Eau Claire lauds zero growth in health insurance costs: That’s in city’s health insurance costs: No increase next year [The Leader-Telegram, Eau Claire, Wis.]

May 13--A 57 percent increase in health insurance costs loomed over Eau Claire city government in 2007, but changing its provider, modifying employee plans and implementing a wellness program prevented such a budget-busting jump.

And for the next year, the city won't see an increase in its cost to provide health insurance to its workers, retirees and their families, according to its insurance provider.

"We're coming to report that we have a zero percent increase to the health insurance program," said Darin McFadden, chief operating officer of Group Health Cooperative.

Representatives of the Eau Claire-based health care cooperative told the City Council this week that for July 1 through June 30, 2011, the city's premiums won't increase because efforts taken by the city and its employees are working.

"Frankly, it's really good news, and it's fun to talk about health insurance when it's a good news story," assistant city manager Dale Peters told the City Council.

The city pays about $9 million of the roughly $11 million in premiums, with employees picking up the rest, Peters said.

The city was facing that 57 percent increase with previous provider Medica in 2007 -- an unanticipated $1.5 million budget hit. To curb costs, city officials changed the plan by increasing co-payments, boosting nongeneric drug costs and mandating employees take part in a health risk assessment program to continue receiving health coverage.

Since making the switch and creating an employee wellness program used by nearly all those covered by Eau Claire's health plan, Peters said, the city has saved about $6 million in premiums.

"The success of this program is a real tribute to our employees," Peters said. "They have embraced and engaged in the wellness process, and to have 99 percent of all employees and their spouses participating ... is very remarkable."

Participation in the program is helping employees feel better and reducing the need for health care services, he said, adding that employees also have become better health care consumers.

City Council members lauded the efforts to cut health insurance costs.

"We could have had this city in a fiscal crisis without this," council Vice President Dave Duax said. "We could have laid off a good portion of the city's workforce."

Councilman David Klinkhammer noted that statistics from Group Health's report showed that the city's workforce also had fewer health risk factors because of the program.

"Those are savings that are significant," he said.

The city's wellness program includes a biometrics evaluation, an online health risk assessment and one-on-one discussions with a health risk coach. Employees also can choose to enroll in yoga classes or a intensive "boot camp" program. Peters noted that eight of the city's boot camp members participated in the half-marathon May 2 in Eau Claire.

The City Council voted 10-0, with Mark Olson abstaining because he's a retired city worker with health insurance, to extend its contract with Group Health for another year. That extension will cover July 1, 2011, through June 30, 2012, with no more than an 8 percent increase in costs.

For 2009-10 insurance coverage, the city saw a 6.5 percent increase.

Dowd can be reached at 715-833-9204, 800-236-7077 or [email protected].

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