County Unions Offer Health Plan to Beat Rate Increase : Government: But officials say apparent savings would be lost in higher deductibles, other costs. Control is also at issue.

After learning of expected rate increases in the county’s health insurance plan, a coalition of employee unions has proposed an independent plan it says is cheaper and more flexible.

But county officials have balked at the unions’ proposal, saying the apparent savings will be lost by higher deductibles and other costs. Among the alternatives suggested by the county is an HMO run out of the Ventura County Medical Center in Ventura.

Also at issue is who will control the health care plan. The unions are proposing to take over administration of the policy from the county. But county officials say they would still have to impose administrative costs and maintain some control because they would be liable.

The Board of Supervisors will take up the issue today in closed session.

“The bottom line is, we want to provide the best health care insurance we can at the lowest cost,” said Supervisor Maria VanderKolk. “It’s just something we’re going to have to try to work through.”

Supervisor Vicky Howard said: “We’ve got to make sure the benefits are comparable and we’re not just looking at what appears to be a lower cost.”

Although the different options are complex, county leaders do not have the luxury of time in deciding the issue.

The county’s current Metropolitan Life policy is set to expire Dec. 19. To avoid a lapse in coverage, county supervisors must commit to a plan by Nov. 16 so employees can sign up by the December deadline.

The debate springs from an Oct. 25 meeting with union leaders, when county executives announced that next year’s rates for the existing Met Life health plan were expected to jump from $146 to $209 every two-week pay period.

A second plan--a health maintenance organization run by Met Life--would also be offered for $155 every two weeks. The rates cover employees’ entire families.

The size of the increase is driven by inflation and 10 illnesses that typically cost more than $150,000 each to treat.

The county also has suggested setting up an HMO centered at the Ventura County Medical Center and county-run clinics, but cost and other details have not been decided.

The week after the new rates were announced, union officials countered with a Blue Cross plan after seeking quotes from three insurance companies. The plan would offer employees two options. One, costing $189 every two weeks, would give employees a large network of doctors to choose from, or let them choose another doctor at a higher price. An HMO run by Blue Cross would cost $135 per pay period.

While the Metropolitan Life plan is now administered by the county, the Blue Cross policy would be issued to the Service Employees International Union Local 998, which represents about 1,900 county employees.

“There are a lot of reasons why the employees want to have ownership and more say in basic things that affect them,” said Barry Hammitt, executive director of Local 998.

Union officials also assert that county executives are reluctant to give up control of the plan and lose $1.5 million deducted by the county for administrative costs.

“We are paying for people in personnel, but I’m not sure all the people in personnel are doing medical stuff,” said Dave Williams, president of the Deputy Sheriffs Assn. “I’m not so sure that’s fair.”

County officials deny politics are a factor and say there would still be administrative fees even if the policy was issued to the union.

“I don’t think there’s any kind of a power struggle here,” said Supervisor Howard. “I think it’s a question of responsibility and providing the best benefits at the lowest cost.”

Barbara Olivier, county benefits director, said the $1.5 million in administrative fees cover accounting costs and such features as the Employee Assistance Program, which offers counseling for problems like substance abuse.

Olivier said there are other problems with a policy supervised by the union.

“Who’s got the legal responsibilities?” she asked. “I haven’t seen a contract or description of who’s doing what services.”

VanderKolk said she, too, has concerns about a policy issued to the union.

“I don’t personally have a lot of faith in the unions and I also have a difficult time trusting what they say,” she said. “I have seen them put up flyers to county employees that are completely false and full of lies.”

County officials said they are now seeking quotes from other insurance companies that could offer better rates. But whichever plan the supervisors select, it does not seem likely that employees will have the option of choosing between two companies.

At the Oct. 25 meeting with union officials, Olivier said Metropolitan Life’s rates would increase 7% if 10% of employees chose a different option.

And if 2,000 employees pulled out, Metropolitan Life would not offer its current plan, according to the minutes of that meeting.