Detroit Preparing For Loss Of Health Benefits


Cost vs. Quality and the HMO
Detroit has a 20% increase in elective surgeries due to the fact that the auto workers know their health insurance will soon disappear.

“The auto industry’s efforts to rein in employee health costs is drawing an expensive reaction, as union workers and their spouses hurry to Michigan doctors for knee replacements and other elective procedures before they lose their comprehensive medical benefits.

Hospitals, doctors and insurers have all noticed a surge in demand for elective surgery since last year when Rick Wagoner, the chief executive of General Motors, led a public relations campaign to prepare auto workers for health care cutbacks, and Delphi, the G.M. parts supplier, filed for bankruptcy protection. Hip, knee and shoulder replacements at the Henry Ford Health System were “up 20 percent in the second half of last year and remain strong,” said Robert Riney, chief operating officer of the system, the largest hospital group in the Detroit area.” Read more here: NY Times