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The city of Rochester and its four employee unions have agreed to a self-funded insurance program that could save taxpayers $13.4 million over three years, officials announced Tuesday.
The agreement also will enable workers to look for ways to reduce the cost of their health care, officials said.
“I am extremely proud of this arrangement because it allows us to continue providing excellent employee health insurance benefits over the long term,” Mayor Thomas Richards said in a statement.
“Most importantly, it was developed with in a spirit of consensus between management and labor, which means employees will have a direct influence in bringing the ever-rising cost of health care under control.”
The self-insurance funding mechanism begins Jan. 1, 2013, with current provider MVP Health Care as the administrator.
The first-year savings are projected to be $1.8 million to $2.9 million, followed by $2.5 million to $4.5 million in the second year and $4.2 million to $6 million in the third year, officials said.
The projections would mean savings of $8.5 million to $13.4 million over three years.
The plan will be managed by a joint labor/management health care committee made up of four members of the city administration and leaders from the four labor unions, officials said.
Union representatives are Locust Club President Michael Mazzeo, firefighters union President James McTiernan, Joseph Agnello of the International Union of Operating Engineers and Anthony Gingello, president of the American Federation of State, County and Municipal Employees.
The administration will be represented by Deputy Mayor Leonard Redon, Tassie Demps, management director of the Department of Human Resources, Sharon Burke, labor relations manager; and Christine Martinelli, benefits administration manager.
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