Commissioners ponder possible savings in health care costs
The Fayette County commissioners can save $450,000 – enough to substantially reduce a $714,000 deficit in the 2003 proposed budget and avert possible layoffs – if the county’s unions can be convinced to switch to the Community Blue health plan. Commissioner Sean M. Cavanagh said Wednesday the switch would require an increase in copayment from $10 to $15 for doctor’s visits and prescription drugs. But he added that convincing the three unions to accept that package might be the only way to keep everyone on the payroll.
“We have to increase our copayments some, for doctor’s visits and prescriptions,” said Cavanagh. While the county is currently in negotiations with the Service Employees International Union, the largest, Cavanagh earlier said he wants to reopen contracts with two other unions in hope of curtailing health care costs.
As an inducement, Cavanagh said he was prepared to offer all three unions vision coverage and a life insurance benefit.
Commissioner Ronald M. Nehls said while the county could realize “tremendous savings” through a switch in health plans, “It’s going to be a difficult thing (to work out).”
Commission Chairman Vincent A. Vicites said the commissioners have two weeks to get some type of deal accomplished, but he noted that a possible savings of $450,000 to $500,000 makes the effort a worthwhile undertaking.
Vicites said the county’s previous high for a one-year jump in health care costs was 22 percent. This year the figure stands at 36 percent unless something is done, said Vicites, who warned that the commissioners’ current options would narrow considerably if they plan to pass a budget with no tax increase.
“If we are not able to get health care costs down, we’ll have to pare expenditures somehow,” said Vicites.
Also at Wednesday’s meeting, the commissioners approved a $148,222 contract to Software Systems Inc. for installation of new computer software in the county controller’s office.
Controller Mark Roberts thanked the commissioners for their “foresight” in having the new system installed. Roberts said the software, known as GASB 34, will allow his office to come into compliance with new state accounting standards.
Vicites said that as long as the new system permits the printing of more frequent and accurate expense reports, he would view that as an added bonus of the expense.