Bunkie delays acting on insurance ‘opt out’ proposal

“Why would anybody opt out accepting free insurance?”

The question, spoken from the audience of the Bunkie City Council meeting on July 11, was not answered.

In fact, the whole issue of employee insurance was tabled to allow council members to obtain more information on Mayor Bruce Coulon’s proposal to allow new employees the option of declining the city’s insurance with Blue Cross/Blue Shield.

"The first I heard of this insurance-related item being placed on the July agenda was when I received my copy of the agenda approximately 24 hours ago,” Councilman Travis Armand said. “I have no information and an abundance of questions regarding this matter.”

Councilwoman Brenda Sampson also complained that she had not had time to study the issue prior to that night’s meeting.

Coulon was noticeably aggravated by the council members’ comments. He said he has been working on the proposal for a few months. Coulon conceded the item was a late add to the agenda, but he did not anticipate it to be controversial.

“I am just trying to save the people of Bunkie money,” the mayor said.

The issue is that some employees have other health insurance in addition to the city’s and may not use the city policy at all.

FREE FOR EMPLOYEE

Bunkie provides the health insurance free for the employee, but employees must purchase separate health insurance for their families. Employees may find it more convenient for the entire family to be covered under one insurance policy.

Coulon questioned why “not one councilman called to tell me they have a problem with this resolution.”

Councilman Bill Longoria asked if a 30-day delay would provide enough time for Sampson and Armand to have their questions answered.

Coulon said he would make sure all questions were answered and that a representative of Blue Cross/Blue Shield would be present to address any concerns over the effect of allowing new hires to opt out of the city’s plan.

The motion to postpone action was unanimously adopted.

Armand had a list of questions, including:
-- Will the proposed change affect existing employees? 
-- Is there a percentage of employees that must remain under coverage for our employees to keep their existing coverage? 
-- What happens if our percentage of employees dips below that threshold? 
-- Will existing employees be allowed to opt out of coverage? 
-- Have our existing employees been made aware of any changes or polled on their preferences? 

NEW HIRES ONLY

Coulon made it clear his proposal would only affect new hires.

For example, if an employee is a military veteran and has insurance through the federal government, he cannot “opt out” of the city’s health insurance plan.

That would not harm the employee, but the city will still have to pay the premium for that employee under its insurance plan with Blue Cross/Blue Shield, even if the employee never uses his city-provided insurance.

However, if that employee retires or resigns, the person hired for that position would be given the option of refusing the city health insurance.

If the employee opts out of that insurance plan, Bunkie would not have to pay a premium for that employee.

The bottom line could very well have been captured by the anonymous questioner at the meeting: Why would anyone opt out if it doesn’t save them money personally?

After the meeting, Coulon said Bunkie is one of the few municipalities to provide its employees with health insurance. At one time the insurance also covered employees’ families, but the cost of insurance became too high. It was reduced to employee-only coverage several years ago.

He said the purpose behind the “opt out” proposal was to save the city from paying for insurance that employees did not need and would not use because they had other insurance.

He said it is possible that in the future, if enough new employees opt out of the Blue Cross/Blue Shield plan, it could cause the municipality’s cost-per-employee rate to increase. He said he is not sure how many defections from the city plan it would take to trigger such a change.

That is one question he will ask the Blue Cross/Blue Shield representative in preparation for the August council meeting.