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Drop City Health Insurance at 20 agencies

Lexington's Urban County Government drops health insurance coverage for 556 employees of "external Agencies - organizations that are connected but not directly by, City Council run.

Based on 2008 expenditure covered employees of 20 organizations from Lexington Insurance, saves the city short of cash $ 506,218 per year, the difference between what it took out in and what it had to pay.

Among the organizations will be the new health insurance arrangements are the Fayette County Health Department, Kentucky League of Cities, Lexington Housing Authority, Lexington Convention & Visitors Bureau, Lexington Parking Authority and the Lexington Urban League.

"The satellite had only agencies pay their premiums," said Susan Straub, spokeswoman Mayor Jim Newberry. "... They were not funding the full cost of their health care."

Over the past three years The city shelled out $ 2,200,000, insurance premiums, which complement the staff paid from external agencies.

In late November, said the city of Newberry may consider layoffs, wage cuts, laying off and the elimination of city programs to an estimated deficit of $ 12,000,000 $ 13,000,000 to stem cells. City Administration Division Directors were asked to propose ways to reduce expenses by 5 percent.

The Council approved cutting health insurance for groups out on 8 December. All in all, the city offers health insurance to 3622 workers and retirees, whose health claims exceeded sales by $ 8,500,000 the previous year.

Most agencies have until 31 December 2010 to finish her new health care plans, but some - such as the Fayette County Health Department - will be new to change insurers within the next month.

Health Department Commissioner Melinda Rowe said city officials told her the agency should be established by national health insurance be covered. Instead, the department decided a plan by Blue Grass Family Health offered.

Still able to walk, the cost of the premiums paid by the service by more than $ 600,000 over two years, "said Rowe.

Not health insurance for workers was never considered, she said.

"Of course, We are the Department of Health, we have much to concentrate on our own employees and their well-being, "said Rowe.

PG Peeples, President Lexington's Urban League, said his organization insurance options are limited, because it employs only six employees. He hopes, with United Way agencies or other municipal offices League band, the number of employees for a large pool to build bargaining power necessary.

"I'm disappointed they are going, to remove this option, "said Peeples." I understand that they are trying to do cost savings. "

How has the city submitted offers Insurance services to agencies outside the city government?

"For the most part we did not really know," said Straub. "We have inherited this situation and the arrangements seem to have in place for a number of years. "

January Isenhour, director of the Carnegie Center for Literacy, said the center's budget was originally from the city, so his inclusion in the health pool seemed logical.

In 2003, the Centre was an "external Agency "and began their own finances, but remained in the city Insurance Group. The Carnegie Center has started pricing not outside of health policy, it has to plan for another year on the city.

Meanwhile, the city uses for other ways to look outside agencies shift costs.

Ed Lane, City Council for 12 Lexington District, said the city could soon consider whether to outside agencies to raise money for the maintenance of the municipal office space can be help taking.

"The recession brings a lot of pressure on government to provide all necessary services to taxpayers, but it also gives us a Opportunity to look at what are essential and which services are not needed services ... to try to maximize the efficiency of the government as much as we can, "says Lane.

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