Anthem Blue Cross And Blue Shield Drops Eye Care Manager

WATERBURY (AP) — Anthem Blue Cross and Blue Shield, one of the state’s largest HMOs, is dropping the Waterbury company that manages eye care for hundreds of thousands of Connecticut consumers.

As of Dec. 1, Anthem Blue Cross will no longer use OptiCare to manage eye care services in its commercial health plans, Blue Cross spokeswoman Paula Laudano said.

Ms Laudano said the company was terminating the contract “without cause.’’ But frustration with OptiCare over unpaid medical bills has driven a number of ophthalmologists across the state to drop out of its network, limiting consumer choice.

Officials at Blue Cross are planning to continue working with OptiCare over the next several months to ensure all outstanding bills are paid, Ms Laudano said. OptiCare will also continue to manage Blue Cross’ Medicaid business under a contract that runs through June 30, 2001.

“I think there has been some improvement and we have been working with them,’’ Ms Laudano said. “As we move forward, those things will be cleared up.’’

Steven Ditman, executive vice president and chief financial officer at OptiCare, said the loss of the Blue Cross contract was disappointing, but blamed the billing delays on a computer system that has since been replaced.

“We believe that a substantial portion, or most, or all of those outstanding bills have been paid or are currently in the process of being paid,’’ Mr Ditman said.

Despite the trouble in its home state, OptiCare said in an earnings statement released Monday that the company is looking for new sources of financing so it can expand.

The company announced a second-quarter net loss of $1.4 million, or 11 cents a share, but those figures included a one-time after-tax charge of $1.6 million linked to an aborted merger with Vision Twenty-One.

Excluding the charge, the company’s balance sheet shows a second-quarter profit of $209,000, or 2 cents a share, on sharply increased revenues of $34.2 million. That compares with a second-quarter net loss in 1999 of $2.26 million, or 97 cents per share.

“We had a solid quarter, another quarter of nice profitability, and we continue to grow our operations,’’ Mr Ditman said.