An obstetrician and gynecologist management company has been subpoenaed as part of an investigation into whether it received insurance kickbacks that artificially inflated malpractice insurance rates for Connecticut doctors, state and company officials said. Women’s Health Connecticut of Avon provides management services to more than 140 doctors and other health care providers around the state. It has been one of the most vocal supporters of a cap on awards in medical malpractice cases.
Connecticut Attorney General Richard Blumenthal confirmed the subpoena was part of an investigation into whether the company profited from an illegal insurance brokerage deal that drove up premiums for unwitting doctors. “The price of their insurance was raised as a result of this scheme,” Blumenthal said. “We’re talking about literally hundreds of doctors who see thousands of patients for ob-gyn services.”
It is illegal for brokers to pay clients or share commissions to secure their business–a practice called rebating.
The Women’s Health Connecticut investigation adds a new wrinkle to the typical rebating probe. The company’s former insurance broker, Hilb Rogal & Hobbs, acknowledged last month that its officials may have accepted extra fees, which are illegal, from insurance providers in exchange for steering business. HRH announced the resignation of its president, fired another employee and turned over documents to federal and state prosecutors and insurance regulators.
Blumenthal is investigating whether those illegal fees were shared with Women’s Health Connecticut managers without the knowledge of the doctors, who paid more for insurance because the hidden fees were wrapped into their premiums.
Topics Connecticut
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