For background, I direct you to this story. In particular:

Covenant, as well as other Milwaukee-area hospital systems, are owed millions of dollars in back claims by Compcare and Blue Cross & Blue Shield United of Wisconsin. The health insurance companies have said Y2K conversion and claims processing problems created a backlog of unpaid claims that the company is working through. Blue Cross and Compcare say they are making progress in whittling the backlog.

Reliable sources in the health care industry have informed me that the backlog still exists, and some companies are currently experiencing major financial problems as a result. Bankruptcy has been rumored in at least one instance. I would love to give more info but cannot, other than to say that the problem is very real, and will not be withheld from the media for long. I expect the local press will jump on this story. I'll keep you posted.

-- Steve (hartsman@ticon.net), June 04, 1999

Answers

STEVE!!!!!!!!!!!! where ya been?

I've heard similar reports from friends and relatives working in management positions in health care field.

It's one of the reasons I believe the JAE is real and becoming compounded and difficult to recover from.

Mike =================================================================

-- Michael Taylor (mtdesign3@aol.com), June 04, 1999.

Thanks Steve.

"Cash Flow" is what will make, or break an organization.

Disruptions to the "cash flow" will only enhance the breaking points, for some, who can't stretch far enough.

Business 101.

Diane

-- Diane J. Squire (sacredspaces@yahoo.com), June 04, 1999.

Yes, it is a mess, and will be much worse by the beginning of February 2000. Stay healthy.

-- Ashton & Leska in Cascadia (allaha@earthlink.net), June 04, 1999.

And plant medicinal herbs, Leska.

Diane

Full-text, for the TB archives:

By Joe Manning
of the Journal Sentinel staff
March 30, 1999

http://www.jsonline.com/business/ news/990330covenantrescindslette.asp

[Fair Use: For Educational/Research Purposes Only]

Covenant Healthcare sent letters to Compcare HMO patients Monday telling them to disregard an earlier notice asking the patients to pony up for bills unpaid by the health insurer.

The latest letters were sent to patients after Covenant learned the original letters violated state law, said Kevin Kluesner, a Covenant spokesman.

"We made an honest mistake," Kluesner said. "We have been trying to work with Compcare unsuccessfully for months to receive payment for health care services that we provided to their members."

Covenant, as well as other Milwaukee-area hospital systems, are owed millions of dollars in back claims by Compcare and Blue Cross & Blue Shield United of Wisconsin.

The health insurance companies have said Y2K conversion and claims processing problems created a backlog of unpaid claims that the company is working through. Blue Cross and Compcare say they are making progress in whittling the backlog.

"Earlier this month, Covenant Healthcare sent letters or bills to 48 Compcare patients requesting payment or urging them to contact their insurance provider," Kluesner said. "We found out late last week this action is prohibited by state statutes. We have already sent these patients letters of apology which explain our error."

Eileen Mallow, a spokesman for the state Insurance Commission, said health care providers aren't allowed to collect back bills from patients when they are covered by a health maintenance organization such as Comp care.

"Enrollees (in HMOs) are in a hold-harmless position. It's for consumer protection," Mallow said. With traditional indemnity health insurance, enrollees can be billed if the health insurance company does not pay the bill, she said.

She said the insurance commission asked Covenant to rescind the letters.

"We understand that mistakes can happen, and we are pleased that Covenant is taking the necessary steps to correct the error. We have made excellent progress in clearing up the claims backlog, and will work closely with Covenant on this matter," said Thomas Luljak, a Comp care spokesman.

Compcare and Blue Cross have stepped up claims payments in recent months, figures supplied by the companies show.

The companies normally pay out about $51 million a month in claims. That figure dropped to $27.5 million in November when the problem peaked, then rose to an average of $61 million for the last four months, including projected figures for March, company figures show.

"We have been pushing through claims, and cash flow to providers has improved," said Penny Siewert, vice president for United Wisconsin Services, the parent company of Compcare. Siewert is also vice president of regional services for Blue Cross.

-- Diane J. Squire (sacredspaces@yahoo.com), June 04, 1999.

