Holzer Clinic will become an out-of-network health care provider as of July 1, which will force up to 20 percent of Ohio University employees to change physicians or face increased medical costs.
The decision was announced last Friday in a memo on the university's budget Web site. In addition to the online announcement, Director of Benefits Greg Fialko sent an e-mail to OU employees Wednesday explaining the decision.
The employees have been expressing concern
Fialko said in an interview. Many people have a long-standing relationship with their physicians.
Holzer is more expensive than other health care providers included in the university network, and continuing to pay them more than other providers could cause other providers to increase fees, Fialko said.
It is not only a cost issue but also an equity issue Fialko said, adding that paying Holzer more would hurt other providers' ability to provide quality care.
The decision to create a double-tier system and make Holzer a Tier 2 health care provider was made by OU's executive officers: President Roderick McDavis, Executive Vice President and Provost Kathy Krendl and Senior Vice President for Finance and Administration Bill Decatur.
In-network health care providers currently include University Medical Associates, a private practice run by doctors from the College of Osteopathic Medicine, O'Bleness Memorial Hospital and most local physicians, Fialko said.
The new system will save the university $450,000 next
year.
There is a great deal of dismay about the decision, said Faculty Senate Chairman Sergio López-Permouth. López said that more than 30 faculty members and employees have contacted him about the decision.
Twenty percent of the 8 300 people covered by the OU health care plan have visited Holzer for medical services
Fialko said.
Employees using Holzer will pay a $600 deductible
as well as a $45 office visit co-pay
$30 more than they would pay to use an in-network provider.
Joe McLaughlin
chairman of Faculty Senate's Finance and Facilities Committee
said he has received a large amount of feedback from concerned employees.
People are upset they are going to have to pay more for health care, and now they may also have to change doctors, McLaughlin said.
According to the Faculty Handbook
Faculty Senate must approve any changes to the employee health care plan. Although the senate has not been formally asked for approval
McLaughlin said he believes the senate must vote on the change because of cost implications.
Moving from a single-tier system to a double-tier system is going to have cost implications, McLaughlin said. I think it is likely that Faculty Senate will vote on it in the April meeting.
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