Cutting Out The Fat

On May 18, 2011, I wrote a blog, “Who Read The 71 Pages? Part 1"

 It dealt with newly-elected Chicago mayor Rahm Emanuel’s transition plan, and what I did not like about some of the ideas in the plan.  One of the sections I did not agree with was the proposed formation of a health and wellness plan. I wrote:

“STUPID IDEA #3:

Page 20 tells us: “Health care costs for city employees are growing far faster than the rate of inflation and outstripping growth of Chicago’s revenue. In 2011, taxpayers will spend nearly $500 million on health care costs for city employees, their families, and retirees. In Chicago, just 4% of government employees generate more than 60% of the City’s health care costs. “

 Their solution? “The Chicago health and wellness plan will be developed and rolled out.”

 Will there be cameras placed in City Hall to monitor what food employees are eating?  Why not?  It’s being done to students in an elementary school   in Texas.   If an employee is caught eating a doughnut on break will they get “written up” and sent to the Mayor’s office for discipline? 

My solution?  If ”4% of government employees generate more than 60% of the City’s health care costs,” fire that 4%!  That’s about the same percentage of Shakman exempt employees!  And since we were told those employees eat-up 60% of the City’s health costs, (and that bill is $500 million) getting rid of them will cut $300 million from spending!  It  is now four months since we heard about the plan and the details are being unveiled.  Chicago employees will have to participate in a “wellness” program or contribute $50 to their monthly insurance premium.

Fran Spielman wrote in the Sun-Times, “The program would begin by offering city employees and their dependents enhanced screening and wellness training to establish benchmarks and long-term goals, including weight loss, medication, exercise and kicking the smoking habit. Coaches would check up on workers on a bi-monthly basis to make certain they’re following their prescribed nutritional, medical and physical fitness regimens. Those who refuse to participate would see their monthly premiums rise by $50. Those who meet their goals could see similar reductions.”

The Mayor says that his plan would lower the $500 million-a-year health care costs by as much as $240 million over four years.

Now for some “Kathy Fun” with numbers.

(1)  There are approximately 36,500 city employees.  The plans says that they “and their dependents” will have to participate in the program. (So the health police are requiring people who don’t even work for the city to be part of the program.)  Just for my own statistical purposes, I will assume that every employee, on average, has 1.5 other people on their city health policy.  That would give us another 54,750 people who will be participating in the wellness plan for a total of 91,250.  I will round that down to 90,000 for those of you who like to do the math in your head.

(2)  The plan calls for all participants to get bi-monthly (every two months) checks by coaches.  So in a year every member of the wellness plan would have to visit a coach six times.  If we multiply six by the 90,000 people who have to do this, we get 540,000 visits for check-ups.  That cannot be cheap!

(3)  What if someone has a dependent parent who is elderly and ill and is not able to really participate in a wellness program?  Is it fair that the employee will be penalized $50 a month because a 90 year old bedridden Mom cannot do healthy exercise? (I know there is Medicare, but under ObamaCare, all that will change.)

So let’s go back to my old solution.  If the city fires the 4% of the employees who consume 60% of the health costs, Chicago will save $300 million immediately.  Since that cannot happen, I have a more efficient and very cheap solution to forcing people to become healthy.

 Public humiliation!  There is an old-fashioned penny scale in the lobby of City Hall.  Make every employee weigh in, every day in front of other employees.  Have a video monitor that films everyone’s “weigh-in.” And in keeping with Mayor Emanuel’s love of posting everything on the Internet, add another category on the city’s data portal with each employees’ weight.  My plan is a much better “incentive” to make people diet than a $50/month penalty.