Raises, insurance in doubt for county employees

Joe Blumberg

Dec. 2, 2008 (McClatchy-Tribune Regional News delivered by Newstex) -- Buchanan County employees probably won't get raises and may for the first time start paying part of their monthly health insurance premiums.

The Buchanan County Commission is waiting to give answers, hoping to use this fall's sales tax figures as tea leaves for next year's budget projections. But County Auditor Nancy Nash suggests some heavy lifting will be needed for employees to avoid paying any health insurance, and she suggests raises are basically out of the question.

Paid health insurance remains one of the last great benefits that many government jobs hold over the private sector, along with paid retirement pensions.

Employee unions have fought hard against the change, understanding that once employees begin paying for insurance increases, they'll never stop.

In the private sector, however, that's nothing new. Health insurance premiums have increased by 100 percent since 2000, while inflation and wage growth have only grown by 24 and 21 percent, respectively, according to the Kaiser Family Foundation and the National Coalition on Health Care.

Buchanan County Presiding Commissioner Royal "R.T." Turner said he hopes this fall's sales tax revenues haven't flatlined versus 2007. Those figures could be known in the next two weeks, then the county will revise its 2009 budget proposal.

"We're going to try and protect it," Mr. Turner said of free health insurance. "But we've got to live with what we've got."

The county pays about $538 per employee for monthly health insurance premiums, which will increase 12 percent in 2009 to $601. Employees currently pay $619 a month for spouse coverage and $135 for children.

Ms. Nash said her office didn't recommend a specific dollar increase for employees, but she characterized some county funds as facing "hard nails" decisions. The county pays $1 million more for health insurance premiums than it did five years ago, she said.

Employees already have been told they'll have a new $100 annual deductible for prescriptions and a $100 co-pay for imaging tests such as MRIs. Vision coverage will no longer be free, and hospital co-pays will increase $100.

Ms. Nash said she's heard no talk of job cuts, but she also doesn't see how the county could afford raises.

"Surely no one is expecting any raises," she said.

The city of St. Joseph provides free health insurance on its base plan, although employees do have to "buy up" for the coverage plan they used to receive for free, and employees must pay the entire cost for dependent coverage. St. Joseph School District employees pay 5 percent of their health insurance premiums, and the district covers 50 percent of the costs for dependents.

Joe Blumberg can be reached at joeblumberg@npgco.com.

Newstex ID: KRTB-0283-30048337