AgdaPkt 2000-08-14 - Laserfiche WebLink

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� REPORT To the Honorabie Mayor and City Council From the City Manager Date of Meeting: July 24, 2000 Subject Senior Health Care Status Update and Request for Council Support Recommendation The Senior Affairs Commission recommends that Council, by motion, authorize the Mayor to write to our United States Senators and Members of the House of Representatives informing them of the impact a local medical group's decision to discontinue contracts with all Health Maintenance Organizations (HMO's) will have on Redwood City Seniors. Background On January 11, 1999, the Senior Affairs Commission brought a report to Council which described the impact on Redwood City Seniors of a major managed health provider's decision to terminate its services. The situation was exacerbated by a very short notice period, and was particuk�arly hard on those seniors in the midst of a health crisis. However, all seniors affected had to face hard issues of whether or not to change doctors, would new providers cover pre-existing conditions, would new services cost more etc. In response, the Council adopted Resolution No. 13540 expressing its concern over the abrupt termination of service by a major managed health care insurance provider and urging appropriate legislative protection from destructive economic practices in the health care industry. Copies of the resolution were sent to the President, our United States Senators and Representatives, as well as State Senators and Assemblypersons. Discussion . In April of 2000, seniors brought the letter Sequoia Medical Associates, Inc. sent to their patients (Attachment I) canceling their HMO contracts, to the Senior Affairs Commission. Again, seniors were scrambling to make decisions to insure that they would have the best health coverage possible within their ability to pay on a fixed income. The effect on the senior community of Redwood City has been a continued loss of confidence in our health care system and generally increased out of pocket costs for seniors. The Commission felt it was important to bring this newest health care issue to the attention of Council. It is our understanding that other medical groups are making this same choice. Where seniors are not able to find another medical group, the cancellation of the HMO contracts means additional expenses for seniors. Specifically, patients who continue with the Medical group will be responsible for the 20% of the cost Medicare does not cover as well as for the costs of prescriptions. Medicare allows doctors to bill up to 115% of their approved charge rates for some services. In this scenario, the out of pocket cost to seniors could be up to 35% of the total charges. . . _ ._. .. _. _.... T _ _