By Jeremy Olson

Union protests clinic's Medicare policy, Mar. 20, 2008 (McClatchy-Tribune Regional News delivered by Newstex) --
An engineers union and the Minnesota attorney general are upset that Park Nicollet is rejecting certain Medicare Advantage plans and forcing elderly patients to choose between their health benefits and their doctors.

In a protest Wednesday outside Park Nicollet's clinic complex in St. Louis Park, union officials said the health system should rethink its decision to sever ties with the plans April 1.

Some union retirees have to find new doctors even as they battle chronic diseases, said Glen Johnson, a business manager for Local 49 of the International Union of Operating Engineers. "We're trying to stop Park Nicollet from leaving our seniors out in the cold."

Park Nicollet includes Methodist Hospital and 25 clinics in the Twin Cities, including locations in Burnsville and Eagan.

The health system isn't rejecting all Medicare Advantage plans, just those provided by private insurers as private fee-for-service plans. Examples include Humana (NYSE:HUM) Gold Choice and Medica Advantage Solution. In a written statement, Park Nicollet said these Medicare plans pay low rates to doctors and hospitals while doing little to improve health care.

"Any cost savings realized by these insurance companies are usually kept as profit and, in most instances, do not provide any additional benefit to their patients and are not used to improve care here in Minnesota," Park Nicollet said.

Park Nicollet isn't alone in criticizing these plans. Seven insurers had to suspend national marketing

of private fee-for-service plans last year because of criticisms that they were using false information and pressure tactics to enroll senior citizens. A study in the journal Health Affairs also found last summer that private fee-for-service plans were the most expensive and least efficient for Medicare.

Attorney General Lori Swanson spoke in support of the union retirees during the picket. She said Park Nicollet officials should "honor their patients" by accepting their insurance plans.

"They are a nonprofit institution," she said. "As part of that nonprofit mission, they ought to treat senior citizens who enrolled in legally and lawfully offered Medicare plans."

The health system notified an estimated 2,500 patients late last year of the decision to drop these plans, giving them time before the March 31 deadline to switch to other Advantage plans.

The problem for about 100 Local 49 retirees is they have few options. The union only offers them the Humana Gold plan, so the retirees have to decide between losing these low-cost union benefits and losing their Park Nicollet doctors.

Retired mechanic Harlan Thompson has had cancer and his wife, Ramona, once had a stroke. They will need to find 10 new doctors now and won't have access to the Park Nicollet clinic closest to their home in Prior Lake.

"It isn't the same to go to a brand new doctor," Ramona Thompson said.

The Allina and Fairview health systems accept fee-for-service plans. HealthEast treats existing patients with these plans but discourages doctors from accepting new patients with these benefits, said Aaron Bloomquist, HealthEast's director of contracting.

Jeremy Olson can be reached at 651-228-5583.

TAKE A CLOSER LOOK

As of April 1, Park Nicollet will not accept Medicare Advantage private fee-for-service plans. What are they?

Plans: Offered by insurers as an alternative to traditional Medicare. Differ from other Medicare Advantage plans that negotiate contracts with hospitals and clinics.

Pros: Premiums can be lower because plans don't pay contracted rates. U.S. enrollment doubled from 2006 to 2007.

Cons: Some plans have used high-pressure sales tactics. Low rates may drive away other providers besides Park Nicollet.

Newstex ID: KRTB-0190-23915933