The Addiction Treatment Advocacy Coalition: California Substance Abuse Treatment Facilities Protest Insurance Giant Potential Acquisition Reports

Business Wire

LOS ANGELES--(BUSINESS WIRE)-- According to the Addiction Treatment Advocacy Coalition (“ATAC”) over 100 California addiction treatment facilities and providers signed a letter to New York Attorney General Eric Schneiderman to alert him of the questionable practices of insurance giant Centene. Centene has been withholding payments from substance use treatment providers, which has put many providers at financial risk. The California addiction treatment facilities want to warn Schneiderman of the danger that the proposed acquisition by Centene of New York-based Fidelis Care will spread the same concerns to providers in New York State.

“In an unprecedented unified protest, the signatories of the letter include treatment providers, billing companies, therapists, counselors and subscribers, all negatively affected by St. Louis-based Centene’s alleged refusal to pay debts acquired from the corporate acquisition of California-based Health Net,” said ATAC President Stampp Corbin.

ATAC organized the grassroots effort to protest Centene’s proposed acquisition of Fidelis Care. ATAC advocates on behalf of the over 1,600 licensed addiction treatment centers in California and those who suffer from Substance Use Disorder. The letter of protest was received by Attorney General Eric Schneiderman earlier this week.

Joan Borsten, Vice President of ATAC, said: “The protest letter highlights Centene’s internal policies of withholding payments to treatment facilities through a series of unnecessary audits and delay tactics that have overwhelmed the resources of small treatment centers and private counseling facilities throughout California. Other signatures on the petition came from the insured, or their family members, who paid large premiums, ranging from $600 to $1000 per month, for PPO policies that Centene retroactively declared would be based upon Medicare rates. In some cases, payments to providers have been withheld on claims dating back to August 2015.”

The California Department of Insurance has already informed Centene they must pay 75% of billed claims to all facilities that filed online complaints and were removed from the Health Net audit list in 2016. Litigation is proceeding in California and Arizona to stop the questionable Centene practices. Medicare recently downgraded the Health Net and Centene Medicare Star Quality rating from 4 to 3.5 stars after a program review.

A copy of the letter sent to Eric Schneiderman can be found at; http://atac.nationbuilder.com/letter_to_new_york_attorney_general