VSP to cut jobs in Sacramento (Campbell: health insurance, closing, law)

[cb73]

Per today's Sacramento Bee, VSP put 100 jobs "on hold" because of a dispute with the state of California. The California Health Exchange (I'm not sure of the exact name) that was designed to change the healthcare to meet the standards of the Affordable Care Act, has ruled that VSP can only sell insurance to companies and they have to stop selling insurance to individuals. As that was a chunk of their business, that's going to hurt.

They're also still hinting that they may just move out of California.

[webdev]

Just wonderful. California needs to get its act in gear.

[wburg]

If this health exchange is part of a federal mandate, won't they face the same thing in other states as state health exchanges are implemented? Wouldn't California's early adoption of those nationwide changes serve as an advantage to businesses who wanted to best adapt to the new regulations, vs. moving to other states where the same changes will go into effect later?

[Curmudgeon]

Other states may exercise the "opt out" provisions.

[ryuns]

A little misleading. They're delaying the hiring of additional staff, not firing anyone. And they may move if the law in effect makes their business model redundant, which is not particularly surprising. Of course, it is good to remember that laws and regulations do affect businesses and the people that work there, but caving to what amounts to extortion by local businesses does not always lead to best outcomes. I haven't followed closely enough to know whether VSP's hopeful outcome will be better or worse that what the State has proposed.

[Sacoftomatoes]

Definitely a sign of the times here in Sacramento. VSP, along with Waste Connections, Campbell's soup, etc are all either contracting or moving operations elsewhere. What most businesses won't tell you is that it's simply not a business-friendly environment.

[Curmudgeon]

Originally Posted by Sacoftomatoes

Definitely a sign of the times here in Sacramento. VSP, along with Waste Connections, Campbell's soup, etc are all either contracting or moving operations elsewhere. What most businesses won't tell you is that it's simply not a business-friendly environment.

And with Campbell's soup closing, you may have to change your sign-in name. Good thing they didn't paint the water tower red. Sacratomato is no more!

[shelato]

Originally Posted by wburg

If this health exchange is part of a federal mandate, won't they face the same thing in other states as state health exchanges are implemented? Wouldn't California's early adoption of those nationwide changes serve as an advantage to businesses who wanted to best adapt to the new regulations, vs. moving to other states where the same changes will go into effect later?

To participate in the health exchanges, a program must be designated as a qualified health plan. At the moment VSP is having problems getting designated as a qualified health plan in California for the purposes of these health exchanges. Under Obamacare health insurance isn't portable across state lines. (Being designated as a qualified health plan in Nevada doesn't mean that you are designated as a qualified Health Plan in California). One needs to get approval for each state's health exchange.

What VSP is basically saying to the legislature is why should we keep our headquarters in a state where we haven't been designated as a qualified health provider, when there are other states who seem to be more willing been to designate VSP as a qualified health provider even though VSP isn't headquartered there.

[Curmudgeon]

Originally Posted by shelato

To participate in the health exchanges, a program must be designated as a qualified health plan. At the moment VSP is having problems getting designated as a qualified health plan in California for the purposes of these health exchanges. Under Obamacare health insurance isn't portable across state lines. (Being designated as a qualified health plan in Nevada doesn't mean that you are designated as a qualified Health Plan in California). One needs to get approval for each state's health exchange.

What VSP is basically saying to the legislature is why should we keep our headquarters in a state where we haven't been designated as a qualified health provider, when there are other states who seem to be more willing been to designate VSP as a qualified health provider even though VSP isn't headquartered there.

And VSP would be quite right. California's voluminous laws and multitudinous regulations strike again!

[shelato]

Its very difficult to change an industry as large as the health care industry as much as Obamacare did without creating really large unintended consequence type problems. The people pushing Obamacare were very bright and for the most part well intended, but they needed to make lots of deals to get the program through congress. Second, the Obama administration has done an absolutely awful job of explaining this legislation. Its rare for even his most fervent supporters to actually understand what is included in this legislation. As a result this legislation has never been well vetted. I hope for the sake of people who are sick and need to see a doctor that it turns out well, but I have my doubts.