Published: December 10, 2009 12:00 am      

Village faces higher health care expenses

By JIM AUSTIN
Cooperstown Crier

The board of trustees spent almost two hours Monday morning looking at health care benefit options for employees and trying to figure out how to handle escalating costs.

Ralph Morse, President of Kaatirondack Benefit Planning Incorporated in West Oneonta, explained that the village will have to switch from an ``experience- rated’’ to ``community-rated’’ insurance plan.

The change means the village will no longer be able to negotiate rates or receive renewal concessions and will likely result in higher cost.

According to Morse, CDPHP, the village’s current insurance carrier, said if it had been able to continue to experience rate the village, the renewal increase for 2010 would have been almost 25 percent over this year. The coverage for Medicare-eligible retirees would have risen 94 percent.

``While no rate increases are ever welcomed, alternative programs available that are closely matched to the village’s current plan represent a hefty increase over current program costs,’’ Morse said.

The board must make a decision on a new health care plan by the end of the month because the health plans run on the calendar year and not the village’s fiscal year.

Before a decision is made, however, Trustee Neil Weiller said it is crucial to know exactly what the village’s cost will be.

``These [plans] are going up tremendous amounts’’ he said.

Last year, according to Village Treasurer Mary Ann Henderson, the village paid CDPHP almost $230,000 for employee health benefits. The six plans currently under review by the village board come with increased costs ranging from 3.8 percent to 26.9 percent depending on the level of coverage provided.

Deputy Mayor Jeff Katz said it will be important to try to determine where employees could be hurt by changes to the co-pay and deductibles with the new plan selected by the village.

Weiller said it may be possible to select a lower cost plan with the understanding the village would reimburse employees for increased deductible and co-pay amounts.

The village currently reimburses employees the $500 deductible for in-patient hospital stays, according to Henderson.

The provision was put into the employee handbook a few years ago when the village opted to save money on health care cost by choosing a plan with a higher deductible.

Trustee Joe Booan said switching to higher deductibles and co-payments would save the village some money and by changing the policies and procedures to provide reimbursement for some out-of-pocket expenses would ``take the sting out’’ for employees.

Weiller also commented that 2010 may the year to review the amount of health care costs paid by individual employees. Right now, employees hired before 1992 do not contribute to their health care. Employees hired after that date make contributions based on a sliding scale tied to their longevity with the village.

Henderson is currently compiling additional information for the trustees who will meet again Monday, Dec. 14 to complete their review of the insurance plans.