Adopt Resolution #22-247 to Approve AFSCME and LELS Union City Health Insurance Contribution Adjustments

The purpose of this case is to formalize a very minor adjustment to the City's previously approved health insurance contributions made on behalf of the City's union employees.   The adjustment is needed due to the carrier rounding the new 2023 premiums to the nearest fifty cents (.50 cents).

The City's unions include AFSCME (American Federation of State, County, and Municipal Employees) and three LELS unions (Law Enforcement Labor Services / Patrol, Sergeants and Captains).   All union contracts are settled under a 3-year contract for 2022-2024.   The City's health insurance contributions for 2022, 2023 and 2024 are included in the contracts.    The language in the approved contracts caps the City's contributions based on the rate caps to the specific costs, without rounding.   Staff is asking for the City Council's approval to make minor adjustments to the 2023 City contributions.  If adjustments are needed in 2024, staff will address the issue with the City Council in 2023 after the 2024 renewal is received. 

Based on current enrollment, the anticipated additional costs in 2023 is a total of only $9.12.  

The City's open enrollment is currently underway.  This adjustment will allow the City's contributions to continue to be made based on our established protocol without causing confusion during open enrollment.   If approved, the following 2023 language and values will be updated in the contracts:

  Monthly City Contributions to Premiums

• Employee only (single) City contribution will be paid at the dollar value equal to the $2500 Deductible Perform Network plan full premium, but not to exceed $960.86 $961.00 in 2023; and
• Employee and Children City contributions will be paid at the dollar value equal to 60% of the $2500 Deductible Perform Network plan full premium, but not to exceed $1153.36 $1153.50 in 2023; and
• Employee and Spouse City contribution will be paid at the dollar value equal to 60% of the $2500 Deductible Perform Network plan full premium, but not to exceed $1211.18 $1211.40 in 2023; and
• Family City contribution will be paid at the dollar value equal to 60% of the $2500 Deductible Perform Network plan full premium, but not to exceed $1499.60 $1499.40 in 2023

The required funding is approximately $9.12, and will be accounted for in the 2023 budget. 
 

To approve adjusting the 2023 union employee City health insurance contributions as follows:

1. Employee only (single) City contribution will be paid at the dollar value equal to the $2500 Deductible Perform Network plan full premium of $961.00 in 2023; and
2. Employee and Children City contributions will be paid at the dollar value equal to 60% of the $2500 Deductible Perform Network plan full premium, but not to exceed $1153.50 in 2023; and
3. Employee and Spouse City contribution will be paid at the dollar value equal to 60% of the $2500 Deductible Perform Network plan full premium, but not to exceed $1211.40 in 2023; and
4. Family City contribution will be paid at the dollar value equal to 60% of the $2500 Deductible Perform Network plan full premium, but not to exceed $1499.40 in 2023.

Motion to adopt resolution #22-247 to approve adjusting the 2023 union employee City health insurance contributions as follows:

1. Employee only (single) City contribution will be paid at the dollar value equal to the $2500 Deductible Perform Network plan full premium of $961.00 in 2023; and
2. Employee and Children City contributions will be paid at the dollar value equal to 60% of the $2500 Deductible Perform Network plan full premium, but not to exceed $1153.50 in 2023; and
3. Employee and Spouse City contribution will be paid at the dollar value equal to 60% of the $2500 Deductible Perform Network plan full premium, but not to exceed $1211.40 in 2023; and
4. Family City contribution will be paid at the dollar value equal to 60% of the $2500 Deductible Perform Network plan full premium, but not to exceed $1499.40 in 2023.