Dear Ms. Jenson,

Your e-message to Lieutenant Governor Ronnie Musgrove was forwarded to me for
reply because they are concerned with the situation in North Mississippi where
many physicians have chosen not to participate in the AHS State Network.

The Health Insurance Management Board chose not to continue with the offering
of multiple networks under the State and School Employees' Health Insurance
Plan and issued a Request for Proposals for a Direct Contracting Administrator
to establish a single provider network for the Plan. AHS was selected for this
contract through the competitive bidding process.

In the role as Direct Contracting Administrator, AHS sent application packets
to all physicians in the State at the end of July. All physicians in the
State have been offered the same contract and the same terms. Apparently,
physicians belonging to the North Mississippi Physicians Association have
decided to act as a group in determining whether to participate in the AHS
State Network, and have chosen so far not to participate. AHS staff have met
with individual physicians and their staff, and have met with the Association's
Board in an effort to recruit these physicians into the Network.

In-state providers were the first ones recruited for the Network. AHS then
contacted the major out of-state-facilities used by Plan participants and began
negotiations regarding their participation and that of their physicians. These
physicians are being recruited through the PPO's rather than individually.

Because there will only be a single network available in 2000, Plan
participants do not need to make a benefit option selection for 2000. Since
the provider panel will not be closed after a certain date, providers may
choose to join the Network at any point in time, so the provider directory will
omit many providers if it is printed too early. Although physicians, for
instance, were asked to return their applications by the end of September,
several hundred have been received after that date and must go through the
credentialing process.

 I understand how important it is to Plan participants for local physicians to
participate in the Network. AHS is doing everything they can to recruit
providers in North Mississippi. Ultimately, however, it is the individual
physician's decision as to whether he/she participates or not.
 
Sincerely,

Therese Hanna

Therese Hanna
State Insurance Administrator
Office of Insurance
Department of Finance & Administration
phone: 601-359-6708    fax: 601-359-6568
e-mail: hannat@dfa.state.ms.us

Other Pertinent Documents:
Letter to Max Andriner,  Director, Performance Evaluation and Expenditure Review Committee - Nov. 4, 1999
E-mail Reply to Therese Hanna from Mary Brant Jensen - Nov. 2, 1999
E-mail to Max Andriner,  Director, Performance Evaluation and Expenditure Review Committee - Nov. 1, 1999