Complaint Review: Oncology And Hematology Associates Of Southwest Virginia Inc.

November 12, 2005

Dear Group Administrator:

We want to inform you that we are currently in contract negotiations with the specialists at Oncology and Hematology Associates of Southwest Virginia, Inc., Virginia Oncology Associates, and Fairfax-Northern Virginia Hematology-Oncology, P.C. (collectively managed by US Oncology in Houston, Texas). US Oncology has told us that they will leave our networks on January 1, 2006 if we do not meet their financial demands. We have enjoyed a long relationship with these physicians and are working hard to come to an agreement that is in the best interest of our members. Even though we are still in discussions, we wanted to take this opportunity to assure you of our commitment to our members who are seeing the physicians in these groups.

We are personally contacting Anthem members who have received care from one of the practices at US Oncology during the past three months. If US Oncology leaves the Anthem networks on January 1, we want you to know we will stand behind our members. In order to ensure that your employees get the treatment they need, they may continue to see their specialist at US Oncology for covered services after January 1, 2006 until their treatment is complete, with no out-of-network penalty. Payment for services provided by these oncologists will be sent directly to the member.

US Oncology had certain financial demands related to drug reimbursement that must be met for them to participate in our networks. We developed a plan to ensure that US Oncology will be reimbursed at those levels. Unfortunately, despite our agreement to meet their financial demands for specific chemotherapy drugs, US Oncology has decided to leave the network.

While these contract talks require hard work and serious negotiation, most take place quietly, out of the public eye. But you have our assurance that we will be working on your behalf to reach an agreement with US Oncology before January 1. Thank you.

Sincerely,

Vice President
Provider Network Development
roanoke, Virginia
U.S.A.