-compete clause, which would force me to move if I wanted to walk.  Well, it turns out that they were allowed to change compensation at any time (even cutting it to $1 a year) and you still could not get out of the non-compete.  Guess what?  Their compensation formula has changed three times since I interviewed.  All for the worse. Good thing I decided not to play along.

So, here is an idea, why don’t ALL the doctors from PA walk on Highmark?  It really is that easy.  Buck up and do something for once!  Stop crying and get tough.  You are being devalued and disrespected.  You can fix this.

Douglas Farrago MD

Douglas Farrago MD is a full-time practicing family doc in Forest, Va. He started Forest Direct Primary Care where he takes no insurance and bills patients a monthly fee. He is board certified in the specialty of Family Practice. He is the inventor of a product called the Knee Saver which is currently in the Baseball Hall of Fame. The Knee Saver and its knock-offs are worn by many major league baseball catchers. He is also the inventor of the CryoHelmet used by athletes for head injuries as well as migraine sufferers. Dr. Farrago is the author of four books, two of which are the top two most popular DPC books. From 2001 – 2011, Dr. Farrago was the editor and creator of the Placebo Journal which ran for 10 full years. Described as the Mad Magazine for doctors, he and the Placebo Journal were featured in the Washington Post, US News and World Report, the AP, and the NY Times. Dr. Farrago is also the editor of the blog Authentic Medicine which was born out of concern about where the direction of healthcare is heading and the belief that the wrong people are in charge. This blog has been going daily for more than 15 years Article about Dr. Farrago in Doximity Email Dr. Farrago – [email protected]