Napoleon Council looks at health insurance change

NAPOLEON — City council Monday took the first steps toward adding a new health insurance option for employees.

Council directed the law director to draft legislation which would add a third option for health insurance for employees that includes a health savings plan (HSA), keeping the wellness program the same and changing the premium spousal coverage from $100 to $50 for all employees.

Those items were recommended by the Healthcare Cost Committee, and City Manager J. Andrew Small said it is anticipated the city's costs for health insurance will rise by 12.8% for 2024.

Council did table one item related to health insurance and that was for the city to contribute to a minimum of $1,200 to a single HSA and a minimum of $2,000 to an employee/spouse, employee/family or family HSA.

Small had requested a commitment from council on whether it was willing to contribute to the HSAs and how much prior to the enrollment period for employees, which is Nov. 1-15.

Law Director Billy Harmon advised the amount of the contribution should likely occur during budget discussions, but noted that one concern he has is that part of the committee's discussion was it would like a commitment from the city to contribute to the HSAs for three or five years. However, Harmon said council can't approve an appropriation for the next five years.

"It can't commit future councils," he said.

If council wanted to make the commitment, Harmon advised it would have to budget the full amount for those years combined into 2024.

"It would have to be committed in one budget cycle," he said, but added that would then leave the 2024 budget open for those following years.

Council member Ross Durham said he's in favor of contributing to the HSAs but asked if the first year could be a trial year to see how many employees are interested in enrolling in the HSA plan.

Council tabled the HSA contribution item and will continue discussions at its next meeting.

Mayor Jason Maassel noted fewer and fewer employers are permitting spouses to receive coverage if they are eligible for insurance through their own employer.

"There's going to come a point when the city's not going to be able to pay the spousal insurance," he said, referring to the cost increases for the insurance.

He said he felt it was too late in the year to make a decision on it now, but suggested the discussion be restarted next year.

"I think we take a hard look at it next year," he said.