Story posted Wednesday, March 3, 2010
Health Care Costs Among Budget Challenges
By TIM O'CONNOR Journal & Topics Reporter
Reigning in health costs is going to be a major part of tackling this year's budget, according to Niles Village Manager George Van Geem.
"It's budget season and we're trying to challenge every expense we have," Van Geem said.
Health care cost the village $4.2 million last year, he said. That represents insurance for 250 full-time employees, 90 retirees, and their families. About 500 lives in all are covered by Village of Niles health insurance.
Which is why he asked the village's health care advisers, Corporate Benefit Consultants, Inc., to present ideas on cutting health insurance cost before the village board meeting Tuesday, Feb. 23.
Representatives of Corporate Benefit Consultants said the village's heath care cost went up 22% in 2008-2009 because more people are seeking out care now.
They said part of the reason is people are afraid they will lose their jobs and health insurance so they are getting procedures done now they may otherwise put off.
The consultants put forth a number of ideas for reducing those costs and encouraging those covered to switch to less expensive plans.
Among the ideas was moving to a three-tier drug card system that would raise copay rates. The village currently uses and two-tier system where the copay is $5 for generic drugs and $25 for brand name drugs.
The consultants also suggested implementing an employee wellness program and offering incentives for employees to opt out of village health insurance and move onto their spouse's insurance plan. However, details of those incentives were not discussed.
"It was all interesting," Van Geem said. "I asked them to give us ideas that were actually working in other communities and that's what they brought forward."
He said the board would review the proposal and try to find a mix of ideas that works for the village.
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