City switches health insurance companies: Employee wellness program under consideration [The Evening News and the Tribune, Jeffersonville, Ind.]

Dec. 24--Jeffersonville Mayor Tom Galligan said that the city would not reconsider its decision to switch health insurance providers at a Board of Public Works and Safety meeting Wednesday.

The board voted at last week's meeting to switch from Humana to Preferred Health Plan, or PHP, after Humana raised its cost by about 26 percent compared to the previous year, according to city officials.

Pepper Cooper, the insurance agent of record, said he has "no problem" with Humana, but that he believes the city will save money with the switch.

Larry Thomas, the city's communications director, said Humana's first offer would have resulted in nearly a 26 percent cost increase, so Cooper told the insurance company that he would shop around to other carriers.

Humana counter-offered with a proposal that still would have resulted in about a 16.3 percent increase, Cooper said.

An analysis by Cooper showed Humana's second proposal would have cost an expected $3.6 million, an increase of almost $600,000 over the previous year. The expected cost for PHP was $3.3 million, an increase of $264,794, or 7 percent.

A representative of Humana made one last attempt Wednesday to change the administration's mind, arguing that Cooper had only considered fixed costs in his analysis.

"We're disappointed," he said. "We've been your carrier for 10 years."

There is a threshold for how much the city can spend, and anything over that threshold will be covered by the insurance company. Humana says that is where the city would have saved money with them.

Galligan said it is easier to justify to the public saving more than $300,000 up front rather than telling people they could possibly save money at the end of the year.

Thomas said they will have to begin open enrollment soon to have everyone transferred to PHP. The city also is considering other measures to help reduce costs.

"One of the things being discussed is an employee wellness program," Thomas said. "A wellness program might be the best way to help mitigate [health insurance cost] increases in the future."

Thomas said the health insurance committee -- which is made up of representation from every city department -- is discussing a program that could include smoking cessation, weight loss and early screening for diseases and other conditions.

"The idea is to try to catch things on the front end rather than paying a doctor or hospital later," Thomas said.

He said it would be at least four months before any wellness program would be in place.

In other business

--The board approved a Jan. 18 parade for Martin Luther King Jr. Day. The parade will begin at the County Government Building along Court Avenue at 12:30 p.m. and will turn onto Wall Street and go to Wall Street United Methodist Church. The fire department agreed to participate in the parade.

--The board voted to condemn a house and trailer at 108 Williams St. Councilwoman Connie Sellers said volunteers have cleaned up the property and the city had to remove sewage. Sellers said a relative of the woman who owns the property threatened to throw more sewage in the yard so that the city would have to clean it up.

The property owner will be given 15 days notification, and then both structures will be torn down and a lien will be placed against the property.

--A $210,375 bid from

TSI Paving was accepted for the third phase of a sidewalk project on Charlestown Pike.

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Copyright (c) 2009, The Evening News and the Tribune, Jeffersonville, Ind.

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