Avon Council gives consensus to pursue State Partnership Plan to reduce health-insurance costs

The Avon Town Council offered consensus to pursue enrolling town employees and retirees in the State Partnership Plan for health insurance after the Town Manager presented cost comparisons and savings estimates at the March 31 meeting.

The Town Manager said example full costs for family coverage under the town’s high-deductible plan were $49,502 versus $42,074 under the State plan and that moving to the State pool could produce an estimated $1,778,000 in savings, reducing a projected mill-rate increase from about 5.43% to approximately 3.75%. He noted that retirees (both over and under 65) would need to transition at the same time and that bargaining units must approve Memoranda of Understanding to effect the change. The town would no longer need stop-loss insurance if it joins the State pool, but it would no longer directly control premium-setting and would be subject to the State’s processes.

Council members asked staff to arrange State Comptroller Office briefings for employees and to return with any required administrative steps. The Board of Finance will set final revised budget numbers at its April 8 workshop and the council will adopt any resolution necessary to move to the State Partnership Plan.