Brown Blinks on Health Care Cuts

Look what you did to Mr. Bigglesworth!

This is good news for Northampton County workers. After a week of bizarre behavior that extended from posting armed guards at a news conference to blocking the Controller's emails. Executive John Brown has finally blinked. For three Council meetings in a row, worker after worker told him his health care cuts were too draconian. He ignored them. He also ignored a majority of County Council who adopted a resolution asking him to reconsider his health plan cuts. He rejected private advice from Council members, both Democrat and Republican, who told him he simply was asking for too much from the worker. But in a sign that perhaps his cranial rectosis is finally in remission, Brown has reversed course from an action that made him look more like Dr. Evil than a County Executive.

In start contrast to last week's antics, a subdued Brown announced his concession at the end of last night's Council budget hearing, almost as though it were an afterthought. He even called it an "FYI."
Deciding to change the drapes would be an FYI. This was a bombshell.

The County is purchasing gap insurance for next year. This means employees will only have a $2,500-5,000 deductible.

Below is the compete exchange, which you can see yourself.

Brown: "Next week, you'l be receiving from the Administration a contract. The contract is related to the health care program that we're offering our employees. Cathy Allen's been working on this since July. We've created a gap insurance policy that will allow us to fundamentally create the secondary insurance policy that will create an out-of-pocket cap that's been asked for by the employees. If you are single, it will be $2,500. For families, it will be $5,000. The cost of that - a little over $100,000. It's a single source, a special program that's been put together specifically for Northampton County. The Administration will fund that for 2015 on behalf of the employees. It should meet their needs. But that will be coming to Council for next week."

Peg Ferraro: "So the gap insurance will be paid by the County?

Brown: "For 2015, the County will pay for that insurance. That will give the employees the time, which they've asked for, to be able to plan and then decide after a year of use of that type ofpolicy if it's something they would like to take up, and we'll take that up in '16."

Glenn Geissinger: I just want to be clear. So the out-of-pocket expense for a single individual - $2,500.For a family - $5,000.

Brown: That's with the secondary -  

Geissinger:  "- secondary insurance, which the County will be paying for."

Brown: "That is correct. That's what we're proposing, however until, you know, it would have to come before council."

Ken Kraft:  "So, John, the gap insurance is covering from $2,500 to $6,600, that gap there -

Brown: -  "Yes, that's correct. $5,000 for the $13,200 differential for a family."

Kraft:  "So, it'll enact itself when the person has - let's say you're single - ... has $2,500 worth of healthcare costs. I'm paying 10% of it up front, so when I get to $2,500, then the gap insurance kicks in and I don't pay anymore for the rest of the year.

Brown: "That .. fundamentally ...

Kraft:  "- I'm trying to simplify it."

Brown: "That's how the mechanics would work. Yes."

He's finally doing the decent and the right thing. But he's done a lot of damage, both to himself and to the County he serves. He has destroyed the morale of what he considers the County's most important asset. He needlessly stressed a large number of them, and the Civil Division has lost all four of its deputies as a result of his hardball approach to the staff.

He has lost the County workers and won't be getting them back, in my opinion. The employees and their family account for about 7,000 registered voters, and I am sure they will be at the polls the next time his name comes up.

Blogger's Note: Originally posted 10/29, 6 pm.

Co-Insurance: The Difference Between Lehigh and Northampton County Workers

Of all the changes to health plans being imposed by Executive John Brown, the most controversial is the 10% co-insurance. Let me explain the difference between Lehigh and Northampton County workers. I'll limit it to family coverage.

Lehigh County - The first $6,000 is paid by the employee, and after that, he bears 10% of the cost. But he gets reimbursed by the County for $5,500 of that $6,000.

Northampton County - The first $13,200 is paid by the employee, after which he is responsible for 10% of the cost. There is no reimbursement.

What this meas is that a Northampton County employee making $20,000 per year can be forced to spend most of his salary for a medical procedure.