By NICK BUDD
Hays Post

The Hays City Commission approved renewing the city’s health insurance policy with Coventry Health Care at an early commission meeting Tuesday night, with Commissioner Kent Steward the lone dissenting vote.

The 2015 renewal will cost approximately $1.8 million, a rate of $9,500 per employee — an increase of 19 percent from 2014. It includes a maximum out-of-pocket expense of $2,500 for individuals and $5,000 for families. Health insurance will be free of charge for city employees in 2015, but according to assistant city manager Paul Briseno, employees are “fully aware” they might have to pay in 2016. The commission budgeted $1.7 million for health insurance expenses and will use savings from last year to help offset overage.

“You guys should be proud because of the impact that you’ve had by capping the rate in 2009,” Assistant City Manager Paul Briseno said. “We have not increased health insurance for the past five years, and I don’t think there’s hardly any other governmental entity that could say that.”

Briseno added the city set the $9,500 cap in 2009 and anticipated hitting it in 2010 or 2011. This year’s increase is due to increased usage of the plan as well as a $70,000 increase in federal taxes due to the Affordable Care Act. Despite the increased usage, Briseno said employees are using the insurance as efficiently as possible.

“In 2014, the employees could’ve selected a plan that had a lower deductible and lower out-of-pocket costs, but instead selected this plan that includes some savings,” Briseno said. “In regards to health insurance, our employees are some of the most educated employees in the community.”

Briseno said the increased usage noted in the increase for 2015 is only from a “select few.” He also estimated if another increase occurs in 2016, city employees will have to pay as much as $1 to 2 an hour in order to cover costs.

“This is probably one of the most difficult decisions we’ve had to make in regards to employees,” Mayor Henry Schwaller said. “Because we are a service organization. We provide services in many different ways across the community, and so we want to make sure that our compensation and our benefits are competitive.

“It’s very clear that the premium will go over our cap and, at that point, they will be responsible for that, as well as the deductible, and I’m sure they will find a way to do that.”