Warren city workers’ offer on health care a good start

When Chuck Eggleston, a Warren firefighter and chairman of an employees’ committee formed to address health-care costs, recommended a competitive bidding process for health-insurance coverage, we were struck by how closely the plan resembled one proposed by Councilman Dan Crouse. And yet, Crouse, independent at-large, lost his re-election bid in the Nov. 3 general election.

We point that out not only because we endorsed Crouse in the election — we were impressed by his creative thinking in dealing with the city of Warren’s fiscal crisis — but because we wonder if there is public support for competitive bidding.

If there is, and considering that it will cost city government more than $6 million for health-care coverage, wouldn’t it follow that an elected official like Crouse would win re-election?

This is what the councilman suggested in his interview with The Vindicator: The administration of Mayor Michael O’Brien should look at an array of health-care plans, evaluate different insurance carriers or brokers, seek competitive bids, and require employees to absorb a higher co-payment on premiums.

Unfortunately, Crouse did not connect with the voters.

Perhaps the firefighters will have better luck garnering public support for the plan Eggleston laid out last Friday during a news conference attended by a group of Warren city employees. The purpose was to express their agreement with the administration’s assessment that health-care costs are too high and will rise by $650,000 next year if nothing is done to control them.

Seat at the table

However, the employees want a seat at the table when the administration and city council discuss ways to bring the costs down.

“We want to create a comprehensive plan and bid it out,” Eggleston said. “Unfortunately, we’ve gotten nowhere with that.”

It is unfortunate, and, frankly, unwise if the employees are being shut out of the process. City government’s fiscal crisis will not be solved without the cooperation of the labor unions. Since more than 80 percent of the general fund goes for salaries and benefits, concessions must be a part of any recovery plan.

Indeed, the workers have removed what the O’Brien administration sees as a roadblock to competitive bidding for health-care coverage. According to Gary Cicero, the city’s human resources director, union contracts dictate that workers get what is known as “first dollar” coverage. That means insurance pays the first dollar of the bill, with the employee paying nothing.

Cicero noted that Anthem Blue Cross/Blue Shield is the only company that still offers that type of coverage, which makes competitive bidding pointless.

However, Eggleston said during the news conference that he and other employees do not have a problem with giving up “first dollar” coverage. They just want the city to immediately begin looking at ways to reduce the costs.

Given these developments, Mayor O’Brien and city council should launch public discussions with members of the employee health-care committee because it would not only be beneficial in dealing with health care, but would be a sign of good faith for the labor contract negotiations that will begin soon.