Wednesday, March 07, 2007

Get a Job

According to a study by David P. Lind & Associates LLC of more than 900 Iowa businesses, the average premium paid by employees of non-public businesses was $64 a month for single policies and $288 for family plans.

So it’s easy to see why a lot of North Iowans’ jaws probably dropped when they read in recent Globe Gazette stories that many Mason City public employees pay as little as $15 a month for single insurance coverage or $25 for family health insurance. That’s $300 a year for family coverage — almost what non-public employees pay every month!


It gets even better.

In addition, at a time when employees of private businesses are often looking at deductibles in the four-digit range in an effort to keep costs down, these Mason City AFSCME union members have annual deductibles of only $250 for single coverage and $500 for family coverage.

$250 deductibles. Any idea how much that kind of plan really costs?

Of course not. It isn't their money. It is the government's money.


In private business, money paid to employees in salary and benefits comes directly out the owners’ pockets, whether those owners are individuals or groups of stockholders. Businesses must find that sweet spot where pay and benefits are competitive enough to keep quality employees, while still allowing the business to earn a profit.

In the public sector, employee pay and benefits come out of taxes and fees charged by the city. If taxes have to increase to pay public employee salaries and benefits, the effect on the city managers individually is miniscule.

Amazing observation. Someone actually gets it!
blog comments powered by Disqus