Homegrown Health Plan Responds to Reduced HMO and Goverment Coverage
The only good news in the midst of America's health insurance crisis is a local health co-op in Ithaca, NY. It sets an example for the nation.
(PRWEB) October 13, 2004
Ithaca, New York, known for printing its own money http://www. ithacahours. com (http://www. ithacahours. com), now boasts its own co-op health plan, costing members just $100/year (local cash accepted). Though still small, the Ithaca Health Fund http://www. ithacahealth. org (http://www. ithacahealth. org) currently provides coverage for everyday emergencies (broken bones, ambulance rides, emergency stitches, burns, etc) and some dental. There's no deductible-- payments to specified maximum amounts are made from the first dollar. At this stage, the Health Fund has become a practical alternative for those without health insurance. The Fund recently paid $2,456.47 to a member in a nearby town, for a broken ankle.
The Fund's benefit menu has expanded steadily since 1997, as over 1,300 have joined. And not just locals. Because the Fund makes payments anywhere in the world with any health provider, usually overnight, there are already members in 25 states.
One member, Ruth, fell down stairs and broke her wrist. "I was in such pain but wouldn't dare go to the hospital because I couldn't afford to. I cried and prayed-- and then I remembered I had joined the Health Fund, and that it covers broken bones." She says that when she showed her Health Fund card at Cayuga Medical Center, "I was so happy. I always liked the idea of it-- but the reality of it is even better."
Another member, Brad, said, "I am self-employed, and last year I bought into the Health Fund to supplement a catastrophic injury plan that has a very high deductible. Last month I broke my collarbone. The bills would have been a real hardship for me, but the Health Fund stepped in immediately with no red tape. It was a lifesaver."
And another, Sandra, said, "I joined the Health Fund as soon as I heard about it. The Fund is an incredible gift that we can give each other. The whole medical system is such a downer-- people's freedom of choice is taken away, the HMOs are squeezing people, leaving no breathing room. I dropped my health insurance years ago-- I couldn't afford it anyway. I'd like to see everybody join the Fund, even if they already have health insurance, so we can replace the other system with this new system of people supporting each other."
Pete Browning is co-owner of Viva Taqueria, a popular Mexican eatery. He enrolled 40 employees in the plan, paying $80 each. "It just makes good business sense," he says. "I couldn't otherwise afford to insure them. The Fund covers more every year."
"The Fund is unique in several other ways," says founder Paul Glover. "Every member has a vote to decide who's on the board of directors, and members may vote by email. No health exam is required before enrollment; membership is the same regardless of age. People can choose their own doctor, without prior notification. The premium (membership payment) remains the same year after year, even while the coverage expands. Partners may join at a reduced rate, without being married. Overhead is kept low so that nearly every dollar is available to members for payments."
The Health Fund is perhaps the most transparent of health plans. Monthly meetings are open to all. Board of directors minutes are posted to the website, as are monthly financial reports, including each payment and each denial of claim. As required by NYS and federal law, the Fund declares on its literature "I understand that the Ithaca Health Fund is not regulated by the NYS Department of Insurance." They're required by New York State law to be a project of a 501c3 nonprofit group. They've chosen the Ithaca-based Center for Environmental Sustainability. They're members of the Tompkins County Chamber of Commerce and are HIPAA compliant.
Says Glover, "We're intending to become a model of non-profit, low-overhead health financing, and to start free and at-cost clinics."
"This is how the Canadian single-payer plan began," according to David Steele, a professor of researcher at the University of British Columbia. He explains, in an article about the Fund http://www. ithacahealth. org/steele. htm (http://www. ithacahealth. org/steele. htm), how another small city, Swift Current, Saskatchewan, started in 1947 a local health plan so Successful that it spread throughout Canada by 1971. Concludes Steele, "Change has to come from the grassroots. At the national level, there is far too much entrenched power. The Ithaca Health Fund is young and it's growing, but it's working and it has immense potential."
FOR MORE INFORMATION: Paul Glover (607) 272-4330 paglo@lightlink. com
Ithaca Health Fund, Box 362, Ithaca, NY 14851 http://www. ithacahealth. org (http://www. ithacahealth. org)
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