‘A Christmas Miracle’

Bassett Halts Changes to Retiree Benefits

By DARLA M. YOUNGS
COOPERSTOWN

Our concerns were heard.” The relief must have been palpable as Bassett Healthcare Network retiree Jan McGrath listened to a voice mail left by Bassett President and Chief Executive Officer Staci Thompson, MHA, FACMPE late Friday afternoon, December 6.

Only hours before, McGrath was one of more than two dozen Bassett Healthcare Network retirees who met on Thursday, December 5 to discuss unexpected changes to their Medicare Supplemental Plan, when words like “disappointed,” “betrayed,” “angry” and “shocked” were used over and over again.

A letter signed by Brenda Laughlin, Bassett’s chief human resources officer, reads: “We are writing to inform you of important updates to your Nova Healthcare Medical Supplemental Plan that will take effect on January 1, 2025. We understand that medical plan costs are an important part of your annual financial planning, so we want to be sure you are equipped with information about these plan updates ahead of the upcoming year.”

The letter was dated November 11, just 26 days before the annual Medicare Open Enrollment period ended on December 7 and almost a month after open enrollment began on October 15.

“This change may have seemed inevitable given network’s financial situation,” one retiree said, “but this didn’t just happen a month ago. It has obviously been in the works for some time.”

Prior to the changes announced as of the first of the year, Bassett retirees—based on age and service requirements—were not required to pay any out-of-pocket costs for the NOVA plan. In previous years, Bassett covered 100 percent of the $155.00 monthly Nova premium as well as 100 percent of the copays for services provided within the Bassett network, with a $100.00 deductible.

As of January 1, however, retirees on the NOVA plan had been notified that they would be required to pay a monthly cost of $55.00, or 35 percent of the monthly premium. Copays start at $10.00 for a visit to a Primary Care provider or Urgent Care and range from $20.00 to see a specialist to $100.00 for an emergency room visit.

“This is money I didn’t plan on having to spend,” said McGrath, who retired in 2016 with nearly 47 years of full-time employment at Bassett.

McGrath, Bassett’s former human resources benefits specialist, is uniquely positioned to question this change in policy. In a letter to Laughlin dated November 25, McGrath wrote:

“It has taken several days to digest the unwelcome news that Bassett has decided to start collecting part of the Nova Medicare Supplemental premium from those of us who were covered at 100% Bassett-paid premium. In the Retiree Medical Policy change of 1/1/1992 it stated that active employees with 20 years of full-time service at that time would be grandfathered into the Medicare Supplemental Plan and be covered 100% by Bassett for Employee and Spouse coverage when they retired…

“The NOVA charge you’re mandating of $55/month will be a hardship for many of our older retirees who have been covered for decades under Bassett’s Retiree Medical Plan. I have always told myself that Bassett Management would never tinker with this valuable retiree benefit seen as a reward for our long years of service. I was wrong, and am terribly disappointed…Bassett’s past successes and growth of the network can be partly attributed to the hard work of the men and women who are currently on our Retiree List,” McGrath continued.

“Does our Retiree Discount still apply? Are you even aware that this benefit exists? Currently visit fees ($2), Medicare and NOVA deductibles and balances after insurance are written off as a Retiree Discount for eligible retirees…The purpose of this letter is to let you know that I am grateful for the many years spent at Bassett, enjoyed the employee benefits as an active employee, and was proud to have earned status as a retiree with excellent benefits. However, I and many others feel a deep sense of betrayal with this new charge,” McGrath wrote.

Retirees at Thursday’s meeting praised McGrath for her letter, and for her assistance as they themselves were preparing to retire.

“We all planned our employment around our retirement with Jan’s guidance,” one woman said, comparing the November 11 letter from Laughlin to “dropping a bomb.”

A Bassett employee unable to attend Thursday’s meeting shared the following in an e-mail:

“When I started at Bassett Hospital in the early eighties, it was definitely the place to work. They cared about each employee and for my position alone, there were 50 applicants. Benefits were good and the promise of a good retirement with full health insurance coverage after retirement was an incentive to stay for many years. Now that those years are almost to an end that has all suddenly changed without warning. The continued promise (with signed contracts) of no cost supplemental insurance has now suddenly come to an end. Those of us who are still working but looking to retirement now must keep working in order to afford the premiums, copays and deductibles and increased cost of living on a fixed income. My spouse has numerous health issues and requires frequent appointments which will demand copays and deductibles that we cannot afford. Sadly, I will have to delay my retirement for now.”

However, thanks to a change of heart on the part of Bassett Healthcare Network leadership, retirees can relax, at least for now.

The Bassett network, which recorded a deficit of $80 million in 2022 and a similar loss in 2023, has been working with healthcare consulting group Huron since April, part of an overall improvement plan to ensure that Bassett is healthy for the future. Recently 101 filled positions were eliminated across the eight-county network.

“Through workforce efforts overall—including last week’s reductions, reducing agency staff spending, and more—Bassett Healthcare Network will close approximately one third of its $80 million gap between expenses and net patient revenue,” Gabrielle Argo, Bassett director of communications and public relations, explained on Tuesday, October 22.

Cost of labor is just one of nine areas being addressed by Bassett. Thompson said in an October interview that there are eight other working groups concurrently reviewing supply chain, pharmacy, medical group access, coding, facilities, patient throughput, strategic pricing and charge capture, and human resources.

Hospitals and healthcare institutions across the country, particularly those in rural areas, are struggling with similar financial issues. The proposed changes to Bassett’s Medicare Supplemental Plan are part of a complicated plan to reduce expenses, but retirees have been making their voices heard, saying Bassett has gone too far, too quickly. And, on second thought, Bassett’s leadership agrees.

“Our retirees are a cherished part of our Bassett population. Their long-term dedication to our institution is deeply appreciated, and we will continue to honor their longevity by providing a Bassett retiree health plan to help ensure they have the coverage they need,” Thompson said in a statement released on Monday, December 9.

“To rapidly address Bassett’s financial challenges, many decisions have been made quickly to close our organization’s gap between revenue and expenses. This includes many difficult decisions, including making changes to Bassett’s retiree health insurance premium payment.

“We realized from our retirees that the notification of these plan changes in November did not allow adequate time for plan participants to fully understand the changes and research their options,” Thompson continued. “As such, we made the decision not to move forward with changes to Bassett’s retiree health plan benefits and financial contributions in 2025.

“I am committed to protecting Bassett’s mission so people in our communities have access to the care they need. An important part of this work means finding a balance between preserving Bassett’s unique culture with new approaches to ensure our future. Going forward, our retirees will have critical input in the evolution of their health plan as we work together to position Bassett for success,” Thompson said.

Because of McGrath and other Bassett retirees who pushed back against this change—and thanks to Thompson and other hospital officials who recognized the importance of their input and that a second, harder look was warranted—folks can rest easy this holiday season knowing that a better solution is in the offing.