Local governments plan to make changes to employee health benefits to offset rising costs and revenue shortfalls in 2011.
Specifically, according to a new report from nonprofit Cobalt Community Research, local officials plan to increase premiums, increase deductibles and copays, improve wellness and renegotiate with insurance carriers.
The report, Health and OPEB Funding Strategies: 2010 National Survey of Local Governments is based on responses from more than 1,900 city, county, township and special district governments across the country randomly polled this year.
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"The report is unusual because it takes a detailed, scientific snapshot of benefit strategies at all levels of local governments – from large counties to small townships," said William SaintAmour, executive director of Cobalt Community Research. "We're seeing belt tightening and growing awareness of benefit costs at all levels, and the report gives us a detailed look at which design changes they've made and which changes they plan to make."
Most of the respondents – 77 percent – provide health care to employees, with 29 percent also providing coverage to retirees.
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