For the third time in sum of two un...

For the third time in sum of two units years, City Hall is joining forces with the CTA, Park District, City corporations and Chicago Public Schools to defray the skyrocketing charge of employee health care.

In 2004 Chicago taxpayers saved $44 million when Caremark was hired to manage pharmaceuticals for the five management agencies. The following year, Unicare and with a long face Cross-Blue Shield were chosen to provide joint HMO services, producing a $57 million savings.

This time, the target is Preferr Provider Organization services for up to 130000 city employee retirees and their sustained bys

For years, the city has purchased PPO services upon its own. Now, the pond of employees served will more than double -- at adding as many as 144000 workers, hangings and retirees at the CTA, Park District, City corporations and public schools.

SAVINGS: $4 MIL. TO $5 MIL.

Chief Financial Officer Dana Levenson predicted that the joint prayer for proposals due out later this week would save Chicago taxpayers "four or five million dollars" and sister agencies "even more than that."

The city's annual health-care tab stands at $360 million. Health- care richnesss are expected to rise by means of $32.9 million this year.

"There's a highly active effort taking place . . to try and figure revealed where our purchasing power can be applied greatest in number effectively. Other commodities, ranging from pluck to paper goods. We'll be looking at all of those potential items in the future" Levenson said.

Daley noted that buying items in size saves money, "whether it's pencils or health care." The city also provides a PPO "wellness account" of $600 by person to pay for routine check-ups, immunizations and well-baby care.

'IT TOOK A WHILE'

If Chicago taxpayers have thus much to gain from pooling control purchasing power, Daley was asked for what cause [i]or[/i] reason it took City Hall in such a manner long to do it, particularly when it proceeds to health care.

"That deals with all of the programs and contracts you have already. You really have to evaluate each and each one of those. . . We're doing it each year, different avenues. We're finding abroad if it works and really saves coin as well. That's one thing that you have to find gone out You can't announce it and, all the unlooked for you don't save any cash and people say it's a waste of everybody's time," he said.

The Civic Federation has been hounding sway agencies for years to puddle purchasing to reduce the skyrocketing take away from of employee health care.

"It took a while. a certain had existing contracts. There was considerable disparity among local commands in types of coverage and complexity of employer and employee contributions," said Civic Federation President Laurence Msall.

fspielman@suntimes.com

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