New London Employee Insurance Moves To State Plan

New London’s municipal and school employees will now be insured by a state health plan as the city joins the Connecticut Partnership Plan.

Mayor Daryl Finizio and Comptroller Kevin Lembo said Monday that the transition will be effective on July 1. The plan is offered to employees who work in local government positions with the idea that the state government is able to secure more advantageous insurance due to its larger size and risk pooling.

“Almost more importantly, there is a potential for predictability over time,” said Lembo.

New London previously self-insured its employees. Lembo said about 2,400 people will be newly included on the plan on July 1, including eight municipalities.

Finizio said New London is the first city to fully integrate with the plan, including both municipal and school employees. He said the administration has been moving toward joining the Connecticut Partnership Plan since he took office and meeting with partners such as the City Council and collective bargaining units to discuss the transition.

“Generally speaking, the reception was good and most of the reluctance we’re receiving at this point is because it’s a change,” Finizio said.

Finizio said the plan should provide long-term savings and more stable health insurance costs to the city. He said Finance Director Jeff Smith also anticipates some short-term savings, including about $30,000 in the 2013 fiscal year.

Finizio said the premiums to be paid by municipal and school employees will be comparable to what is paid now. According to the comptroller’s website, the plan is available to both active and retiree populations. Lembo said local policies and collective bargaining agreements will make the determination on continuing health insurance beyond retirement.

“It’s great to have a partner in New London, and we’ll continue to work together,” said Lembo.

Follow us on Facebook and Twitter.