From Deseret News archives:

Proposal may raise costs, say health care providers

IHC chief calls for study on its impact on insurance rates

Published: Wednesday, Feb. 9, 2005 8:42 p.m. MST
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David Call of Deseret Mutual Benefit Association, which insures about 50,000, said his company would likely see its costs go up as much as $1 million a year, which would be passed on to the insured. "The economic theory behind this is very poorly conceived and inconsistent with good judgment," he said.

Small business owner Gary Williams said the impact economically would make it "hard to keep going."

"This is bad legislation," said Nelson, who said that IHC as a not-for-profit health system has worked hard to be efficient and keep costs down. That has kept costs at other health providers down, as well. "It's our belief that we have retarded the cost of health care" in Utah, he said, through market forces like competition.

He said there are no answers available to some pointed questions. "Is the intent to raise health care costs for all Utahns? It will. To force hundreds (of small employers) to drop coverage? Will the number of uninsured increase? . . . Utahns have a right to know the answer to these questions and others."

Nelson counters the suggestion that IHC has gotten "too big." IHC has the same percentage of hospital admissions statewide as it had when it formed in 1975, he said. "It's not rapacious growth. It's not growth at all." The outpatient percentage has declined. "Too big based on what?" he asked.

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Sorenson suggested that providers who believe the bill will "level the playing field" could consider another option. They could become not-for-profit, too.


E-mail: lois@desnews.com

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