AGENDA #2d

 

BUDGET WORKING PAPER

                                                                       

TO:                  W. Calvin Horton, Town Manager

 

FROM:            Pam Eastwood, Human Resources Director

 

SUBJECT:       Information about Options for Health Insurance for Council and Mayor

                       

DATE:             April 25, 2003

 

 

A Council member requested information about the possibility of Council member participation in the Town’s group health insurance plan.

 

The current Town health insurance carrier has said that it is willing to allow the Town’s insurance contract to be revised to include Council members on the same basis as other employees; however, because of the terms of their contractual filing in the state, the Town would need to pay the share of the premium equivalent to that portion paid for other employees. The Town may designate Council members as either part-time or full-time employees in accordance with the group insurance plan.  

 

• For Town employees who work fulltime, the Town pays 100% of the employee cost and 50% of the cost for family coverage.

 

• For Town employees who do not work fulltime, but who work at least 30 hours per week, the Town pays 75% of the employee cost and 37.5% of the cost for family coverage.

 

• For Town employees who do not work fulltime but who work at least 20 hours per week, the Town pays 50% of the employee cost and 25% of the cost for family coverage.

 

The insurance carrier would also require that Council members elect coverage within 30 days of first eligibility, such as within 30 days of being sworn in or within 30 days of the benefit first being offered.  After 30 days, health insurance would not be approved without a medical examination.  These are the same rules governing the health insurance policies for all Town employees.

 

Costs

 

If the Council decides to provide health insurance coverage for Council members in the new budget year, the costs would be:

 

 

 

 

 

Employee Category	Cost for Employee Only			Additional Cost for Family Coverage			Employee & Family
	Employee Cost	Town Cost	Total Cost	Employee Cost	Town Cost	Total Cost	Total Cost To employee
Full-Time	- 0 -	3,773	3,773	3,352	3,352	6,705	3,352
Equal to/ greater than 30 hrs	943	2,830	3,773	4,190	2,514	6,705	5,133
Equal to 20 hrs/ less than 30 hrs	1886	1,886	3,773	5,028	1,677	6,705	6,914

 

If the Council decides to provide coverage, the total cost to the Town for the upcoming plan year would be as shown.

           

Work Schedule	Employee Only	Family coverage	Total Cost
Fulltime	$33,957	30,168	64,125
21-29 hours	$25,470	22,626	48,096
Up to 20 hours	$16,974	13,995	30,969

 

Next steps:  The Council could make its members eligible for health insurance benefits by amending the Town’s Personnel Ordinance; the Manager would then revise the contract with the Town’s health insurance provider.