Wednesday, October 27, 2010

Obama healthcare law affects Fairhope cost reduction efforts

Published: Sunday, October 24 2010 6 H.

FAIRHOPE, Alabama - a debate between the leaders of city on reducing benefits workers to reduce municipal costs changed unexpectedly when municipal administrators learned more about the past more federal health reform Bill earlier this year last week.

After four months of work and hours of discussions at meetings, the Council voted on October 11 to cut health program benefits the city for retired workers and activate coverage fees paid by current employees.

Three days later, mayor Tim Kant opposed the order, saying: there are other ways to reduce costs.

But as it turns out that "this could be an exercise in futility", the Council President, Lonnie Mixon said Friday.

City Administrator Gregg Mims said he and other managers met Tuesday with Blue Cross/Blue representing the city insurance shield.

In this encounter, officials learned that measurement, the Mayor vetoed, if he was, would have effectively increased fresh city insurance, not decreased, said Mims.

This is because the city would have lost its status as "acquis" under the provisions of the Health Act approved by Congress and signed by the President Barack Obama on March 23, says Mims.

"If we made changes to anything else that co-pays that pay employees for doctor visits have lost us this status" and premiums have increased enough to deny economies had looked at the city, said Mims.

Thus, Council Monday will consider a new order that could boost two of four health changes initially adopted by the Council on 11 October, said Mixon.

The order would eliminate the workers from 1 January 2011 dental plan and terminate registration benefits for retired.

For retired new policy go into effect on October 1, 2011, the city will continue to anyone covered by the health plan benefits retired on 30 September 2010.Mais new employees would not be covered.

Essentially, the city is closing the door on the health of the retired, but those already registered will be covered, told representatives of the employees ville.Certains current would never qualify.

"What happens in France, if we continue on the road to provide coverage complete for all retirees in 15 or 20 years, we are going to be in a situation similar to a smaller scale," said Mixon.

Friday, the French Senate has voted to approve a plan of controversial reform of pension and retirement despite the nationwide protest Government and strikes against mesures.Le is moving part of an effort to reduce expenses déficitaires.Le French President Nicolas Sarkozy said that, because of the international financial crisis, deficit of nationwide retirement systems will be close to 30 billion euros.

Another adjustment of pension benefits approved by the Board of Fairhope October 11 and vetoed by the Mayor will do not part of the order to the scale-down considering Monday.

Of the scheme as it currently operates, the retired employees are only deleted from coverage of the city, when that they receive both the Medicare Part A coverage and Medicare Part b. Medicare Part B covers medical visits and other services out of the hospital that are not covered by the party.

Order of the Council on 11 October passed would be removed the current wording on part A and part B, stating only that employees retirement will be covered "until they are covered by health insurance."

But the order, the Commission will examine Monday leave unchanged language.

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