03-12-08 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL MARCH 12, 2008 well as a high deductible plan. This is in response to double digit increases in health insurance premiums over the past several years. It is hoped that by moving towards consumer driven health insurance, the rate of increases will slow. The Administrator reported that the high deductible plan has an individual deductible of $2,200 and a family deductible of $4,400. The Administrator indicated that for those employees opting for the high deductible plan, the proposal is to fund the employee's share of the deductible. He explained that the employee can direct dollars into the HSA with total contributions maxing at $2,900 for individuals and $5,800 for families. The benefit to an HSA versus Flexible Spending Account (FSA) is that the account is owned by the employee and unspent dollars can be rolled over from one year to another, versus the "use it or lose it" under the FSA plan. The Adminisriator indicated that it appears that consumer driven health insurance is the way the industry is going, and it is staffls recommendation that the high deductible plan be offered as the only choice for all newly hired employees. The Administrator also noted that the proposal to fund the $2,200 deductible for employees opting for this coverage is within the amount of dollars the City has budgeted for employee health insurance costs. The Administrator noted that the $2,200 would involve an initial deposit of $1,100 April 15~ to the employee's HSA account with $100 monthly deposits beginning May 1st and the 151 of each month for the remaining 11 months of the plan. Ms. Allan introduced the following resolution and moved its adoption: RESOL UTION NO. 2008-3-67 -AUTHORIZING THE ADDITION OF THE HIGH DEDUCTIBLE HEALTH INSURANCE PLAN TO THE CITY'S HEALTH INSURANCE BENEFIT OPTIONS, WITH NEW EMPLOYEES TO BE LIMITED TO THIS OPTION, AND APPROVING THE FUNDING OF $2,200 TO EMPLOYEES' HEALTH SAVINGS ACCOUNTS FOR THOSE EMPLOYEES CHOOSING THE HIGH DEDUCTIBLE PLAN IN THE MANNER OUTLINED BY THE CITYADMINISTRATOR IN HIS REPORT DATED MARCH 7, 2008 The foregoing resolution was duly seconded by Montour. Ayes (4). Nays (0). Resolution declared adopted.