PHA CONTRIBUTION TOWARD MEDICAL INSURANCE. Staff is recommending Board approval to increase the monthly PHA contribution amounts paid toward the cost of employees’ medical insurance as shown below. Blue Cross/Blue Shield did not increase the cost for medical insurance premiums effective July 1, 2015. • Retroactive to July 1, 2015, the PHA will increase its contribution by 3.5% added to the base amount the PHA paid effective July 1, 2014. (The dollar amounts are listed on the following page and on an attachment.) • On July 1, 2016, the PHA will increase its contribution by 3.5%. This will be added to the base amount the PHA paid effective July 1, 2015. • On July 1, 2017, the PHA will increase its contribution by 3.5%. This will be added to the base amount the PHA paid effective July 1, 2016. These recommended increases would continue the PHA’s pattern of increasing its contribution to employees’ medical insurance costs by 3.5% each year, as first approved by the Board in 2011. Blue Cross/Blue Shield did not increase the insurance premiums that year but the PHA nevertheless committed to a 3.5% increase in its contribution, with the intent of leveling out its annual cost increases rather than changing each year as premiums changed by varying amounts. A 3.5% increase for AFSCME would be consistent with the 3.5% increase proposed for the Supervisory & Confidential employee group. The table at the end of this report shows the history of premium increases and PHA contributions. Since 2008 the Agency has paid the same dollar amounts toward employees’ medical insurance regardless of the level of coverage chosen by the employee (High Deductible, Basic, Standard or
PHA CONTRIBUTION TOWARD MEDICAL INSURANCE. Staff is recommending increasing the monthly PHA contribution amounts paid toward the cost of employees’ medical insurance as shown below. • On July 1, 2016, the PHA will increase its contribution by 3.5%. This is added to the base amount the PHA paid effective July 1, 2015. (The dollar amounts are listed on the following page and on an attachment.) • On July 1, 2017, the PHA will increase its contribution by 3.5%. This is added to the base amount the PHA paid effective July 1, 2016. On July 1, 2018, the PHA will increase its contribution by 3.5%. This is added to the base amount the PHA paid effective July 1, 2017. These recommended increases would continue the PHA’s pattern of increasing its contribution to employees’ medical insurance costs by 3.5% annually, as first approved by the Board in 2011. Blue Cross/Blue Shield did not increase the insurance premiums that year but the PHA nevertheless committed to a 3.5 % increase in its contribution, with the intent of leveling out its annual cost increases rather than changing each year as premiums changed by varying amounts. Blue Cross/Blue Shield also did not raise its premiums on July 1, 2015 but the PHA increased its contribution by 3.5 %. The table at the end of this report shows the history of premium increases and PHA contributions. Since 2008 the Agency has paid the same dollar amounts toward employees’ medical insurance regardless of the level of coverage chosen by the employee (High Deductible, Basic, Standard or Premium). With the recommended 3.5% increases, the contribution amounts would be as follows: • $752.00 for single coverage (up from $726), • $1,181.00 for single plus 1 coverage (up from $1,141), and • $1,348.00 for family coverage (up from $1,302). • Single: $779.00 • Single +1: $1,223.00 • Family: $1,396.00 • Single: $807.00 • Single +1: $1266.00 • Family: $1,445.00 For employees who choose the High Deductible option, the above amounts are divided between paying for the insurance premium and contributing the difference to the Voluntary Employee Benefits Association (VEBA) account that allows the employee to pay for out-of-pocket expenses with pre-tax dollars. The annualized cost of this July 1, 2016 increase for the Agency’s contribution for the S & C employee group is approximately $18,200, for a total Agency cost of $536,900 for S & C medical insurance premiums from July 1, 2016 to June 30, 2017. Medical insurance cost increases during FY 2016 were included in the Operating Budget appro...
