Budget clock ticks on Health Insurance

JOSEPH D. BRYANT
News staff writer

A pending switch in health insurance carriers for thousands of Birmingham public employees increases the urgency in passing the city's 2007 budget on time, officials said.

The contract with United Healthcare, the current insurance provider, expires June 30 and coverage with the new company, Blue Cross/Blue Shield, is set to begin July 1.

The council had hoped to have a new spending plan in place by Tuesday to meet the provision of the mayor-council act and make provisions for the new insurance plan.

"We are pushing to be ready for Tuesday because of the health insurance issue," said Council President Carole Smitherman. "That put a whole new light on things."

Insurance changes are usually part of the budget approval.

"There are a couple of resolutions that have to be passed to accept the insurance carrier," said Acting Finance Director Michael Johnson.

Johnson said his department could avoid a lapse in health care coverage if the council approves a budget at least by June 27.

The council has held several budget work sessions, including a four-hour meeting Saturday and one planned today.

"It sounds to me like it would be incumbent upon us to pass a budget by the 27th," said Councilwoman Valerie Abbott. "This puts more of a sense of urgency than it has been before, because there's nothing worse than having your health insurance expire."

Abbott and other council members said their budget preparation was slowed by Mayor Bernard Kincaid's delay in presenting his budget and his refusal to give detailed financial information electronically.