By BECKY KISER
Hays Post
Health insurance for employees of the city of Hays in 2018 will be discussed during Thursday’s city commission meeting.
Blue Cross Blue Shield of Kansas’ renewal rates for 2018 includes a decrease of 0.67% based on the city’s expected enrollment, according to Human Resources Director Erin Giebler.
She is recommending the city continue with the fully insured triple option plan for 2018 with the same employee costs as 2017. The recommendation, with the city paying up to $1,719,500, keeps the health insurance within the budget cap set by the city commission in 2010.
“The high deductible health plan is consumer-driven and designed to help control costs. It was the most popular plan with 60 percent of those enrolled in the city’s health insurance electing this option,” Giebler told commissioners. “Due to higher medical costs, the city was expecting up to a 21 percent renewal increase. But due to our low utilization, the city saw a slight decrease in premiums.”
Nineteen percent of the employees chose the premium plan and 21 percent chose the base plan.
Staff is also recommending using $100,000 out of the Employee Benefit Levy’s Contingency fund to provide up to $700 in employer match for employee’s Health Savings Account (HSA) in 2018 only.
“This will encourage employees to fund their own Health Savings Account and encourage employees to enroll in the high deductible health plan,” said Giebler.
Employees have contributed more than $137,000 into their own HSAs, Giebler reported. “Remember, when they contribute into that, the city actually gets tax savings as well when they do that. The city has put about $65,000 in.” The HSAs can be rolled over year to year.
“Last year when we went into discussions, it was the employees who were really asking for this high deductible health plan,” Giebler pointed out.
Other agenda items include consideration of a bid for construction replacement of the water treatment plant’s carbon dioxide system not to exceed $312,000 and an update of the reconstruction of the wastewater treatment plant.
Mayor Shaun Musil will also make presentations to city employees for 5, 10, 15, 20, and 25 years of service.
The complete Oct. 26 agenda can be seen here.
The meeting starts at 6:30 p.m. in Hays City Hall, 1507 Main.