TO: Mayor and City Council
FROM: Beth Beatty, City Manager
SUBJECT:
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Ordinance Amending and Restating Ordinance 17928 which Established Salary Ranges and Fringe Benefits for Non-Union Employees (Amendment to Group Health Insurance)
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BACKGROUND:
The City provides group insurance benefits to its employees. Historically, these benefits were set by ordinance for non-union employees, and by collective bargaining agreements for union employees. This action is to modify the group insurance benefit plans for non-union employees and non-union retirees.
In an effort to respond to employee's requests for preventative care coverage, staff is proposing updates to group insurance benefit plans for 2025. The new benefit options would include preventative care coverage and comply with the 2010 Affordable Care Act. The most significant change is the creation of a second tier of benefits for non-union employees hired after January 1, 2025, and reducing the City's cost of employee insurance long term. A complete summary of the changes are as follows:
Coverage Options
Tier 1 - Non-union employees hired before January 1, 2025
Note: Union coverages must be negotiated
(a) Offer current $250 deductible plan with percentage based contribution model.
1. No changes to health, dental and vision benefits
2. Eliminate current $200 preventative care reimbursement
(b) Add new $500 deductible Affordable Care Act compliant plan:
1. Preventative care covered at 100% (current preventative care reimbursement will be eliminated)
2. Under the new plan, all costs count toward out-of-pocket maximum including copays and prescription drugs
3. Virtual doctor visits covered at 100%
4. Increase vision reimbursement from $150 to $200
5. Add coverage for dental implants at 50%
6. Minimal copays for doctor visits, urgent care visits, and ER visits
7. Minimal increase to prescription copays
8. Small increase to deductible and out of pocket maximums
9. Coinsurance after deductible at 9...
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