Grand Forks considers insurance switch to cut costs

June 23--The city of Grand Forks is considering a switch in health insurance, a decision that would save some money and affect coverage for 485 eligible employees.

Last week, a Pension and Insurance Committee of five city employees met and received presentations from two private health insurance carriers, Blue Cross Blue Shield and Sanford Health. This was the committee's first meeting on switching carriers, according to Compensation and Benefits Administrator Tangee Bouvette. The carriers are "really similar to where we were at with the budget," she said.

The city will save 7 percent by switching to a private carrier for a plan similar to what it has now, according to Bouvette. It's currently covered by North Dakota Public Employees Retirement System, or NDPERS, a state pension program covering 63,200 people in the state.

Covering such a large group allows NDPERS to offer consistent rates and avoid premium spikes, according to NDPERS Executive Director Scott Miller, and works best for small groups that risk paying more for private insurance.

"But we're getting to be a pretty big group on our own," Bouvette said, adding it's because of those 63,200 customers NDPERS can't offer more competitive rates to the city of Grand Forks.

"Not a thing is wrong with NDPERS," Bouvette said. "It's just that if we go out on our own, self-funded, we save 7 percent."

If the city switches, it will still share a pension agreement and retirement with NDPERS, and if it's not happy with a private carrier after switching, it can switch back.

"This would not be taking anything away from employees," Bouvette said, meaning employees won't receive anything less and they won't pay anything more. "It's just something we should always be checking out. Getting the best bang for our buck."

Bouvette said she will issue employee surveys now that the committee has had its first meeting, and the committee will meet again early July to discuss their findings.

"We're hoping to have some direction in a month," Bouvette said.

If the committee decides to switch, Bouvette said the city has the option of choosing a plan with more preventative care. Right now, employees are covered by a plan that was grandfathered in with the Affordable Care Act. Bouvette said the main distinction is newer plans offer more preventative care, which typically costs groups more.

But, Bouvette said, even if the city chooses a plan with more preventative care options, it still will save 4 percent compared to what it's paying now.

"So either way, it's going to save us money," Bouvette said.

___

(c)2018 the Grand Forks Herald (Grand Forks, N.D.)

Visit the Grand Forks Herald (Grand Forks, N.D.) at www.grandforksherald.com

Distributed by Tribune Content Agency, LLC.