MONROE - The Monroe Common Council recently approved a resolution outlining the city's contribution toward health insurance for a variety of city employees and retirees, which included an 85-percent payout toward the premium of each employee.
City Administrator Phil Rath explained the process behind the contribution and said the number the city pays is an average of all qualifying plans. A static share is paid by the city regardless of the cost of the plan. Employees take on the rest through two split payments made each month through their paychecks. If the employee also wants dental insurance, all coverage is an out-of-pocket expense to employees, with the option of utilizing an employee trust fund through the state of Wisconsin.
For single health insurance plans, the city has slated an
85-percent contribution at $571. While the highest cost single plan would require a $128.50 payment per month for a full-time employee, the lowest cost plan costs an employee $18 per month.
Those who choose the family plan have similar options. Through the highest family plan, the cost to an employee would be $320, while choosing the least expensive plan would require an employee to split $44. The city of Monroe has a shared responsibility of $1,420 regardless of the premium chosen.
The council also decided to offer a cash incentive for those who choose not utilize the city health insurance plans at all. Rath said currently eight employees choose to not carry insurance. Six of these employees would also qualify for the cash incentive of $2,000 per year divided among 26 paychecks. Because of this, the city would pay $12,000 per year in incentive for workers previously not given a cash amount, putting a dent in its spending limit. However, as long as at least one employee utilizing a family plan or three workers enrolled with a single plan switch to the incentive offer, it will result in a savings and an advantage to the city. If the numbers are not reached, then Monroe could lose money.
Alderman Reid Stangel said during the Salary and Finance Committee meeting prior to the council proceedings that he was in favor of helping employees, even if it meant taking the risk. Rath added that there would be some "obvious" checks into who the incentive could go to, including denial of the incentive to employees whose spouse or domestic partner also works for the city and is currently utilizing an insurance plan. Common Council passed the resolution allowing the incentive to be offered on an 8-1 vote.
City Administrator Phil Rath explained the process behind the contribution and said the number the city pays is an average of all qualifying plans. A static share is paid by the city regardless of the cost of the plan. Employees take on the rest through two split payments made each month through their paychecks. If the employee also wants dental insurance, all coverage is an out-of-pocket expense to employees, with the option of utilizing an employee trust fund through the state of Wisconsin.
For single health insurance plans, the city has slated an
85-percent contribution at $571. While the highest cost single plan would require a $128.50 payment per month for a full-time employee, the lowest cost plan costs an employee $18 per month.
Those who choose the family plan have similar options. Through the highest family plan, the cost to an employee would be $320, while choosing the least expensive plan would require an employee to split $44. The city of Monroe has a shared responsibility of $1,420 regardless of the premium chosen.
The council also decided to offer a cash incentive for those who choose not utilize the city health insurance plans at all. Rath said currently eight employees choose to not carry insurance. Six of these employees would also qualify for the cash incentive of $2,000 per year divided among 26 paychecks. Because of this, the city would pay $12,000 per year in incentive for workers previously not given a cash amount, putting a dent in its spending limit. However, as long as at least one employee utilizing a family plan or three workers enrolled with a single plan switch to the incentive offer, it will result in a savings and an advantage to the city. If the numbers are not reached, then Monroe could lose money.
Alderman Reid Stangel said during the Salary and Finance Committee meeting prior to the council proceedings that he was in favor of helping employees, even if it meant taking the risk. Rath added that there would be some "obvious" checks into who the incentive could go to, including denial of the incentive to employees whose spouse or domestic partner also works for the city and is currently utilizing an insurance plan. Common Council passed the resolution allowing the incentive to be offered on an 8-1 vote.