Business Journal
Serving San Jose and Silicon Valley
October 12-18, 1998

County touts health program as small-business solution
By Peter Delevet
Business Journal staff writer

Change is in the air for Santa Clara Family Health Plan.

The public health insurer, which oversees care for about 40,000 Medi-Cal recipients in the county, is ramping up efforts to promote the Healthy Families program. The new state-run, federally funded program provides inexpensive health coverage for low-income families that don't qualify for Medi-Cal.

The plan also has named Barbara Palla its medical director.

Dr. Palla had been chief of ambulatory pediatrics at Valley Medical Center.

She replaces Jeffrey Davis, who left the plan earlier this year after accepting a job elsewhere.

"She brings years of experience of caring for underserved populations," said Leona Butler, CEO of Santa Clara Family Health Plan, in announcing the appointment.

County-owned Valley Medical Center is the local provider of health care for low-income people.

The Santa Clara Family Health Plan was created in early 1997 for the Santa Clara County Board of Supervisors and acts as the local health plan for MediCal recipients enrolled in managed care.

To save on health care costs, the state has shifted more than 3 million Medi-Cal recipients into managed care plans. Under a "two-plan model," patients here can choose between Santa Clara Family Health Plan or a private plan offered by Blue Cross of California.

Blue Cross has about 29,500 area Medi-Cal enrollees, according to corporate communications manager Rhonda Seaton.

The Santa Clara Family Health Plan started directing much of its energy toward promoting Healthy Families when the state introduced it in July.

The program covers children of families that earn too much to qualify for Medi-Cal, but can't afford private insurance or receive coverage through employer-sponsored plans.

Ms. Butler is touting the plan as a way for small businesses to provide dependent coverage for their employees.

At a recent mixer sponsored by the Hispanic Chamber of Commerce, Ms. Butler explained that small businesses that can't afford to pay for employee health benefits can still make sure their workers' children are insured by steering them to Healthy Families.

The mixer was not held to discuss Healthy Families, but Ms. Butler gave a presentation about it during the program.

"This can keep employees on the job," Ms. Butler told The Business Journal. "A small employer can't compete with one of the big guys when it comes to benefits, but it goes a long way if people are assured that their children have health care."

A combination of medical, dental and vision benefits is available for as low as $4 per child per month.

Santa Clara Family Health Plan has about 375 kids enrolled, according to media relations director Nancy Gere.

"It's a relatively untapped market," she said. "This is so new that families don't really know about it."