A second city commission vote regarding health insurance for city employees fell along the exact same lines as a vote two weeks ago, with the same commissioners making virtually the same arguments about adding a $35 co-pay to employees’ health care plans.
There was a twist to the story, though, when commissioners were notified that, unless the city added preventive care services, the plan would lose its grandfather status under the Health Care Reform Act. Losing grandfather status would reset the city’s health care policy to the way it was on March 23, 2010. Commissioners held a special study session Wednesday evening to discuss options.
The original discussion and vote came after the city saw a drop in health care costs for next year and a surplus in the health care fund. The city budgeted $922,336 for health insurance in 2012. With an 11 percent drop in the cost of health care the city would have paid $785,147, a savings of $137,189. With the co-pay, health insurance would cost $826,746, a savings of $95,590.
After much discussion, commissioners two weeks ago voted to add the co-pay on a vote of 3-2. Commissioners Jim Kessler and Mayor Kevin Nelson argued that taking the higher savings would benefit the taxpayers, while adding the co-pay would adversely affect those who don’t use their health insurance as much. Commissioners Bobbi Mlynar, Joel Phipps and Rob Gilligan argued that a co-pay would benefit employees and with either option, the city would see savings.
That plan was scrapped when the city manager’s office learned about the stipulation of adding preventive care services. That qualification rendered the original vote null and void and commissioners took time to decide how to move forward.
“We’ve given you misinformation,” said Donna Pashman, who handles the city’s policy with Blue Cross/Blue Shield. “It was not our intent to have done that. Health care reform is not an easy law to understand.”
One option up for consideration was to approve the original plan that was voted down, with no co-pay and employees paying full price at the doctor’s office. That plan would result in a savings of $95,000. Another option would be to keep the co-pay and add the preventive services at a cost of $65,000, resulting in a savings of $61,000.
During Wednesday night’s discussion, the commissioners’ opinions remained the same as they were during the first vote. Kessler and Nelson argued in favor of taking the savings over adding the co-pay, expressing worries about how adding preventive services might cause premiums to rise.
“Let’s face it, it’s tests to prevent cancer, what have you, so everybody’s going to have [those tests], so I expect with those costs, the premiums will go up considerably,” Nelson said.
“That’s a possibility,” Pashman said. “That’s also a possibility if you do nothing as well. You can always get that large claim, that one or two a year. ...”
“By the time you have the health care and the preventive services, the cost of premiums will go up,” Kessler said.
Gilligan argued that the co-pay was good for employees, and good for employment as well.
“... Two weeks ago, Chief Smith sat here and told us that our number one deterrent to recruiting trained officers is our health care,” he said. “Our health care is not competing with other people and with other places. ...”
At the end of the hour-long study session, the commissioners said they had reached their decisions.
Discussion on the vote continued at the city’s regular action session, and the lines of thought remained rigid.
“Two weeks ago, when we voted on this, I felt like the co-pay was a benefit that we can offer our employees as a nice way to enhance their benefits package,” Gilligan said. “I still find that important.”
“I’ll take the opposite position, since my opinion hasn’t changed much since we last talked about this,” Kessler said. “To me, it’s a business decision. We have an opportunity to save $70,000 of taxpayer money. I see that as an opportunity to save the employee premium dollars.”
Phipps argued that the series of events that has taken place is unfortunate, but the best decision is to act in support of the city’s employees, and argued in favor of the co-pay and preventive services.
“It’s an option that’s fortunate, because either way we’ll be under budget,” he said. “... If we approve changing the policy, it will provide some options and stability for the policy going forward, and if I understand correctly in 2014 it’s all going to change.”
“I agree with Rob and Joel,” Mlynar said. “... Change is coming anyway, and at this point it’s a matter of saving less than what we thought we might be able to save. But this is something that’s important and I think the employees deserve it.”
Commissioners also unanimously passed a resolution amending the city’s parade policy to allow candy and novelties to be handed out at parades. As per the city’s old policy, adopted in 1981, candy was not allowed to be thrown along parade routes. A conversation about the policy has resurfaced numerous times over the years.
According to the new policy, care must be taken to protect the safety of observers along the parade route.
Emporia’s Christmas Parade will take place on Nov. 29.
In other action Wednesday, the commission:
F accepted a plaque commemorating the David Traylor Zoo for again acquiring accreditation from the Association of Zoos and Aquariums for another five years. Kres Vehrs, the association’s executive director, presented the plaque to Mayor Nelson, Lisa Keith, zoo director and Mike Turnbull, president of the Emporia Friends of the Zoo.
F honored assistant principal Amy McAnarney of Emporia High School for being named assistant principal of the year by the Kansas Association of Secondary School Principals.
F passed an ordinance levying water and sewer assessments to property at the southwest corner of South Avenue and Road M5.
F passed an ordinance authorizing bonds to finance the purchase of a street sweeper and road improvements on Penny Lane.
F passed an ordinance authorizing bond finance of the state revolving fund loan 2590.
F appointed Arica Ahlvers to the board of CVB board.