LGH launches health plan for Lancaster County businesses

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Lancaster General Health has formed a new unit, called Eliance Health Solutions, that aims to sell self-funded health plans to businesses in Lancaster County. 

Under the self-funded plans, employers will share the risk with Eliance by paying a portion of their own claims. In a fully insured health plan, employers pay a fixed premium while the insurance company assumes the risk for paying claims.

Eliance is designed to help employers cope with the increasing pressure to find affordable health insurance. In a bid to make care more affordable, the new unit combines group health plans with wellness and occupational health programs to improve employee health over the long term.

The Affordable Care Act requires businesses with at least 50 full-time employees to offer health insurance. Businesses also face a tax, the so-called Cadillac Tax, that will apply a 40 percent levy to health insurance plans that exceed a certain value.

These cost pressures are “at the heart of why we’re doing what we’re doing,” said Eric Buck, president and CEO of Eliance.

President-Elect Donald Trump is toying with the idea of repealing the ACA so pressure on businesses could subside. Nonetheless, Eliance will remain a local resource for helping businesses navigate the health care system, said David Jani, vice president of sales and business development at Eliance.

Eliance health plans cost, on average, about 11 percent to 12 percent less than rival plans because they use a narrow network of providers from LG Health, according to Buck.

Not only will Eliance members receive lower rates from providers in Lancaster County, such as LG Health, Eliance also is working with three insurance agents in the county who are accepting lower commissions to sell the product and keeping its administrative costs down, Buck said.

The cost savings for Eliance are passed on to participating employers.

The Eliance plans offer three options for provider networks.

The first tier, called the Eliance Preferred Network, includes all physicians in the LG Health system as well as some independent practices in the county.

The second tier, which doesn’t offer as much savings, offers a collection of regional providers.

The third tier includes national providers.

Eliance started selling its health plans on Oct. 1. So far, three businesses have enrolled, Buck said.

Eliance also is serving the businesses that are using LG Health’s wellness and occupational therapy services, Jani said. But those businesses don’t have to sign up for a health plan through Eliance.

So far more than 60 businesses have asked for quotes for self-funded insurance through Eliance. To come up with a quote, Eliance starts by reviewing a business’s current plan.

Eliance is not offering Medicare or Medicaid health plans at this time, but it is a division of LG Health’s accountable care organization called Lancaster General Health Community Care Collaborative LLC., which is a group of physicians that coordinate care for Medicare patients.

LG Health hired six people to start Eliance, and intends to hire for three more positions. The business plan anticipates hiring of four more people by the end of 2017.

Eliance is operating at Urban Place, a business complex in Lancaster City.