Ignacio and Bayfield are facing big premium increases for employee health insurance for 2017.
Ignacio Town Treasurer Diana Briar told town trustees on Oct. 5, "We shopped insurance to try to get better rates. Our renewal is up 15 percent with higher co-pays. We are part of a pool that had some very high claims this year. ... Everything we've gotten is about $400 higher (per employee per month) than this plan." That's for employee-only coverage, she told the Times.
The highest quote was around $1,900 from Anthem-Blue Cross, "for similar to what we had before they raised our co-pays," Briar said.
Current coverage is through United Health Care, she said. The town will be paying $563 a month per employee, up from $487 for individual coverage, but quotes from other providers were more like $900 a month per employee, she said.
The town currently pays $650, with $550 for the primary insurance and dental, vision, and life insurance; plus $100 for supplemental coverage, Briar explained. If the 2017 amount is approved by trustees, it will be $700, including the $100 for the supplemental.
Briar said the town will pay $800 for employees with dependents, and they can use $100 of that for supplemental insurance or put it toward the family coverage cost; but their out-of-pocket costs will go up. Co-pays will double.
Trustee Tom Atencio wanted to know what employees think about the increases.
Development Director Dan Naiman said, "I'm having trouble finding words. This whole thing has been a scam. The $750 from the town, I'm still paying $250 to cover my wife. We can't afford to use it because of the deductibles."
Public Works Director Jeremy Schultz said his current plan deductible is $4,000.
Briar said co-pays don't count toward the deductible.
Trustee Dixie Melton, who operates a primary care clinic in Ignacio, said, "Every day in my business, I hear the same story. For your co-pays to be cheaper, you have to have a higher deductible."
Enrollments for 2017 have to be done by Nov. 1, Briar said.
Town Manager Mark Garcia said the town created a health reimbursement account last year with $10,000. "We didn't exceed that. We need to build that up in case there are multiple claims."
Briar said the deductible is $3,000 for an individual, $6,000 with a spouse. The reimbursement account covers $2,000 of the employee's deductible after the employee has paid $1,000. So Schultz's $4,000 deductible includes his wife, Briar said.
Bayfield Town Manager Chris La May told town trustees on Oct. 4 that the draft 2017 budget had a 10 percent increase, but, "The figures came in today, and they are well over 10 percent." As in 50 percent increase. La May said Bayfield currently pays $20,000 a month for all employees. It's going up to $30,000 a month with higher co-pays and deductibles. Town staff will meet with the town's insurance agent to see if there are other options.
