Georgetown, Del., Feb. 12, 2009: A small change in Sussex County’s health care plan could provide big savings and a much-needed shot in the arm for County finances.
County Council, at its Tuesday, Feb. 10, 2009, meeting, approved changing health insurance benefits so employees can opt out and use coverage elsewhere, either through a spouse or through another provider. The move will help Sussex County whittle away more than $121,000 in costs annually at a time when lean revenues and a shrinking economy have forced the government to trim spending and look for other savings.
“This is an easy, painless step we can take to realize true savings for our taxpayers,” Council President Vance Phillips said. “I commend our staff and employees, one of whom suggested this change, for their hard work to find savings. It's a team effort and we're all in this together."
Because the County has until now funded 100 percent of its employees’ annual health care, the plan automatically covered all employees, regardless of whether individuals wanted the coverage. In order to legally allow employees the ability to opt out, the County must charge $1 a year per employee for their coverage.
County officials estimate that at least eight employees who have health care benefits from previous employers could save the County as much as $121,000 by opting out. The savings would increase if more employees picked up health coverage through other sources.
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