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REVIEW SOUGHT ON RISING COST OF HEALTH CARE MEDICAL BENEFIT EXPENSES TAKE BIG JUMP AT CITY HALL.


Byline: Rick Orlov Orlov (Орлรณв) is the name of a Russian noble family which produced several distinguished statesmen, diplomatists and soldiers. The family first gained distinction in the person of four Orlov brothers, of whom the senior was Catherine the Great's   Staff Writer

Health care costs for Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850.  workers soared $20 million last year, Mayor Antonio Villaraigosa Antonio Ramon Villaraigosa (born Antonio (Tony) Ramon Villar, Jr. on January 23, 1953) is the mayor of Los Angeles, California. He is the first Latino mayor of Los Angeles since Cristobal Aguilar in 1872.  said Wednesday as he called for a review of all health plans and renewed efforts to control prescription-drug costs and improve employees' health.

The spiraling costs mirror a nationwide trend and come as the mayor prepares next year's city budget. He has been advising department heads - as well as city unions - that he plans to be tough to cover a projected $245 million shortfall Shortfall

The amount by which the capital required to fulfill a financial obligation exceeds available capital.

Notes:
Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual.
.

``City personnel health benefit costs increased $20 million in 2005, continuing a trend of the past several years,'' Villaraigosa said in a letter to city Personnel Director Margaret Whelan asking for cost-cutting options.

``Costs are expected to continue to rise at several times the rate of inflation and several times the rate of growth in city revenues.''

The city provides health benefits for about 40,000 workers. Officials said health care costs rose 7.2 percent last year while city revenues increased 9 percent.

The letter was released by Villaraigosa's office while he was addressing the U.S. Conference of Mayors in Washington, D.C. In it, Villaraigosa said he wants information on efforts to reduce costs, including better management of the city's health plans, cost controls of prescription drugs prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug,  and hospital services, and developing programs for workers to reduce obesity obesity, condition resulting from excessive storage of fat in the body. Obesity has been defined as a weight more than 20% above what is considered normal according to standard age, height, and weight tables, or by a complex formula known as the body mass index.  and stop smoking.

Villaraigosa also said the city should consider joining with business groups, the state or other local government agencies to seek better, cheaper health plans.

Councilman Dennis Zine, who chairs the council's Personnel Committee, said he welcomed the mayor's proposals.

``We have been doing as much as we can, but we need the mayor to take the lead,'' Zine said. ``The council has been trying to get a drug prescription program through to reduce costs, and we have been working with employees to improve their health and reduce the demands for health care.''

City Administrative Officer Bill Fujioka, who works with the Mayor's Office in preparing the budget, said health care costs are a national issue.

``This is something that has been building for some time,'' Fujioka said. ``We are looking for Looking for

In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with.
 the best deals we can get with health maintenance organizations and preferred provider options, but the medical and health costs have been going up faster than we can keep up.''

Assistant Personnel Director Tom Coultas said the city has had some success in reducing its costs.

``We've been able to hold our costs below the national average, which is a good thing,'' Coultas said. ``And the mayor points out some areas that we will continue to explore.

``The city is not exempt from the issues that are affecting government and companies across the nation that everyone is familiar with. From an aging work force to changes in medical technology, the costs are higher for everyone. It's something we need to constantly look at.''

Jack Kyser, chief economist The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis. It is distinguished from the other economist positions by the broader scope of responsibility encompassing the  for the Los Angeles Economic Development Corp, agreed and cited little signs of immediate improvement.

``No one is immune from the higher costs,'' Kyser said. ``The city is feeling the same type of pain that everyone else is.

``The problem is no relief is in sight. They aren't discussing it in Sacramento, and given the nature of what's going on What's Going On is a record by American soul singer Marvin Gaye. Released on May 21, 1971 (see 1971 in music), What's Going On reflected the beginning of a new trend in soul music.  in Washington, D.C., I'm afraid there will only be gridlock Gridlock

A government, business or institution's inability to function at a normal level due either to complex or conflicting procedures within the administrative framework or to impending change in the business.
 there through the election - which means nothing will get done this year.''

Rick Orlov, (213) 978-0390

rick.orlov(at)dailynews.com
COPYRIGHT 2006 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Daily News (Los Angeles, CA)
Date:Jan 26, 2006
Words:578
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