07-12-11 Presentation 7/12/2011
HEALTH INSURANCE
JULY 12, 2011
CLARIFICATION ON ISSUES
1. CASH BACK
2. JOINING OTHER ORGANIZATIONS
3. OTHER THAN EMPLOYEE COVERAGE
4. HEALTH CARE REFORM - 2014
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CITY COST
900000
800000
700000
600000
500000
400000
300000
200000 -
100000
0
2003 2005 2007 2010
$826,588 $473,152 $766,581 $734,503
TWO MAJOR ISSUES
WHAT COVERAGE TO PROVIDE
AND
AT WHAT COST
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EMPLOYEE PAY ADJUSTMENTS
Employees must have over 6 months of service and receive a
satisfactory evaluation report to receive a Merit pay increase.
EMPLOYEE PAY ADJUSTMENTS
CPI COLA MERIT TOTAL
2011 4.10% 0.00% 0.00% 0.00%
2010• 1.40% 0.00% 0.00% 0.00%
2009 -2.00% 0.00% 0.00% 0.00%
2008 5.60% 4.00% 3.00% 7.00%
2007 2.70% 2.70% 3.00% 5.70%
2006 4.50% 3.50% 3.00% 6.50%
2005 2.60% 3.00% 3.00% 6.00%
Averages 2.70% 1.89% 3.00% 3.60%
' A 1.1%Bonus provided if more than I year of service
Starting Hourly Pay for a Grade 14
Year Hourly Annual
2010 $11.64 $24,211.20
2005 $10.53 $21,902.40
Diff $1.11 $2,308.80
CURRENT ANNUAL EMPLOYEE
PREMIUMS FOR FAMILY COVERAGE
$5,566
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MONTHLY INSURANCE PREMIUMS
Employee
Paid
Number 2005 2010 Increase %
BASE
Employee 66 $ 0.00 $ 21.40 $ 21.40
Emp Child(ren) 11 $ 118.50 $216.60 $ 98.10 82.78%
Emp+Spouse 12 $ 166.50 $299.02 $132.52 79.59%
Emp+Family 14 $ 261.40 $463.82 $202.42 77.44%
City Paid
Number 2005 2010 Increase %
BASE
Employee 66 $ 302.42 $447.72 $145.30 48.05%
Emp*Child(ren) 11 $ 447.23 $660.65 $213.42 47.72%
Emp Spouse 12 $ 505.91 $742.42 $236.51 46.75%
Emp 4.Family 14 $ 621.88 $906.01 5 284.13 45.69%
Current Plan New Plans
Same Current Benefits Lower Benefits
10/1/2010 10/1/2011 10/1/2011 10/1/2011 10/1/2011
Col A Col B Col C Colo Col
%City Paid 95/45(1) 95/45(1) 90/40(3) Note 3 Note 3
%Employee 5/55(2) 5/55(2) 10/60(4) Note 4 Note 4
Cost increase
Total N/A $ 278,098 $ 278,098 $ 192,442 $ 153,795
City N/A $ 206,246 $ 155,138 $ 75,883 $ 1,768
Employee N/A $ 71,852 $ 122,961 5 116,559 5 152,027
Cost to Employee
Emp Only
Coverage $ 21.40 $ 30.18 $ 60.35 $ 54.87 5 52.11
Cost to Employee
Family
Coverage 5 463.82 $ 653.92 5 731.47 $ 665.02 $ 631.60
Note 1: City pays 95%of Base Employee Only premium and 45%of the difference for any
other Base coverage selected by the employee
Note 2: Employee pays 5%of Base Employee Only premiums and 55%of the difference
for any Base coverage selected by the employee.
Note 3: City pays 90%of Base Employee Only premium and 40%of the difference for
any other Base coverage selected by the employee.
Note 4: Employee pays 10%of Base Employee Only premiums and 60%of the difference
for any other Base coverage selected by the employee.
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