CLINTON —
Due to escalating costs, city of Clinton employees may have to contribute to their health insurance premiums for the first time, but not before another committee examines the proposed changes.
The Clinton City Council Committee of the Whole discussed the city’s health insurance modifications Tuesday night.
The discussion garnered the attention of several non-union employees who will be the first affected by any changes.
However, the crowd did not match the nearly 50 employees who attended the Internal Operations Committee last week when the changes were first brought forward.
“It’s not something that we didn’t know was coming so we need change,” Mayor Mark Vulich said of the changes to the city’s current “rich” plan.
The proposed plan would raise deductibles from $250 for an individual and $500 for a family to $2,000 for an individual and $4,000 for a family.
Employees would also be required to fund a Health Savings Account. A yet-to-be-determined percentage would be taken out of an employee’s earnings to fund the account. Employees would have discretion on how much to contribute and the city would also make regular contributions. Funds would be rolled over from year to year and serve as the employees’ account to use for medical expenses.
The high deductible and HSA accounts would allow the city to save more than $50,000 if the estimated 70 non-union employees participated. The city’s union employees, who make up the majority of the city’s workforce, would not be included in the changes initially.
With the exception of firefighters who are up for contract negotiations next year, union members had two-year contracts approved in July. The city can ask union members to renegotiate, but they are not required to participate in those discussions.
Non-bargaining city employee Gary Waters decried the proposed change at Tuesday night’s meeting.
“Right now non union employees are six furlough days in the hole and 4 percent behind on raises and then you’re asking us to come up with money for insurance. I don’t mind giving some money for insurance, but I want to be treated equally all the way across the board. I just feel that the non-union employees are getting stuck with everything,” he said.
The change to a high deductible plan with a Health Savings Account was sought after the city had a 28 percent increase in health insurance renewal in 2012. The city is seeking to slow or reduce the growth in benefit costs, which go directly to property taxes.
Further fueling the drive for change is an actuarial opinion stating the city does not have adequate funds reserved for claims coverage.
Due to this lack of funds, the State Insurance Commissioners Office has advised it will be issuing a report telling the city it needs to take corrective action before June 30, 2013 to bring health insurance and the fund back to being able to fund the four to six weeks at a minimum.
In light of the numerous issues discussed during the meeting Tuesday night, council members felt the need to continue discussions at the committee level.
At Large Councilwoman Jennifer Graf proposed the item go back to the Safety, Health and Wellness Committee.
This committee consists of union and non-union members as well as support staff like City Finance Director Jessica Kinser and City Administrator Jeff Horne.
The COW approved the continued discussion on the committee level with Councilwoman Maggie Klaes, Ward 1, abstaining.
Local News
September 26, 2012
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