Wheatfield mulls health insurance alternatives
Ever rising health care costs have Wheatfield Twp. officials trying to pull off a delicate balancing act between the needs of their employees and taxpayers.
The supervisors are considering switching health coverage plans. Currently, township employees have a PPO with Health America, and the township picks up a $2,500 annual deductible per employee household, which leaves the municipality liable for up to $7,500 a year.
In addition, the premiums for the plan, which the township covers as well, are set to rise by 7.29 percent or $141.92 per month, pushing the monthly installment past the $2,000 plateau.
Employees are responsible for a $20 co-pay and ($40 for a specialist) per office visit.
By switching to Geisinger Health, the township would save $406 a month. Board chairman James Fuller stated the only problem he saw with switching to Geisinger is that Hershey Medical Center is not included in its network coverage.
Supervisor Annette Mullen stated she'd like to keep the township with Health America, and maybe the board should ask employees to contribute toward the deductible or pay extra to have family members on the plan.
Supervisor Barry Schrope pointed out part-time employees, who are not covered under the plan, got a 2 percent raise this year, while those who are covered got only a 1 percent raise, so essentially they are contributing to the plan via the part of the raise they did not receive. He felt it now would be unfair to take more.
Mullen responded that many of their constituents haven't gotten raises in recent years, but their cost for health insurance keeps going up. She pointed out, "It's not fair, but its reality."
Several members of the public — most notably Diane Dahlin -— felt the township was not being realistic with its benefits and that most people who work in the private sector pay significant sums out of pocket.
Dahlin noted both she and her husband have to pay $2,000 deductibles themselves, and that having to pay for township employees on top of that is "unconscionable."
A special meeting is scheduled for May 21 to make a final decision regarding health insurance.
Supervisors also took no action on a resolution generated by the State Association of Townships in support House Bill 1329 which would raise the threshold for jobs requiring the use of the prevailing wage.
Currently, any government project with a cost of more than $25,000 requires use of prevailing wage labor. That figure was set in 1963, and would equate to $183,203 in 2011 dollars according to the Consumer Price Index Inflation Calculator.
The bill sets the new threshold at $185,000 and provides for periodic adjustments based on the CPI.
Fuller was the lone supervisor in support of the measure, although no vote was taken. He felt the change was in the best interest of the township's taxpayers.
Schrope stated he felt the change was a double-edge sword for townships. He estimated the township would save 10 to 15 percent on paving jobs for example, but lowering wages lowers the township's tax base. He also felt going from $25,000 to $185,000 was too big of a jump.
Fuller responded that it may not be that much as the final details will have to be negotiated via the legislative process in Harrisburg.
Bids were opened for summer paving projects on Glutzhole and Pine Hill roads. There were four bids each for sealcoating, base repair work and IDs for the projects.
Wilson Paving won the contract for the ID2s at a price of $185,950. It also was awarded the contract for the base work with a rate of $5,950 for 100 square yards. Hawbaker came in below Wilson on the base work ($5,550 per 100 square yard) but was higher on the ID2s. For logistical reasons, it was decided to go with one contractor for that part of the project.
Hammaker East won the sealcoat contract with a quote of $1.127 per square yard ($45,800 for the whole project).
A 30-page resolution clarifying the township's pension plan and policies was adopted as part of a scheduled five-year review. The township was informed the fund was solid.
Fuller was named the township's spokesman for Federal Aid Reimbursement on the Sulphur Springs Road bridge replacement project.
Eagle Scout Kyle Barrick turned over $125 he raised in excess of what was needed to complete improvements (picnic tables and steps to the creek) at the Dellville Covered Bridge to the township recreation board. The board wanted to be clear it did not make $125 as it donated some of the materials used in the project.
Fuller thanked all those who participated in the recent spring cleanup which generated $4,796 in scrap income, collected two gondolas of tires and four of landfill material.
19 May, 2012
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Source: http://www.pennlive.com/perry-county-times/index.ssf/2012/05/wheatfied_mulls_health_insuran.html
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