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Aug 25, 2017 11:16 AMPublication: The Southampton Press

Northwell Health To Shut Down CareConnect Private Insurance Provider

Peconic Bay Medical Center in Riverhead.
Aug 29, 2017 10:31 AM

Northwell Health has decided to pull the plug on its CareConnect private health insurance company, the first of its kind in the state, and thus withdraw from the state’s insurance market next year.

Northwell officials said CareConnect will continue to operate over the year-long transition period, as the company works with customers and businesses to transfer policy holders to other health plans.

The decision to end CareConnect coverage is expected to impact only patients who are covered through CareConnect, since they will need to find a new plan. This includes those of Riverhead-based Peconic Bay Medical Center, which operates under the Northwell Health umbrella.

Terry Lynam, the senior vice president and chief public relations officer for Northwell Health, said Northwell facilities like Peconic Bay will continue to accept all commercial insurances, with the exception of Oscar Health.

“So the withdrawal of CareConnect should have no adverse impact on our patients,” he said. “CareConnect customers will have ample time—up to a year, depending on when they enrolled—to find other health plans, so there will be no interruption of their coverage.”

Northwell officials said the decision to leave the market was due, at least in part, to flaws in the current national health care system and uncertainty in its future. CareConnect had to pay $112 million into the Affordable Care Act’s risk-adjustment pool this year—about 44 percent of CareConnect’s 2016 revenue from its small-group health plan, according to Michael Dowling, Northwell’s president and chief executive officer.

“It has become increasingly clear that continuing the CareConnect health plan is financially unsustainable, given the failure of the federal government and Congress to correct regulatory flaws that have destabilized insurance markets and their refusal to honor promises of additional funding,” Mr. Dowling said in a prepared statement.

A Northwell press release noted that if it continued, CareConnect would need to submit another risk-adjustment payment of more than $100 million in 2018 from its 2017 small-group revenue.

Officials explained that the ACA’s risk-adjustment program was designed to prevent insurers from “cherry-picking” healthy customers who are less expensive to cover by requiring carriers with particularly healthy customers to transfer money to carriers whose membership was relatively unhealthy.

However, Northwell officials argued that defects in the small-group program have resulted in New York’s smaller, more innovative insurers to subsidize larger competitors, which have more in-depth medical histories on their customers than startups that have been in business for less than four years.

Many of CareConnect’s more than 200 employees will continue to have jobs during this transition period, officials said, and Northwell will assist them in trying to find other “suitable positions” within the health system.

Northwell Health is New York State’s largest health care provider, with 22 hospitals and 550 outpatient facilities. CareConnect was established in the fall of 2013 as New York State’s first provider-owned commercial insurance company.

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I'm shocked.

Oblunder care is flawed? Whoa would have thought?
By Draggerman (941), Southampton on Aug 25, 17 11:12 PM
2 members liked this comment
161 GOP amendments and all.
Aug 25, 17 11:23 PM appended by Mr. Z
NEWS FLASH: Research Shows Human Brain Fundamentally Flawed (including but not limited to "Bandwagon Effect")
By Mr. Z (11670), North Sea on Aug 25, 17 11:23 PM
Obamacare is an unmitigated disaster, the Democrat Party owns this entire mess,remember it was passed without a single Republican vote.
By bigfresh (4593), north sea on Aug 26, 17 6:56 AM
How the G.O.P. Sabotaged Obamacare
By Abbe R. Gluck May 25, 2017


"A caretaking Congress would have fixed what wasn’t working. Instead, opponents did everything possible to shut off all the A.C.A.’s financing — starvation intended to wreak havoc in the insurance markets and to make it falsely appear that the A.C.A.was collapsing because it was just bad policy."

