Taxpayers face health care cost hikes for city workers
By William Kibler, bkibler@altoonamirror.comAltoona City Council members Wednesday grew ill-humored upon learning that the city faces a 17.2 percent health care cost hike, or $540,000.
That prediction is behind the original projection of a 10.5 percent increase in Blue Cross-Blue Shield costs.
Last year, the city budgeted $3.14 million for health insurance in a $22 million spending plan.
''This is going to bury us,'' Councilman Joe Rieker said.
The city needs to find a way to put health insurance out to bid, he said. It tried a couple of years ago, but it didn't quite work.
A bidding process is difficult because Blue Cross won't provide the current coverage without the whole account, Finance Director Omar Strohm said.
The city is negotiating with HealthAmerica, but isn't close to a deal, Strohm said. The city also is considering self-insurance.
Councilman Mark Geis said Altoona should try to shame Blue Cross into letting up.
''We're in a tight spot here,'' Geis said.
Councilman Matt Garber agreed, and wondered if pressure will get the company to ease up.
The 7.5 percent annual average increase during the last five years is probably less than most municipalities paid, according to the Pennsylvania Economy League, Strohm said.
The city will need to dip into savings to make the budget balance, Mayor Wayne Hippo said.
There are virtually no expenses to cut because the vast majority of expenses are personnel costs, and most are contingent on contracts, City Manager Joe Weakland said. Then there are utilities and fuel, and those don't allow for cuts, he said.
The city could end this year with about $1.4 million in the bank, Weakland said.
It could end 2009 with about $1 million, he guessed.
That would mean an operational deficit next year of $400,000.
It could be much worse if the economy worsens, especially if unemployment increases, which would reduce earned income tax revenue and make it likely that more residents would fail to pay their property taxes, he said.
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10-24-08 10:29 PM
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I hate to say this but I think it is time they pay for their own health care like most everyone else has to today. Or at least pay 50% of the premium and 50% of any increases. Businesses left and are leaving and so are the people. They can not afford to do business here any longer. The people are leaving because they can not afford to live here. Property owners are being taxed out of here. We can not take any more tax increases. It is time for the employees of the city and county to pay for their own benefits like the rest of us have to.
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gandulf
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10-23-08 3:25 PM
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Alot of demonizing here regarding Mayor Hippo, but given the base of Altoona, it is not surprising. Mayor Hippo inherited a quite a messy situation. Not all of his decisions have been correct, not all of his decisions have been wrong. Mayor Hippo is a respecful individual and is doing his best. Perhaps this is not enough, in light of the personnel he has to work with. It may be in the city's best interest to return its charter back to the state and let good ole' Eddie Rendell work out the problems. As for the overall question of healthcare, the government, at any level, is not required to provide healthcare to anyone.
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Debboe
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10-23-08 2:48 PM
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City workers have to face the music like so many of us and pay for the added cost of their own health insurance. To pass this increase onto local taxpayers, at a time when so many of us are finacially struggling, would be a sin. Sadly, this would not be an issue if the health insurance industry wasn't drowning in its own greed.
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bonfire911
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10-23-08 1:25 PM
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Each person employed by the city pays into their health care. Alot of employees participate in BCBS Healthy Returns in order to help the city drive down the cost of health care. The city has binding arbitration agreements with the Unions so that there can be no boycotts or walk outs. Employees also pay office visit and emergency room co-pays and prescription copays.
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ToonaBornandRaised
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10-23-08 11:49 AM
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Here is what I would like to know - how much do city workers pay towards their insurance? I know a few there and I can guarantee you it is pretty much about next to nothing. It's great if you work there, but then this mess comes up and who pays??? We do, the taxpayer. The normal Joe has to pay out the rear for his insurance, but it doesnt affect you and me because of it not being a government agency. That is what happens with unions these days, the heck with trying to help, they just want to take, take take and threaten with boycotts or walkouts or what have you until the entity caves. it is a no win situation, but hey, councilpeople, let's bully and shame Blue Cross. BS. Let's SHAME YOU for caving in to demands and not thinking ahead. Health insurance has been on the upswing for many many years so this should not have been an unexpected occurance. Bunch of buffoons running city hall. Why do we even need it anymore? What do they do?
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VeepGeek
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10-23-08 7:29 AM
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Wizard, you are absolutely right. Hippo is worthless. Mayor is just a notch on his political belt. Hopefully, the mess he's made of Altoona will serve as a reminder to voters when he tries for his next rung on the ladder (Senator Hippo??, Representative Hippo??) and voters will just say NO to the same old self serving power hungry and clueless politicians like Hippo. Most small businesses that I know would be THRILLED with only a 7.5% increase. It is fantasy! 25% or greater increases are now the norm, especially if you have a workforce of with a high population of women boomers. It is actuarial and they tend to have the highest and most claims. To not have anticipated this increase and planned for it was just incompetence at its highest.
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TheWizardOfOZ
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10-23-08 6:13 AM
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Now THERE is an intelligent approach to controlling health care costs...SHAME Highmark into lowering there rates...??? Like they care...they are just adjusting rates to projected payouts...its all actuarial....maybe we should SHAME city employees into having less expensive claims too??? What a dopey idea.
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Stormin
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10-23-08 1:52 AM
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Hippo said "If Unemployment continues"? Knock, knock, on Hippos head. Do the math. Mr. Hippo. The situation in Altoona is exclusive to Altoona and Blair County. Unemployment is a benchmark here. Even when/if the nation recovers from the current financial fiasco, Blair County will not. Never has. Never will. Because your administration and past, have made Altoona a burden for business. Home owners, and entrepreneur's. We will hear the same cries next year, and in the consecutive years. No money, this went up, inflation altered our projections, . You have a budget pitfall because the revenue continues to diminish Mr. Hippo. And will so. Until the city and county loosen the Draconian fee's, imposed on business, and home owners. Logan Township is following your path. They too shall cry. For gouging business untill they close shop. Yet, you already know this. But soon there will be no
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