Health care plan options to save thousands
City workers still can opt for zero premium contributions
NILES — In less than a year-and-a-half, the city’s health care broker has found ways to save more than $2 million, including recent changes passed by council that require more contributions from employees.
The new plan may save the city $100,000 to $200,000 more than the millions in savings the city realized last year if payouts the city is responsible for are similar to the previous year, said Mike Zaluski, a broker and partner of Specialty Insurance and Financial Services.
A plan that once cost employees only a $100 deductible, now called the “buy-up plan,” requires pay contributions between $9.50 and $30 a paycheck, depending on how many dependents take part, and has a family deductible of $500.
Employees can still opt for the “city plan” for themselves and family members that requires no monthly contributions but has a $1,500 family deductible, a chart provided by Zaluski shows.
Previously, if a person was hospitalized, the city paid all but $100 of the bill, but employees now will have out-of-pocket maximums of $2,000 for the family buy-up plan, and $4,000 for the family city plan.
“These changes have introduced health care consumerism into the plans,” Zaluski said. “The employee can now make the best choice for them and their health needs with the ability to choose between plans. And it helps the city, because if employees want the plan with richer benefits, they will have to pay.”
City Council passed the new plans for non-union, full-time employees as an emergency measure during a November meeting. The same details were worked out in contracts with union employees. Six employees are still in union negotiations, but are expected to accept the same terms, Zaluski said.
The buy-up plan, which asks employees to pay 2.5 percent of the plan premium once implemented on Jan. 1, will require employees to pay 5 percent of the premium beginning in 2018, according to the ordinance.
“Change is difficult when it comes to health care plans. Sometimes it is best to take baby steps along the way, but the employees, the union and the committee have embraced the change,” Zaluski said.
Under the guidelines, city employees who are married can share a plan, with only one spouse paying the premium, according to the ordinance. If an employee opts not to accept a city health care plan and can prove he or she has a different plan, the city will pay the employee $100 a month, the ordinance states.
Employees also will shoulder more of prescription drug costs and are being educated on the use of generic drugs to save cash, Zaluski said.
Prescriptions previously cost employees $5 for generic drugs and $10 for brand drugs. Now generic drugs cost $10 and employees could pay as much as $50 for specialty drugs.
In order to help employees take control of their health, an effort that leads to cheaper costs, Zaluski said, the city will host a wellness fair in 2017. Employees and their families will be able to check their vital signs, connect with in-network providers and learn ways to combat health problems in early stages as a way to keep their costs down.