County considers options as Valley Health and Anthem insurance split

Consequences and options moving forward in the wake of the apparently finalized rift between Valley Health and health insurance carrier Anthem were reviewed by the Warren County Board of Supervisors during its October 6 work session.

“What is the Issue?” the first page of a PowerPoint asked.

“Valley Health Systems (VHS) has provided Anthem with a termination notice effective December 31, 2020, meaning as of January 1, 2021, VHS will no longer be in the network of providers for Anthem,” was the answer.

The old Warren Memorial Hospital on North Shenandoah Avenue – will parent Valley Health’s split with insurance carrier Anthem bode ill for its successor on Leach Run Parkway as to local business through large group insurance carriers? Royal Examiner Photos by Roger Bianchini – Royal Examiner Video by Mark Williams

“Impacts:”

– The Local Choice (TLC) package the County offers;

– COVA (State employees)/Federal employees (as our correspondent Malcolm Barr, one of the latter himself, reported in breaking the story of the Valley Health/Anthem rift locally);

– Large local governments not in TLC;

– Private sector;

– Individual marketplace coverage (Anthem may be the only option in a particular region);

– Anthem Medicare Supplemental.

Some potential impacts presented in a PowerPoint by County Human Resources Director Jodi Saffelle weren’t pretty from a county employee perspective. They included a doubling or near doubling of in and out of network costs with the Key Advantage 1000 and 250 plans offered county employees.

Options for the County moving forward included:

1 – Terminating existing coverage with the TLC plan, though a number of concerns with this path were cited;

2 – Finish the plan year with TLC, while proceeding with an RFP (Request For Proposals) process on a normal schedule; and interestingly,

3 – Alternate providers to Valley Health Systems are available, as noted in a map of the region.

Four hospitals were listed outside the Valley Health network’s Winchester Medical Center and Warren Memorial Hospital, a new version of the latter which is currently under construction in Front Royal enabled by and EDA-sponsored and Town and County approved loan. Drives of 40 minutes for two alternate hospital choices were cited at 32 and 34-mile distances (Fauquier Health and Novant Health, the latter a UVA Haymarket Medical Center); 49 minutes to Berkeley Medical Center in Martinsburg at a distance of 48 miles; and an hour-and-eight-minutes to Sentara RMH Medical Center in Harrisonburg. Again, concerns for employees with this option were listed.

“What are others doing?”

“Localities/groups that have confirmed notice to terminate” their existing Valley Health/Anthem impacted insurance plans were listed as Shenandoah County and its Public Schools; Clarke County and its Public Schools; Berryville; the City of Winchester; and RSW Regional Jail.

Warren County’s Public Schools, the Town of Front Royal, and the Northern Shenandoah Valley Regional Commission have yet to give notice of their plans moving forward.

It’s always something, the county’s new trio of supervisors are learning in their first year in the governmental trenches. Can’t these large health providers and insurers just get along, they may be thinking now.

“What Now”

“Possible to give notice by November 2 for a January 31 termination and move forward with RFP; Rescission notice would be required by January 1,” the PowerPoint concludes.

See the response to the next page’s “Questions?” and subsequent discussion in this exclusive Royal Examiner video: