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Montpelier city employees to find way to reduce health care

A group of Montpelier municipal employees have proposed a new Health Insurance that, if fully implemented, the city would save approximately $ 200,000 annually. The proposal will be submitted to the City Council for approval at today's meeting.

"I think it's great," City Manager William Fraser said Tuesday. The plan would be approximately 100 employees and their families and some retired employees affect the city to buy into the program. "The last few years have had our budget close to $ 200,000 have increased in terms of healthcare costs."

Fraser said he met with employees in April, shortly after the FY 2010 adopted budget, to talk about the tax burden even before 2011. He asked to help control costs of its receipt, and chose the group to focus on health care expenditures.

Among those who create of the proposal were representatives of police, fire department and Department of Public Works collective bargaining units. The group has informed her colleagues about the basics of the plan.

Under the proposal would cover the city remain current insurer Cigna, the Vermont League of Cities and Towns, the stress and confusion of the changeover staff to a new company to avoid the employee group, said.

But the new proposal calls for a high deductible plan, along with what to replace Health Account known. The premiums would be lower than under the current no-deductible plan, and the city would fund the bulk of the deductibles. Deductibles for a single Person would be $ 2,250 and $ 4,500 for a family, the maximum out-of-pocket costs for a single person would be $ 3,500 and $ 7,000 for a family and the city attributable share of the HRA would be up to $ 3,000 for single employees and $ 6,000 for family plans are.

The monthly premiums under the new plan would be $ 362.84 for single employees, $ 616.32 for two people and $ 906.35 for family coverage. By the savings for the city, Couples and families would pay about 30 percent of the premium under the new plan (they pay 20 percent) and singles would be about 8 percent (compared to the current Pay 5 percent).

"Despite the increase in the percentage of employees, annual premiums for employees will be lower than in 2010, while they were in 2009, at the same time so that the employers realize significant savings, "the staff who prepared the proposal on Monday a memo to Fraser. They asked to meet quarterly to the new plan if it is given final approval to monitor.

In passing the information to the Council, Fraser noted that many city employees are the union workers whose health plans do not expire until the end of 2010, also in 2012.

"As such, there was no requirement for these groups to make any immediate changes," he wrote in a memo to council members applauded the employees are ready to move forward this money-saving plan.

The proposal requires the approval of certain union employees, the first for a guarantee from the Council asked that the city would accept the plan in its present form and thus remain in force for two years. If adopted, the plan would be implemented on 1 January 2010 so that an additional six months of savings in the current fiscal year.

Fraser said he believes the Council will give its blessing to the proposal because it saves the city money and not increased spending on health care for employees - both important goals. Fraser said he also hopes the employee groups OK the plan.

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