MONROE - The City of Monroe Common Council voted unanimously Monday to move city health benefits under the state's public employee group program. The city has been under a self-insured plan.
The change-over to the Wisconsin Public Employers' Group Health Insurance Program has the acceptance of two of the city union groups - the dispatchers' WPPA and the AFSME - both of which submitted letters of approval signed by their union representatives.
The unions consented to pay 12 percent of the premiums and also agreed to pay 12 percent of the surcharge, a fee charged for the first two years to new groups just entering the state program.
Sworn officers WPPA union can negotiate their premium payments but not the city's plan.
Depending upon an employee's choice, his or her premium will cost either $24 to $107 for a single plan, or $59 to $268 for a family plan, according to information from City Comptroller Bridget Schuchart.
The city's share would be $482 for single plans and $1,202 for family plans. About 20 employees currently use single insurance plans and about 67 use family plans.
The surcharge will add about $58 per month extra to the employees' family health plan costs, or $23 to a single plan, for the first year and half those amounts in the second year.
The total yearly premium is expected to cost $1.4 million in 2013 and $1.3 million in 2014. Premium totals then drop to $1.2 million and increase to $1.3 million and $1.4 million and $1.5 million the following years.
Inflation has been built into the premium quotes.
According to information presented by City Clerk Carol Stamm to the Insurance Committee Monday, the state plan increases the total premiums for the city by about $76,000 next year, compared to the current plan. But then the state plan drops below the current plan, by about $122,000 in 2014, and continues to remain $300,000 to $400,000 less than the current program.
In a 6-year view, the city is expecting the program to cost $8.125 million total, while the current plan would total $9.680 million, giving the city a savings of about $1.56 million, or 16 percent.
Although the employees have consented to pay 12 percent of the surcharge, Alderman Michael Boyce asked the Finance and Taxation Committee members to look for a way to offset that added cost for the employees. He also asked that the 2013 preliminary budget numbers be changed to reflect the new plan costs and surcharges separately.
The change-over to the Wisconsin Public Employers' Group Health Insurance Program has the acceptance of two of the city union groups - the dispatchers' WPPA and the AFSME - both of which submitted letters of approval signed by their union representatives.
The unions consented to pay 12 percent of the premiums and also agreed to pay 12 percent of the surcharge, a fee charged for the first two years to new groups just entering the state program.
Sworn officers WPPA union can negotiate their premium payments but not the city's plan.
Depending upon an employee's choice, his or her premium will cost either $24 to $107 for a single plan, or $59 to $268 for a family plan, according to information from City Comptroller Bridget Schuchart.
The city's share would be $482 for single plans and $1,202 for family plans. About 20 employees currently use single insurance plans and about 67 use family plans.
The surcharge will add about $58 per month extra to the employees' family health plan costs, or $23 to a single plan, for the first year and half those amounts in the second year.
The total yearly premium is expected to cost $1.4 million in 2013 and $1.3 million in 2014. Premium totals then drop to $1.2 million and increase to $1.3 million and $1.4 million and $1.5 million the following years.
Inflation has been built into the premium quotes.
According to information presented by City Clerk Carol Stamm to the Insurance Committee Monday, the state plan increases the total premiums for the city by about $76,000 next year, compared to the current plan. But then the state plan drops below the current plan, by about $122,000 in 2014, and continues to remain $300,000 to $400,000 less than the current program.
In a 6-year view, the city is expecting the program to cost $8.125 million total, while the current plan would total $9.680 million, giving the city a savings of about $1.56 million, or 16 percent.
Although the employees have consented to pay 12 percent of the surcharge, Alderman Michael Boyce asked the Finance and Taxation Committee members to look for a way to offset that added cost for the employees. He also asked that the 2013 preliminary budget numbers be changed to reflect the new plan costs and surcharges separately.