Source: Sherman Publications

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Addison switches health care providers to save money

by Andrew Moser

May 25, 2011

Everyone likes getting more bang for their buck, and Addison Township definitely got more for their money when they announced a savings of approximately $12,000 by switching health care providers.

At the Board of Trustee meeting on Monday, May 16, the township voted 6-0 to award the contract for their health care policy to AXA. Along with the same policy coverage as before, the township was able to add life insurance, short-term and long-term disability to the policy.

"This is a very much needed thing for our employees," Addison Township Supervisor Bruce Pearson said. "We value our employees and we should be making sure they are secure."

Pearson said adding disability insurance was one of his priorities when he came into office three years ago.

According to Township Clerk Pauline Bennett, who worked on the health insurance contract with Township Treasurer Dan Alberty, the biggest area of savings came when the township was able to add the single parent with children plan to their current policies of single, two person and family.

The total savings from switching over from their current health care provider to AXA was approximately $18,000, but the township is paying approximately $6,000 for the added benefits of life insurance, short-term and long-term disability, bringing the total savings down to $12,000.

Employees will also receive vision and dental insurance.

Alberty said the employees will have to pay more for their deductibles and their co-pay will increase.

This was great news for Addison Township Fire Chief Jerry Morawski.

"The benefit with the fire department is that we do not have a light duty to perform in, so if you can't perform your old duty, you are off," he said.

Morawski noted under the old policy, the firefighters would save up their vacation time and use that to make sure they were paid in case they were off for an extended amount of time due to getting hurt.

Now they do not have to worry about that.

"It's a great benefit to our employees because they no longer have to obtain high amounts of vacation time or sick time in the event they get hurt," Pearson said. "We now have a policy available to us that they get short-term and long-term disability, so hopefully they can use their vacation time as it is intended to be used and they don't have to worry about being injured."

Pearson said the reason for the switch in insurance providers is due to the township opening everything up for new bidders in an effort to save money.

"It's much easier to keep paying premiums with same insurance company because no one wants to bother going through all this because it is a lot of work, but we did take the time and it has been very fruitful for us," Pearson said.