WhidbeyHealth expressed regrets for the confusion and angst it created for retired employees when the health system decided to drop state health insurance coverage for 2019.
A domino effect of conflicting information and miscommunication left about 95 Whidbey retirees scrambling to find new Medicare supplemental health plans right before Christmas.
Human Resources Director Cindy Paget addressed the controversy head-on during a monthly board meeting on Tuesday. She first explained to commissioners overseeing WhidbeyHealth why the decision was made to switch employee health plans from a state plan known as Public Employee Benefits Board, or PEBB.
Her presentation, titled “WhidbeyHealth Change from PEBB: Reasons, Processes and Regrets,” contained a timeline of decisions and notification letters sent out by WhidbeyHealth and the state.
PEBB offers a variety of health insurance plans at a group rate for current and retired state public employees, such as school teachers, librarians, public hospital and health workers.
Not knowing how to reach retirees affected by the PEBB cancellation and not being aware of a conflicting communication being sent from PEBB to retirees were among regrets cited.
“We were unaware of the communication gap that until Dec. 7 PEBB did not notify (enrollees) sooner,” Paget said.
WhidbeyHealth had offered PEBB to current and former employees for years but switched companies in the fall for several reasons, Paget said, including its high monthly premiums, antiquated data software system and lack of vision benefits.
“A family of four was paying $1,300 a month,” she said. “In addition, the hospital paid $800 per employee. Paying $2,100 a month, that’s a very high premium.”
Paget said some prospective employees, such as nurses and other health professionals, turned down job offers because of the high cost of the health insurance benefit.
The timeline reviewed WhidbeyHealth’s steps in selecting a less-expensive plan for its current employees, a process that started in May 2018. Over the summer, several plans with enhanced benefits were looked over by employee union representatives.
The new Premera Blue Cross plan costs about $1,000 a month for a family of four, Paget said. Additionally, if employees use WhidbeyHealth providers, there’s no deductible. The new insurance can also provide data to design employee wellness programs, something PEBB couldn’t do.
WhidbeyHealth’s inability to know who and how many of its former employees and retirees were enrolled in PEBB lies at the crux of the controversy, Paget admitted.
“We have no relation with retired employees,” Paget said. “They communicated directly with PEBB.”
According to the timelime compiled by WhidbeyHealth:
Sept. 25 — WhidbeyHealth notifies PEBB of its change to a new insurance vendor and non-renewal.
Sept. 27 — PEBB acknowledges the receipt of cancellation from WhidbeyHealth.
Oct. 12 — WhidbeyHealth former employees receive “auto enrollment” notices from PEBB with new rates for 2019.
Nov. 14 — PEBB sends WhidbeyHealth a list of retirees for another hospital that is also dropping the state plan.
Nov. 27 — Whidbey-Health receives the correct list of mailing addresses for retirees using PEBB.
Dec. 6 — Retirees receive letter from PEBB dated Nov. 21 advising of WhidbeyHealth’s change in health insurance vendor and advising them to contact WhidbeyHealth — unbeknownst to WhidbeyHealth.
Dec. 7 — WhidbeyHealth starts receiving calls from retirees confused about the cancellation of their insurance coverage.
“This was a huge shock to us,” Paget said. “We notified PEBB on Sept. 25 of our change to a new vendor and non-renewal for 2019.”
Once WhidbeyHealth was made aware of the conflicting letters, it notified local representatives of Statewide Health Insurance Benefits Advisors. Known as SHIBA, the free program helps people sort through Medicare plans.
Local advisor Annette Barca scheduled informational meetings for retirees at local senior centers.
She said most of the people affected have successfully enrolled in alternative plans. They aren’t penalized for filing past the Dec. 31 deadline because their previous insurance plans were canceled.
“There is lots of anger and frustration at the hospital about the snafu — the timing and short notice are key factors,” Barca said.
Retirees expressed the most aggravation at receiving PEBB’s renewal information in October and November, which led them to believe they would be subject to the usual enrollment period.
“Then (they received) the cancellation notice, which really frustrated some,” Barca said.
Kathleen Lorence-Flanagan, who wanted to stay with PEBB’s “very good plan,” said she and her husband received a confirmation letter Jan. 14 from a new insurance provider, with coverage retroactive to Jan. 1.
“Getting that has been a nerve-wracking, frustrating, nearly-six-week effort,” said Lorence-Flanagan, who retired from WhidbeyHealth in 2014. “We know it will not be equivalent to what we had through PEBB, but hopefully it will be close.”
