City considering insurance changes to lower costs
Whether this change, commonly referred to as a "spousal carve-out," will actually be implemented and whether there will be any other changes to insurance will be up to the
"Over the past five years I've been with the city, we have continued to see health insurance (costs) increase year after year," Sloss said.
The city has 356 individuals, including 40 retired employees, who use the city's insurance, and the employees pay a 15% share of the overall premium cost, she said.
"When I came onboard, our claims costs were about
Employees currently pay
She said people have told her their spouse's insurance is not nearly as good as what the city offers, and it costs a lot more money.
"I tell them there is a reason for that. Because they (businesses and industries offering insurance) see their dollars go up on claims costs, and they don't want to keep paying the money."
Sloss explained the city has allowed the premium to stay at the current rate and not passed the (claims) increases to the employees.
"The city has done this because we know our employees don't make a lot of money in some departments," she said. "We've always heard that when you are a government worker, you don't come to work for the money, you usually come to work for the benefits. So, the city has allowed the premiums to say at such a low level because we recognize employees are receiving a salary that they are not going to go to
She said a large portion of what the city spends on insurance is to cover dependents, including spouses.
"There are 316 active employees who take the city's health insurance," she said. "Sixty-five percent of the cost is dependents. Of the 65%, 40% is spouses," Sloss said.
Having spouses take their own employers plans would help the city reduce insurance costs. She told council members if they are opposed to the spousal change for next year they would have to let her know now because spouses would need to meet certain renewal deadlines for their employers' insurance programs. Or, if the council wants to wait another year, they also need to convey that.
Either way, she said, the city will have to do something to lower insurance costs.
City Clerk
"We cannot keep going down this path," she said. "The retiree piece of this continues to grow. We have 40 retirees, and in the next five years there are 70 people who can retire."
Barnes said the city has an actuarial study performed biannually to tell the city how much money it should be setting aside to cover insurance claims. As of now, it should be setting aside
"It's pretty simple, we either have to change something, or downgrade our plan where it's not as rich of a plan, or raise the rates significantly or ultimately this is going to be like Delphi, where it will start effecting people's pensions, because the city cannot keep doing what we've been doing."
Mayor
"Marsha's looked at it. Annette has looked at it. I've looked at it. We're not trying to impose anything on employees that is not sound financial management for the city of
___
(c)2019 The News Courier (Athens, Ala.)
Visit The News Courier (Athens, Ala.) at enewscourier.com
Distributed by Tribune Content Agency, LLC.
Trump visiting Florida next week to tout health care agenda
American Property Casualty Insurance Association: National Preparedness Month – Renters Also Need to Mitigate and Prepare Financially
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News