One in a continuing series

By Matthew Strother Staff writer

When the city of La-Grange spent more than $3.6 million in health insurance costs in 2005, city leaders knew they had to do something. In just five years, costs had risen by $1 million.

That’s when City Manager Tom Hall and Deputy City Manager Meg Kelsey started looking at options on how to spare the city from using funds budgeted for other things to pay insurance claims. The city is self-insured, so it pays for the health care of its employees up to a point. A re-insurance policy through an outside company, which is selected annually based on best market value, is responsible for paying the cost after a set amount per employee is exceeded.

The city’s third-party administrator, Covenant Administrators, showed Hall and Kelsey a new type of coverage, BeniComp, that bases deductibles on the wellness of employees and offers better deals for better health. Hall and Kelsey liked the plan, but decided it would work better if the discount was applied to the employee-paid premiums.

The base price of premiums would double, but discounts would allow health-conscious employees to pay less than before. To get the discounts, employees would need to meet certain criteria on measurements of cholesterol, body mass index and blood pressure. Those who don’t use tobacco also would receive discounts.

That August, city workers underwent preliminary evaluations with District 4 Health Services doing the screenings. The initial screening allowed the em-ployees to identify any health problems and their “scores.” In December, the screening set the bar for employees under the new plan, which took effect in January 2006.

Results were positive from the start. In 2006, the cost of claims to the city dropped about 17 percent, a $600,000 reduction, from 2005. The drop came at a time when spending on health care escalated 6.9 percent nationally. The number of claims per employee also dropped sharply.

For the 2007 fiscal year, there was a 1 percent to 2 percent increase in the cost of claims, which was lower than the average increase from most insurers, Kelsey said.

There are some costs associated with the new policy, about $25 to $30 per employee during each screening, but Kelsey said the roughly $10,000 cost is “a drop in the bucket,” compared to the amount saved from fewer claims and sick days. The move seems to have saved the city money, but it also is intended to promote a healthy working environment.

“It’s about saving the bottom line, but it’s also about making people feel better,” Kelsey said. “So when they come to work they’re a productive and healthy employee.”

Kelsey said one employee recently told her that for years he had denied needing treatment for high blood pressure, but the desire to do better on his annual screening convinced him to get the medication he needed and it’s improved his health.

The city is continuing to refine its health plan, adding a A1C glucose test to its screening process to measure average blood-sugar levels over the previous three months and lowering the acceptable level for cholesterol by 20 points. Employees also can get $20 a month for proving they have a workout routine.

One way about 30 employees get the cash back is through a semiannual physical fitness challenge, held with the Cooper Institute of Health, that grades participating employees on several tests, including situps, pushups and a 1.5-mile run. If the employees are able to meet the standard set by a calculation of factors like age and gender, they get a $120 check.

The city also has formed a panel of 12 employees, not administrators, to help brainstorm new ways to promote health for their co-workers. Their goal is to come up with six new projects a year.

“I hope people recognize what we’re doing here,” Kelsey said. “We’re working to make them healthier.”

Matthew Strother can be reached at mstrother@ lagrangenews.com or (706) 884-7311, Ext. 228.

City: Insurance plan aids health, saves money