Aldermen consider raising insurance costs for employees

Published 12:05 am Friday, July 10, 2009

NATCHEZ — The board of aldermen has made a decision to increase health insurance for city employees.

The board discussed the increases during a work session Thursday, and no official votes can be cast during a work session.

The health plan changes the aldermen plan to implement include:

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– Raising the cost of hospitalization from $1,000 to $1,500, saving the city $342,000 annually.

– Increasing physician co-pay from $25 to $30, saving the city $32,000 a year.

– Raising generic pharmaceutical co-pays from $10 to $15, saving the city $32,000 annually

– Raising the co-pay on name-brand medication from $25 to $30, saving $6,180 a year.

The increases would save an estimated $398,980 a year.

“That’s where we can start taking little bites off at a time,” Mayor Jake Middleton said.

The aldermen will have to vote on the increases during their 6 p.m. meeting July 28.

Middleton’s prior suggestion of raising city employee monthly payments on insurance to $25 — right now they pay nothing — and saving the city $81,000 a year was not agreed upon.

“I can’t raise their deductibles and get them to pay $25,” Alderman Mark Fortenbery said.

Alderman James “Ricky” Gray said he can’t justify asking employees who make between $15,000 and $16,000 a year to pay that much on insurance.

Gray was uneasy with the health insurance increases discussed and agreed upon during the work session and said he would check on insurance co-pays with other municipalities Natchez’s size.

If the board votes for the increase, new prices could take effect immediately.

Other ideas to manage the budget included reducing travel and collecting fines.

Fortenbery said many certification classes that bring about so much travel can actually be taken online, effectively reducing by leaps and bounds departmental travel.

Alderwoman Joyce Arceneaux-Mathis said she’d like to see all travel erased from departments and a special fund created in which all city employees would have to apply for funds and be approved by the board of aldermen.

Gray said all travel should be approved anyway, and while it is approved by the board on the docket, it’s after the fact.

City Clerk Donnie Holloway agreed that travel can be whittled down.

“It needs to be nipped in the bud big time,” Holloway said.

Additionally, the board discussed uncollected municipal fines.

Holloway said there are thousands of dollars in unpaid fines that could be collected.

“We just can’t afford not to pursue that,” Dillard said.

The board agrees their ultimate goal in this administration is to stop borrowing money each year to balance the budget and pay the bills.