From next Monday’s City council packet….
Staff met with the City’s health insurance advisor May 30th to review records related to claims in comparison to premiums paid (loss ratio). Unfortunately, cost of health benefits exceeded premiums by approximately 14%; a deficit, and slightly higher than last year’s ratio.
In FY 2024 the City was able to cover increases in premiums primarily through adjustment in the plan coverage and network. This year, however; it is likely the City will see a double-digit percent increase in rates.The ratio was also impacted by high-cost prescriptions. Staff and consultants will wait for May’s total claims to include in the 12-month rolling ratio for a hopeful decrease in the deficit.
Maybe I misunderstand how this all works, but the City pays around $2.5 million a year in health insurance premiums for their employees. That’s the generous “benefits” you never heard Finley or Gump bring up at salary begging time in July and August. So does that mean the COST of health benefits for 117 employees was about $2.85 million?!? That can’t be right. That’s over $24k on average for every single City employee. Or maybe somebody had a $500k hospital bill or something.
One thing is sure – there are more than a few City employees who could stand to drop a few pounds. I remember Assistant to the City Manager Gump had some hare-brained scheme in August of 2022 to reward people who lost weight. It was right about the time he had another hare-brained scheme to give City employees super-cheap golf fees of around $5 or something. Luckily, that moronic request seems to have died in the crib.
