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City looks at benefit changes
(Clinton) -- Changes in health insurance needed to reduce the city's cost
Some changes could be coming to the health insurance benefits for Clinton City employees.
The initial ideas were outlined to the council’s Internal Operations Committee. A large number of city employees attended the meeting to listen to the discussion.
The general changes would be a switch to a high deductible insurance plan with a related health savings account. The city would contribute some of the savings from the reduced premiums to the employees H-S-A. That change would be combined with a wellness program and an incentive for an employee to be covered under a spouse’s insurance.
The committee was told the city spends nearly $18,000 per employee, which is above the average for government workers average of just over $10,000. Plus, the city’s zero premium contribution is also above industry standards.
Clinton City Administrator Jeffrey Horne said the recent cost increases in premiums the current plan was not sustainable for the city. He says “it is a change, but will make the benefits sustainable for a long time to come.”
The initial change would involve the non-bargaining unit employees and then be included in contract negotiations.
If 70 employees chose the HSA with the new insurance plan the city could save about $50,000 year.
Finance Director Jessica Kinser says a recent review of the plan by the state showed the city did not have enough reserves in the short term funding plan and that must be addressed. She said several years of high claims have made that difference.
The issues were forwarded to the council to discuss at the next committee of the whole session on September 25th.
Written 9/18/2012 by Dave Vickers - KROS News
