City Commish Health

City Attorney Jim Moore reads an ordinance on Friday's agenda as commissioners Marty Gute and Amanda Clark listen.

ASHLAND Changes to the city’s health care plan were approved in Friday’s Ashland Board of City Commissioners meeting.

The board approved several ordinances that adjust the medical care plan for city employees. Employees, excluding the Ashland Fire Department, hired prior to July 1 will have health insurance coverage through Anthem Health Plans of Kentucky, Inc. Anthem will be the city’s third administrator for health and will have a proposed savings of $1.2 million.

“It’s important for the city to regularly analyze expenses to ensure we are utilizing taxpayer money in the most responsible manner possible,” said City Manager Mike Graese. “The recent adjustments to the city’s medical compensation plan were necessary due to the unprecedented challenges with revenue and our budget. I believe the adjustments are fair and represent good value.”

The administration fees were lowered by $55,000. The premium savings of $377,000 and health claim savings of $771,000 also contributed to the overall savings. The city has added aggregated insurance at a cost of $34,850 with cap on high health claims. Anthem also recommended changes to vision and dental coverage. The vision changed $130 per plan participant per year and increases the maximum yearly out-of-pocket for dental to $1,500.

Those employees will receive the following premiums for their insurance coverage:

• Single (one person) will pay $30 per paycheck, a $5 increase.

• An employee plus one will pay $60 per paycheck, a $10 increase.

• Family medical plan will be $90 per paycheck, a $20 increase.

• Spousal waiver premiums are $35 per paycheck, an $8 increase.

The ordinance establishes an annual increase by the Consumer Price Index (CPI) for premiums.

They also approved a separate ordinance that changes medical coverage for new hires, excluding fire, brought in after July 1. The new tier of insurance is designed with higher deductibles, premiums and out-of-pocket costs.

The rates for employees hired after July 1:

• Single (one person) will pay $50 per paycheck.

• An employee plus one will pay $75 per paycheck.

• Family medical plan will be $100 per paycheck.

The ordinance also establishes an annual increase by the Consumer Price Index for premiums.

The board approved an ordinance allowing medical coverage for members of the fire department union to remain the same. The union rejected the changes to coverage or premium by the city.

The benefits for union fire employees are as follows:

• Single (one person) will pay $22 per paycheck.

• An employee plus one will pay $44 per paycheck.

• Family medical plan will be $60 per paycheck.

• Spousal waiver premiums are $22 per paycheck.

The city also approved an ordinance that established monthly premium rates for continued health coverage under COBRA. This is for former employees who chose COBRA benefits.

Those benefits are the following:

• A single subscriber plan costs $841.44.

• A subscriber plus spouse plan costs $1,767.02.

• A subscriber plus child(ren) plan costs $1,514.59.

(606) 326-2651 |

tevans@dailyindependent.com

Recommended for you