HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Agenda - 07/20/2004 Council Workshop Agenda
All Councilmembers • Julie Peterson, Council President
IN� KENT July 20, 2004
W A S H I N G T O N
5:30 PM - 6:15 PM
Item Description Speaker Time
1. Health Care Update Sue Viseth 30 min
Unless otherwise noted,the Council Workshops are held at 5:30 p.m. on the lst and 3rd Tuesdays of each month.
Council Chambers East,Kent City Hall,220 4th Avenue South,Kent,98032-5895.
For information please contact the City Clerk's Office at(253) 856-5712.
Any person requiring a disability accommodation should contact the City Clerk's Office at
(253) 856-5725 in advance.
For TDD relay service call the Washington Telecommunications Relay Service at 1-800-833-6388.
S:\PUBLIC\CLERK\City Council Committee Packets\Council Workshop\WorkshopComn>ttee072004.doc
Employee Health and
Welfare Program
July 2004
Employee Health Care Options
■ Premera Blue Cross (self-funded)
■ Group Health Cooperative (HMO)
1
2004
Enrolment by Man
Blue Cross Group Health Totals
Employees 698 39 737
Dependents 1303 42 1345
LE OFF 1 59 0 59
L1 Dependents 26 0 26
TOTAL 2086 81 2167
2003 Health Care Budget
$951395303
Blue Cross
Admin Fees
$515,321
6%
Group Health
$245,974
3%
Blue Cross
Claim
s
$7,815,087 Stop Loss
u $287,692
85/0 3%
Overhead
$275,229
3%
2
Ann»al Cost of Health Cage
Millions
10.0
9.5
9.0
8.5
8.0
7.5
7.0
6.5
6.0 $5.5
5.5
5.0
'99 100 101 102 '03 '04
2004 Claims Cost to date
(Self-funded claims as of 5/31/04)
Budgeted Weekly Average $161,561
Weekly Average to Date $117,317
Weekly under budget $ 443244
Annualized Net Cost $6,1005484
Annual Budget $85401,172
Amount under budget $2,300,686
3
Health Plan Reserves
Millions $2 0
$2.00 $1.7
$1.80
$1.60
$1.40
$1.20 $1.02
$1.00 76
$0.80
$0.60
$0.40
$0.20
$0.00
Ftf
199 100 101 '02 '03 '04
City vs. Employee
Family Premium Contributions
■City 0 Employee
$1,400
$1,200
$1,000 $25 $25
$800
$600 $
$400
$200
$0
199 100 101 '02 '03 '04
4
What's new. . ..
Health Savings and
Affordability Act of
2003
Health Savings Accounts (HSA)
■ Tax Sheltered Accounts
■ Contributions used to pay for health care costs
-Yrithdraw b j'ciiecii or debit Card
■ Balance rolls over from year to year
■ HSA's must be combined with a "high
deductible plan"
5
High Deductible Plan
■ Deductible amounts
established by Congress
Plan Minimum Maximum
Deductible Deductible
Individual $1,000 $2,550
Family $2,000 $5,150
More HSA Facts
■ Employees, Employers or both may contribute to an
HSA
■ HSA's are portable and permanent
■ Employee must be under age 65 to open an HSA
■ At age 65 employee may withdraw contributions
without penalty
■ Contributions, investment income, and withdrawal for
health care expenses are free from taxation.
6
Next Steps
■ Employee Health Care Committee
■ Further HSA research needed
■ Feasibility Study- offer HSA as a third plan?
■ Decision on move to AWC Trust postponed
pending results of research
Questions
7