What to do with a union-recommended HMO

Our employees’ union strongly recommends a specific Health Maintenance Organization (HMO). The union cites its stellar reputation, extensive hospital network, and quick claims processing. While open bidding remains an option, we are worried that the union may not accept the result. What can we do? — White Lotus.

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Stop worrying. Give the union the chance to justify its recommendation within the framework of an open bidding process. Respect its recommendation without airing any suspicions that it may have been “captured” by the HMO.

But first things first. Review the specific provisions of your Collective Bargaining Agreement (CBA) and be guided by them. Does the CBA specify employee coverage to be any amount or percentage? Whatever the case, I’m sure it will contains certain budgetary limitations.

‘The union plays an important role in advocating for employee needs, but you must also be aware that, at times, they exceed their boundaries while defeating the letter and spirit of the CBA, wreaking havoc on the company’s financial strategy.

It could be that the HMO the union is pushing for does, in fact, have an excellent reputation, extensive hospital network, and a reputation for quick claims processing. This is true for other HMOs. To find the truth, your organization must answer the following questions:

Should it give in to union pressure? How do you ensure fairness while safeguarding the company’s bottom line?

TRANSPARENCY

The solution lies in building a transparent and competitive bidding process. It’s the best you can do under the circumstances. It eliminates the suspicion of favoritism or backroom deals, not only with the union but also with manage-

ment. An open bidding is the objective, and all HMOs must be evaluated by the same criteria.