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February 26, 2010

County officials OK health benefit changes

Grand Traverse County officials to pay 10 percent toward their own insurance costs

BY SHERI McWHIRTER

TRAVERSE CITY -- Grand Traverse commissioners will have to pay a portion of their taxpayer-funded health insurance beginning next year, and their family members will be dropped from coverage.

Commissioners voted 6 to 3 this week to drop health insurance benefits for their family members and pay 10 percent toward their own premium costs. But the board boosted the cash payment they receive in lieu of insurance to $2,000, up from between $600 and $1,000.

Board members' cash payment will equal the amount the county offers all full-time employees who opt out of health insurance coverage.

Commissioner Larry Fleis voted against the measure. He called the move political grandstanding, an insincere attempt to save taxpayers money. Commissioners Beth Friend and Michael Stepka also voted against the plan.

"They did this under the premise of saving money. We're not talking a lot of savings. It's miniscule," Fleis said.

The move will save the county about $12,000 from the annual $39 million general fund budget.

Fleis contends he and other commissioners earn their $7,000 annual salary, $35 meeting per diems, and benefits, considering the time they spend on county business. The perks -- including health coverage for family members -- are deserved, he said.

"I earned every nickel of it and I still came out on the short end of the stick, like every commissioner," Fleis said.

Taxpayer costs to fund health insurance for Fleis and his wife total about $11,600 a year, while costs for Commissioner Bruce Hooper and his family are estimated at $14,000 annually.

Commissioner Ross Richardson favored the move. He currently receives health coverage for himself at a cost of about $5,000, as does Commissioner Larry Inman, and both will pay 10 percent of the bill.

"I supported it because it was a step in the right direction. The cost savings are minimal, but it's more important we show some leadership on the health insurance benefits," Richardson said.

Commissioners Mike Stepka and Beth Friend, who decline county health insurance, other benefits and the cash payment, said they voted against the measure because it doesn't go far enough.

"I think our base salary and our per diem amount is significant compensation for our role as commissioners," Stepka said.

All health benefits should be stripped from commissioners, Friend said.

Stepka said taxpayers have enough trouble staying employed and making house payments in this economic climate and shouldn't have to foot the bill for commissioners' benefits that extend to dependents.

The benefits change will take effect in January 2011.

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