Hospitals Win Battle Against Cost Plus Health Plan – Plan Sponsor Lacks Testosterone

Cliff Peale reports:

Mason City Schools will abandon the controversial TrueCost health plan after several grievances by teachers.

• Insurance plan pits hospitals vs. insurers

The union representing teachers has filed a grievance over the plan, which the district imposed starting Jan. 1.

It pays Medicare rates plus 40 percent. Hospitals have said they will not accept it, prompting a standoff with employers desperate to limit their health-care costs.

Several teachers said they were denied treatment, and others would have faced huge medical bills as hospitals billed them for the difference.

Mason City Schools officials said they would go back to last year’s plan, a traditional design negotiated with insurers.

Editor’s Note: A Texas school district recently won their battle against a local hospital system by standing firm against similar boycott – bully tactics. Cost Plus health plans will only work with the strong support of the employer and the backing of educated plan participants.  The reward is lower costs and better benefits. Unfortunately, Mason school employees will continue to be at the mercy of secretive managed care contracts and suffer continuing loss of benefits coupled with annual rate increases.