Highland Heights Considers Change in Health Insurance Carrier

Anthem, which has been the health care provider for employees, quoted a 20 percent increase in rates for a plan that didn't match the current one, according to Finance Director Anthony Ianiro.

"Anthem pretty much wrote us off and they're out of the picture," he said at a City Council caucus meeting.

City Council will consider at Tuesday's meeting at contract with Cigna that would cost the city $850,000 for 2012 to cover 60 employees. Ianiro said the cost is 2.74 percent more than the $827,000 the city spent for 2011.

Because the city is under contract with its employee unions, the health care coverage has to closely match what was agreed to in the settlement. Ianiro said there are no significant differences, with out of pocket costs for prescriptions being the main change.

"We've had two meetings with the health care task force, Ianiro said. "Everyone's in agreement that Cigna closely matches what we have. The transition, I've been assured, should be pretty smooth."

However, Councilman Robert Mastrangelo's not sure that Anthem's the best choice. He said the city could save $112,000 by going with a plan offered by United Healthcare that had some additional costs for employees, but might wind up being best overall.

"Most of those differences don't take effect until after you met your deductibles ($1,500 for an individual/$3,000 for a family)," Mastrangelo said. He added that the city could also entice employees to agree to go with United by offering a one-time contribution to employee health savings accounts.

But a switch to United Healthcare's plans would require reopening contract negotiations with employees, a process which adds costs of its own, Councilman Frank Legan noted.

"Any savings are quickly diminished," he said.