MONTANA: EMPLOYERS GROUP FORMS PURCHASING COOPERATIVE
A coalition of employers in Montana "has formed a healthThis is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
insurance purchasing cooperative" to "provide better health care
coverage at lower cost for Montana workers," AP/BILLINGS GAZETTE
reports. The Montana Association of Health Care Purchasers said
that its cooperative, Community Health Options, "already includes
employers of about 25% of" state workers. Members include the
state of Montana, the state university system, the Montana Power
Co., and several trade associations, including the Montana
Chamber of Commerce, the Montana Contractors Association and the
Montana Auto Dealers Association. Employers with more than two
workers, "as well as unions, trusts and local government
agencies, are eligible to join."
POWER PLAY: Bill McDonald, president of the cooperative,
said that "it hopes to give employers more clout by allowing them
to negotiate as a large group with health care providers." The
coalition will also assist with "much of the paperwork, allowing
smaller companies to offer employees broader selection among
health care plans." He said, "Employers won't be burdened with
negotiating multiple contracts or paying multiple bills each
month. The cooperative will streamline things for them by doing
the information and enrollment functions." McDonald noted that
other health care cooperatives in states such as California,
Colorado and Florida "have significantly reduced health care
costs while improving quality of care."
MORE: McDonald said that the cooperative also "hopes to
negotiate standard contracts with providers so co-op members can
present them as options to their employees by next July." He
said, "Employees choose the health plan they like most. Their
decision may be based on the physicians or hospitals available in
the health plan, the cost of the health plan or the quality
indicators that are important to them." McDonald added that
Community Health Options has applied for approval from the state
under a 1995 law which authorizes health purchasing alliances
(12/4).