November 20, 2006
NEW MLGW/CITY OF MEMPHIS HEALTH INSURANCE PLAN
WE ARE ASKING FOR YOUR PERSONAL INPUT, THOUGHTS AND INFORMATION SO WE CAN GET THE LATEST REAL FACTS ON THIS MATTER.
Watchdog has received the latest update on the new health insurance plan being proposed by the City and MLGW. Is this a real savings or is it another attempt by the City to unload some of their costs on the MLGW as was the original proposal to combine four City/MLGW departments?
Watchdog is all for hard bargaining with suppliers and for getting real savings without giving up much in the way of benefits and without unfairly putting a burden on those least able to bear new costs, the retirees. $6.7 million in savings would be a real plus but you have to wonder when you consider the past history of the City such as the Linebarger contract which cost the taxpayers $5 million over and above what Bob Patterson would have charged. Watchdog agrees with the points listed below, particularly with the transparency provisions and the independent audit provisions. We hope that the City’s new interest in savings will spill over into laying off some if not all of the illegally appointed employees and to other obvious savings that watchdog has listed in the past. Here are the facts as we know them.
After Marvin Winston, an MLGFW retiree leader, asked for the status of the medical provider contract, Mr. Ward was allowed by the Board to give an update. He advised that a contract has not been signed but this is where we stand with regard to the 7 “musts” outlined at the last meeting.
• 3-year contract - United Healthcare has agreed to this point.
• No change to MLGW medical plan - United Healthcare has agreed to this point.
• Guarantee of $6.7 million savings in the 1st year -This is still being discussed. United Healthcare has now introduced an inflator of 6.5% that would decrease
the savings up to $1 million. We are set on the $6.7 million savings.
• Guarantee relationship with Health Choice –Attorneys are haggling about best way to handle this point.
• Liberty to audit - Not quite sure what this means - still within our grasp.
• Claims management - payment within 2 weeks – United Healthcare has agreed to this point.
• Up front disclosure - Attorneys are still discussing. MLGW wants anyone involved to be disclosed.
Mr. Ward advised the Board that during the added time that we have allowed United Healthcare to drag out negotiations, we have lost close to $500,000 since we are not being allowed to take the advantage of lower reimbursements for services from doctors and hospitals. Open enrollment needs to take place within
the next 2 weeks.
Will keep you posted as more information is available.
NEW MLGW/CITY OF MEMPHIS HEALTH INSURANCE PLAN
WE ARE ASKING FOR YOUR PERSONAL INPUT, THOUGHTS AND INFORMATION SO WE CAN GET THE LATEST REAL FACTS ON THIS MATTER.
Watchdog has received the latest update on the new health insurance plan being proposed by the City and MLGW. Is this a real savings or is it another attempt by the City to unload some of their costs on the MLGW as was the original proposal to combine four City/MLGW departments?
Watchdog is all for hard bargaining with suppliers and for getting real savings without giving up much in the way of benefits and without unfairly putting a burden on those least able to bear new costs, the retirees. $6.7 million in savings would be a real plus but you have to wonder when you consider the past history of the City such as the Linebarger contract which cost the taxpayers $5 million over and above what Bob Patterson would have charged. Watchdog agrees with the points listed below, particularly with the transparency provisions and the independent audit provisions. We hope that the City’s new interest in savings will spill over into laying off some if not all of the illegally appointed employees and to other obvious savings that watchdog has listed in the past. Here are the facts as we know them.
After Marvin Winston, an MLGFW retiree leader, asked for the status of the medical provider contract, Mr. Ward was allowed by the Board to give an update. He advised that a contract has not been signed but this is where we stand with regard to the 7 “musts” outlined at the last meeting.
• 3-year contract - United Healthcare has agreed to this point.
• No change to MLGW medical plan - United Healthcare has agreed to this point.
• Guarantee of $6.7 million savings in the 1st year -This is still being discussed. United Healthcare has now introduced an inflator of 6.5% that would decrease
the savings up to $1 million. We are set on the $6.7 million savings.
• Guarantee relationship with Health Choice –Attorneys are haggling about best way to handle this point.
• Liberty to audit - Not quite sure what this means - still within our grasp.
• Claims management - payment within 2 weeks – United Healthcare has agreed to this point.
• Up front disclosure - Attorneys are still discussing. MLGW wants anyone involved to be disclosed.
Mr. Ward advised the Board that during the added time that we have allowed United Healthcare to drag out negotiations, we have lost close to $500,000 since we are not being allowed to take the advantage of lower reimbursements for services from doctors and hospitals. Open enrollment needs to take place within
the next 2 weeks.
Will keep you posted as more information is available.
posted by watchdog at
8:56 AM
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