By PHIL MAJOR

publisher@woodcountymonitor.com

By going with a higher deductible plan, and the city reimbursing employees most of their out-of-pocket expense, the city of Mineola is saving tax dollars on health insurance while maintaining good coverage for city employees.

The city council voted unanimously Monday to accept a Blue Cross Blue Shield plan from Brinson that will cost the city $344 per month per employee compared to the current plan of $640 per month.

The city will provide each employee with a $1,000 health savings account to use and will reimburse employees for the first $5,000 of their deductible.

Total savings are estimated at $123,313 for the city, depending upon how much of the deductibles are used by employees.

As Finance Director Cindy Karch explained, the city was over-insured by having a lower deductible plan. Only eight to 15 percent of employees meet that deductible. By raising the deductible to $6,650 and reimbursing much of that, the city saves money and the employees are not negatively impacted.

And while an HMO does have more restricted lists of doctors and hospitals, calls to area providers showed most are included in the plan.

Karch said they spoke with an area city also using the plan, and it was working well.

The city will continue to pay 100 percent of the employee cost and 70 percent of the family cost. The employee share will also be reduced.