Possible budget-buster

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From this week's City Manager's newsletter:

 "Health Care costs for the first six months for 2012 have exceeded projections by at least a half million dollars. As Council may know, we are self insured which means that our expenses are largely dependent upon the actual claims. This differs from fully insured traditional insurance where the costs do not fluctuate monthly with the claims. The city has been self insured for quite a while, many larger groups are, but given the state of the budget, we will be asking the Health Insurance Committee to examine a fully insured product which allows us to predict our costs." 

"Hopefully we will gain ground during the second half of the year. The Employee health care committee will be meeting at the end of this month to discuss the options for controlling and reducing costs for the balance of this year and next year. We will continue to update council with information as this situation develops."

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Mike_Presta Members Profile Send Private Message Find Members Posts Add to Buddy List MUSA Council Joined: Apr 20 2008 Location: United States Status: Offline Points: 3483	Post Options Post Reply Quote Mike_Presta Report Post Thanks(0) Quote Reply Topic: Possible budget-buster Posted: Jul 19 2012 at 6:10pm
	From this week's City Manager's newsletter: 　 "Health Care costs for the first six months for 2012 have exceeded projections by at least a half million dollars. As Council may know, we are self insured which means that our expenses are largely dependent upon the actual claims. This differs from fully insured traditional insurance where the costs do not fluctuate monthly with the claims. The city has been self insured for quite a while, many larger groups are, but given the state of the budget, we will be asking the Health Insurance Committee to examine a fully insured product which allows us to predict our costs." "Hopefully we will gain ground during the second half of the year. The Employee health care committee will be meeting at the end of this month to discuss the options for controlling and reducing costs for the balance of this year and next year. We will continue to update council with information as this situation develops."
	“Mulligan said he ... doesn’t believe they necessarily make the return on investment necessary to keep funding them.” …The Middletown Journal, January 30, 2012

acclaro Members Profile Send Private Message Find Members Posts Add to Buddy List Prominent MUSA Citizen Joined: Jul 01 2009 Status: Offline Points: 1878	Post Options Post Reply Quote acclaro Report Post Thanks(0) Quote Reply Posted: Jul 20 2012 at 8:17am
	Larry Mulligan, Russ C., Judy G., what busts these people have been associated with economic cost oversight. To simplify her (Jud G) statement, she is stating they can't control their variable costs vs fixed costs being self insured. Any grad B school candidate learns its variable costs which throw a company into bankruptcy associated with fluctuation. That's the basis for outsourcing, it focuses in helping to control variable costs by taking out uncertainty and adding predictability. Is there anything the city manager actuall does, its not clear to me she does anything. Are the city workers aged, and now have more claims than in years past, and if so, why? This is absolutely the worst run city I have ever had the misfortune of being associated. Work on variable expense Judy, not fixed. And, is it not feasible one major medical matter or two, if a few employees, would drive these costs up over a cliff, cancer, a major series of operations? For all the atlk of Larry Mulligan being the prudent cost hawk, he has been a complete bust in my estimation.
	'An appeaser is one who feeds a crocodile, hoping it will eat him last.' - Winston Churchill

Vivian Moon Members Profile Send Private Message Find Members Posts Add to Buddy List MUSA Council Joined: May 16 2008 Location: Middletown, Ohi Status: Offline Points: 4187	Post Options Post Reply Quote Vivian Moon Report Post Thanks(0) Quote Reply Posted: Jul 20 2012 at 8:46am
	Not to worry Acclaro, Ms Judy will have The Employee Health Care Committee solve that problem for her also... What is she going to do about all the other cost over runs that are about to stick thier ugly heads out of the ground?

Mike_Presta Members Profile Send Private Message Find Members Posts Add to Buddy List MUSA Council Joined: Apr 20 2008 Location: United States Status: Offline Points: 3483	Post Options Post Reply Quote Mike_Presta Report Post Thanks(0) Quote Reply Posted: Jul 20 2012 at 8:58am
	Maybe they can find some spare money in the Phony Decorative Gas Street Lamp Fund to cover these cost overruns???
	“Mulligan said he ... doesn’t believe they necessarily make the return on investment necessary to keep funding them.” …The Middletown Journal, January 30, 2012

Pacman Members Profile Send Private Message Find Members Posts Add to Buddy List Prominent MUSA Citizen Joined: Jun 02 2007 Status: Offline Points: 2612	Post Options Post Reply Quote Pacman Report Post Thanks(0) Quote Reply Posted: Jul 21 2012 at 8:52pm
	It Only Takes One Or Two Employees To Have Major Claims (Such As I Did In 2011 Of $1.2M) To Make A Budget Buster. Pacman