Press Release July 14, 1999	Contact: Diana M. Bianco or Robin Kane 415/431-6747 Consumers Union's West Coast Regional Office

 

SAN FRANCISCO, CA - Five of the seven lowest-ranked health maintenance organizations (HMOs) in a newly released customer satisfaction survey are based in California, according to the August issue of Consumer Reports magazine. At the same time, the state agency that oversees the industry is in regulatory limbo, and consumer protection legislation enacted in many other states has yet to pass in California.

"Many California consumers, especially those who are sick, are not being well served by their HMOs," said Diana M. Bianco, staff attorney and policy analyst with Consumers Union, nonprofit publisher of Consumer Reports magazine. "Our state lags behind others in consumer satisfaction and protection. The Governor and Legislature have an opportunity to improve the situation, and should act."

The five California plans that languished at the bottom of the survey of 54 national plans include FHP Health Care (now merged with PacifiCare), Blue Shield of California, Cigna HealthCare, Prudential Health Care, and Foundation Health (now merged with HealthNet). Kaiser Foundation Health Plans in Northern and Southern California both ranked among the top ten in the survey. [For more information on the Consumer Reports story, please see attached release or visit www.consumerreports.org.]

To improve the quality of care and better protect consumers at HMOs, 26 states have passed legislation creating an external review process for appealing denials of care. A number of other states, including Texas and Georgia, have passed laws to hold HMOs liable for their decisions or are considering such legislation. Several independent review and liability bills pending in the California Legislature, including AB 55, SB 189 and SB 21, offer opportunities to improve consumer care and satisfaction, according to Bianco.

A recent report by Consumers Union and the Center for Health Care Rights found that the state department in charge of regulating HMOs did little under previous administrations to educate and inform health care consumers, and lagged behind consumer protection efforts in other states. [For more information on that report, see the health section of the Consumers Union website at www.consumersunion.org.]

"The Consumer Reports survey underscores the urgent need for a regulatory agency with the resources and expertise to ensure quality care and customer service," Bianco said. "California's HMOs need emergency attention. The Legislature and the Governor should support legislation creating an independent external review process and liability for HMOs."

Consumers Union, publisher of Consumer Reports, is an independent, nonprofit testing and information organization, serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers.