Milwaukee,
WI -- For years, health insurance companies have relied on a wide variety of
options for denying claims, including lack of preapproval; a preexisting
condition; or minor clerical errors, such as incomplete dates. Now, Green Cross
of Wisconsin has announced an entirely new category for claims denials: "just
because."
According
to Green Cross CEO Dick Browne, the company took a "rational look at the
business model" and singled out denials as a huge cost sink: "I think we all
long assumed that we could just stamp 'denied' on a claim and it would go away.
But a top-to-bottom review of our operations revealed that we were incurring
huge costs dealing with angry patients and doctors. Worst of all, giving a
reason for denying a claim was simply providing patients with ammunition to
argue with us; appeals were hurting our bottom line."
The
beauty of "just because," according to Browne, is that it stops the appeal
process dead in its tracks. And downsizing the appeals department could save
Green Cross millions, according to an independent audit by KPMG.
Green
Cross says it wants to stay in the forefront of insurance innovation. "Paying
out on claims is the soft underbelly of the insurance industry," says Browne.
"It is a liquidity drain that markedly affects shareholder value. We need to
continue to examine new avenues for denying claims."
Thanks for the laugh, Jessica. I KNEW they were sneaky... now there's proof! Haha
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