Friday, September 05, 2014
FOP Suing City Over Proposed Changes In Health Care Benefits
The Indianapolis Fraternal Order of Police is filing suit against the City of Indianapolis over changes in proposed health care benefits starting in 2015 which the members believe violates their current collective bargaining agreement with the City. The City plans to eliminate the Advantage HMO Plan currently offered and replace it with a 3-tiered High Deductible Health Plan offered by Anthem. Premium contributions for the officers and family members are expected to more than double with annual contributions ranging from $1,250 for singles and up to $2,500 for other family members covered under the plan. The City will offer plans with lower premium contributions with higher deductibles and maximum out-of-pocket pay. The standard plan will have a $3,500 deductible with $5,000 maximum out-of-pocket pay. One of the big cost-saving changes will mean no contributions made to retired police officers' health insurance coverage. Low-cost clinics are also being established throughout the City to provide basic medical care.
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12 comments:
Once again, Li'l Greg, the Marine Mayor, proves how much he considers public safety to be Job One.
Mayor Marine has MILLIONS of dollars available for his rich friends, but nothing for the men and women who go out and bleed and die for him.
He is a poor excuse for a Marine, and is NOT a leader.
We have been bellyaching for years about the high cost of police and fire pensions and health insurance. If costs can come down that’s a good thing. Everybody else is seeing their health care costs rise. My insurance has gotten steadily more expensive. It seems to be the national pastime now to talk about how expensive our out of pocket has gotten. I don’t see how the police and fire retirees can avoid falling into the pit with the rest of us. They have Cadillac plans, but they cost us, the taxpayers, a huge amount of money. If we can save a bit it would be sensible. I think they can contribute more toward their health care. Like the rest of us, they may have to adjust to the new reality.
Anon 2:50 9 PM, perhaps before making your judgement, you should post just how much your plan costs, then I will post what my plan costs, and we can see who has the "cadillac" plan.
As a self-employed person who has to pay 100% of my health insurance costs, I have no problem making public employees health benefits comparable to their counterparts in the private sector; however, I think the question here is whether the City bargained collectively for specific benefits that can only be altered through either an agreed upon amendment to the existing agreement or a new agreement altogether.
I think we're seeing in Detroit's bankruptcy that bondholders, pensions and health policies, once thought inviolable, are in fact all on the table when the checkbooks grow thin. In the private sector stock and debt and pensions are completely erased when companies go under, with impunity. The power to renegotiate these municipal entitlements lies with the city. If the FOP takes it to Court they better be prepared to lose, because they might. Like peak oil, the concept of peak municipal pensions has come home to roost. I think the city ought to begin offering less to incoming employees because pensions are going to bankrupt the city.
Anon 5:28, Gary has it right. Also, I know plenty of cops and none of us want them on a work slowdown. They can turna basic run into a 1.5 hour ordeal.
Get a grip dudeand make sure you understand a contractual obligation.
Gary @ 5:09 PM - You are correct, Gary. It is NOT a Cadillac plan, and is rather expensive, but it was made a part of a duly signed contract by the city.
Now, once again, the city is trying to change the terms.
Police officers have already given up two or three raises that were in the contracts in order to help out the city.
It's time for Mayor Marine to start honoring his obligations, and stop giving MILLIONS to his pay to play buddies.
Anon 5:28 - I suggest you learn something about what you comment on before commenting. You have opened your mouth and inserted your foot.
There is NO municipal pension. City employees participate in the State Public Employees Retirement Fund. Ergo, pensions have no effect on the city.
Really, try learning about what you post before posting!
Anon 11:32PM -
Actually, those police and fire under the 1953 Plan are on a city pension.
All after 1977 (I think) are on PERF.
C. Roger Csee: The state bailed the cities out on that old plan, of which the remaining members are few.
There are no firefighters under the 1953 pension act. Only law enforcement. Firefighters are under either the 37 or 77 pension act.
What I wonder is who is going to benefit from this. The city will deposit money into a HSA set up by the employee. Those accounts are only at Teachers Credit Union (at least IMPD). So, if this goes through, all city employees will be forced to become TCU "customers" and have accounts with them. Who is the law firm that represents TCU? Is it B and T? Who in Ballard's administration has ties to TCU and the firm that represents them? The Mayor sees the writing on the wall and knows he will not get re-elected so this is probably just more lining of the pockets of friends before the Mayor gets booted out of office in 2015. I can't see the city getting a better deal from only offering 1 carrier vs letting competition force costs down.
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