After being hit with a 20 percent cost increase for health insurance coverage from Blue Cross/Blue Shield of Michigan, the Addison Township Board of Trustees approved switching to a new provider.
‘We were expecting a cost increase,? said township treasurer Dan Alberty, ‘but we were hoping for 10 to 15 percent.?
Addison Township officials presented the board with a proposal from American Medical Security that would cut the towship’s yearly cost from $53,869.80 – the amount with Blue Cross – down to $22,023, for a minimum savings of $22,846.80.
However, the savings are dependent upon the workers? employee enrollment forms, or medical histories.
‘This is only going to save us money as long as we don’t have someone who doesn’t qualify,? Alberty explained to the board.
At the time of the regular meeting though, all of the forms had not been returned, so Alberty motioned to switch to AMS for medical coverage only if the rates save a significant amount of money. Otherwise, the township would remain with Blue Cross.
‘We need to wait on the forms to come in for sure,? he explained.
Also, if the township is able to switch, Alberty said the savings could then be used to provide life insurance and disability for the employees through AMS.
‘And we wouldn’t be using all of the amount saved,? he explained to this reporter.
If the township decided to provide $25,000 in life insurance, short-term disability and long-term disability for employees, the savings would only be $14,573.16 instead of the $22,846.80. If only life insurance and long-term disability are offered, the township would be saving $16,900.20.
Alberty explained that the ultimate result would be to provide more coverage and services to the employees, while still reducing the township’s cost.
He added that the employee’s monthly contribution may also be reduced from $35 for a single person and $50 for a family down to $5 for a single person and $10 for a family. Again, providing the employees another benefit while still saving the township money.
The motion to go with AMS if significant savings are realized passed 4-3. Alberty said that he expects to be bringing the issue, along with the possibility of disability, life insurance coverage and reduced monthly contributions, before the board again at the July meeting.