PEF fights formula that sticks members with big chemo bills

In an effort to protect its members with cancer from huge, unfair bills for chemotherapy, PEF has taken its case to an arbitrator who has slated a hearing on the matter for October.

PEF contends the insurer, United HealthCare (UHC), is using the wrong basis for calculating how much it should pay non-participating providers for chemo-therapy drugs, and is sticking PEF members with too big a share of the tab, which often runs to thousands of dollars.

When PEF was made aware of the problem by a member who was being billed for thousands of dollars by two different non-par hospital extension clinics, the union filed a class-action grievance directly to Step 3. It calls for the state to instruct UHC to stop limiting its reimbursements for prescription drugs billed by a non-par provider to the average wholesale price.

“Instead, UHC should base its payments on the usual “reasonable and customary” formula it uses for other medical services,” said PEF associate counsel Lisa Newmark. “The R&C charge should be calculated using the actual charges the providers are billing patients for these drugs.”

The Governor’s Office of Employee Relations denied PEF’s grievance on April 15, saying it considered UHC’s use of the AWP consistent with the PS&T contract. The grievance is now scheduled for arbitration in October.

While PEF is pursuing a remedy to this problem through the contract-grievance process, the basic issue also has come up in other cases not involving PEF which are under review in the courts and by the state Insurance Department.

An article in the July-August issue of The Communicator warned Empire Plan enrollees of the financial hardship they could face if they receive outpatient chemotherapy at a non-par physician’s office or clinic.

Plan members can hold their out-of-pocket expenses down to the usual copayment of $15 or less by buying their chemo-therapy drugs at an Empire Plan par pharmacy or through the plan’s mail-order pharmacy.”

The Communicator
September 2002

The Official Online Edition of

The New York State Public Employees Federation

Inside This Issue:
Features

PEF backs Pataki re-election bid
PEF Board votes to back candidates in ’02 races
PEF joins fight against soaring Rx costs
Early retirement windows opening
Q&A on 25/55, ERI
9/11; One Year Later:
‘Everything is different’ since 9/11

PEF fights for counseling
Victims’ families grateful for PEF’s help
Contributions of PEF activists missed
PEF to dedicate memorial

Departments
President's Message: Endorsements and Loyalty
You Said It: Member's letters this month
Member Mobilization: 8 steps to success
Legislative Action: Retirement, whistleblower laws
Nurses' Station: Help make new future for nursing
Retirees In Action: Lucky to get 1% COLA
PEF Membership Benefits Program & Travel Corp

Union Matters
2002 Convention Preview
PEF researcher’s discovery offers hope
Members show interest in PS&T negotiations
Division 236 at Parole fully mobilized
Members at Labor Dept. win back rights
PEF fights big chemo bills
PEF vets keep wagering safe bet
PEF wins OT pay
Highlights of PEF Exec Board’s meeting
Member’s kids wins scholarships
Support true charities, job security
GET OUT THE VOTE!

Other Links
Professional Directory
Members' Classified
Member Communicator Feedback
Do You Prefer The Online Edition?
How To Advertise Here
PEF Pride Store
Last Month's Communicator
The Communicator Staff

Questions on this site?
Email the
comwebmaster.

Register here on the PEF Member Network.Click on pefonline@pef.org

Click Here email notice when next issue is online

Search Communicators for:


Site search
Web search
powered by
FreeFind

Site Map    What's New    Search