Meridian, Geisinger dump Medicare plan

Oct. 06--Geisinger Health Plan will stop selling a popular Medicare Advantage insurance plan that it created with Meridian Health because it didn't add customers quickly enough, a Geisinger official said Wednesday.

The decision will force about 6,000 seniors in Monmouth and Ocean counties to search for a new Medicare plan for 2017 when open enrollment begins on Oct. 15.

Customers were satisfied with the plan, but "now they are scrambling," said Derick Buckley, owner of The Buckley Insurance Group based in Brick.

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Danville, Pennsylvania-based Geisinger was one of several insurers who sell Medicare Advantage, privately operated Medicare plans that cover hospitalization, doctors' visits and, in some cases, prescription drugs. The plans haven't caught on in New Jersey as much as the rest of the nation; only 16 percent of New Jerseyans choose them for their Medicare coverage, compared with 31 percent nationwide, according to Kaiser Family Foundation, a research group.

Geisinger Health Plan is part of what's called an integrated delivery system, providing both insurance and health care. It has about 550,000 customers. And it tried to make inroads in New Jersey four years ago by partnering with what was Meridian Health to sell Meridian Geisinger Gold.

The plan had no monthly premium beyond the $121 a month seniors pay for Medicare, and it provided prescription drug coverage, Buckley said.

The catch: Customers needed to use the network that consisted mainly of Meridian-affiliated doctors and Meridian-owned hospitals -- Jersey Shore University Medical Center in Neptune, Bayshore Community Hospital in Holmdel, Riverview Medical Center in Red Bank, Ocean Medical Center in Brick and Southern Ocean Medical Center in Stafford.

(Meridian has since merged with Hackensack University Health Network to become Hackensack Meridian Health).

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The partnership between Geisinger and Meridian made inroads in patient health by reducing the use of high-risk medication, for example, Geisinger spokeswoman Amy Bowen said. But it didn't have enough customers, which would have allowed it to spread out its risk among more people.

"Essentially we were never able to reach a membership ... that allowed financial stability," Bowen said.

Patrick Young, president of population health for Hackensack Meridian Health, said its Shore-area hospitals will accept Medicare Advantage plans from Aetna and Horizon Blue Cross Blue Shield of New Jersey for 2017.

Michael L. Diamond; 732-643-4038; mdiamond@gannettnj.com

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