Agenda 03/24/2009 - Laserfiche WebLink

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February 24, 2009 net savings over time, and would likely result in annual increases being passed along to the employee. The total replacement High Deductible option was recommended by the Health Care Committee and allows the savings to be contributed to employees in the form of an individual Health Savings Account. Based on an article that I received from Employee Benefit News just today, 51 % of employers are now offering workers a consumer driven health plan this year, which is up from 47% in 2008. Another 8% expect to implement a consumer driven health plan by 2010. Based on other information from the consultants, Cigna and United Health Care have seen success with the High Deductible Health Care Plans. The High Deductible Health Plan. with its aggressive approach. provides our employees and retirees with preventive care and catastrophic coverage. It has the potential to reduce the maximum active employee out of pocket maximum from $3,000 down to $ I ,280 for employee only coverage and dependent out of pocket maximum from $6,000 to $2,800. Employees who may have made poor health choices in the past will be encouraged to seek cost-free preventive care rather than addressing medical problems after they reach a critical status. Under the High Deductible Plan, employees and retirees should become more choice-conscious before seeking medical care if they must pay for some of the cost themselves. With employees and retirees carefully weighing their options, we could expect that the plan to save money which could be passed along to our employees in premium savings. The lower premiums should encourage some employees who have chosen to opt out or not cover their dependents to join in the group. An article in yesterday's Roanoke Times, discussed the increasing number of drug discounts and/or drug cards are available from national chains to anyone without income requirements. Wal-Mart's program includes more than 350 drugs; Kroger's program includes more than 300 generic drugs. Walgrecns Prescription Savings Club offers discounts on more than 5,000 brand name and generic medications. Most offer discounts on a 90-day supply at reduced costs. This may not be the answer for everyone, as each individual's situation will vary. Under the High Deductible Plan, employees and retirees will have greater access to medical facilities of their choice as well an improved specialist network. Preventive care is provided at no cost to the employee. Premiums for the active employee can be reduced under the High Deductible Plan. Active employees can apply the savings from premiums to help fund their Savings Account on a pre-taxed basis; the savings are t,lX free as long as the funds are used to pay qualified health care expenses (until age 65 at which time if used for non-qualified expenses the savings must be reported as income. Each year during enrollment, we have a number of employees who waive off the plan. Some aggressive steps must be taken to prevent the further decline in enrollment and to bring our premiums within a range that employees can afford. The City Manager has (l~ked that I prepare a summary of "pros" and "cons" of the High Deductible Plan based on various sceneries, which I will make available at the next City Council meeting. 5% Increase in Contributions trom City = $127,616 ($180 toward premium) 10% Increase in Contributions from City = $214,304 ($192 toward premium) ] 5% Increase in Contributions from City = $308,2] 6 ($205 toward premium) Plus, any change in the cost for retirees = currently at $27],440 - $0.00 increase Council will set a worksession to make final decision on health care plan in time for budget considerations. Business from the floor: Chris Koumparakis thanked the city for considering a youth center using the old Brown Street gym and said he had a pool table he would donate for the center. Comments by Council members: Turner-commended Bulldogs on championship; Teague-comments regarding options city has regarding controlling pit bulls; Reynolds-thanked Molly Shelton for filling in for Brenda Prillaman and asked that Brenda's family be remembered at this time; Stroud-citizens have also contacted him about the pit bull issue; Lawson-reminded citizens regarding Trade Show on March 4 and reminded citizens about the March 10 Neighborhood Meeting at Clearview Wesleyan Church. She also commended Wayne Knox on the Uptown tour. Comments by City Manager: Mr. Monday pointed out that the March 2 workshop with Perriello's staff members and city department heads will address economic stimulus funding.