TERRE HAUTE —
Terre Haute city employees will have a new health plan option as the Board of Public Works and Safety has approved a high-deductible health plan.
The board Monday voted to move the city’s medical, dental and vision plans to Anthem, away from Cigna insurance.
Patrick Carney of Old National Insurance told the board the city’s insurance claims for medical, prescriptions and dental are projected to exceed $7 million this year, up from more than $6.7 million for last year.
The city’s claims in 2008 were more than $4 million.
The city has 513 employees. The city has seven large claimants projected to be over a $150,000 deductible, with more than $2 million expected to be paid out on those seven, Carney said.
Last year was the first year for the city with Cigna, Carney said. In addition, last year was the first year the city offered two health insurance plans, with a new plan offering a $500 deductible for an individual and a $750 deductible for family.
The city would face a 28-percent rate increase to renew with Cigna, Carney said. The city also would have just over a 17-percent rate increase under an Anthem standard plan.
“We recommend modifying the two plans that are being offered today,” Carney told the board. “We [the city] can’t afford even a 17-percent increase ... as there is nothing that can absorb that kind of increase
A new high-deductible health plan with a health savings account through Anthem would be offered with a $3,000 deductible under a single employee plan and $6,000 deductible family plan. After the deductible was met, the plan would pay 100 percent of insurance costs.
“When we did benchmark studies, we found that we were one of the few municipalities around that state that did not offer a high-deductible health plan,” Carney said. “A lot of employers are moving to a consumer-driven plan.”
The city also would offer a “buy-up” option for a traditional PPO [preferred provider organization] plan with a $750 deductible; the employee would pay 20 percent and insurance would pay 80 percent of health costs.
The city also would offer a flexible spending account for employees who choose the traditional PPO plan, Carney said. “A flexible spending account allows employees to set aside their money, pre-tax, for unreimbursed medical, dental and vision. It is smart way to maximize your health care dollars today,” Carney said.
The cost to the city for the flexible account is an administration fee of about $5.50 per employee per month, Carney said. The two Anthem plans would reduce overall costs to the city by 4.7 percent.
In addition, a health and wellness program through Fitness Experts will allow city employees to receive a free on-site biometric screening, health risk assessment and health coaching, Carney said.
In other business, the board approved an agreement with Indiana State University approved by the Terre Haute City Council last week. The plan would allow the city to vacate some streets through ISU’s campus, a move that gives which ownership to the university. The vacated streets are North Fourth and North Fifth streets through ISU’s campus and Chestnut Street from U.S. 41 to Fifth Street. The move will allow ISU to make changes and improvements under its new master plan.
In the separate agreement, ISU will reimburse the city for the costs of changing traffic signals at the intersection of Fifth and Cherry Streets; Fifth Street and Wabash Avenue; and Fifth and Ohio streets to accommodate two-way traffic.
The university, under the agreement, states it is aware of the current discussion regarding the conversion of Cherry Street, between Third Street to the west and Eighth Street to the east, to two-way traffic. If the city adopts such a measure, ISU would not have to assist in cost of that conversion, according to the agreement.
If ISU would decide to close or restrict vehicular traffic, including permanent closure, the university must notify city departments 90 days before a closure or restriction, to allow for planning and rerouting of vehicular traffic and emergency services, the agreement specifies.
Also, prior to any design or improvements, ISU agrees to discuss with the city and its engineering, police and fire departments impacts upon emergency services. The university also will be responsible for snow and debris removal along a bike trail path on Fourth Street from Cherry to Tippecanoe streets.
Howard Greninger can be reached at (812) 231-4204 or howard.greninger@tribstar.com.
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