Aetna's "Vital Savings on Health"
Aetna to offer discount cards, starting in Denver, New Jersey The insurer’s move is part of a trend in which big health plans are looking for new ways to serve small employers.
By Jonathan G. Bethely
American Medical News
Aug. 14, 2006
Vital Savings on Health would allow companies to offer their employees prepaid cards good for 10% to 50% discounts off the cost of routine health expenses, when payment is made at the point of service. The company said the discount represents the range of discounts under Aetna’s PPO plans, and that physicians would not be expected to provide additional discounts. Physicians would call a toll-free number or check a Web site to determine the rates for various services.
Christine Skelly, Aetna’s vice president of health-related financial solutions, said Aetna will target employers who want to offer their employees some medical coverage, but just can’t afford a traditional insurance plan. Money will be deposited into the debit card via contributions from employers and/or employees.
Aetna will require its member physicians to opt out of the program if they don’t want to participate. Without that notice, they’re in.
http://www.ama-assn.org/amednews/2006/08/14/bisc0814.htm
Aetna’s release on Vital Savings on Health:
http://www.aetna.com/news/2006/pr_20060712.htm
Comment:
By Don McCanne, M.D.
So Aetna’s “Vital Savings on Health” program is the next best thing to insurance: a card ensuring that patients will receive the same discount that Aetna receives from its PPO contracted physicians. This program should appeal especially to small businesses since the cost is lower than PPO plans which small businesses are finding to be less and less affordable each year.
The most important difference from a PPO plan is that the contracted rate for services is paid from the patient’s own debit card account rather than from a risk pool maintained by Aetna. Aetna bears absolutely no risk in this program. Patients will have the same choices of physicians as in Aetna’s PPO plans since physician enrollment is automatic, unless the physician initiates an opt-out process.
So what is the product that Aetna is selling here? Aetna is selling the right to dictate which patients will receive a discount and what the amount of the discount will be. What? That is a right that belongs to the physician and not to Aetna. So they are selling a product, a discount, that doesn’t belong to them but that they have stolen from the physicians. What chutzpah!
And we still insist on national policies that leave the private insurers in charge? What chutzpah!