Some doctors want payment only in cash

RENTON, Wash. — When Chuck O'Brien visits his doctor, they talk about his aches and pains, his heart problems and his diet but never about his health insurance.

That's because his doctor only accepts cash.

Dr. Vern Cherewatenko is one of a small but growing number of physicians nationwide who are dumping complicated insurance contracts in favor of simple cash payments.

When O'Brien leaves the exam room, he writes a check for $50 and he's done — no forms, no ID numbers, no copayments.

"This is traditional medicine. This is what America was like 30 years ago," said O'Brien, 55 and self-employed, who believes he has saved thousands of dollars by dropping his expensive insurance policy and paying cash. "It's a whole world of difference."

Is this the health-care wave of the future? Probably not, experts say. Most people are content with monthly premiums and $10 copays; nine out of 10 doctors contract with managed-care companies.

But cash-only medicine is becoming an increasingly attractive option for doctors frustrated by red tape and for the 43 million Americans who lack health insurance.

"It's a terrible indictment of the collapsing health-care system," said Arthur Caplan, chairman of the medical ethics department at the University of Pennsylvania Medical School. "Insurance and managed care were supposed to streamline — instead what they've done is add so much paperwork and bureaucracy they're driving some doctors out."

Health insurers downplay the trend, while emphasizing recent efforts to mend tattered relationships between doctors and managed care companies.

"I don't look at it as a threat," said Mohit Ghose, spokesman for the industry group America's Health Insurance Plans. "It's just a different way of practicing."

Medical establishment leaders don't object to doctors working for simple cash.

"This is America. One size does not fit all," said Dr. John C. Nelson, president-elect of the American Medical Association. "We certainly support the physicians' right to do that."

An obstetrician-gynecologist in Salt Lake City, Nelson easily recalled times when he believed managed care rules prevented his patients from getting the best treatment. He said cash-only doctors are driven by the desire to practice medicine without interference.

"There is a great intrusion by third parties into the patient-physician relationship," Nelson said. "We can understand their frustration."