Exh 4EAGENDA ITEM #4E
SEPTEMBER 24, 2001
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Retuees With Health Insurance
SUBMITTED BY: Jun Hanson, C
DATE: September 11, 2001
BACKGROUND: The Crty Commission has been beefed on the difficulries that we have
had m obtauung group insurance for the coming yeaz The only fain
offer that the Crty has is from American Heritage Life, which increases
our cost of coverage by over 100%
Atlantic Beach has long had a policy that allows retuees to purchase
group health coverage from the Crty at 100% of the City's cost
providing that they begin coverage when they retue and continue the
coverage The City's increase in health care cost will have a maJor
inlpact on these retuees and this staffreport 15 to make the City
Commission awaze of the problem
We currently have 30 retuees Ten of those are paying the Crty for
continued coverage Most of those are subscnbing for individual
coverage, which will increase from a present rate of $230 28 per
month to $478 90 per month. One of the retirees is taking indrnduaU
spouse coverage, which will increase from $460 56 per month to
$981 74 per month There is also one who is taking family coverage,
which will increase $707 97 per month to $1,424 22 per month
The increase in insurance gosts well also affect those ex-employees
who choose to take coverage under the COBRA federal legislation
However, there aze no ex-employees taking this coverage at th>s tune
RECOMMENDATION: This report is for your information only No action is recommended
BUDGET: N/A