City looking to change way to fund health-insurance plan

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May 9, 2008

By JOE LoTEMPLIO The Press Republican Fri May 09, 2008, 12:00 AM EDT

PLATTSBURGH -- City councilors are looking to change an approach to paying for employee health insurance as a way to save money.

The city is considering self-funding a health maintenance organization plan instead of having a carrier administer the plan.

The move could save the city about $168,000 a year in premiums.

"We've got to start somewhere with savings, and this will help," Councilor and Budget Officer James Calnon (I-Ward 4) said.

Calnon said the plan will stay the same, and city workers will receive the same benefits. The savings will emerge as the city cuts costs on paying for someone to administer the plan.

"They (city employees) will even save money because it will cost less and those who pay a portion of the premiums will see the price go down," Calnon said.

Calnon said most of the employees who opt for the HMO plan are younger, healthier employees, which means claims should be less.

The city has been searching for ways to save money the past two years in order to fix a dismal financial picture.

A task force of councilors and union members was drawn up to look for ways to save money on health insurance.

Denise Nephew, president of the American Federation of State, County and Municipal Employees, said changing to a self-funding HMO appears to be a good idea.

"We are trying to help the city find ways to save money," Nephew said.

Nephew said union leaders will talk to the membership early next week about the proposed change.

Calnon put the change on the agenda for a vote at next Thursday's meeting.

"This is a good idea and good ideas should be shared, not negotiated," he said.

jlotemplio@pressrepublican.com