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Anthem Out, Cigna In
After well more than a decade of cosy dealings with Anthem Blue Cross Blue Shield as the provider of the College’s Cadillac health care plan, the administration has decided to switch to Cigna. A good move. As a marquee client, Dartmouth can save a lot of money if it aggressively negotiates with its providers. Curiously enough, Steve Kadish’s official announcement memo (in full in the extended) would have you believe that cost had nothing to do with the change. My eye.
Dartmouth decided to re-evaluate its health plan as a way to improve service for its participants as well as to position the institution for future innovation in health care, such as wellness programming and more informed health care purchasing. The size and scope of our health plan is significant. Dartmouth and its employees spend about $55 million annually on medical benefits and more than 3,900 employees, 800 retirees, and 3,400 family members are covered under Dartmouth health plans.
There is no shame in saving money, even on health care. At my local business, we renegotiate our plan each year, often switching providers. This is the only way to keep costs under control in dealing with an industry that can happily announce 30-40% price increases from year to year.
Good for the College on this issue. Now let’s trim College employees’ benefits to the level of those provided to private sector employees in the Upper Valley. The lushness of Dartmouth’s plan is the talk of the Upper Valley’s benefits providers. There is a lot more money to be saved here — money that can then be put towards education.
Addendum: An informed reader writes in:
On your post today, there is a connection between (some of) how high the benefits are and how much we are overcharged through the local monopolies in both the insurance market and the provider market.
Addendum: As does an aggrieved one:
I just had occasion to seek my first renewal of a prescription under our new CVS/Caremark provider. To my distress, my accustomed brand medication was not on their formulary. In its place was a brand that I cannot use because of unpleasant side effects. My only alternative is to pursue an “exception” request with and through my doctor.
A small gripe, but just another line to add to my note, “Thank you, Jim Kim!”
The Kadish memo:
Dartmouth College Health Plan Administrator Change
To: Dartmouth College Faculty and Staff
From: Steven Kadish, Executive Vice President and CFO
Myron McCoo, Vice President, Human Resources
Date: August 22, 2012
Re: Dartmouth College Health Plan Administrator Change
We are pleased to announce Cigna as Dartmouth’s new employee health plan administrator, effective January 1, 2013. Until then, Dartmouth’s employee health plan will continue to be administered by our current provider, Anthem Blue Cross Blue Shield of NH.
After a comprehensive process involving the College Benefit Council (CBC) and other senior leaders from across Dartmouth, Cigna was selected from four competitive bids. Cigna brings an extensive provider network, top quality customer service, state-of-the-art online health information, and best practices in health-care management. Cigna has also been a strong partner with Dartmouth-Hitchcock in some of their innovative care practices. Our planning and communication with you and the rest of the Dartmouth community about this change will continue through the late summer and fall.
What will this mean to you?
*Improved health plan-related communication and service. You will hear more about these features throughout the fall.
*Broad provider network, more options in many cases, fewer in a limited number of cases. To check if your providers are in the Cigna network, please go to this link http://www.dartmouth.edu/~hrs/pdfs/finding_a_provider.pdf for instructions on how to find a provider on the Cigna website or by contacting Cigna at 1-800-564-7642. We are confident that your provider is in the network, however, if your provider is missing, please complete the form at the following website: http://www.dartmouth.edu/~hrs/pdfs/dartmouth_college_provider_nomination_form.pdf Cigna may be able to add missing providers to their network.
*Similar plans and coverage. Dartmouth will continue to offer three plans to active employees and early retirees. The names of the three plans will change under Cigna. The member out-of-pocket costs (deductibles, coinsurance and copayments) are the same for each plan. The coverage for each plan is the same with very few exceptions. Plan summaries will be available in September.
*New health and wellness programs to help you maintain or improve your health. Dartmouth will be rolling out wellness initiatives in the coming months. These new employee-focused programs include health screenings and health coaching for employees and are in addition to Dartmouth Health Connect, the Dartmouth-sponsored primary care practice located in downtown Hanover http://www.dartmouthhealthconnect.com/.
*A new Cigna identification card that you will receive in December. This will replace your current Anthem identification card. No action is required at this time.
*Prescription drug coverage continued to be provided by CVS Caremark. Members in the high deductible health plan, who were not shifted to CVS Caremark in January, will transition to CVS Caremark as of January 1, 2013. As a reminder, this does not mean that you have to fill your prescription at a CVS pharmacy. If you have questions about your prescription drug coverage or the pharmacy network, please contact CVS Caremark at (855) 465-0032 or view the website at: https://www.caremark.com/wps/portal.
Why change?
Dartmouth decided to re-evaluate its health plan as a way to improve service for its participants as well as to position the institution for future innovation in health care, such as wellness programming and more informed health care purchasing. The size and scope of our health plan is significant. Dartmouth and its employees spend about $55 million annually on medical benefits and more than 3,900 employees, 800 retirees, and 3,400 family members are covered under Dartmouth health plans.
Evaluation process
The administration and the College Benefit Council (CBC), a group of 20 faculty and staff, began working on a detailed request for proposals (RFP) in the fall of 2011. The RFP was given to four vendors in early February 2012, and four proposals were received in early March. An evaluation team of CBC members and administration representatives reviewed and analyzed the proposals. Three finalist vendors were brought in for in-person interviews and extensive reference checks were conducted. The full CBC voted unanimously to support the recommendation of Cigna as the vendor that offered the best value to Dartmouth and its health care beneficiaries.
Communication/Open Enrollment
The details of our move to Cigna, in addition to new employee wellness offerings, will be communicated to employees throughout the fall. The annual open enrollment period for benefits selection will begin on October 22 and end on November 5, 2012. A separate communication about open enrollment will be sent to all employees by early October. As we have done in previous years, education sessions will be held across campus before and during the open enrollment period. The dates and times will be announced shortly.
Upcoming Events
In addition to open enrollment and education sessions, the month of October will be full of employee health and benefits-focused events. Please save these dates on your calendar.
*Free flu shots will be offered to employees at Dick’s House on October 2, 3 and 4. Scheduling details will be shared as we get closer to the dates.
*Our first annual Health and Wellness Fair will be held on Wednesday, October 17 from 10 am until 2 pm. This fair will serve as a kick off of several wellness initiatives, including health screenings, health coaching and flu shots.
*The annual Fall Employee Services Fair will be held on Wednesday, October 31 from 10 am until 2 pm.
As always, the Benefits team is available to answer questions from employees and retirees. Contact members of the team at (603) 646-3588 or human.resources.benefits@dartmouth.edu.
Posted by Myron S. McCoo, Human.Resources.Benefits@dartmouth.edu, on Wednesday, August 22, 2012 for All Faculty, All Staff
Delivered as an “urgent” email message at 3:42 PM on Wednesday, August 22, 2012
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