ALFRED — County employees who have long enjoyed 100 percent employer-paid health insurance are now being asked to contribute to the cost of their premiums.

County Manager Richard Brown told York County Commissioners Wednesday that health insurance rates are expected to increase by 24.7 percent, or about $400,000 Jan. 1. He estimated the county’s current health insurance tab at $1.5 million.

Employees will be asked to contribute 15 percent for their own medical insurance. The county currently splits the cost of coverage for family members 50/50; that is not expected to change.

The alternative, said Brown, is asking the towns and cities to pay more for county government, or an employee layoff.

“If we’re not successful in getting a partner on health insurance, payroll will take the hit,” said Brown. “That’s the reality.”

About half of the $400,000 hike can be assigned to employees at York County Jail, Brown explained. Commissioner Richard Dutremble pointed out that through consolidation, the county pays a fixed amount to operate the jail ”“ $8.667 million annually ”“ so the county would be responsible only for finding the remaining $200,000 of the increase assigned to the rest of the county workforce. Brown estimated that translates into about five layoffs if no agreement is reached.

The county is currently negotiating three union contracts: With the National Correctional Employees Union at York County Jail; the County Patrol Association representing patrol deputies; and the Maine State Employees Association representing clerical and maintenance workers.

Sgt. Ron Lund of the County Patrol Association said union members are stepping up to the plate. He said they met with the county’s insurance broker and while other plans were explored, potential savings of 6 to 8 percent were identified just by tweaking the current plan. Lund said members recommend the unions and the county manager form an exploratory committee to look for further savings.

“In the past, we’ve had an insurance committee consisting of union employees and management and it worked very well in helping keep costs down,” said Maine State Employees Union Local 1297 president Rachel Sherman. “I hope the county will consider forming such a committee again.”

Cumberland County Finance Director Vic Labrecque said employee contributions to health insurance vary among unions; some employees have 100 percent county-paid insurance, while others pay a portion. The county is moving toward a greater employee contribution, he said.

In Sanford, workers have been taking on a greater share of their insurance premiums, around 17 percent in most cases,  while Waterboro proposes a  cap on municipal insurance contributions at $9,000 per employee, whatever the premium cost.

The health insurance issue led to a 2012 budget discussion. Commissioners agreed their goal is a flat-funded budget, but could make changes, depending on circumstances.

Brown, who advocates flat-funding,  pointed out that under the tax cap law, the budget may increase only by about $150,000 next year without an override, which would require an affirmative vote by commissioners and the York County Budget Committee. He said even though contracts are still in negotiation, some contracts inked long ago contain longevity raises of 1.5 to 2 percent. He also expects a dip in revenues at the Registry of Deeds.

Commissioner Gary Sinden said the towns in his district, York, Eliot, Kittery, Ogunquit and Wells, were pleased that the budget was flat-funded this year. 

“The expectation is the county will repeat (that),” he said. “Nationwide we’re at a time when we have to be very, very careful about debt and spending.”

Commissioner David Bowles said he’s worried about other costs, and said he’d feel better if he knew whether the unions will share in insurance costs. He voted in favor of the 2012 flat-funding target, but said he’s concerned the vote sends an expectation to the budget committee that a flat-funded budget will be forthcoming and in the end, that may not be the case.

“This is preliminary,’” Dutremble pointed out.

 — Senior Staff Writer Tammy Wells can be contacted at 324-4444 or twells@journaltribune.com.