Mayor Annise Parker has approved a reduction in health insurance premiums for city workers, reversing last spring’s increased rates from 14.9 percent to 8.7 percent. The premium reduction is in addition to lower copays and reduced prescription drug costs.
The Mayor hopes that the combined cost reductions will provide some financial relief for employees while also ensuring they stay engaged in wellness activities.
“We budgeted very conservatively and have been transparent in reporting where we are at every step along the way,” said Mayor Parker. “I make no apologies for that. It is the same fiscally-responsible approach we apply to all matters related to city finances.”
Parker’s competition for the mayoral race, Ben Hall, believes it is no coincidence that there is a reform to the health insurance premium.
“It’s an election year and a lot of good policies are suddenly appearing because of the challenge of an election and that’s the good thing about our democracy that once an incumbent is made to justify policy positions during an election cycle that there is some reformation that takes place,” said Hall. “So I applaud this exercise of an election because it has causing the ship to right itself on some of the bad policies on healthcare coverage issues before.”
The city began to focus on employee wellness after an increase in claims which also was the alleged reason for the increase in premium contributions and copayments last spring. The city also moved an extra $14 million into the health benefits account to ensure minimum balances would be available to meet all claims, according to the Mayor’s office.
“In April, HOPE members spoke before City Council rallying around the issue of affordable healthcare,” said Melvin Hughes, President of the Houston Organization of Public Employees. “After detailed analysis we were able to provide the city with recommendations that found several opportunities for cost savings. This decision makes healthcare affordable for the workers that help make this city run. I am proud of our members for making this possible and thankful to Mayor Parker for being willing to listen.”
September 1, 2013 the lower cost will go into effect and remain until April 30, 2014.
Ben Hall commented at about it his press conference that he is confident there was a catalyst for the reduction but whatever it was the reduction is the right thing to do for city employees.
Many are pleased to see the reform to the health insurance premiums as healthcare is necessary but becoming such a tedious and hard to come by commodity in the country. The city is in the third year of a self-insured employee health benefits plan, where it pays only when employees submit claims rather than having to pay set monthly costs.