Intrepid incentive plan gears employees away from CMC

May 03--CARLSBAD -- Intrepid Potash is offering its employees a new medical insurance plan that gives them incentives to seek medical services anywhere besides the Carlsbad Medical Center.

The decision to offer that type of incentive plan to employees was made because of what the company describes as drastically high medical rates at CMC.

"We would prefer to have our employees be able to obtain quality, competitively priced health care close to where they live, but we have been unsuccessful in getting the hospital to reduce their rates to a competitive level," said Jamie Whyte, executive vice president of Intrepid Potash.

The new insurance plan was announced and presented during the company's open enrollment meetings throughout April. Intrepid Potash began open enrollment for the new plan Friday.

Melissa Suggs, marketing director for CMC, said it was regrettable to hear Intrepid's decision on the matter.

"It's just unfortunate, really, that Intrepid has decided to go forward with this," Suggs said. "You want people to support the local economy."

Whyte said that the plan offers both cash incentives and travel reimbursement to encourage employees to obtain in-patient and out-patient services from outside of the Carlsbad area.

Whyte said that such actions are being taking by Intrepid because the company will not continue to pay high rates at CMC when less expensive rates can be found in surrounding communities.

On average, Intrepid believes it would be less expensive to pay for an employee to seek medical treatment in Lubbock, which would include transportation reimbursement and hotel fees, then it is to seek medical treatment at CMC.

"The hospital is often two to seven times more expensive for procedures that can be obtained in Artesia, Roswell or Lubbock," Whyte said.

Whyte said that after looking at a wide range of procedures, Intrepid concluded that paying for medical attention at CMC was not worth the cost.

Whyte said one Intrepid employee received comparative quotes for a gall bladder removal.

The procedure at CMC was quoted at $28,553, but at five different locations in the region the procedure was $10,000 less, with the lowest quote at $3,776, Whyte said.

Intrepid Potash has 800 to 850 employees in Eddy County, with each employee potentially claiming one or more dependents on their insurance plan.

The Carlsbad Medical Center released a statement in response to Intrepid's decision, saying that it has reached agreements before with large employers in Carlsbad, including Intrepid Potash, over the amount employees have to pay for medical services.

"While there may be variances between the charge of some procedures, reimbursements are generally comparable across providers," a CMC statement said. "We have had additional conversations with Intrepid and are willing to continue working with them (Intrepid Potash) to reach a resolution so their employees can feel comfortable accessing care at our hospital."

Suggs said that different factors can affect medical rates.

"It depends on the procedure, it depends on your carrier and your coverage," Suggs said.

In a statement, CMC touted it's dedication to the Carlsbad community, stating that CMC provided over $25 million in charity and uncompensated care for services to Carlsbad residents.

"If someone comes to us and doesn't have insurance, it is our duty as a hospital to provide service to that person, regardless of their ability to pay," Suggs said.

Suggs, said every time the hospital provides services without being paid, it can have an effect on the rates.

But Intrepid Potash is not the only company in Carlsbad to grumble over the high medical rates at CMC.

With more than 500 employees in Carlsbad, the Mosaic Co. also has been peeved over the high medical rates found in Carlsbad compared with those elsewhere.

"We are trying to do everything as a company to control costs, and costs in Carlsbad are a lot higher there than outside of Carlsbad," said Tom Armani, director of global benefits for Mosaic.

Mosaic has not made a move like Intrepid Potash has, but Armani said it could become a possibility in the future.

"Are we considering some of the things Intrepid is doing? Absolutely," Armani said. "I applaud what Intrepid is doing, but what about everyone else in Carlsbad?"

Armani estimated that, comparing Carlsbad medical rates to other locations, the costs in Carlsbad are about 50 percent higher.

However, Armani also said that in general, Mosaic pays more for employee medical cost in New Mexico then what it pays for employees in other states.

In 2014, a study by the Commonwealth Fund, a private nonpartisan foundation, found that New Mexico was the worst state in the U.S., including the District of Columbia, for accessible and affordable health care.

However, Carlsbad Medical Center reportedly has one of the highest sticker prices in the state, Armani said.

"The people in that market really don't have options. They could drive elsewhere for services, but some situations you just can't," Armani said.

As one of the larger employers in Carlsbad, Whyte said that Intrepid Potash in some ways gives them the option to go with this incentive plan.

"Everyone who goes to the hospital is having these issues," Whyte said. "That's why it's a community issue."

Sarah Matott can be reached at 575-628-5546.

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