Ouch! perception is reality?

The title of this article indicates strong emotions -> "Doctors Outraged at Blue Cross Request". Even accounting for the fact that ABC.com might have a bias this is a disaster from the perspective of BCBS of California. What were they thinking?
My standing assumption is that managed health care started as an attempt to provide better health care to the majority of the population while bringing the transparency of an open market system to the process. It looks like the somewhere along way the way the second became more important than the first.
If this is not the case, then BCBS of Cali. better start doing some damage control or explain their intentions since this does not look good. I am not saying that their patients (or customers?) should get away with lying but the seemed to have dropped the ball in their search for a solution to the problem.

I am willing to give BCBS the benefit of the doubt, I am hoping that their initiative is to encourage their patients not to lie with them so they can do a better job of providing good care while keeping costs down. In either case they better clarify their motive before people start clarifying it for them.