Portage raises deductible to save on health insurance costs

PORTAGE | The city is looking to save just over $300,000 in health care costs next year.

The Board of Works on Monday approved renewing its contract with Berkley Insurance, the city's health insurance carrier.

"We are renewing what we currently have," Clerk-Treasurer Chris Stidham said. However, the city is raising what it would pay out-of-pocket for employee medical expenses.

The city is self-insured. Under the current contract, the city picks up the tab for the first $80,000 per employee medical costs. That figure will be raised to $120,000 in the new contract.

"We will save more in premiums if we raise the deductible,' Stidham said. "We decided we would rather pay in claims than in premiums."

The contract does not affect what employees are paying for premiums or their health care coverage. Mayor James Snyder said officials are still working on the employee health care coverage.

This year's premium was about $806,000. With the change, it will be lowered to $498,000, a saving of $308,000 for 2013.

The board also approved renewing employee dental insurance coverage with Anthem Insurance. The cost will increase by 5 percent in 2013.