"The irony is that the A.C.A. was vulnerable to this strategy because the Democrats had tried ...more
By Mr. Z (11670), North Sea on Aug 26, 17 7:44 AM
1 member liked this comment
BRAVO SIERRA JuneZ, Obamacare was a backdoor scam designed to fail and usher in the socialist dream of single payer. The Republicans had nothing to do who the pile of feces that is Obamacare.
By bigfresh (4593), north sea on Aug 26, 17 6:13 PM
1 member liked this comment
Obamacare was based on Romneycare which came directly out of the conservative Heritage Foundation. Please do tell us after so many years why Romneycare is still working in Massachusetts and hasn't either been sabotaged or replaced with single payer?
By June Bug (2597), SOUTHAMPTON on Aug 26, 17 6:26 PM
1 member liked this comment
161 GOP amendments
By Mr. Z (11670), North Sea on Aug 27, 17 10:28 PM
Say what you guys want. Just like the GOP now the dems controlled the presidency, the congress and senate and just like the GOP now they could have crafted whatever bill they wanted (with no support from competing party) including your holy grail (single payor). Just like the GOP they failed to do so. Unfortunately they succeeded where the GOP failed in passing a POS bill that continues to haunt us.
By razza5350 (1911), East Hampton on Aug 29, 17 1:28 AM
What a disaster.
Care Connect SIlver $1200 / month
$6000 individual / $12000 family deductible.
Don't get sick.
And on goes the tug-of-war between the 2 parties while we pay more and more and get less and less. Neither side is doing right by us, and neither side deserves our support.
By Craigcat (256), Speonk on Aug 26, 17 11:41 AM
1 member liked this comment
SUNY Stony Brook is a New York State funded entity. 70% of the expenses of Southampton Hospital are covered by payment's from the Federal Government from Medicare and Medicaid reimbursement. Local government covers the rest from the payments to local Town employees, teachers, police and Town admin. New York State has more people and higher per capita income than Belgium. Belgium has full healthcare for it's residents. Why don't we have healthcare for New York State citizens? Governor Cuomo ...more
By dfree (805), hampton bays on Aug 27, 17 8:37 AM
Care to pay more than 50% of your income to fund "free" healthcare?
By bigfresh (4593), north sea on Aug 27, 17 11:09 AM
1 member liked this comment
Federal + 6.85% NY State + social security withholding + other withholding + Town of Southampton property taxes = 50%. Is that what you mean?
By dfree (805), hampton bays on Aug 27, 17 1:22 PM
50% + income tax
By bigfresh (4593), north sea on Aug 27, 17 1:43 PM
If it was dependent on the federal government for its survival, it wasn't a private insurer. Which explains why it went under.
By even flow (990), East Hampton on Aug 27, 17 3:39 PM
I believe this was the last option for the self employed business man in our area , Now what
By Undocumented Democrat (2038), southampton on Aug 27, 17 10:05 PM
healthy paws pet insurance. it's worth a shot. all the vets in our area participate. lots of dogs have human names these days.
By even flow (990), East Hampton on Aug 29, 17 8:11 AM
Pretty much. This small business owner is either going to have to find a night job or turn this endeavor into a PT gig. Either way, I'll be looking outside to get my family insured. What a mess.
By Craigcat (256), Speonk on Aug 30, 17 3:44 PM
even flow & big fresh:
OUR TAXES ALREADY PAY FOR FREE HEALTHCARE -- we just don't get it.
From Southampton Hospital website -- do a google search if you don't believe me:
$144 million in "Patient Service Revenue" in 2015, over 70% was from the federal government in the form of Medicare and Medicaid payments. Every hospital in the country has this. The TOTAL expenses of Southampton Hospital in 2015? It's on the website.
$140 million once you take out the $6 million in non cash ...more
By dfree (805), hampton bays on Aug 28, 17 9:47 AM
You can't afford the insurance the village employees receive. It's $1,000+ per individual per month. Notwithstanding your obvious racist streak, the hospital is not a charity but is forced to operate like one. Your premise is fatally flawed. Of course Medicare works now. Everyone pays and only part of the population utilizes. That's the only real insurance scam here. The federal government is never the answer and your wild goose chase for an oxymoron like ''effective leadership'' is sure to ...more
By SlimeAlive (1181), Southampton on Aug 29, 17 8:16 AM
Slimey: You're 100% right. There is no way that any free market business that gets 70% of its total costs covered by Medicare and Medicaid, and the rest of its costs covered by local government employee healthcare insurance, can ever effectively provide no or low cost healthcare to taxpaying citizens. And of course, you're right, those $1000 per member insurance costs for all local government employees are fixed forever in time and can only go up. It's better just to deny coverage to everyone ...more
By dfree (805), hampton bays on Aug 29, 17 9:16 AM
Medicare is a gigantic Ponzi scheme and Medicaid is a hand out to the poor on the backs of the working class.
By razza5350 (1911), East Hampton on Aug 29, 17 10:21 AM
I read your reply from the bottom up and stopped at ''You are a genius''
By SlimeAlive (1181), Southampton on Sep 2, 17 7:11 AM
Raziza you are so correct:. Let's get rid of Medicare and Medicaid. Good thing the Republican majority in both houses of Congress and the Republican President have already fulfilled their campaign promise to repeal and replace Obamacare with their wonderful new healthcare legislation. Now to revamp the Ponzi scheme of Medicare and Medicaid -- next stop, replace Social Security with a national mandatory ETF investment. The wonderful investment banking community will have a good chance to implement ...more
By dfree (805), hampton bays on Aug 30, 17 9:07 AM
glad that you recognize that SS is a Ponzi scheme as well
By razza5350 (1911), East Hampton on Aug 30, 17 9:26 AM
It's the Ponziest! A Ponzipalooza.
How dare old people insist on getting money to be secure in their old age? Let's just feed them some oxycontin, that will quiet them down.
Razzi you have the best ideas: feed old people opiods to get them off that Ponzoid Social Security.
By dfree (805), hampton bays on Aug 30, 17 1:32 PM
I feel like I should take opioids before I start reading one of your posts discussing your solution for healthcare.
By razza5350 (1911), East Hampton on Aug 31, 17 6:47 AM
1 member liked this comment
Go to any city in the United States.

Walk into the neighborhood where people that rely on the government for housing, food and healthcare live.

Then, walk into the neighborhood where people rely on themselves.

Exactly.
By SlimeAlive (1181), Southampton on Sep 1, 17 6:39 AM
You mean like comparing San Francisco and Atlanta? Or Nashville and Portland? Seattle and Phoenix? Dallas and Denver? Buffalo and Boise? Confused by your lack of specificity, Slimes, and your insights are usually so helpful.
By dfree (805), hampton bays on Sep 1, 17 1:51 PM
1 member liked this comment
Thank you. I agree. In other words, you are free to move into a housing project where you will get free housing, an EBT card for food and Medicaid.

Please don't work to change the entire nation into a housing project. Those of us providing for our families on our own (primarily because I waited to create one until I could support one myself) wouldn't want it any other way. And Insont want to pay for you. You waste your money on the computer arguing when you can't afford basic healthcare. ...more
By SlimeAlive (1181), Southampton on Sep 2, 17 4:31 AM
Dfree I'll take one of those Opiods now. Maybe I could go grab them in the free neighborhood.
By razza5350 (1911), East Hampton on Sep 2, 17 5:53 AM
1 member liked this comment
This comment has been removed because it is a duplicate, off-topic or contains inappropriate content.
By dfree (805), hampton bays on Sep 2, 17 5:41 PM
I believe this was the last option for the self employed business man in our area , Now what



By Undocumented Democrat (1464), southampton on Aug 27, 17 10:05 PM

Still waiting for mets fan to ansewr you UD
By Ditch Bum (896), Water Mill on Sep 6, 17 10:18 PM
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