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The Alliance of Western New York Concept Background The Western New York (WNY) health insurance industry is unique. With a declining, aging population, and an increasing utilization of medical resources, WNY health insurance rates are climbing faster than the national average. Health care cost trends have averaged double-digit annual increases for the last 10 years; as such, employers and unions are facing a rapidly expanding financial health care crisis. Unfortunately, these increases are expected to continue in the foreseeable future, and public, private, union, and non-union alike - are being forced to explore alternatives in order to combat the rising health costs. A Solution Enter the Alliance of Western New York. The Alliance of Western New York (the Alliance) creates a whole new approach to healthcare cost containment. The Alliance was established to combine a large number of entities containing Collective Bargaining Agreements (CBA’s) into one large collective of “purchasing pool”. The advantage of pooling resources of many employers into one “alliance” is simple: The collective strength of the team players creates leverage, which affords superior (and significant) cost-effective benefits, thereby reducing administration overhead and individual duplication of efforts, as well as compounded purchasing power. The Alliance of Western New York is a superior approach because it provides more collectively than each individual employer can obtain with separate – and often less effective – results. Through a “buying coalition”, this large group has vastly more purchasing power and achieves administrative and pooling limit savings – while simultaneously reducing catastrophic spikes in health care premiums. The best part (and a unique feature) of the Alliance is that participating groups are able to maintain their unique autonomy for day-to-day experience, as well as their own specific benefit plans. In short, each entity enjoys a much greater opportunity to meet the needs of their people, the requirements of CBA’s, and more effectively manage their own unique health plans and associated costs. Combining this with the use of alternative funding methodologies, health plans designed with respect to contractual obligations, and the involvement of groups in the health care process, groups that join the Alliance can realize a more efficient use of healthcare dollars. 2
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