In late 1955 Draper discovered that several KSMA county medical societies had amended their by laws to allow them to deny membership to a physician for any reason.
Although the KSMA argued that its behavior was intended to ensure quality medical care for its members' patients, the real issue was fighting unwanted competition.
Such institutions denied their patients free choice of physician, but the KSMA had done nothing to correct the problem.
Throughout this controversy the KSMA never denied that the chain offered good medical care.
In retaliation for the fund's efforts, the KSMA attempted to have the Kentucky legislature ban all medical insurance agencies from operating in the state.