In a settlement with Georgia insurance officials, Promina Health System, Atlanta, agreed to eliminate monthly capitated payments from its managed-care contract with Cobb County.
Georgia Insurance Commissioner John Oxendine ordered Promina in May to discontinue its managed-care program. State law prohibits hospitals or physician groups from offering healthcare services for capitated fees unless it is through a licensed insurer, he said.
Earlier this month, the Group Health Association of America challenged state insurance commissioners to enforce existing laws that regulate physician-hospital organizations.
Under the agreement with the state, Promina eliminated the monthly capitated payment arrangement Cobb County paid for hospital and physician services.
In addition, the provision that Promina and Cobb share 10% of contract savings was eliminated. Cobb County now will pay for claims on a fee-for-service arrangement.
Self-insured Cobb County employs 12,000 people, with about 4,000 choosing Promina Northwest PHO, a spokeswoman said.