* * * 19990604 Friday

...Response to Y2K = BUDGET and PEOPLE.

Most BCBS outfits are _NON-PROFIT_ orgs!

Most _NON-PROFIT_ org = small budget and few people.

That's why they will be early Y2K "barometers." Those pails can't hold ( hide ) much Y2K "water."

Yup... Economics 101...

The bigger the BUDGET, the BIGGER their BUCKET, the BIGGER the EXPOSED Y2K MESS WILL BE!...

Regards, Bob Mangus ( Who worked--under duress--on a BSBC PC/Network/Workstation Y2K project for 10 months in 1998! I empathize with Steve! )

* * *

-- Robert Mangus (rmangus@hotmail.com), June 04, 1999.

Steve,

Thanks for the good news. Obviously, the offending companies have finished their Y2k programming since the problems are attributed to the Y2k conversion. In case zoobie is reading this I will explain further: If the production data bases have been Y2k converted then the Y2k work is completed up to the point of cleaning up the inevitable problems that arrise after any major software implementation.

This is a good illustration of why Y2k will be essentially over with before we actually rollover to the year 2000. Steve, it was pretty clever of you to disguise this as bad news to suck in the doomers.

-- Woe Is Me (wim@doom.gloom), June 04, 1999.

Wasn't it though? Major health care companies considering bankruptcy makes me want to "party like it's 1999"! Especially when I know several people whose livelihoods hang on the outcome. Sheesh.

-- Steve (hartsman@ticon.net), June 04, 1999.

Steve,

I must be speed reading again but I don't see the part about bankruptcy. You wouldn't be adding that part to suit your purposes now would you?

I just skimmed through the article again still don't see any mention of bankruptcy but something else caught my attention. These problems have been going on for months which would indicate that the Y2k conversion took place months ago. Again more good news from an industry which is supposed to be one of the farthest behind. I think I'll put a few steaks on the grill tonight and celebrate. Come on over but remember this will be a B.Y.O.B. party. Bring your own beans.

-- Woe Is Me (wim@doom.gloom), June 04, 1999.

Woe: Reread the original post you moron!

-- regular (zzz@z.z), June 04, 1999.

regular,

Thanks you silver-tongued devil. I re-read the article assuming that it would support the bankruptcy claim now I see that the bankruptcy stuff is in Steve's comments. So it amounts to more of the usual he said, she said, can't disclose my source rumor bullshit!!!! The harder it becomes to find bad news the more some of you will resort to fabricating it.

Now here's one for you. Reliable sources in the health care industry have informed me that they are well prepared for Y2k. Oh, I can't disclose my sources but just trust me on this. Now, doesn't that sound like a load of crap when it is used to support a position that you don't share?

-- Woe Is Me (wim@doom.gloom), June 04, 1999.

The info is legit, and you will hear more soon. Now, if you've got sources or reasons to trumpet compliance for the entire health care industry, please give more detail. I, for one, would love to hear some good news.

-- Steve (hartsman@ticon.net), June 04, 1999.

Steve,

When the local press jumps on the story and prints something factual please let us know. In the meantime, I will continue to see this particular glass as half full while you view it as half empty. Have a nice day.

-- Woe Is Me (wim@doom.gloom), June 04, 1999.

Have a nice day yourself, Jimmy Bagga Gagga. Trolls who like to dilute and disrupt and sidetrack FACTual threads are tiresome. Go someplace else and ignore Y2K.

-- longtimelurker (postit@toast.it), June 04, 1999.

As an aside, one of the little quirks of dealing with the Feds in healthcare is that they have a rule that if a claim isn't paid within a certain time frame ( not sure of exact amount like 18 months), it NEVER GETS PAID. Not much of an incentive to rapidly process those claims eh?

-- kozak (kozak@formerusaf.guv), June 06, 1999.

BC & BS of Wisconsin just purchased a new company this month to offset y2k problems. This company is compliant and they are presently working on the issues. I wouldn't count them out of the picture yet.

-- Moore Dinty moore (not@thistime.com), June 06, 1999.