Farmington Library Board Saves Thousands with New Benefits Plans

board members have taken action that will save more than $298,000 in annual operating expenses.

Since last year, a subcommittee has been reviewing the library's current benefits program, provided through Michigan Employee Benefits Service (MEBS). In January, board members approved hiring Warren-based Advanced Insurance to look at alternatives for both retired and active employees.

At the board's Feb. 9 meeting, Advanced Insurance principal Mark Van Den Branden told officials they could separate the two groups and see significant savings. The library currently has one "pre-65" retiree and 18 retirees 65 and older. 

The library's 24 active employees will be switched from Blue Cross Blue Shield to Health Alliance Plan (HAP), dropping annual premiums by 26.2 percent. 

Board member David Judge said while the library would save money, employees would also receive better benefits. "HAP had so many things that don't require co-pays," he said, adding that while the MEBS program had a $5 million life-time maximum, "HAP's is zero."

While there are some areas where HAP's benefits aren't as good, the savings will allow the library to self-insure, so that employees won't lose coverage. 

The library board will hold a public budget hearing on May 10, 6:30 p.m., at the Main Library. 

Correction: The amount of money saved and the number of library retirees were incorrectly reported in the original version of this post.