By Sean Fogarty, Courier Staff Writer:
The decision to switch
town employees’ healthcare provider from Anthem Blue Cross to ConnectiCare has
many uncertain and hesitant. The switch, which became effective July 1, marks
the first time in 30 years the town has had a healthcare provider different
from Anthem Blue Cross.
Last week, the Board of
Finance heard a presentation by William Carew of Ovation Benefits (OB), who
said the company is “the insurance agent” for the town and is in charge of the
$9 million cost of healthcare.
When the town decided to
bid its healthcare provider out, it hired OB
to find providers. After approaching six companies, only two offered benefits
that would match the benefits North Haven
had–ConnectiCare and Anthem Blue Cross. Because of union contracts,
ConnectiCare must provide benefits equal to those employees enjoyed through
Anthem.
“What’s really important
to understand [is] the benefits are exactly the same with ConnectiCare-they have
to be,” said Carew. “But they don’t have to have 100 percent of the choice of
hospitals and doctors–but they have over 97 percent.”
One of the changes the
healthcare provider switch provides will save the town $100,000 on dental
insurance. This is a switch from full insurance to self-insurance for town
employees. Anthem will continue to provide the town dental insurance.
“The town pays $50,000 a
month to Anthem for dental insurance right now,” explained Carew. “With
self-insurance, the town will pay Anthem $5,000 a month for an administrative
fee, while establishing a bank account that will be used to reimburse Anthem
after they have paid a dentist. For full dental insurance, it is $600,000 a
year, but with self-insurance it is $60,000 a year plus costs of dentists–which
will be around $400,000, so therefore you save about $100,000 just on dental.”
According to Carew, with
this method there is no change in the services or benefits to town
employees–and this means savings for taxpayers.
Upon learning the town
would be switching the healthcare provider, several unions hired an expert to
examine the equivalency of the proposed plan. Carew said he’s spoken with these
analysts and their relationship has been cooperative.
“We’ve talked to a lot of
unions and they say their people are nervous,” said Carew. “Most unions
understand this is something that happens in all cities and happens all the
time in private business.
“If they find something
isn’t the same, then all we need to do is document the way it used to be and
ConnectiCare has to change it,” continued Carew. “This is very much a
cooperative effort; once the unions finish their final analyses and identify
things that aren’t equal, we can sit down and work it out.”
Carew admitted not all
services will be perfect at first, but said that ConnectiCare’s contract with
the town is a long-term one.
“We are going to be
working on an ongoing basis to get the wellness and preventions programs up and
running,” said Carew.