Health care costs 'crippling' Mayor Harry Wyant says it's time for employees to contribute. No co-pay for teachers in new deal. Sunday, June 24, 2007 • By DANIEL HAUSMANN • The Express-Times PHILLIPSBURG | Phillipsburg School Board's decision to cave on its demand for a health care contribution from teachers will have little effect on the mayor's negotiations with cops, according to both sides. Mayor Harry Wyant and police union leaders have met once to discuss a labor contract. Wyant and town council have said shifting the cost of employee health care is a must. "That's something that is absolutely imperative that we get in place," Wyant said. "The health care cost is crippling the town." The town budgeted more than $1.6 million for health care for 102 employees in 2006. It paid, on average, $19,882 to provide family coverage for an employee and about $8,195 for an individual. Employee health insurance costs continue to pose a headache for the town this year with $1.8 million slotted in the $15.5 million budget. On June 18, the Phillipsburg Education Association ratified its contract for 428 teachers. The school board is expected to consider ratifying the contract Monday night, possibly ending 18 months of negotiations that stalled on the health care issue. In 2005-06, the district paid out $8.2 million, or 14 percent of the budget, for employee health care. Phillipsburg Policemen's Benevolent Association President Mike Swick said he didn't think the settlement meant a great deal to his negotiations with Wyant. "I think it's great for the teachers, but our negotiation is separate from theirs," Swick said. If the police union accepts a co-pay, a provision in the contract with the town's American Federation of State, County and Municipal Employees allows for a similar co-pay. Wyant doesn't think the school board's settlement hurt his position. He has been meeting with the town's health care consultant since he last met with Swick and Superior Officer Association President Rich Halley on May 4. "There are several ways to attack the high cost of health care," Wyant said. One such way is to switch to a Preferred Provider Organization plan, which encourages employees to go to specific health care providers. The school district gives grandfathered employees the option between the PPO and a traditional plan. New employees are required to take the PPO. School business manager Bill Poch said 83 of the district's 634 employees take the traditional plan. He said the savings in the 2007-08 school year should be more than $58,000. "The PPO is a lot better plan," Poch said. Either way, council President David DeGerolamo said, it's a must to get the health care contribution in a contract before the current deal expires. Unlike retroactive raises, it's unlikely the town could reach back months to get insurance payments. "You're not going to go and get that money back," DeGerolamo said. Reporter Daniel Hausmann can be reached at 610-258-7171 or by e-mail at dhausmann@express-times.com.