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Laboratory benefit management program
The laboratory benefit management program is a controversial program created by UnitedHealthcare in 2014, which “is designed to help improve quality of care and manage appropriate utilization for outpatient laboratory services,” according to UHC.
The pilot launch was for laboratory services ordered by Florida network providers for fully insured UnitedHealthcare Commercial members in Florida, excluding Neighborhood Health Partnership.
All outpatient laboratory services for members who are part of the Laboratory Benefit Management Program are subject to new requirements including advance notification and new medical policies.
Beacon Laboratory Benefit Solutions, Inc. (BeaconLBS®), which specializes in laboratory services management, administers the Laboratory Benefit Management Program for UHC.
Under the program, physicians serving UHC’s commercial patients in Florida must notify UHC when ordering any of 80 clinical laboratory tests. Pre-authorization is also required for certain tests.
The program has generated widespread resistance from Florida physicians, who protest that it will cause unnecessary delays for patient treatment, and undue burdens for doctors ordering tests. In addition to problems with lab test pre-notification algorithms within the BeaconLBS system, other problems cited by physicians include the exclusion of all but 13 Florida labs from the BeaconLBS “laboratory of choice network.”
Physicians claimed that this disrupts longstanding clinical relationships between physicians and their preferred labs. It also means that patients who have been served for years by their physicians’ preferred labs must now visit one of the 13 labs in the BeaconLBS network.
Pathologists are particularly concerned that BeaconLBS requires them to get a second review when ordering certain tests and to ensure that subspecialist pathologists who review tests have specific certifications, according to the College of American Pathologists. After CAP asked UHC to reconsider these two requirements, UHC left these requirements in place.
UHC is Florida’s second largest health insurer with approximately a 14% share of the market.
Where Are Pathologists When You Need Them?
By R. Lewis Dark | From the Volume XXI No. 15 – November 3, 2014 Issue
WHAT’S WRONG WITH THIS PICTURE? National health insurer has exclusive national contract with a single billion-dollar lab company. Billion-dollar lab company creates a business division to manage how physicians order lab tests. This lab test order system requires physicians to follow the lab test o…
Florida Ob-Gyns Call for UHC to End BeaconLBS
By Joseph Burns | From the Volume XXI No. 15 – November 3, 2014 Issue
CEO SUMMARY: In Florida, obstetricians and gynecologists are complaining about the burdensome nature of the new lab test management system introduced by UnitedHealthcare. In addition to calling for an end to the program, some ob-gyns plan not to use the system, a process that could lead U…
UnitedHealth Answers Queries about Function of BeaconLBS
By Robert Michel | From the Volume XXI No. 15 – November 3, 2014 Issue
ANSWERS TO QUESTIONS SUBMITTED to UnitedHealthcare about the insurer’s laboratory benefit management program now coming into operation in Florida were provided by the company’s public communication officer. These answers are reproduced below: Q: Will BeaconLBS proces…
LabCorp, Quest Diagnostics Report Improved Q-3 Revenue
By Robert Michel | From the Volume XXI No. 15 – November 3, 2014 Issue
THIRD QUARTER EARNINGS at each of the nation’s two biggest public lab companies showed improved growth in revenue and specimen volume, as compared to recent years. Laboratory Corporation of America was first to release its financial report for the quarter ending September 30, 2014…
FL Docs Say: ‘No Thanks’ to UHC and BeaconLBS
By Joseph Burns | From the Volume XXI No. 14 – October 13, 2014 Issue
CEO SUMMARY: Some Florida physicians are declaring their intent to leave UnitedHealthcare’s network because they find the insurer’s new BeaconLBS laboratory benefit management system to be time consuming and onerous. The defections come as the program goes through a soft launch that b…
Physicians and Labs Wary of United’s Lab Test Program
By Joseph Burns | From the Volume XXI No. 14 – October 13, 2014 Issue
CEO SUMMARY: Providers seem to have a natural distrust of health insurers, particularly when payers introduce new programs with the stated purpose of improving quality and ensuring that physicians deliver evidence-based medicine. Doctors serving members of UHC’s HMO plans in Florida are…
UnitedHealthcare, BeaconLBS Respond with Statements
By Robert Michel | From the Volume XXI No. 12 – September 2, 2014 Issue
IN FLORIDA, BOTH CLINICAL LABS and physicians have expressed concerns UnitedHealthcare’s Laboratory presented in full on this page and the following page. about Benefit Management Program that formally becomes effective on October 1. From that date forward, physicians will be requi…
Florida Doctor Questions Lab Test Pre-notification
By Joseph Burns | From the Volume XXI No. 12 – September 2, 2014 Issue
CEO SUMMARY: An interesting tug-of-war may develop in Florida between a major health insurer and physicians. UnitedHealthcare will require physicians to obtain a pre-notification number for 81 lab tests by using the BeaconLBS system (developed by a subsidiary of LabCorp). One family pract…
New Threat to Community-based Anatomic Pathology
By R. Lewis Dark | From the Volume XXI No. 10 – July 21, 2014 Issue
THERE IS A NEW DEVELOPMENT that may be off the radar screens of CAP, ASCP, and the various subspecialty pathology associations. It is the requirement for second reviews and subspecialty reviews of certain complex pathology tests as part of the laboratory benefit mana…
Test Utilization Targeted by UnitedHealth, LabCorp
By Joseph Burns | From the Volume XXI No. 10 – July 21, 2014 Issue
CEO SUMMARY: Many independent laboratories serving patients in Florida are unhappy about the decision by UnitedHealth (UNH) to initiate a pilot program that calls for LabCorp’s BeaconLBS subsidiary to handle prior authorization for certain lab tests. UNH’s laboratory benefit managemen…
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