May 18, 2015
Area(s) of Interest: 
Commercial Payors 
The California Medical Association (CMA) has learned that United  Healthcare (UHC) has altered the criteria for meeting the physician cost  efficiency component of its Premium Designation program. UHC will now  designate a physician as “Cost Efficient” when he or she has met the  episodic cost benchmark, even if the physician did not achieve the  population cost benchmark. The change only impacts those physician  specialties that are evaluated on both population cost and episode cost,  which include:
- Family medicine,
- Internal medicine
- Pediatrics
- OB/GYN
- Allergy
- Cardiology
- Endocrinology
- Nephrology
- Neurology
- Pulmonology
- Rheumatology
Surgical specialties are all excluded.
Previously,  physicians who met episodic cost but failed to meet the population cost  component did not receive the UHC Cost Efficiency designation in the  Premium Designation assessment. The results of the modified criteria  were communicated to affected physicians in a letter in March and are  also available on the UHC website. This designation includes data from  January 1, 2011, through February 28, 2014.
In 2014, CMA raised  multiple concerns with the payor’s criteria for evaluating physician  cost efficiency and urged the payor to make changes. To read more about  the concerns, click here.
Physicians  who have questions or concerns with their physician assessment reports  or their Premium Designation can contact UHC at (866) 270-5588.  Practices that are unable to obtain answers to their questions or  resolve the issue with United Healthcare directly should contact CMA at  (916) 551-2865.
For more information on the Premium Designation program, visit the United Healthcare website at www.unitedhealthcareonline.com.