COUNTY UNION WORKERS ACT TO SAVE COUNTY NURSING HOME

Below is article from the Manitowoc Herald that shows how county workers--union workers- are willing to help out to save a public nursing home. Kudos to the unions for doing something they should not have to do.


THE ARTICLE :

Unions, county agree to health plan
County: Savings of $1M isn't 'excess money'
By Kristopher Wenn Herald Times Reporter


MANITOWOC � Union-represented county employees voted on Monday to accept health insurance coverage projected to save county government about $1.1 million in 2008 � a critically important reversal after employee insurance costs increased 130 percent since 2000.

"� This agreement brings hope for the very first time to taxpayers that the growth of health insurance costs will be contained into the future," County Executive Bob Ziegelbauer said in a written statement.

"We've agreed to accept health savings accounts as a Band-Aid to help stop the bleeding caused by a national crisis in health care affordability and accessibly," Neil Rainford, staff representative for AFSCME Council 40, said in his own press release.

The projected savings will be eaten up by costs to maintain operations across county departments and will not address the financial condition of the Manitowoc County Health Care Center, Todd Reckelberg, county comptroller, said Tuesday.

Ziegelbauer has proposed selling the 150-bed facility because of its annual deficits.

On Tuesday, the county's personnel committee approved the new health insurance coverage, which will be forwarded to the Board of Supervisors for a final vote.

Five American Federation of State, County and Municipal Employees units approved the health insurance plan that offers employees either a health savings account or a health reimbursement account. The five units represent about 400 employees in the Highway, Sheriff's and Human Services departments as well as the courthouse and Manitowoc County Health Care Center.

"Health savings accounts are not universally beneficial for county employees," Rainford said. "Although healthy employees will save under the terms of the new plan, unhealthy employees may pay more for care under the new agreement."

Blue Cross and Blue Shield will remain the county's health insurance provider for employees. Monday's vote transfers health insurance coverage from Preferred Provider Organization (PPO) to health savings or reimbursement accounts.

Employee savings in 2008 are projected to total $685,000 under HSA's � $979 for a single plan and $2,275 for a family plan in 2008, said Sharon Cornils, director of the county personnel department.

Four of the five units also voted to approve labor contracts from 2006 through 2010. Members of AFSCME local 986-B, which represents 60 employees at the Sheriff's Department, voted "no" to a labor contract. Remaining contract negotiations with that unit likely will go to arbitration, said Cornils.

Will vote change decision on MCHCC?
AFSCME leadership supported the insurance agreement as a way to assist the County Board in rejecting Ziegelbauer's proposal to sell the county Health Care Center, Rainford said.

Ziegelbauer has asked county board members to vote on his resolution to sell the HCC operations in 2008 and to negotiate a lease or sale of the real estate. He has said the county cannot afford to keep covering the annual deficit generated by the center's operations. The loss exceeded $2.9 million in 2006, according to Ziegelbauer.

For 2007, the county is operating within $15,000 of the state-imposed limit on its property tax levy, according to budget figures from the county comptroller.

"We're going to be budgeting the new cost of the (health) insurance for next year and that's something that we should be able to afford," Reckelberg said. "But that doesn't mean that we have excess money to be put somewhere else right away.

"What (the unions) are trying to say is that 'you've saved a million, put it into the Health Care Center.' Well, I don't have that million."

Reckelberg said that county departments are expected to be at or over budget this year and likely will need additional funding in the 2008 budget.

"(This is) all because we wouldn't allow them any increases over the years because the money went to the Health Care Center," Reckelberg said. "Department (budgets) have been frozen for operations, maintenance and outlay for more years than I can remember and (they) are going to break."

Referendum
Supervisors Don Markwardt and Robert Rasmussen said on Tuesday they prefer a countywide referendum on whether the county should increase its tax levy to continue operations at the Health Care Center. The state allows county boards to increase tax levy rates provided county voters approved the increase in a referendum.

"In my own opinion, it still goes back to the budget issue and that $2.9 million loss projected by the comptroller's office," said Markwardt, who represents District 10 in Manitowoc.

Markwardt said most of the people who have contacted him favor the county keeping the facility. But, there is a "silent majority" who "vote with their pocket books," he said.

"The Health Care Center � is costing lots of money per year," said Rasmussen, who represents the towns of Cooperstown, Gibson and a section of Mishicot. "After a couple years (the county) might save some money on health care, but it's not enough to pick up the balance at the Health Care Center."