Ithaca Health Alliance - History

History

In 1997, grass roots activists in Ithaca, New York organized by local innovator Paul Glover, began working with their community to address the issue of access to health care. Inspired by the examples of the Canadian national health care system as well as the collective approach to health care financing among the Amish, an idea dubbed the "Ithaca Health Fund" was born. The original vision of this health cooperative included:

• Focus on the local community for solutions, rather than relying on the benevolence of employers, corporations, or the government.

• Use a democratic infrastructure, centered on the thoughts and identified needs of members.

• Offer a sliding scale fee to health care providers who gave discounts to other Health Fund members.

• Set aside savings for a clinic and other community health programs.

The new organization soon attracted members, each joining for $100 per year. As more people joined what became known as the Ithaca Health Alliance (IHA), the organization's finances improved, and a better selection of health care services became available. At the same time, members began setting aside money for other community health projects. Glover was the Fund's first administrator and the only paid IHA staffer. He kept costs down by drawing a modest salary, while the structure of the Fund itself helped to encourage prevention and therefore manage costs in a realistic manner. One early Fund example was a dental category with a $20 contribution to the annual cost of an exam and cleaning. Over time, the scope of care covered by the Fund expanded to include stitches, the treatment of broken bones and emergency room care.

By 2004, the Ithaca Health Fund was a well-known local alternative to health insurance. Members primarily resided in Ithaca and Tompkins County, but the Fund had fairly wide representation across the state of New York. Glover continued to serve as the Fund's administrator, and his informal style of record keeping and Fund management earned him points among the members, who appreciated the lack of red tape. Membership was affordable, services were limited but basic, and the Fund remained solvent.

In a bid to grow the Fund beyond its New York membership, Glover began marketing it to other states. At the same time, a journalist at the Utne Reader learned about IHA and began researching an article. A reporter for a health insurance blog interviewed Glover, then contacted the New York State Insurance Department (NYSID), which immediately began an investigation. NYSID claimed that IHA had been selling insurance without a license. After months of wrangling, IHA's lawyers reached an accord via the NYS Attorney General's office, promising to replace terms like "benefits" with "grants" and assuring NYSID officials that IHA would discontinue offering memberships beyond New York's borders.

Eventually NYSID relented, recognizing that Glover's enthusiasm for the mission of "health care for all" was well-intentioned. Today the IHA and its programs continue to operate with the same core mission and principles of its founders.