and Mary Thurwachter
Health-care insurance checkups are turning up substantial savings for at least two coastal municipalities as they near completion of this year’s budget process.
Lantana saved $230,000 by switching employee health insurance from Blue Cross/Blue Shield to a comparable Aetna plan. And Ocean Ridge hopes to save $50,000.
Insurance broker Dave Adams, a Hypoluxo Island resident, pitched both the towns, informing them he could find thousands of dollars in savings in their employee health-care plans.
Prior to the switch, Lantana Town Manager Michael Bornstein said he was content to let stand the deal with Blue Cross, because the town’s insurance carrier had planned no increases, charging $1.2 million for next fiscal year. But the town manager was directed to get more quotes after a July 20 budget workshop.
Council members, including Cindy Austino, pushed for new health-care estimates after the budget workshop in which Adams spoke at the public portion to challenge the existing plan.
The town’s insurance broker, Kurt Gehring of the Gehring Group, also present at the meeting, defended the current coverage, noting that swapping the old plan for a new could significantly alter the benefits available to employees.
Bornstein echoed the concern over reduced benefits.
“If you want to change the benefit package,” he said, “They do not offer this insurance that we get any more. You are not going to get the same insurance. We went out to bid — we got a zero percent increase. It’s not something I’m recommending you do.”
Changing benefits and costs to the employee was part of the primary discussion for Ocean Ridge commissioners and public before the vote for the insurance change.
Ultimately, the government leaders are obligated to explore possible savings, said Lantana Mayor David Stewart during the town’s budget workshop. “I think we owe it to our residents to make sure the services we are providing are the best for the money,” the mayor said. “If we can get the same insurance for $200,000 less, why aren’t we doing it?”
Preserving benefits in the health plan was critical, however, he said, noting he didn’t want to see benefits lost for any employees. Ocean Ridge also discussed the changes for employees, including a $2,000 deductible a — but the town will subsidize that by $1,200. That means the employee pays only $800 for the deductible.
“Sounds like a better situation,” Mayor Ken Kaleel said.
Questions were raised on the timing of the new health plan, with Police Chief Chris Yannuzzi pointing out that some employees who have reached their deductible for this year, may have to pay all over when the new plan kicks in on an earlier schedule.
Overall, commissioners seemed happy to accept the savings the new health plan offered.
While residents attending Lantana’s meeting questioned whether the town shouldn’t annually bid out its health-care insurance, others, such as council member Tom Deringer, pointed out that private sector business routinely shops around for less expensive insurance coverage.
“You do this every year,” said resident Peter Reed, who runs a real estate company. “You have to keep them honest.” Ú
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