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Auto workers: Speeding to the hospital for elective procedures

Patient Financial Services Weekly Advisor, April 21, 2006

The auto industry's decision to pull in employee health costs hasn't quite gone as planned, reports the New York Times.

Droves of auto workers and their spouses are rushing to Michigan physicians for elective procedures before they lose their comprehensive benefits.

The surge began a year ago, physicians noticed, after Rick Wagoner, the CEO of General Motors, told workers to prepare for healthcare cutbacks, and Delphi, the General Motors parts supplier filed for bankruptcy.

Blue Cross Blue Shield of Michigan insures thousands of auto workers. It pays on average between $13,000 and $15,000 for knee or hip surgery to hospitals, and typically $1,800 to $3,300 to physicians. Hospitals receive about $10,000 for shoulder surgery; physicians' fees average $1,400.

Delphi is currently seeking approval for severe cuts in wages and benefits in a three-way negotiation with the auto workers' union, General Motors, and a bankruptcy judge.

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