A physician at Family Care of Edmonds says he intends to resign unless Stevens Hospital fixes what he says is the unfair treatment of clinic employees over health insurance issues.
Patients worry that if Dr. Keith Luther resigns, it could endanger the future of the three-doctor clinic, which serves nearly 8,000 patients. Another clinic doctor, Katherine Min, previously announced she was leaving Jan. 1.
"We need that clinic desperately," said Daryllann Maddocks, explaining that it cares for a lot of seniors and Medicaid patients such as her grandson, who has developmental disabilities. Many area clinics don’t accept new Medicare or Medicaid patients.
Stevens Hospital, which owns the clinic, is looking into whether it would need to close if Luther leaves, said spokeswoman Beth Engle said. "At this time, we don’t know," she said.
The dispute began when health insurance rates for 2004 were announced to employees last month. Stevens Hospital’s 1,450 employees traditionally pay less than the 130 employees who work for the six area clinics owned by the hospital, because the clinics are a separate, smaller business unit.
Both clinic and hospital workers are considered employees of the hospital district, however.
Although clinic and hospital employees receive free medical coverage, the cost of insuring spouses and children will rise next year, in some cases dramatically.
Luther said he feels the disparity between what clinic and hospital employees pay for health insurance is unfair and wants it changed.
"The message is pretty clear," he said. "I’m planning on sticking to my word: Fix it or I’m gone."
Luther said he will decide in the next few days whether to stay or go.
The affected Stevens PrimeCare clinics are Birth &Family Clinic; Family Care of Edmonds; Harbour Pointe Family Practice; Mill Creek Family Practice; Paul E. O’Brien, a family practice physician; and Stevens Center for Internal Medicine.
Ballinger Clinic, which had been owned by the hospital, is leaving Stevens PrimeCare as of January.
Despite increases of health insurance costs of 48 percent to 65 percent the past two years, there was no increase in premiums either of those years for clinic or hospital employees, Engle said.
The plan covers many expenses that other plans don’t, she said, such as 90 percent of ambulance fees and full coverage for outpatient services at Stevens-affiliated clinics. In addition, it covers dental and vision services.
Engle said that relatively few, an estimated 29 of 130 clinic employees with dependents, will face big increases.
One of the biggest health care premium hikes is for coverage of an employee and child.
For clinic employees, it’s 329 percent, to $160 per paycheck. Hospital employees will see a bigger percentage rise — 400 percent — but a smaller dent to the wallets, paying $81.93 per paycheck. Both hospital and clinic employees are paid every other week.
"Come Jan. 1, there will be a number of people who can’t afford the dramatic increase in cost of insuring their dependents," Luther said, and they may be forced to leave, he said.
Luther said he isn’t affected by the increases because he has no dependents, and his coverage is free.
Several clinic employees attended the hospital board’s meeting last Wednesday to protest the increases.
Board president Fred Langer said he was sorry the costs escalated all at once and promised to continue to study the issue.
"We can’t do anything about the pricing of the current plan," hospital chief executive Steve McCary said. "What we might be able to provide is a lesser plan for less money."
Reporter Sharon Salyer:
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