Baker Raises Worker Health-Insurance Cost
BAKER – The City Council unanimously voted Tuesday to charge city workers higher health insurance premiums and discussed ending city- subsidized coverage for retirees 65 and older.
The council agreed to reduce the city’s insurance budget by paying 70 percent of the insurance premiums for active and retired employees, rather than the 80 percent it has been paying since 2003. The change is retroactive to Aug. 1.
Paying 70 percent of all its workers’ premiums places the city’s insurance budget at $708,852 for 2005-06, officials said.
If the city had continued paying 80 percent of the premiums, the cost would have been $810,117.
Mayor Harold M. Rideau said the change is needed to stem rising insurance costs and to avoid layoffs.
Rideau said problems began when the United Health Care insurance company waited until the last minute before placing its bid.
Councilman J.E. “Trae” Welch said United Health Care originally asked for a 25 percent rate increase.
“When we told them we would look for other insurance, they reduced their rate increase to 10 percent,” Welch said.
City workers over the age of 65 came to the meeting to discuss a July 27 memorandum issued by city Personnel Director Phyllis Trisler.
The memo said, “The Council also directed me to advise retirees that are currently, and those reaching, the age of 65, that the city will no longer offer you group health insurance coverage effective next renewal (Aug. 1, 2006).”Attached to the memo was a United Health Care change form and information explaining the eligibility requirements and benefits of the federal health-care insurance program, Medicare.
“We are trying to find an answer to the (health insurance) problem,” Rideau told the retired workers.
Retirees over 65 were told Medicare could insure them after the city dropped their insurance.
Retirees under the age of 65 will continue to receive insurance coverage under the city’s health insurance policy.
“Medicare pays 80 percent for me and my wife,” Councilman James Pourciau said. “We have a Blue Cross supplement that pays what Medicare does not cover.”The retirees present said they did not mind paying a 100 percent insurance premium to continue their insurance coverage with the city.
Councilman A.J. Walls said the council’s decision is not etched in stone.
“The council before us made a promise, and we are a continuation of that promise,” Welch said. “We have to come up with answers before Aug. 1, 2006.”
In other matters:
The council voted unanimously to charge anyone having a burglar alarm a $25 fee for the third false alarm to which police respond within a calendar year and $25 for each subsequent false alarm.
With the exception of Councilman Charles Vincent, the council voted to increase court costs by $20.
Before the additional money is collected in criminal cases, however, the ordinance must be approved by the Judicial Council of Louisiana and the Legislature.