Urban County Government Lexington is decreasing health insurance coverage for 556 employees of “external agencies” – organizations that are affiliated, but not directly managed by the Government of the city. Based on 2008 spending, dropping the employees of the 20 organizations Lexington insurance plan would save the cash-strapped city $ 506,218 a year, the difference between what is needed and what he had to pay. Among the organizations that are making a new health insurance scheme are the Health Department Fayette County, Kentucky League of Cities, the Housing Authority of Lexington, Lexington Convention & Visitors Bureau, Lexington Parking Authority and the Urban League Lexington. “The satellite agencies had been paying only their commodities,” said Susan Straub, spokeswoman for Mayor Jim Newberry. “… They were not funding the full cost of medical care.” In the last three years, the city has paid $ 2. 2 million to supplement the insurance premiums paid by employees from outside agencies. In late November, Newberry said the city could consider the possibility of layoffs, wage cuts, furloughs and the elimination of city programs to stop an estimated deficit of $ 12 million to $ 13 million. City of the government division directors were invited to propose ways to reduce expenses by 5 percent. The Council approved the cut group health insurance was the 8th of December. In total, the city provides health insurance to 3622 workers and retirees, whose health claims have exceeded income by $ 8. 5 million years past. Most agencies have until December 31, 2010, to complete their new health plans, but some – like the Fayette County Health Department – will change to new insurers in the next month. Health Department Commissioner Melinda Rowe said city officials told the agency must be covered by the state program of health insurance. Instead, the department chose a plan offered by Bluegrass Family Health. However, the cost of premiums paid by the department could raise more than $ 600,000 in two years, said Rowe. Failure to provide health insurance to employees never considered, he said. “Obviously, we’re the health department, we must concentrate on our own employees and their welfare,” said Rowe. PG Peeples, president of the Lexington Urban League, said his options are limited insurance organization because it has only six employees. Wait band with United Way agencies or other offices of the Urban League to build the number of employees needed for a pool large trading. “I’m disappointed that they will take this option,” said Peeples. “I understand we’re trying to make cost savings.” How the city after providing insurance benefits for government agencies outside the city? “For the most part, do not know very well,” said Straub. “We inherited this situation, and the rules have apparently been in place for several years.” Jan Isenhour, director of the Carnegie Center for Literacy, said the center’s budget originally came from the city, so its inclusion in the pool seemed logical health. In 2003, the center became an agency “out” and began to take over their own finances but remained in the insurance group in the city. The Carnegie Center has not begun to price out health policies, has another year on the level of the city. Meanwhile, the city continues to seek other ways to change the fees paid to outside agencies. Ed Lane, councilman for the 12th district of Lexington, said the city could soon consider asking outside agencies to contribute money for the maintenance of the area of the city of offices occupied. “The recession puts a lot of pressure on the government to provide all necessary services to taxpayers, but also gives us the opportunity to see what services are essential and which are non-essential services … To try to maximize the efficiency of government much as we can, “Lane said.