How do managed care organizations cope with the turnover phenomenon?
By Linda Wolfe Keister Contributing Editor Last August, when his employer was acquired by another company, a 49-year-old man with a history of Type I diabetes, early renal disease, diabetic retinopathy and chronic asthma became a patient turnover statistic. He was forced to change his health insurance from a fee-for-service plan with Blue Cross/Blue Shield to an Aetna preferred-provider organization. As 1996 began, his new employer dropped Aetna and switched to a Cigna health plan. In just five months, the employee was part of three different health insurers. That scenario is not uncommon in today’s volatile business environment. Some companies merge, and others are sold. Employers look for the best financial deals. Employees change plans if they can hold onto an additional $10 a pay period. And, although employers often make purchasing decisions for reasons that are beyond the control of health plan executives, plans are rightly concerned about the increasing rate at which their membe
