1,000 workers get new insurance provider in HMO acquisition

In keeping with the trend of expanding health care companies and a consolidating insurance industry, Partners National Health Plans of North Carolina, Inc. will acquire Kaiser Permanente's Triangle-area customers at the end of this year.

Kaiser Permanente currently offers primary, specialty and hospital services to its 73,000 HMO members in the Triangle, according to the News & Observer of Raleigh. Partners, under the new agreement, would provide services to these members.

Although most University employees use Duke Managed Care, there are more than 1,000 Kaiser members at the University.

The sale has led to speculation about possible changes under the new management, although most officials from the health care industry say the alterations will only be positive.

After the acquisition proposal is reviewed by a number of regulatory agencies, including the state Department of Insurance, the sale is expected to be complete on or before Dec. 31.

"In the near term, there will be no changes to the plan," said Deborah Horvitz, director of Human Resources communications at the University.

In a Sept. 3 letter to Duke's Kaiser members, Jane Walbrun, a health care plan manager at the University, described the potential changes and benefits that would occur as a result of the transaction.

For example, she noted that premiums will remain the same through June 30, 2000.

"There are a number of benefits that the transition to Partners will provide to our members.... There will be a greater choice of providers once the Partners sale is completed," she wrote in the letter.

In addition, she wrote that most physicians practicing medicine under Kaiser will continue to practice at their current locations under the Partners plan.

Stuart Veach, vice president of Partners, said the sale should also expand the options available to plan members. "We're combining what Kaiser has with what we have," he said. "They will have more choice in doctors, and that's a plus."

However, some University employees who use Kaiser are still uncertain about whether the acquisition will be beneficial.

"We don't have very much information about it," said Opal Neems, a cardiology technician and Kaiser customer. Although she is "disappointed" with the unfolding events, she said, "I'm not viewing it as a total negative yet."

John Larsen, president of Managed Care Options in Durham, a consulting and management firm, said the acquisition reflects the rapid consolidation of managed care insurers in a changing health care system.

Although he acknowledged that predicting the impact of the sale is difficult, Larsen said, "Partners is a really strong financial firm and a good customer service company-they provide really good service to providers and customers."

Veach noted that former Kaiser members will also be able to access the Natural Connections hotline, which provides Partners information about alternative medicine, and to the TLC Program, through which people can talk to nurses directly and receive information about particular illnesses or diseases.

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