BUSINESS WIRE - 44 Montgomery St, 39th Floor, San Francisco, CA 94104; Tel: (415) 986-4422; FAX: (415) 788-5335 - Wednesday, 13 November 1996
These changes and the availability of three new health plans will become effective Jan. 1.
The EHPC is the state's only employer-owned collective-purchasing program for employee health coverage. Its top competitive advantage is that it guarantees employers predictable health coverage costs, by capping annual rate increases at the Consumer Price Index plus 3%.
"With three years of experience, the Co-op has proven that businesses can regain some control in managing the quality, availability and cost of health benefits," explains Charlie Harris, president of the EHPC board and president of Spencer Industries Inc., Seattle.
"You could call this `private-sector health reform,' a business-driven initiative which enables smaller companies to provide their employees with health coverage," says Harris. "By improving the availability and affordability of coverage, the Co-op is helping to increase the number of people covered by business. That reduces the number of the uninsured who are at risk of relying on public programs or facing high medical bills alone."
For employers who already provide health coverage, the EHPC provides improvements and greater value, Harris notes. More than 250 companies are already using EHPC health coverage.
New health plans
After a rigorous competitive bidding process, the Co-op is contracting with these plans for health coverage for 1997-99:
-- Options Prime Plan, encompassing Group Health (Group Health Cooperative of Puget Sound and Group Health Northwest (Eastern Washington)), Virginia Mason Medical Center, First Choice Health Network Inc. and ReliaStar. More than 9,000 physicians are available.
-- Health First Partners, including Swedish Health Services, MultiCare Health System and First Choice Health Network. More than 6,000 physicians are available.
-- Unified Physicians Health Plan, the only statewide physician-sponsored and governed plan, which developed its own network of more than 5,000 physicians, including most large groups and many smaller practices, to work with major hospitals, pharmacies and other health care providers to offer complete medical coverage throughout Washington.
The Co-op also offers optional dental coverage through Washington Dental Service, and life and disability insurance written by Guarantee Life Co.
Enhanced benefits
The Co-op also announced these enhancements, which apply when using any of the above plans:
-- Greater consumer choice -- More health care providers (hospitals and physicians) are available than before, and they are statewide. Using the EHPC plan, consumers continue to choose how "managed" they want their care to be. They can select managed-care services under an HMO model or directed by a primary-care physician; care from PPO network physicians; or services provided by any other health care provider. Deductibles and co-pay levels vary accordingly, but premiums stay consistent.
-- Statewide coverage -- Businesses throughout Washington can now join the Co-op to provide the same coverage to employees and their families statewide.
-- Smaller group size -- Businesses with as few as two employees can now buy coverage through the Co-op. The previous minimum was four employees.
-- Benefits to domestic partners -- Now businesses with 25 or more employees can opt for coverage for domestic partners of employees.
-- On-the-job medical for owners -- As a new benefit, the Co-op will provide coverage for business owners' on-the-job injuries. While all businesses are required to provide workers' compensation coverage for employees, it is optional for business owners to cover themselves. If not already covered, owners will gain this insurance without additional cost as members of the Co-op.
Background
The EHPC was formed by Puget Sound-area businesses four years ago, to provide alternatives to commercial insurance offerings and to provide an alternative to government-run health care.
More than 250 employers currently cover more than 7,600 persons (including dependents) using the Co-op program. The average employer covers 19 employees. In 1995, the Co-op plans paid $7 million in health claims.
As a member-owned cooperative, similar to REI (Recreational Equipment) and PCC (Puget Consumers Co-op), the Employers' Health Purchasing Co-op is organized and operated by and for employers.
EHPC coverage is available through insurance brokers or directly from the Co-op, at 206/646-4302.
CONTACT: Gluck & Associates, Seattle Dale Gluck/David Rue, Day/night: 206/682-3949
Copyright (c) 1996/BUSINESS WIRE. Reproduced with permission. Reproduction of this article (other than one copy for personal reference) must be cleared through the Permissions Desk, Business Wire, 1185 Avenue of the Americas, 3rd Floor, New York, NY 10036; Tel: (212) 575-8822; FAX: (212) 575-1854.
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Copyright © 1996 - Business Wire. All rights reserved. Reproduced with permission. Reproduction of this article (other than one copy for personal reference) must be cleared through the Business Wire, Permissions Desk, Business Wire, 1185 Avenue of the Americas, 3rd Floor, New York, NY 10036; Tel: (212) 575-8822; FAX: (212) 575-1854. http://www.businesswire.com.
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