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SCHENECTADY
Health plans lose members as firms thin worker ranks
BY JAMES SCHLETT Gazette Reporter
Reach Gazette reporter James Schlett at 395-3040 or jschlett@dailygazette.net.

    When MVP Health Care’s central New York subsidiary in October 2007 was named the exclusive provider of health care benefi ts for all Eastman Kodak Co. workers, a spokesman for the health insurer called the deal “a big win” for both Schenectady and Rochester.
    But the partnership Preferred Care in Rochester struck with Kodak is poised to result in a big loss for MVP, with the camera company announcing plans to eliminate up to 4,500 jobs or 18 percent of its work force.
    Kodak, whose workers signifi - cantly contributed to the 40,000-member gain MVP experienced during the fall of 2007, announced the layoffs Thursday along with a 24 percent sales decline and net loss of $133 million for the fourth quarter.
    As large employers struggle to stay afloat during the recession, they are rapidly shedding workers and winnowing membership ranks at Capital Region health insurance companies. The membership losses add to the myriad of problems plaguing area insurers, ranging from Wall Street-induced investment losses to rising health care costs.
    With employers nationwide increasingly resorting to mass layoffs — rolling out 2,275 actions affecting 226,100 workers in December alone — health plans are bracing for more member losses. The region’s latest mass layoff announcement came Friday at First Cardinal, a Latham third-party administrator for selfinsurance group trusts that is cutting 57 workers.
    WellPoint, the parent of BlueShield of Northeastern New York, said Wednesday it expects unemployment rates to peak this year at 10 percent in some of its Blue plan states. The nation’s unemployment rate hit 7.1 percent in December, but it was 6.8 percent in New York and 5.9 percent in the Capital Region.
HIGHER HEALTH CARE COSTS
    The mounting layoffs threaten to put health insurers at a disadvantage in controlling health care costs because higher memberships afford them more clout at the negotiating table. Higher health care costs — coupled with souring reserve investments — resulted in steep losses during the third quarter at the region’s two largest nonprofi t health insurers.
    “It hurts their ability to negotiate hospital prices and pharmacy prices,” Leslie Moran, president of the New York Health Plan Association, said of membership declines.
    During the third quarter, MVP posted a net loss of $27.9 million and Capital Districts Physicians’ Health Plan reported a $6.9 million net loss. MVP had 706,500 members by Dec. 31 and CDPHP had 413,200 by Sept. 31.
    MVP spokesman Gary Hughes said the Schenectady insurer saw strong membership growth during its fall open-enrollment period but will not have a clear picture on member gains until mid-March.
    “It’s going to take some time to see how those enrollment gains are tempered by any losses due to the current economic conditions,” Hughes said.
    The Armonk-based International Business Machines is another major employer and MVP customer that is laying off thousands of workers. Over the past two weeks, IBM has laid off an estimated 4,300 employees nationwide, according to the Alliance@IBM, a union organizing campaign and membership organization for current, former and retired workers of the computer company.
RIPPLE EFFECT
    “The ripple effect from IBM job cuts hits everybody,” said Alliance National Coordinator Lee Conrad.
    Conrad said IBM has not disclosed the full reach of its job cuts, but many of them are affecting workers in Poughkeepsie, Fishkill, Endicott, Armonk and Burlington, Vt. In 2004, MVP announced IBM extended an agreement with the insurer, furnishing it with 25,000 new members in New York and Vermont.
    WellPoint, the nation’s largest health insurer, on Wednesday announced declines in its profi t and membership. The Indianapolisbased WellPoint said its fourth quarter net income over the year fell 61.4 percent to $331.4 million. That loss was largely driven by $351 million in previously announced investment losses.
    By Dec. 31, WellPoint had 35 million members, up 240,000 from a year earlier. The insurer experienced strong growth in its national, senior and federal employee business arms, which offset 331,000 membership losses in its individual, local group and state-sponsored operations.
    During the quarter, WellPoint’s medical enrollment declined by 288,000 primarily due to layoffs. Even though its commercial business arm maintained a group retention rate of 90 percent, commercial in-group enrollment shrank by 148,000 members, mostly to layoffs.
    “For 2009, we expect that economic conditions will continue to [worsen]. We expect unemployment to peak at over 10 percent in some Blue states. This is expected to negatively impact commercial membership on 2009,” WellPoint President and Chief Executive Offi - cer Angela Braly said in a Wednesday conference call with analysts.
    Despite the harsh economy, WellPoint expects a net gain of 300,000 members in 2009.
    Health insurers will not immediately lose members in the wake of mass layoffs because...................................http://www.dailygazette.net/De.....amp;EntityId=Ar00400

I wonder if they're still planning that Center City expansion

Another "big win"? lol. There is no need to expand anywhere. This is like the phony auction, nobody else will participate, so call in the usual Krat suspects. Every time Gary Hughes {D-MVP} or Death Ray speak the pronouncement is "shovel ready".

with Gary Hughes did you ever notice everything is always someone else's fault? He does that when he speaks on channel 16 too at those county meetings. Someone else is always to blame for this or that or something else, never him, his company or the local democrats.

About time this phony Gary Hughes{D-MVP} was unmasked. Every County problem is "State Mandates". He defended the hiring or Lumpy Kosiur with no exam nor announced job opening. He supported wasting $500,000 on plans for the Downtown library that we couldn't afford. He supports every stupid idea the Krats come up with and always defends tax increases.

      I was at a business meeting and someone asked who owns their own business. Hughes raises his hand! He is laughed at all over the County as a known stooge for the Krats and high taxes.

What business does he own? What a monkey faced liar.

When will the 'powers that be' realize that our national economy is in the crapper? This is NOT the time to spend money. This is not the time to create government programs or government jobs. This IS the time to stop spending. The county really stuck it to us by creating Kosiur's $80,000/yr position. A created position that WE could NOT afford. These people have got to be voted out and stopped before they make us all broke while they continue to line their own pockets and the pockets of the select few!!

We will eventually start seeing layoffs at MVP as the need just won't be there any longer with all of the layoffs. They would be wise to just stay where they are, not move to center city and wait out the storm.

MVP will not move any people to Center City. The Y will not open up in Center City. None of this does anything. A Y without a pool? It's a glorified day care center. No job creation/no sales tax generated. Typical hype.

   Every other County in the State is belt tightening for coming State cuts. Except the Krats in Schenctady County. When will the sheeple wake up, throw the stupid political mailers in the garbage and toss out EVERY County incumbent? Expect to hear more nonsense about "State Mandates" instead of anyone making any decisions.

IT IS THE REPUBS WHO CAUSED THIS ALL LIAR so SHUT THE HELL UP. Why isnt the law dealing with you for liing and causing the stress to our leaders. SLANDER