One of the largest union-administered health-insurance funds in New York is dropping coverage for the children of more than 30,000 low-wage home attendants, union officials said. The union blamed financial problems it said were caused by the state’s health department and new national health-insurance requirements.The fund is administered by 1199SEIU United Healthcare Workers East, an affiliate of the Service Employees International Union. Union officials said the state compelled the fund to start buying coverage from a third party, which increased premiums by 60%. State health officials denied forcing the union fund to make the switch, saying the fund had been struggling financially even before the switch to third-party coverage.
The fund informed its members late last month that their dependents will no longer be covered as of Jan. 1, 2011. Currently about 6,000 children are covered by the benefit fund, some until age 23.
The union fund faced a “dramatic shortfall” between what employers contributed to the fund and the premiums charged by its insurance provider, Fidelis Care, according to Mitra Behroozi, executive director of benefit and pension funds for 1199SEIU. The union fund pools contributions from several home-care agencies and then buys insurance from Fidelis.
“In addition, new federal health-care reform legislation requires plans with dependent coverage to expand that coverage up to age 26,” Behroozi wrote in a letter to members Oct. 22. “Our limited resources are already stretched as far as possible, and meeting this new requirement would be financially impossible.”
OBAMACARE IS A TF DISASTER.
FOR EVERYONE.
EXCEPT FOR THE GOP.
HEH.
Whoa! Isn't this the ultimate irony?
ReplyDeleteBTW, I know quite a bit about home health care because Mr. AOW received so much of that kind of care during the first several months of 2010.
ReplyDeleteThese low-wage home attendants often work primarily to get insurance. Indeed, that's why they are willing to accept such low pay, pay that makes them affordable and keeps many patients (old and young) out of skilled nursing facilities. Those skilled nursing facilities cost a mint after the first 90 days, which Medicare and private policies cover for that limited period of time.
Beyond that period of time, plan on going bankrupt as an individual and/or a couple.
Think that long-term health insurance will solve the issue? Think again! Skilled nursing facilities rely on low-wage workers; even so, the costs have gone up, up, up. Only very few health insurance plans pay the full amount for long term care, which can cost between $2500 and $15,000 per month.
If not for home health care, Mr. AOW and I would have had to explore Medicaid options -- after we lost everything we earned and inherited. Never mind separate title for properties as everything was on the table to pay for his care. By everything, I mean right down to the jewelry on my fingers.
The only option would have been divorce so as to forestall my own homelessness.
Home health care is a big savings for the health care system AND for the taxpayer as well (eventually).
I know about such matters because I've lived the situation with Mr. AOW!