Doing almost two years of research has paid off for the Village of Lake Orion.
Village council members decided Nov. 28 to change health insurance coverage from Blue Cross/Blue Shield to the Municipal Employee Retirement System Plan 6.
According to LO Finance Director Jan Adams, the village will save in excess of $75,000 annually.
Adams said health care costs for the village have been increasing steadily since 1999. The increases have averaged between 13-15 percent every year.
‘Outside of labor that’s our biggest expense,? she added. ‘We had to react to it (the increases).?
Adams said the village took the increases seriously because not enough revenues have been coming in to cover the rate hikes.
The biggest difference between the health care programs is the drug prescription coverage.
Blue Cross/Blue Shield had offered a $10/$20 prescription drug card, MERS a $10/$20/40 drug card. This is a reduction in prescription benefits.
MERS has handled the village’s retirement program for years. It began offering health coverage to municipalities in January 2005.
All of the village unions and non-union employees have approved the change.
‘Everyone will now be on the same plan,? Adams said.