Effective today (July 1), employees of Addison Township will be paying more to keep their health insurance coverage.
This past fiscal year, the rate for coverage of a single person through the township was $423, for two individuals the cost was $941 and for a family the cost was $1115. All employees receiving coverage pay a deductible. For a single individual this amount was $35, bringing the actually township contribution down to $388. The deductible for two individuals was around $38 and for a family around $41.
In order to balance the budget for the upcoming fiscal year, the township voted to maintain its contribution at all levels. For example, the township will continue to cover only $388 for a single individual, even though premiums would be increasing.
When the township first received premium amounts from Blue Cross, Alberty stated that an error was made and Addison was not grouped for the municipality rate coverage. Township officials received a rate proposal of over $500.
‘We received a ridiculous rate increase of about 26 percent from Blue Cross/Blue Shield,? Alberty explained during the board’s June 8 regular meeting. ‘We changed agents, and our new agent reacted quickly to this for us and got us some new rates.?
Dave Bommaritto, based in Rochester, managed to acquire a rate of $458 for the township. Based on advice from Bommaritto, Alberty presented to township officials some additional cost saving measures that can be used to reduce the premiums:
n First, the township can switch the co-pay on the prescription drug card from $10 for generic and $30 for name brand to $10 for generic and $40 name brand.
n Second, a co-pay will be added for chiropractic services. Each appointment will now be treated as a regular office visit with a $30 co-pay.
n Increase the preventive care coverage from $250 to $500.
These changes reduce the premium amount to $438. Alberty stated that he feels the increases in co-pays are balanced at least somewhat by the increase in preventive care.
Alberty added that the township may be able to save even more money by switching to a Blue Cross network HMO or HAP. ‘This would definitely cut our insurance costs for the short term,? he told board trustees, ‘but I’m not sure this is the kind of coverage that would be best, or be what our employees want.?
At the June 8 meeting, the board approved a motion 5-2 to accept the $438 premium rate in addition to the two proposed co-pay increases. Township Clerk Pauline Bennett and Treasurer Alberty voted against the motion. Addison officials were instructed to research alternative health coverages, such as a HMO or HAP, and then speak with employees about their preferences.
In addition to the alternative plans, Alberty said officials are also looking into the possibility of removing the minor dental coverage offered through Blue Cross and offering a full dental plan instead.
‘If we can drop this and go with a real dental plan that’s only $10 or $12 more a month, I think this would be a real benefit to our employees,? he explained. ‘This would also be available then to those who do not take the coverage offered through the township.?
At this time, the township has sent out a letter of participation to employees and received some numbers for alternative coverage options; however, employees have not been surveyed for their preferences.
‘Our renewal rates for Blue Cross are effective July 1,? said Township Treasurer Dan Alberty. ‘We can cancel the contract at any point after that date. We can even change this year if we need to.?