Howland cuts health-care cost with help of 3 unions

The township instituted co-payments to lower its health insurance rate.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
HOWLAND -- The township has managed to lower its employee health insurance costs through the cooperation of the administration and three unions.
"Our insurance costs are going backward," Darlene St. George, township administrator, said Tuesday.
The township will pay $489,000 from September to August 2007 for health coverage through Medical Mutual of Ohio.
Had the township renewed its coverage with Anthem Blue Cross-Blue Shield, its premium would have been $557,000.
There was a slight increase in dental insurance, from $39,500 to $43,000.
Rick Clark, trustee chairman, credited the cooperative spirit the administration has with the three unions for the cost decrease.
"It only makes sense to include the employees in discussions, because they are the most affected," Clark added.
Ongoing discussions
During the past two years, the administration has been meeting with union representatives and department heads to discuss keeping a lid on coverage cost. They look at the benefits being received, and those that aren't used and can be cut. Money saved goes toward benefits that are used.
For example, Clark explained, Blue Cross-Blue Shield was paying 80 percent, and employees 20 percent, for medical providers who are outside the insurance company's network.
Clark said that since nearly all medical providers are in a network, the employees' share for non-network doctors will increase to 40 percent rather than 20 percent.
The maximum out-of-pocket cost for employees to non-network providers was $300 for a single person and $600 per family. That increased to $1,000 per single; $2,000 per family.
The township has 67 union employees represented by the Ohio Patrolmen's Benevolent Association, International Association of Firefighters Local 2786 and Howland Township Road Department Employees Association.
The 15 nonunion members have the same coverage as unionized workers.
"We're looking for ways to save," said fire Capt. Dave Williams, vice president of Local 2786.
A first
He noted this is the first agreement in which employees have a co-payment if using medical providers within the network. Under the new agreement, they pay 20 percent of the cost with a maximum out-of-pocket cost of $250 for a single person and $500 per family.
Williams said employee co-payments are fair because those who use the insurance pay for it and those who are healthy don't pay.
When the township was self-insured from September 2003 through August 2004, it paid $687,000 for employee health, life and dental coverage.
St. George said the last time the annual premium was under $500,000 was in 2001 when it was $498,000, and in 2000 it was $448,000.
Co-payments on a generic prescription increased from $10 to $15 and from $20 per brand name drug to $25.
The employees will be paying less for life insurance, from 34 cents per $1,000 to 30 cents per $1,000.
Trustees will meet at 8:30 a.m. Thursday to accept the health insurance premium.
yovich@vindy.com