April 30th, 2010

Reports the Philadelphia Inquirer:

In a bid to boost beleaguered primary-care doctors and encourage more preventive care for the public, Independence Blue Cross announced a plan Thursday to pay physicians more if their patients’ health improves.

Independence, the region’s largest health insurer, will spend an extra $47 million a year to increase base pay and double incentive programs that already encourage primary-care doctors to deliver higher quality and less costly care.

Starting July 1, a doctor with 850 Keystone HMO patients could earn up to $150,000 more a year, said Steven Udvarhelyi, executive vice president of health services at Independence.

“We think this is a significant opportunity for primary care physicians who are doing a good job,” he said. “It is a great incentive for them to improve over time.”

Eric Grossman, a senior partner at the consulting firm Mercer, in Norwalk, Conn., said that while insurers have dabbled with so-called pay-for-performance models, Independence’s effort was a significant development.

The insurer “has definitely, by this announcement, inserted themselves into the early adopters of that movement,” Grossman said.

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