Insurers Launch Three-Year, $13M Incentive Program for Pennsylvania Physicians

Six insurers in Southeastern Pennsylvania on Tuesday launched a three-year, $13 million initiative to compensate physicians who track their patients' health care and conditions, the Philadelphia Inquirer reports. The incentive program is part of the first phase of Gov. Ed Rendell's (D) Prescription for Pennsylvania plan, which aims to expand insurance coverage to uninsured state residents and reduce medical errors. According to officials at the Governor's Office of Healthcare Reform, which is coordinating the incentive program, more than 150 family practitioners at 32 primary care practices and up to 220,000 patients in the southeastern region of the state will participate in the initiative.

The program seeks to make caregivers more accessible through e-mail or telephone calls and will provide them with rewards based on how well they dispense proven treatments and keep patients healthy. Physicians also will use computer software to track their patients' treatment. In addition, physicians will designate certain times that sick patients could get an appointment within 48 hours.

Phil Magistro of the health reform office said, "Our whole premise is that if we implement a model that takes a proactive approach and changes the way primary care is practiced, we will improve patient care ... and ultimately save money."

Independence Blue Cross has allocated about $5 million to $6 million for the incentive program to help participating physician practices establish infrastructure, such as staffing and computer networks. Richard Snyder, senior vice president for health services at Independence, said, "There are a lot of reasons for that kind of investment," adding, "The first thing we hope to accomplish is to increase the use of evidence-based medicine and improve the quality of care," and "by keeping control of chronic illnesses that we know over time will deteriorate, we hope we will decrease costs."

Don Liss, medical director of Aetna's Mid-Atlantic region, said, "One of Aetna's interests in this, and others nationally, is to see if by transforming the way primary care is delivered, can you demonstrate a positive impact on quality and cost?" The insurance companies said that they plan to review the results to determine if the program is successful and viable (Goldstein, Philadelphia Inquirer, 5/13).