Switch reduces insurance bill

There will be a $100 deductible for inpatient services.
SHARON, Pa. -- The Mercer County Housing Authority will shave about $67,000 off its employee hospitalization insurance costs next year by changing insurance carriers.
L. DeWitt Boosel, executive director, said the agency has had Blue Cross/Blue Shield as its carrier for years but has been hit with annual rate increases of 20 percent to 30 percent over the last five years.
The bill for insurance for the agency's 35 employees this year was $270,349, and Blue Cross/Blue Shield already had informed the authority that it would be hit with a 22 percent increase in January that would raise the annual bill to $327,690.
That prompted the authority to shop around for a better deal, he said Wednesday, pointing out that the authority tried to stay as close as it could to the coverage provided under the Blue cross/Blue Shield plan.
Guaranteed increase
What it found was a proposal from Health Assurance that will provide the coverage at a cost of $260,433 for 2004 with a guaranteed increase of no more than 12 percent in 2005.
Employees will see some differences.
Co-payments for things such as prescriptions will increase $5 and, where there was no deductible for any inpatient services under Blue Cross/Blue Shield, employees will now be faced with a $100 deductible for inpatient services.
There was no vision package under Blue Cross/Blue Shield, but Health Assurance offers a 20 percent discount on all vision services.
Some employees may find that their doctor isn't participating in the Health Assurance plan and would have to choose a new doctor or pay 30 percent for any medical service provided by that physician.
The authority's board of directors voted to approve the change in carriers effective Jan. 1.