Richard P. Shannon, MD, executive vice president for health affairs at the University of Virginia, argued in a letter to the editor that a Washington Post report inaccurately cited the University of Virginia Health System as a reason for extensive premium increases in Charlottesville, Va.
The original Washington Post report stated Charlottesville is seeing a sharper rise in monthly healthcare insurance premiums than other cities in part because the primary provider is the University of Virginia Health System, which charges higher rates than a community hospital.
The report also said the system is covered by Optima Health, a smaller Virginia-based health insurer that offers fewer coverage options than Aetna and Anthem. As a result, coverage tends to cost more in communities like Charlottesville due to a small patient pool.
In response, Dr. Shannon pointed out Optima is free to increase premiums, as it is the only Charlottesville-area insurer participating in the federal insurance exchange. Residents will have to pay these higher premiums regardless of whether they choose to receive care at University of Virginia Health System or a Charlottesville community hospital. "Optima accounts for less than 1 percent of the commercially insured patients cared for at U-Va.," Dr. Shannon added.
Dr. Shannon also cited data that reveals Charlottesville is not a high-cost area for medical care. A 2015 New York Times article showed Charlottesville as the 40th lowest in medical spending per Medicare beneficiary and the 85th lowest in medical spending per commercial insurance beneficiary out of 306 hospital referral areas nationwide.
Additionally, CMS data shows the average cost per beneficiary in Charlottesville is $9,271, compared with the national average of $9,582.
"There is a problem here, but it's not Charlottesville or the U-Va. Health System," Dr. Shannon wrote.