By Josh O’Gorman
STAFF WRITER | August 22,2013
STAFF WRITER | August 22,2013
Rutland Herald
KILLINGTON — With more freedom comes greater responsibility for municipal employees under the upcoming new health care system.
Like many Vermont towns, Killington is facing change in the way its employees receive health insurance. Under the new system — also known as the exchange, or Vermont Health Connect — employees will have a greater say next year in choosing their health insurance, but greater responsibility in choosing their provider and other details.
Tuesday night, town officials heard from an expert on the subject.
The Select Board listened to a presentation from David Sichel, deputy director of risk management services for the Vermont League of Cities and Towns. He discussed the changes faced by small employers — such as Killington, and most towns in the state — during the next four months.
In 2010, President Barack Obama signed into law the Patient Protection and Affordable Care Act, known to both proponents and opponents as Obamacare. Upheld by the U.S. Supreme Court in 2012, the law goes into effect Jan. 1, requiring action on the part of both employers and employees, mostly surrounding how they purchase health insurance.
The town of Killington currently insures 10 municipal employees and two employees of the Green Mountain National Golf Course. An additional four employees opt out of the town’s insurance plan, which is provided through Blue Cross Blue Shield, with a $2,500 deductible for individuals and a $5,000 deductible for families.
It is unclear exactly how much the town spends for health insurance. For 2013, the town budgeted $187,008 for insurance, but that figure also includes vision and dental. Town Manager Seth Webb said the majority of the health insurance expense is employer premiums to Blue Cross Blue Shield.
The town currently decides which provider to use and how much it will contribute per employee. Under the new system, the town must decide how much money to contribute, but has the option of designating a provider or leaving that choice up to the employee.
If the town offers employees the option to choose a provider, it will be up to the employee make that choice using Vermont Health Connect, the clearinghouse for insurance providers and — for Killington and other employers with less than 50 workers — what Sichel called “the only game in town.”
Select Board Chairman Chris Bianchi asked about the advantage of designating a provider. Sichel said he could not think of one, but providers would be happy to make a compelling argument for why they should be chosen.
Assuming an employer leaves the choice of provider up to the employee, it will be up to the employee to use Vermont Health Connect to shop for a provider. Sichel compared Vermont Health Connect to the travel website Orbitz, in which a customer can go online, compare prices and services, and make a purchase.
“From the state’s perspective, they want to separate health insurance from employment,” Sichel said.
Vermont Health Connect is scheduled to be up and running Oct. 1 and both employers and employees have until Dec. 15 to register with the exchange and choose a provider, with insurance benefits beginning Jan. 1.
josh.ogorman@rutlandherald.com
Like many Vermont towns, Killington is facing change in the way its employees receive health insurance. Under the new system — also known as the exchange, or Vermont Health Connect — employees will have a greater say next year in choosing their health insurance, but greater responsibility in choosing their provider and other details.
Tuesday night, town officials heard from an expert on the subject.
The Select Board listened to a presentation from David Sichel, deputy director of risk management services for the Vermont League of Cities and Towns. He discussed the changes faced by small employers — such as Killington, and most towns in the state — during the next four months.
In 2010, President Barack Obama signed into law the Patient Protection and Affordable Care Act, known to both proponents and opponents as Obamacare. Upheld by the U.S. Supreme Court in 2012, the law goes into effect Jan. 1, requiring action on the part of both employers and employees, mostly surrounding how they purchase health insurance.
The town of Killington currently insures 10 municipal employees and two employees of the Green Mountain National Golf Course. An additional four employees opt out of the town’s insurance plan, which is provided through Blue Cross Blue Shield, with a $2,500 deductible for individuals and a $5,000 deductible for families.
It is unclear exactly how much the town spends for health insurance. For 2013, the town budgeted $187,008 for insurance, but that figure also includes vision and dental. Town Manager Seth Webb said the majority of the health insurance expense is employer premiums to Blue Cross Blue Shield.
The town currently decides which provider to use and how much it will contribute per employee. Under the new system, the town must decide how much money to contribute, but has the option of designating a provider or leaving that choice up to the employee.
If the town offers employees the option to choose a provider, it will be up to the employee make that choice using Vermont Health Connect, the clearinghouse for insurance providers and — for Killington and other employers with less than 50 workers — what Sichel called “the only game in town.”
Select Board Chairman Chris Bianchi asked about the advantage of designating a provider. Sichel said he could not think of one, but providers would be happy to make a compelling argument for why they should be chosen.
Assuming an employer leaves the choice of provider up to the employee, it will be up to the employee to use Vermont Health Connect to shop for a provider. Sichel compared Vermont Health Connect to the travel website Orbitz, in which a customer can go online, compare prices and services, and make a purchase.
“From the state’s perspective, they want to separate health insurance from employment,” Sichel said.
Vermont Health Connect is scheduled to be up and running Oct. 1 and both employers and employees have until Dec. 15 to register with the exchange and choose a provider, with insurance benefits beginning Jan. 1.
josh.ogorman@rutlandherald.com
Comment: That's about $15,000 per employee the town pays currently. All indications are that number will rise. Along with proposed budget increases for road maintenance (2 million in expenditures over the next two years), schoolhouse renovation, diminished golf course revenues (and looming capital expenditures such as renewal of the irrigation system anywhere form 1-2 million), proposed new firehouse and the fact we may not have the "undesignated funds" to disburse as we did last year for things like the golf course sinking fund, some say we are going to be looking at a 10 cent or more property tax increase on the municipal side.
Vito
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