Outlook

1999

The amount of time involved in lining up a new set of health benefits options makes it essentially impossible for either the University or the State can do much to improve the situation for the 1999 calendar year. The State, through its Joint Labor Management Committee (JLMC) has embarked upon a major study to determine the options to be offered beginning in January 2000. The broad outline of the outcome of this study is expected to be available in July 1998.

The problems for 1999 could conceivably get worse. It is possible that the employees with HealthPartners who were allowed to continue with their University physicians in 1998 will be denied that access in 1999. Although it seems unlikely, it is also possible that Blue Cross could withdraw the standard State Health Plan, leaving no access to primary care with University providers and leaving no plan with any out-of-network coverage.

On a more optimistic note, the University providers are negotiating with Blue Cross to become primary care providers in the State Health Plan Select option for 1999. If they succeed, then University employees will be able to choose this plan, presumably at a much lower cost than that experienced this year for the standard State Health Plan, thus obtaining access to primary care at the University. However, whether the State Health Plan Select will remain an option for 2000 is not at all clear. This solution may work for one year only.

2000

The State has shown a great deal of interest in working more closely with the University on the issues of particular concern to the University community. Two additional University representatives have recently been appointed to the JLMC, bringing additional visibility and voice to University issues.

The State is exploring a number of alternatives for the year 2000. In particular, the State has become an associate member of the Buyer's Health Care Action Group (BHCAG), a group of large employers in the Twin Cities who have formed a buying coalition. Th BHCAG approach is described above in the section on the local health care market.

The Task Force has considerable optimism that the year 2000 will bring substantial improvement to the health plans offered by the State. If the State chooses to adopt BHCAG either exclusively or as one of a number of options, many of the issues discussed above can be resolved. Should the State build its own system based on the BHCAG model, it is also likely that many of these issues will be resolved.

As described above, the Task Force was able to view some proprietary information about pricing within the current BHCAG employers. There is substantial difference in costs to employers, based presumably on demographics and health care usage of employees. What the University currently pays for employee health benefits seems to fall comfortably within the range of BHCAG employers. Given the data available at this time, it is impossible to determine whether the total health care costs would be higher or lower if the University were to purchase health benefits through BHCAG, either as part of the State or separately.

The Task Force held discussions with the AHC administration and with a representative of UCare. Although it seems likely that the University providers will be able to join BHCAG and become primary care providers under this model, it is far from certain. The Task Force wishes to express its concern that the AHC assign a sufficiently high priority to its effort to contract with BHCAG. If University providers are not one of BHCAG's care systems by the year 2000, a likely consequence is that University employees will once again be without access to primary care at the University.

Despite its optimism, the Task Force recommends that the University continue to investigate the path of separating from the State. It is possible that, given the changes occurring in the marketplace, the University can more closely meet its needs without incurring unreasonable financial burdens by adopting a purchasing model other than simply accepting the State program. The University should be prepared to move in this direction should the need arise.