Community Health Plan announced Wednesday its intent to withdrawfrom the health insurance market.
The company, begun by Heartland Health almost 15 years ago, hassigned an agreement with Aetna Health Plans that will create a newcompany, Community Health Improvement Solutions. This new companywill allow CHP employees to keep their jobs and remain in theirlocation at 801 Faraon St. It also will continue to provide thewellness programs CHP offered the businesses that contracted with it-- such as on-site health-risk assessment screenings and counseling -- while selling Aetna health insurance policies.
'We see this as really strengthening what we had with CommunityHealth Plan,' administrator Linda Bahrke said. ' ... There's noother place in the country where Aetna is making a partnership likethis. If you really think about it, what's exciting is that we stillhave Community Health Plan, but we also have a national insurercoming in.'
Aetna's financial status allows it to offer resources such as anextensive Web site with wellness tools and personal health records,she added -- something CHP would never have had the funds to createand maintain. In addition, those with Aetna insurance can seek carefrom thousands of providers throughout the country, instead of onlylocally. And what Ms. Bahrke sees CHP bringing to the new company isa strong local presence and a very 'high-touch' way of serving itsclients.
'We think that what Community Health Plan is doing in itsapproach to wellness is very forward-thinking,' E. Scot Roskelley,director of communications for Aetna's north central region, added.' ... (Community Health Improvement Solutions) is like creating ahybrid that addresses both of our strengths and weaknesses.'
Ms. Bahrke wrote in a letter to customers that CHP's decision toleave the market came due to market conditions evolving andchanging. It will begin its exit process July 1, but will covercustomers throughout the duration of their contracts, she added.Anyone whose contract expires before Nov. 1 who would like to renewit for another year is free to do so.
Ms. Bahrke noted that 'it was really never a desire of Heartlandto be in the insurance business,' but that it created CHP as a wayto control insurance premiums when it couldn't find an insurancecompany in the mid-'90s that would partner with it and share data.The decision cost Heartland in CHP's early years, when the insurancecompany experienced significant financial losses. Heartland alsodrew criticism from those who saw a hospital owning an insurancecompany as a conflict of interest.
'The net effect can be to raise insurance costs in an area, andthe evidence is there that insurance costs in Northwest Missouri arehigher than elsewhere in the state,' said State Rep. Dr. Rob Schaaf,a St. Joseph Republican who proposed a bill several years agoopposing hospitals owning insurance companies.
But despite the financial losses and criticism Heartland hasexperienced due to CHP, Ms. Bahrke feels that Heartland maintainingthe company so long has been worth it.
'We would not be here today, being able to offer this reallygreat product to Northwest Missouri, if we hadn't gone through theCommunity Health Plan journey,' she said.
Erin Wisdom can be reached at ewisdom@npgco.com.
