GHLIT tweaks programs, reacts to losing DVMs

As the Group Health and Life Insurance Trust (GHLIT) reports flat growth due to its average 25-percent annual cost increases, the national veterinary insurance broker rolls out cheaper medical coverage, a dental plan and high-deductible options that translate to federal tax relief.

The efforts are designed to lure more American Veterinary Medical Association (AVMA) members into GHLIT medical programs. The trust, operating as an arm of the AVMA, has provided health, life, disability and other lines of coverage to association members since 1957. More than 68,000 veterinarians are eligible for medical coverage, yet just 19,497 are enrolled - a testament to practitioner misunderstandings and possibly their frustrations, says Chandler Rapson, spokesman for HealthPlan Services, the GHLIT's administrator.

"Our premiums are high because we offer more benefits," Rapson says. "Yet if you're a person coming out of college, you don't care that insurance is such a great product. All you know is that we're more expensive than Blue Cross. Not everyone wants the Cadillac insurance. It's a hard truth we've had to realize. That's why we've come out with some value plans."

Faced with $16,000 a year in premiums, Dr. Richard Headley plans to double his deductible to save on the monthly cost of covering himself and his wife. At 60-years-old, he can't afford premium prices or switching carriers. He's been with GHLIT for 25 years.

Trapped by age, health

"It doesn't do any good to complain," Headley says. "Our expenses with GHLIT have been going up for 12 years. I feel bad hoping that Medicare comes soon."

Dr. Bill Craig can relate. After using GHLIT for 30 years, he's used to seeing high premium increases and says he's stuck with the carrier due to medical reasons.

"My wife is uninsurable," he says. "She has high blood pressure and high cholesterol. We can't go with any other insurance agency, so I spend $10,000 a year, including a $4,500 deductible."

To offer some relief, GHLIT recommends customers like Headley and Craig save money for their deductibles in Health Savings Accounts (HSAs), created by the Medicare bill President Bush signed in December. This month, GHLIT plans to market its own HSA plan.

Tax-free relief

"In a nutshell, HSAs allow the individual to buy a high-deductible plan, put pre-tax money in a savings account and carry over those dollars from year-to-year earning interest tax free," Rapson says.

According to the bill, annual deductibles must run at least $1,000 for self-only coverage and $2,000 for family coverage. Employees of large companies offering generous benefits are not eligible, but anyone else under age 65 might qualify.

While the tax break likely will spell cost relief, it might not up GHLIT medical insurance enrollee numbers significantly.

Getting the message across

That's a problem, Chairwoman Dr. Jody Johnson says, as veterinarians who assume GHLIT has high buying power often criticize the program's steep premiums, failing to realize the medical program covers less than 20,000 veterinarians, she says.

"Yes, we're a big organization, but we don't have many people buying into our medical programs," she says. "People think everyone has the AVMA's medical insurance, and they do not. We want to offer programs of value, not the cheapest plans out there, and it's really hard to get that across to the consumer."

That's doesn't justify excessive costs, Dr. Lillian Roberts says.

"I've been a member of a lot of organizations, including Mystery Writers of America, and they offered a better policy than AVMA," says Roberts, of Palm Desert, Calif. "I just don't buy into small group size as an excuse."

If HMO and premium options don't woo more customers, GHLIT officials believe dental coverage might do the trick. The program, offered through Ameritas Life Insurance Corp., provides a triple-option plan design offering participants the choice of a traditional indemnity product, a scheduled plan of benefits or a low-cost plan alternative.

Adding to the portfolio

The deadline to enroll in dental coverage is Feb. 29

GHLIT also plans to launch programs covering long-term care within the next six months. The program would guarantee continued coverage to those who become disabled, need home care, assisted living and protected assets.

"We think these ancillary programs will really take off," Rapson says. "We're getting calls like you wouldn't believe."