Workers, city clash on health benefits

Jenny Marder

Droves of city employees flooded the already crowded City Council

chambers on Monday night to protest an increase in health premiums

that they say would be devastating.

City employees with two or more children may be forced to

contribute as much as $316 out of pocket monthly to their health

insurance premiums next year. This is nearly a 400% jump from the $62

per month that they’re paying now.

“Three hundred and seventeen dollars will make the difference in

our lives,” Accounting Technician Freddy Horning said at the council

meeting as she fought back tears. “My daughter, a straight-A student,

will have to go to work. I will be forced to seek a second job. ... I

don’t want to leave the city, but realities are, we have to survive.”

The city and the employees’ union have been at the bargaining

table since August.

The union is asking the city to share the burden of the rising

insurance costs.

“We know we’re going to have to pay something, but we don’t think

we should have to pay 100% of the [increase],” said John Von Holle,

president of the Huntington Beach Municipal Employees Assn.

City officials say this increase is simply a reality right now.

“We’re not any different than other parts of Southern California

in terms of skyrocketing healthcare costs,” Assistant City

Administrator Bill Workman said.

Factoring into the swell in healthcare costs are rising

pharmaceutical prices, advances in technology and a greater number of

employees opting for the city’s healthcare plan.

“When we get higher usage, the plans reflect that in terms of

higher costs,” Workman said. “Medical costs of taking care of people

is just becoming more and more expensive.”

Employees in Huntington Beach can choose between an HMO plan,

provided by Health Net, and a more flexible point-of-service plan,

commonly known as a PPO, which is self-administered by the city.

There are caps in place on the amount that the city will

contribute to employee health insurance. For the point-of-service

plan, the cap is $336 for a single employee, $665 for an employee and

one dependent and $814 for an employee and two or more dependents.

For the HMO plan, the cap is $236 for a single employee, $518 for an

employee plus one and $682 for an employee plus two or more.

Employees pick up the difference.

City workers are advocating for a higher cap and more choices on

healthcare providers.

“It’s not that we don’t feel we should be paying more on our

premiums,” Von Holle said. “It’s that we’re not getting a choice.

It’s being dictated how much we will pay.”

City Councilman Dave Sullivan does not think that the city should

share the costs.

“I think this just reflects reality,” Sullivan said. “I think we

should look at all possible proposals from outside insurance

companies to find the best deal, and I think that employees should be

involved. But because of natural increases in healthcare costs,

there’s no way it’s not going to cost money. I think that the amount

that they’re going to have to pay is very compatible with what’s

happened elsewhere.”

Meetings will continue at least through December, Workman said. If

the two parties are unable to reach an agreement by the end of the

year, the current health plans will continue.

“We’ll just continue to be meeting with them and providing offers

and counter offers based on the authorization that the City Council

provides,” Workman said.

The union vowed Monday to continue its fight.

“We will continue to put pressure on the City Council until they

do the right thing,” said Ray Whitmer, secretary treasurer of the

Teamsters Local 911. “And next time, we’ll have 60 speakers.”