COCOA, Fla. — A Spectrum News 13 Watchdog investigation uncovered a recent change to the city of Cocoa’s employee insurance that is costing some city workers hundreds, possibly even thousands of dollars in unexpected medical expenses.
City of Cocoa’s fiscal year and insurance plan runs October 1 to September 30, while the handbook says out of pocket maximums and deductibles run January 1 to December 31.
.The city says what is paid towards deductibles is on a calendar year but the thresholds are set by plan year.
City leaders say this move was made at the start of the new coverage period as a way to save taxpayers money, but it’s what’s written in the employee handbook that has some workers and their families upset.
Here are five things you should know:
- City leaders voted on employee insurance plan changes earlier this year: Earlier this year, Cocoa City leaders voted to do away with one of two healthcare coverage options for city employees. This change went into effect October 1, 2019. The plan that they decided to do away with was the “Buy-Up” option. Doing away with the “Buy-Up” option increased the deductible and out of pocket maximum threshold for families on that plan
- Open Enrollment Handbook on deductible timeframe: According to the city of Cocoa Open Enrollment Handbook 2018-2019, the period for deductibles and out of pocket max is January 1 to December 31. The wife of a Cocoa employee, Cindy Blossom, says because of the city doing away with the “Buy-Up” plan, their out-of-pocket maximum increased, meaning she now has to pay thousands of dollars in medical expenses out of pocket, even though her deductible had been met. Blossom is undergoing treatment for cancer.
- Dropping plan won’t save money: Getting rid of the “Buy-Up” plan won’t save the city money, but it’s lessening the increase. Instead of an expected 28 percent increase in costs, the city’s health costs will increase 13.4 percent.
- City says plan change results in minimal impact: City leaders say doing away with that plan impacted about 8 percent or 70 people enrolled in the city insurance plan that had already met their deductible and out of pocket maximums for this year.
- Options for employees impacted by change: Cocoa City Manager John Tikanich says employees do have other healthcare options like spending accounts that they can take advantage of to help offset medical care costs.
Cindy Blossom says she did reach out to Florida Rep. Tyler Sirois’s office about her insurance concerns.
Sirois’s office forwarded her issue along to the Department of Financial Services. That division looked into the Blossoms concern, finding the state has no jurisdiction over a municipality or group health plan it chooses to offer its employees.