Town shifting to a single health insurer

[WNYresident]

Full Story in the Buffalo News

Town shifting to a single health insurer
By BARBARA O'BRIEN
News Staff Reporter
5/24/2006

All Cheektowaga town employees will be switching to the same health insurance carrier next week in a move that has been praised by management and labor.
While the change will save $2.3 million in premium costs over the next two years, it comes with a price to the taxpayers, says one taxpayer advocate.

"It's not a savings to the town," maintains Jane Wiercioch, president of the Depew/Cheektowaga Taxpayers Association.

That's because, she says, all five unions, covering more than 650 employees, agreed to the new insurance and a 2.75 percent increase in salary for each year of their three-year contracts.

"The one insurance carrier is great but I didn't think the raise should be tied into it," she said. "When are they going to stop?"

Pay increases for the past several years have ranged from 2.25 percent to 2.5 percent to 2.95 percent for the five unions, and town officials expected that workers would get raises in their new contracts.

"I don't think it's unrealistic to think that somewhere along the way they were going to get an increase anyway," Supervisor Dennis H. Gabryszak said. "They probably would have gotten something."

"I think all the unions grabbed it because it's such a good deal," Wiercioch said.

She predicted the town will have to pay out more than $1 million in raises over the life of the contract.

"I don't think there's any savings," she said.

Town officials maintain the savings is not just in dollars and cents it won't have to spend on health insurance.

By obtaining a two-year contract instead of a one-year agreement with BlueCross BlueShield, it was able to lock in the price for two years, and that helps quite a bit with budget planning.


e-mail: bobrien@buffnews.com

[WNYresident]

"I don't think it's unrealistic to think that somewhere along the way they were going to get an increase anyway," Supervisor Dennis H. Gabryszak said. "They probably would have gotten something."

Gabby has outlived his usefulness. They only got something because someone was lame enough to give it.

[atotaltotalfan2001]

Gabby has outlived his usefulness. They only got something because someone was lame enough to give it.

I doubt if the change will make a dent in what the town pays in full health care benefits for retirees, as well.

I wonder if the new health care plan includes cosmetic surgery?

[WNYresident]

It seems a few employees got some hefty raises beforehand. I wonder if the perdentage raises will be tacked on top of those.

[tgace]

Whats the current cost of living percentage?

[WNYresident]

Whats the current cost of living percentage?

This has NO bearing on raises. If the job doesn't pay enough pick up the paper or go to monster.com.

[tgace]

So public employees are to never recieve a raise?

[WNYresident]

So public employees are to never recieve a raise?

They recieve raises every year. Health insurance cost increases.