Lynn, union heads mull insurance fix

LYNN – Discussions are under way among Mayor Judith Flanagan Kennedy and city union representatives about possible changes to the municipal health insurance plans.According to Kennedy, adjusting co-pays for doctor and emergency room visits are merely one way the city can save money in tough economic times.”There are several things under discussion and nothing is settled at this point,” the mayor said Tuesday, noting the city’s total health care costs for fiscal 2012 approach $50 million. “One possibility is to increase the co-pays for doctor visits and the emergency room. We can save $25,000 just by increasing ER visit co-pays from $50 to $100.”The city’s employees and retirees are currently insured by Harvard Pilgrim. Under the plans, individual members pay 10 percent and the city 90 percent. Those with family plans pay 14 percent, with the city picking up the remaining 86 percent.””That is a good deal for any employee,” the mayor said. “The city pays a very large share.”Harvard Pilgrim offers Lynn employees a variety of plans, the costs and deductibles determined by the specific benefits package. Insurance companies like Blue Cross-Blue Shield and Tufts Health offer similar options.Discussions include comparing prices and coverages from other companies.”We’re certainly going to look at other companies to make sure we are getting the best deal. But that may not be beneficial to us,” said Kennedy, explaining the Tufts Health Plan policy for the city would amount to approximately $50.1 million. “So right now, Harvard Pilgrim is our best buy and we haven’t heard people complaining about the services provided.”Kennedy explained most hospitals impose a deductible on patient stays, depending on the facility’s respective classification. “Tier III hospitals have a $2,000 deductible while smaller hospitals would be $500. Unfortunately for us, both the Lynn and Salem hospitals are Tier III,” she said.The task of picking a health care plan is complicated by pending adoption of mandatory provisions contained in the National Health Care Reform Act.”By 2014, everybody is going to have to make the reform thresholds,” Kennedy said.”We’re talking. We need to do something and we either do it now or we do it later,” Kennedy said. “We’re going to meet again in about a month. In addition to looking at other companies, we’re also seeing what other products are offered by Harvard Pilgrim.”The current health care plans cover police, fire, public works, most department heads and other municipal employees. It consumes more than 14 percent of the city budget, according to the state Department of Revenue (DOR).A DOR report on how the escalating cost of health care is impacting communities found that the expense on average has doubled in the past decade.Among Lynn municipal employees, 172 individuals and 46 families subscribe to the Preferred Provider Organization (PPO) plan while 1,340 choose the Medicare Enhance Plan. The largest number of employees – 934 individuals and 1,268 families pick the Exclusive Provider Organization (EPO) Plan.