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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