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MCDONALD COUNCIL Change in health insurance plan OK'd



Published: Sat, August 27, 2005 @ 12:00 a.m.



Council also decided to join the Better Business Bureau of Mahoning Valley.

By KANTELE FRANKO

VINDICATOR STAFF WRITER

MCDONALD -- The 15 employees covered by the village's health care insurance plan will pay 10 percent of the cost this year, and the village will pay 90 percent.

Village council voted 5-0 to switch health insurance plans but keep United Health Care as its provider at a special meeting Saturday. Councilman Steve Treharn was absent.

Through the former plan, 10 employees had chosen to pay more for an optional second tier of coverage. The five employees who paid no extra cost received the standard plan.

According to the new contract, all employees will have to pay 10 percent of the cost, regardless of which option they choose. Those who choose the second tier will save money, compared to those who don't, finance chairman Jim Jones said.

Other changes

Another major change involves deductibles. Rather than paying no deductible as they had with the previous plan, employees must pay a $250 deductible for single policies and a $500 deductible for families.

The plan will cost the village about $96,350 for the term of the one-year contract, which begins Sept. 1. The village spent about $500 less when it was paying the full cost of last year's plan.

Jones said the base costs of health insurance had increased, but the village's extra expenses could be offset by a switch in life insurance providers.

Council, which previously used American United Life as the village's life insurance provider, also unanimously chose to use United as its provider this year. The one-year contract, which begins Sept. 1, will cost the village $954. American United Life charges $1,670, Jones said, noting that employees would see no major changes in coverage.

Switching plans and providers allows the city to pay a total of $32 more than last year's expenses for health and life insurance, Jones said.

In a related resolution, council also decided unanimously to join the Better Business Bureau of Mahoning Valley Inc. As a BBB member, the village will receive an additional 3 percent discount on the $96,350 plan offered by United Health Care.




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