Wyman’s Health Insurance for Towns
by Christine Stuart | April 2, 2008 4:36 PM
Posted to Health Care
| State Capitol
State Comptroller Nancy Wyman wants to save municipalities money by lowering their health insurance costs.
Wyman’s plan allows cities and towns to pool their employees with employees in other cities and towns and create one large purchasing pool to drive down insurance costs.
Wyman said Wednesday that municipal employees could see a savings of $60 per employee, per month, if they decide to join the new plan. So far 11 towns have expressed interest, she said.
Cities and towns interested in enrolling in the Enhanced Municipal Employees Health Insurance Plan should call Wyman’s office by April 10.
Wyman said as towns negotiate their budgets she wants this plan to be part of the discussion because not only will it save the towns money it will help lower property taxes.
“This plan is a creative and bold step that addresses the most critical budget issue facing our cities and towns and their taxpayers,” Wyman said in a press release. “It is not just a proposal or a concept—it is a working plan that saves real tax dollars at a time when many our municipalities are in dire need of relief.”
For example, a town with 1,000 employees, including teachers, could expect an average annual savings of approximately $720,000. Those numbers are based on a pool that includes 20,000 lives and actual health insurance costs provided by the 11 interested towns. Wyman said the savings could be higher or lower depending on a town’s claims history.
How is this plan different from the one making its way through the legislature?
The piece of legislation proposed by Majority Leader Chris Donovan, D-Meriden, would allow municipalities, nonprofits, and small businesses to join the state employees health insurance pool, which has the purchasing power of more than 100,000 lives.
While some have described the two plans as competing plans, neither Wyman or Donovan, have classified it that way. Each has said of the other’s plan that it is just another option.
Wyman points out her plan is ready to go July 1, whereas Donovan’s plan is still waiting legislative approval. Donovan points out that the savings in Wyman’s plan depends on how many municipal employees join.
Comments (5)
Posted by: Gary Doyens | April 3, 2008 9:57 AM
The state reports that while DeStefano originally signed on to this program, he's since gotten cold feet on it. I wonder why? It would save New Haven taxpayers more than $5 million - possibly as much as $7 million next year. I wonder if the Anthem fundraisers have anything to do with it.
Posted by: cedarhillresident | April 3, 2008 10:10 AM
Gary is this true?? Even if it save 1 million it is a mill rate change but 5 to 7 million is defiantly a big help...
Not only that but the bigger the pool the more change for single payer coming to life!!
We need to ask the Mayor why?
Posted by: Gary Doyens | April 3, 2008 12:10 PM
The mayor said he expects to get insurance savings by bidding out healthcare for the first time in years. To achieve real savings, will require the unions to agree to a open contracts and agree to change the phrase "no benefit change." I've been told by knowledgeable sources at the state level that this is the lynchpin that has guranteed Anthem unfettered and unchallenged healthcare contracts for years. Each union has a slightly different benefit package which keeps them from being bundled and bid. In union negotiations, City Hall has refused to address it.
Now, knowing that Wyman was going to unveil this plan because it's been in the works and state officials have been collaborating with cities and towns for months on it, DeStefano announces he's going to finally bid something that should have been bid annually or bi-annually as a matter of common sense. He's obviously decided to go in a different direction. My estimates of New Haven's savings come from the state.
Posted by: Lothar | April 3, 2008 11:26 PM
If that's the case about DeStefano, that'd be pretty sad. It doesn't seem to make a lot of sense, though. He could have used a lot more corporate support in his gubernatorial bid, if it's campaign donation influence we're talking about. Or is it insurers as a chunk of his existing tax base that are the issue? They could lose a lot more than $7 million if a big taxpayer leaves town.
If it's campaign dollar influence then I say the mayor doesn't owe Anthem anything...lol
Posted by: guest | April 4, 2008 1:28 PM
I don't get the new haven issue. Hope the NH independent follows up with a local story.
Could it be unions are hanging onto increased benefits they negotiate with insurers and would lose them if they joined the municipal pool?
on another issue - state v municipal plans -- I think (not sure) the state insurance plans are better than the municipal plans.
Third issue/question. self-employed residents can join the municipal plans - would wyman's proposal also lower costs for them?