PARKERSBURG - City employees will be paying out more for their insurance starting this summer.

Beginning July 1, employees could pay almost double the premium they paid for insurance last year.

City officials, including the Parkersburg Utility Board, decided to increase the employee portion of the premium from an average 6 or 7 percent to 10 to 15 percent.

"It is not unreasonable for employees to pick up a larger share," Mayor Bob Newell said. "Keep in mind taxpayers are paying the bill to begin with."

Newell said city leaders compared the rates with other municipalities and agencies and found the average to be about 17 percent. Newell said state employees pay 20 percent of their insurance premiums.

Vienna was hit with a 30 percent increase in health insurance rates for employees from Mountain State Blue Cross Blue Shield. Last year, Vienna paid about $859,000 for health insurance, but the company has requested $1,110,516 for the coming fiscal year.

Personnel Director Susan Bayles said last year employees paid anywhere from 2.5 to 9 percent of the insurance premiums. Prior to 2009, employees who had only employee coverage paid nothing for insurance.

"In this economy this is unheard of," Bayles said. "It was a big perk. Even though employees will see higher costs we are still well below what other employees are paying.

"We are still a major bargain."

Newell said the new rates will go into effect July 1. Employees will have an open enrollment period to pick a plan before the changes take effect.

The changes will also mean a higher payment for tobacco users, who will pay 15 percent, as opposed to non-tobacco users, who will pay 10 percent.

Bayles said insurance providers will make customers submit a tobacco-free affidavit.

"If you sign up as tobacco free you have to sign an affidavit that goes with it," she said.

Newell said the city will perform a review to make sure tobacco users are truthful in their claims.

"We will let them know the downside is tobacco-related illness could result in a failed coverage."

The utility board is following suit and will also increase employee premium to 10 to 15 percent, according to assistant manager Eric Bumgarner. The increase will affect all 82 PUB employees.

The city has about 267 full-time employees. Insuring those employees will cost the city about $2.6 million for 2010-2011.

Newell said the longevity adjustments city employees annually receive will likely be used to offset the increased premium amounts.

"The amount will vary depending on the plan they pick. Basically, many of the employees, the money they would have realized in their longevity pay will be spent on the new insurance," he said.

Utility board employees do not receive longevity adjustments. They also did not receive a cost of living adjustment for 2010-2011, according to Bumgarner.

"It is a double whammy," Bumgarner said.

BY: Jody Murphy
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