New health-benefits package is expected to save city $700K

PAWTUCKET – The city has reached agreement on terms of a new two-year, health-benefits package with Blue Cross & Blue Shield of Rhode Island that will save taxpayers more than $700,000, Mayor Donald R. Grebien announced.
“We were able to achieve a win-win that is good for the taxpayers and fair to the employees and retirees who rely on our health benefits, and all without a rate increase,” Grebien said.
Key to the savings is greater reliance on generic drugs in the formulary of allowable medications, coupled with lower administrative costs and stop-loss premiums, while still fully meeting the needs of those insured under the various city medical plans.
According to a recent health-plan analysis for the city conducted through Bryant University, the city provides health care coverage to more than 1,200 employees, and more than 2,100 active subscribers.
The city is self-insured for its health coverage. The city chose to renew with the Blue Cross plans after issuing a request for proposals. &#8226