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Thursday, November 12, 2009

City Changing Non-Union Health Plan, Wants Unions To Do The Same

Managing Director Camille Barnett says the city will save $6.3 million annually by making some changes to health benefit plans offered to non-unionized city workers -- both upping the some out of pocket costs and shifting the way the city pays the insurance bills.

Employees will be notified of the new plan structure at 2 p.m. today by email and human resources personnel.

Barnett also said the city would like to achieve similar savings from the health benefits for the city’s 22,000 unionized workers -- but would not detail exactly what the city was looking for in contract negotiations.

“We are leading by example,” Barnett said. “This is a good way to save money without decreasing benefits.”

While employee monthly contributions will not change, the new benefits set-up will increase out of pocket maximums for the 6,900 workers and retirees in the city program, who are on three different plans from Independence Blue Cross. Some unionized workers are also on the city-administered plan.

In addition, the city is shifting to what is known as a “self-insured” plan, meaning that instead of paying a per-member amount to Blue Cross each year, the city pays the claims directly, as well as administrative costs. This means if the city expenses come in lower than expected, the city keeps the difference. The city will also purchase “stop loss insurance” that would help protect them against high claims.

Currently, each of the city’s four municipal unions has their own health and welfare trust and the city negotiates a per-member amount to pay into those funds each year. Most members do not pay a monthly contribution for benefits.

Attorney Deborah Willig, who represents both the firefighters union and white collar workers in AFSCME District Council 47, said the unions might consider using self-insured plans.

“If we could be guaranteed a savings of money, we would consider it,” Willig said. But she stressed that the unions would not consider giving billing authority to the city, which had also been proposed during contract talks.

Contracts for the four unions representing municipal workers expired June 30. So far, no new deals have been reached.

Because the police and fire unions cannot strike, their contracts are resolved through binding arbitration. The arbitration hearings have concluded for police and their contract award is expected soon. The arbitration hearings for fire are scheduled to extend into the new year.

Negotiating sessions for AFSCME District Council 33, which represents blue collar workers, and District Council 47, which represents white collar workers, have lagged since summer. They are expected to pick up after the police contract is announced.
Posted by Catherine Lucey @ 2:00 PM  Permalink | 5 comments
Comments   
  • Comment removed.
  • 0 like this / 0 don't   •   Posted 4:43 PM, 11/12/2009
    This is a shame. The city has demonstrated over the decades that they are NOT competent to manage the employee health plans. Non-union employee health insurance costs are higher to the city then union members for similar coverage. I say similar coverage because the non-union employee also contributes more, has a higher co-pay and a higher deductible, and more paperwork. Sad to say, according to the Pew report which looked at this closely, DC47 is the best manager of health care benefits getting the biggest bang for the buck. Go ahead and raise the employee contribution, increase the co-pay and the deductible but please let somebody else manage the plan(s). brian stewart is right. This is strictly about having the cash available for city administrators to tap into.
    — nebulus
  • 0 like this / 0 don't   •   Posted 4:57 PM, 11/12/2009
    Since when does the city manage to do anything correctly? Look at the fiscal mess the city has gotten itself into, and now they want to manage healthplans? Good grief, a kindergartner can figure this one out!
    — Patrizia007
  • 0 like this / 0 don't   •   Posted 6:58 PM, 11/12/2009
    How about explaining to Big Al D'Attillio that he does not four need deputy commissioners in Human Resources presiding over a small department of less than 50 people. They each earn about $98,000. Eliminate three and that saves almost $300,000! Also tell Managing Director Camille that she does not need the four new deputy managing directors at $100,000 each. Those positions were filled, but she farmed them out to other people so she could bring in MORE people!
    — philly68
  • Comment removed.


5 comments
About The Philly Clout Team
PhillyClout
Chris Brennan, a native Philadelphian and graduate of Temple University, joined the Daily News in 1999. He has written about SEPTA, the Philadelphia School District, the legalization of casino gambling, state government, the mayor, the governor, City Council and political campaigns.
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David Gambacorta spent a small eternity writing about cops, drug dealers and serial killers. Now he’s writing about power and politics ­– which sometimes reminds him of the old crime beat. He joined the Daily News in 2005. And yes, he knows you’re not quite sure how to pronounce his last name. E-mail tips to gambacd@phillynews.com
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Catherine Lucey joined the Daily News in 2002 and has written about murderous drug gangs, political protesters and Harry Potter. After covering the 2007 mayoral election, she moved over to the City Hall bureau where she has been reporting on the Nutter administration.
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Jan Ransom, a native New Yorker, joined the Daily News in 2010 after graduating from Howard University. She has since written about the difficulty of filing police complaints, tax deadbeats and life after violent home invasions. She joined the Daily News City Hall Bureau in 2011 and has plunged headfirst into reporting on administration budget battles and City Council shenanigans.
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Catherine Lucey
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Chris Brennan
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