Tube City Almanac

May 08, 2008

Mayor: Health Care Bill 'Obscene'

Category: News || By

Mayor Jim Brewster's new goal is to "fire Blue Cross-Blue Shield" as the city's health insurance carrier.

The pledge comes after Highmark, the Pittsburgh region's Blue Cross licensee and its dominant health care provider, raised the rate on one city plan by $620,000 --- nearly 84 percent.

According to city Controller Ray Malinchak, the increase amounts to approximately $16,000 for each of the 80 city hall, public works and other administrative employees covered under a collective bargaining agreement with Teamsters Local 205.

At last night's city council meeting, Brewster called the increase "obscene" and said that Highmark officials have declined to discuss their decision, except to say that the rates were increased because of an spike in the number of claims filed by people covered under the policy.

However, Highmark will not release the number or type of claims, the mayor said. "We already asked for it," he said. "We can't have it."

"It's a very emotional issue, because if you have children or you're elderly or you have health problems, you start to worry that you're going to lose" your coverage, Brewster said, "or you're going to have to pay a lot more out of your paycheck."

If passed directly along to city employees, the increased premium would cost each of them about $325 per week, he said.

. . .

The city learned of the increase when it was invoiced on Friday.

"I think it's a complete corporate embarrassment that (Highmark) did not even contact this city or this mayor and give us any advance warning," Brewster said. "Nothing."

Although the contract with the Teamsters has specified Blue Cross-Blue Shield coverage since at least 1994, Brewster said it allows the city to substitute an "equivalent or better" health insurance plan.

The mayor said he met this week with Local 205 President Bill Lickert and other union officials, and the Teamsters understand the city's need to shop for a less-expensive alternative.

Brewster has already scheduled a meeting with another health insurance carrier.

Highmark's "attitude is there aren't many other vendors out there," he said. "Maybe they don't think we're smart enough (to find one). They say, 'Well, Mr. Mayor, just raise taxes.'

"Well, we're not going to raise taxes," Brewster said. "We'll give them a little taste of McKeesport competitiveness."

. . .

Councilor Paul Shelly asked Brewster if the city could purchase health insurance jointly with other governmental entities --- for instance, neighboring communities --- and increase the risk pool to save money.

Brewster said the city is investigating the legal implications, but that he's already approached the McKeesport Housing Authority and the McKeesport Area School District.

The city is also considering a complaint to the state Insurance Commissioner.

. . .


The health insurance increase wasn't the only unexpected bill handed to city councilors last night.

By a 6-0 vote, they also awarded an emergency $42,000 contract to Patterson Home Improvements to repair the roof at the former municipal building on Lysle Boulevard.

Although city offices have moved to the old McKeesport National Bank building at Fifth and Sinclair streets, the 1959 structure at Lysle and Market still houses the police and fire stations.

Police and fire personnel are expected to move in a few years to a new regional courthouse and public safety building on Walnut Street in the Third Ward.

Malinchak and Councilor Darryl Segina questioned where the city was going to find the money for the roof repairs.

Brewster said at least three tenants --- state Sen. Sean Logan, the Regional Chamber Alliance, and the Twin Rivers Council of Governments --- have asked about leasing offices in the Lysle Boulevard structure.

The rental income would more than offset the cost of the repairs, the mayor said.

"The alternative to not doing this is continued damage," Brewster said, which would make it impossible to sell or lease the building.






Your Comments are Welcome!

jason

excellent coverage.

though the mayor and i don’t always agree, we are completely congruent in our efforts to take on bc/bs.

as always, we stick together when someone tries to stick it to mckeesport.

~Councilman Shelly
Paul "Sluggo" Shelly Jr. (URL) - May 08, 2008




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