City health plan called unsustainable
Under the city's self-funded plan for a single person, employees currently pay
"You have the richest contributions anywhere,"
Clemens told Council members medical insurance continues to rise much faster than inflation. Medical insurance costs rose sharply in the last year, he said. The city spends
City insurance for employees is partly self-funded; the city pays up to
Because insurance rates are calculated on a calendar year, the city must estimate costs for this fiscal year, which started
Two large claims by employees late in the year --
Gallagher outlined two options: a 172 percent increase in insurance rates, or changing costs to the city based on the health risks of individual employees. The city, for example, would pay much more for the employee with medical bills amounting to
Under one proposed plan, the employee share for 2018 would increase from
Clemens told Council members insurance companies don't like co-pay plans, arguing employees with co-pays don't compare rates because they pay a set fee.
"If you do co-pay, you don't care (what the cost is)," Clemens said. "Co-pays are one of the problems with health care."
An alternative Core plan offers employees deductibles of either
Clemens estimated 20 to 25 percent of employees would move into insurance plans with higher deductibles and cheaper premiums, at
The city budgeted
"This plan has saved the city money," Clemens said.
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