Ironwood switches insurance companies

IRONWOOD — A switch in health care providers shouldn’t result in much change as far as city employee contributions are concerned, the Ironwood City Commission learned Monday.

City finance director Paul Linn said Blue Cross-Blue Shield, the current provider, offered a plan to the city with a “significantly higher premium rate.” As a result, the city switched to Consumers Mutual Insurance, which offers a plan similar to Blue Cross, but with a lower premium.

Linn said with the new insurance there will be a high deductible, but it will be “funded down internally,” so employees will pay almost exactly the same for their insurance.

He said union input was received before making the switch.

Changing health care companies also required a switch for dental and vision providers, and the city has switched from Blue Cross to Delta Dental and VSP Vision Care.

The health insurance year and new plan begin Dec. 1.

Also on Monday, a letter of agreement on health care with the Ironwood Professional Police Association was approved by the commission.

It amends the three-year police contract that extends through July 31 to state that health care coverage for retired employees and their families to age 65 won’t include workers hired after Nov. 1, 2014.

New hires won’t be eligible for retirement health care benefits.

City Manager Scott Erickson said the agreement ends an issue that had gone to arbitration “years back.”

Commissioners were told the police and fire union has verbally approved the agreement.

In other business Monday:

—Commissioners approved a final payment to Mukavitz Heating, of Ironwood, for $12,020 for furnace installation at the Downtown Art Place.

—Commissioners awarded a bid for self-contained breathing apparatus replacement bottles for the public safety department to 5 Alarm Fire and Safety Equipment for $15,000. The city will match a 95 percent grant for the purchase.

—The commission granted a request for special reduced water rates for the 2015 Snowmobile Olympus on Jan. 2-4 at the Gogebic County Fairgrounds, with track icing to begin in December.

—Mayor Kim Corcoran appointed Nancy Korpela and Velda Sclafani to the Ironwood Economic Development Commission for terms through 2020 and John Lorenson and Christopher Molkerton to the Patrick O’Donnell Civic Center board for terms through 2017.