NBC Evening News for Thursday, Feb 26, 1976
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(Studio) FTC (Federal Trade Commission) investigates link between doctors and Blue Shield.
REPORTER: John Chancellor
(Los Angeles, California) FTC (Federal Trade Commission) to study control exerted over Blue Shield by doctors Blue Shield in Ohio reported to be subsidiary of Ohio's medical society. 14 of 24 members of Blue Shield's board of trustees in California are doctors 10 non-doctors are elected by California medical association [California Blue Shield Eugene HOFFMAN - feels board of trustees have best interests of subscribers in all decisions. 40% of testing done for legal protection of doctor or hospital in case of malpractice suit.] Blue Shield uses 70 doctor consultants to hold down amts. paid in claims. 37 million claims per year processed in California.
REPORTER: Don Harris