Wednesday, March 23, 2011

budget proposal to adopt 70/30 cost sharing for insurance premiums

Hi all -

A question came up at last night's budget committee meeting about how much the County could save by extending the 70/30 cost sharing proposal for insurance premiums to MCPS employees. (The County Executive's budget proposes doing this for County Govt. employees, along with a surcharge for higher salaried employees). The OLO report modeled the 70/30 cost sharing option and presented cost savings for each type of County employee (Table 6 in issue paper C). The cumulative 5 year savings for County Govt. employees would be $59.5 million ($5.5 million in 2012); excluding MNCPPC and Mont. College. By comparison, the cumulative 5 year savings for MCPS employees would be $300.7 million ($28.7 million in 2012). Clearly, the lion's share of the savings would be from extending this policy to MCPS employees. something to think about for the MCCAB meeting.


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