Invemed Associates is a little known investment firm based in New York City and run by a well-known tycoon Ken Langone co-founder of Home Depot. Invemed is a small firm, fifteen people residing in the state of New York.
As most good business operations would do Invemed looked to an outside firm to get the best health care services at the most reasonable costs. They found that service in ADP, a well-known payroll service company. ADP also offered “collective” health insurance by pulling together many small companies they service with total employee in the range is 200,000 to 300,000 and purchased health insurance using the leverage of the collective people they service.
Recently ADP notified Invemed and other ADP clients that they could no longer “buy” collectively health insurance based on a law proposed by the State of New York Senate. Just after learning this change being proposed in health care purchases by the state of New York Ken got a call from the Governor of New York asking him to help sell the Governors budget in upstate New York. Ken explained how unhappy he was with the proposed bill changing the opportunity to buy health insurance thru ADP for collective savings by buying together. The Governor said he was not aware of this amendment and he immediately told the Senate to delete the amendment that would have been so costly to Ken’s family business of fifteen people when purchasing health insurance.
Ken was appreciative of the Governor’s actions but he inquired of the state agency on how and why did this amendment come into play in the state Senate and his sources said; Human Health Services in Washington had asked the New York State Senate to introduce this amendment. Why you might ask? It is pretty obvious that causing these small companies in New York to pay considerably more for health services and in the process generate more service fees and taxes for HHS to apply to the thirty five million people that the administration and HHS believes will be coming onto the Federally run health insurance program starting in 2014. I’m certain we will find similar stories in other high population key states. I urge you to protect your health insurance program by calling the company that currently services you and your family and ask what are my options and costs for health insurance in 2014