DAILY MAIL HEALTH REPORTER
After Charleston City Council this week chose a new carrier forthe city's 2001 health insurance, managed health care faded from thecity picture. Fewer than 100 city employees subscribe to a healthmaintenance organization, said City Manager Greg Burton.
The city has 2,500 people covered under its health insuranceplan. Only 900 of those are current employees. The remainder areretirees and dependents.
'The work force here is older, and the retirees just don't go toHMOs,' Burton said.
The state has one of the lowest penetrations of managed care inthe nation, or between 10 percent and 11 percent, officials say.
Also, one of the five HMOs serving the state - Advantage HealthPlan - is going out of business as of Dec. 31. Carelink, the largestHMO in the state, insures about 78,000 people while the secondlargest, the Health Plan of the Upper Ohio Valley, serves about64,000 West Virginians.
While Mountain State Blue Cross Blue Shield was chosen as thecity's carrier, plan administrators for its Super Blue HMO did notmake a bid to the city, Burton said.
Burton received three bids in all. However, Carelink's came intoo late for consideration. The other bid, from Acordia, had nocontract with Charleston Area Medical Center.
'We threw them out,' Burton said, noting that the hospital wastoo important not to be accessible for the 2,500 employees,dependents and retirees using the health insurance.
Costs to employees will not increase, but administrative costswill go up about 7 percent, Burton said. The city will pay about$275,000 in 2001, up from $258,000 this year.
However, Burton said the new contract will save in the long run.
'They've gotten a very good discount contract with CAMC, whichwill allow us to save money on the back end,' he said.
While benefit structures will not change, there will be someadjustments in prescription drug coverage. Deductibles will be $50for a single person and $100 per family. Co-payments will be $5 fora single and $15 for families. Brand name co-payments will be $25.
Writer Therese Smith Cox can be reached at 348-4874 or by e-mailat therese@dailymail.com.
