PUTNEY — The Town of Putney is going to pay 90 percent of its eligible workers' health insurance costs under the platinum tier of Blue Cross/Blue Shield as offered through the state's new health insurance marketplace, effective Dec. 1.
At their regular meeting Sept. 25, Selectboard members debated funding levels available to it under Vermont Health Connect, the new marketplace wherein individuals, families, and small businesses in Vermont can compare public and private health plans and select one that fits their needs and budget.
The town has eight eligible employees, including at the library, though with coverage for couples and families, there are 11 to whom the town will offer benefits, Town Manager Cynthia Stoddard said.
It was Stoddard who crunched the numbers with help from staffers and the Vermont League of Cities and Towns arrived at the recommendation of funding 90 percent of the insurance, and that the town might fund Health Reimbursement Account contributions for single insureds at $1,250, and family plans at $2,500.
The coverage does not bar individuals, couples, or families from going on the exchange and choosing lesser coverage, which premiums would then be funded at 100 percent, but the “exposure” on out of pocket costs would be significantly higher than the status quo, Stoddard said.
Under the platinum plan, premiums for individuals will rise from $0 to roughly $15; premiums for others will fall slightly, though everyone's co-pays toward initial out-of-pocket expenses will be smaller, Stoddard said.
Putney will pay 90 percent of premiums on the plan for dependents as well, instead of the 50 percent it pays today. Overall, the plan hews closely to coverage the town extends its 30-hour-a-week-plus workers now.
An eligible employee who does not enroll in the town health insurance plan will be entitled to a $3,000 per year premium reimbursement, provided that they have coverage through another employer-sponsored group.
“I wanted to choose a finding level to allow the employees to basically get the same level of coverage, and [for the town] to stay within budget,” Stoddard said.
Beginning this month, small businesses and municipalities with 50 or fewer employees will be able to use Vermont Health Connect to find coverage for their employees. In 2016, small businesses with 100 or fewer employees will be able to offer coverage for their employees through Vermont Health Connect.
Starting Jan. 1, 2014, federal law requires all Americans to have health insurance. Many people will be eligible for public programs or financial assistance to help pay for their care. Anyone who does not have health insurance, starting in 2014, will face a tax penalty.
Putney's employees must enroll in a plan by Nov. 15. Stoddard said a computer and trained insurance “navigator” would be available at Town Hall to help workers make sense of their options and to enroll.
“I think they're going to get great coverage. I'm not upset about this Health Connect thing at all. I think it gives people flexibility for what they want to do,” she said.
Deductions will start Dec. 1.
Selectmen approved this change to the personnel policy unanimously, and said they would seek out employee feedback and watch for developments on the controversial measure, derided and exalted as Obamacare, heading into next budget season.
Josh Laughlin, the board's chair, allowed that town employees might have fared better with no town-sponsored insurance, as there are subsidies for those facing the open market, and these might work out to more than the town is offering in benefits.
“I don't know that, and there's no way for me to tell. All we can do is let the market test that a little bit for everybody and [for us to] still offer the level that we have,” Laughlin said.