GT health insurance now up to $130 a paycheck - Insurance News | InsuranceNewsNet

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January 22, 2017 Newswires
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GT health insurance now up to $130 a paycheck

Record-Eagle, The (Traverse City, MI)

Jan. 22--TRAVERSE CITY -- Ample warnings didn't spare Grand Traverse County employees a surprise when their first new year's paychecks came with a bigger health insurance co-pay.

But their new $43, $104 and $130 per paycheck contributions for single, double and family insurance plans, respectively, is less than what many private sector and local government employees pony up for health care coverage, said Grand Traverse County Administrator Tom Menzel.

"I would have preferred not to do it, but we really had to make the difficult decision to move," he said. "And understand if you've never done it before, it's a shock even if it's a dollar more a month."

County employees' Jan. 13 paychecks arrived with a 20 percent health insurance copay. That bump from a 6 percent or 10 percent contribution proved controversial with employees, many of whom packed an April board of commissioners meeting to speak out against the benefit cut.

But commissioners approved the increase, prompting union representatives with five law enforcement bargaining units to file grievances because it ran against copays in still-current contracts. Union groups later rejected a subsequent 15 percent compromise floated by administrators.

Teamsters 214 business representative Bob Donick said employees still suffered "sticker shock" when their first 2017 paycheck arrived, despite meetings and notices about the change.

"Everybody got the head's up before it happened," he said.

Menzel said the county's financial state made 6 percent copays unrealistic. He said the market calls for at least 20 percent -- a contribution that he would have preferred to phase in for employees.

"They've lived in a somewhat protected environment financially, so you can't blame them for being shocked," he said.

Short's Brewing Company human resources Director Mindy Thies said that company's employees pay 20 percent of their premiums. She said she previously worked as a benefits consultant and noted differences between public and private benefit plans. Private companies by and large have 25 or 30 percent employee contributions, she said.

"Twenty percent is generally pretty low," she said.

Employees at one local company don't pay anything toward their health insurance.

Plascon Group Owner David Peterson said it has been that way since "day one" at his company. He said it is expensive with nearly 100 employees costing on average $300 per month in health insurance. But he maintains adding benefits probably is the most important thing management can do for employees.

"Because I have a hard time finding employees as it is," he said. "It's a huge thing for me to be able to offer that."

Several county and union officials have pointed toward a recent exodus of employees as a sign benefit cuts and other measures have taken a toll on workers. But Menzel said the county's financial situation -- a $50-plus million pension debt and other liabilities -- made the health insurance increase necessary.

He said the measure will provide a substantial savings for the county's budget -- a projected $606,000, according to information distributed by county finance Director Jody Lundquist.

Projections state a family insurance plan holders this year would have paid $38.91 and $64.85 per paycheck for 6 percent and 10 percent contributions, respectively without the change. Family plan holders will pay about $3,100 this year toward their premiums.

That's compared to $933.79 and $1,556.32 for 6 percent and 10 percent plans, respectively.

Traverse City employees, whose administrators share a building with the county, have paid 20 percent of their health insurance premiums for several years, said city human resources Director Kristine Bosley. She said depending on the plan -- whether high-deductible or copay -- that a family plan costs $272.72 or $313.91 per month.

Lundquist said county officials offered a new health savings account option with a lower premium to help offset the increase. That plan's cost per paycheck runs $33 for single, $79 for double and $99 family plans.

2017 Grand Traverse County employees' health insurance contribution

--20 percent contribution--10 percent contribution--6 percent contribution

Bi-weekly premium

Single--43.23--21.62--12.97

Double--103.76--51.88--31.13

Family--129.69--64.85--38.91

___

(c)2017 The Record-Eagle (Traverse City, Mich.)

Visit The Record-Eagle (Traverse City, Mich.) at record-eagle.com

Distributed by Tribune Content Agency, LLC.

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