City health insurance rates likely to rise again

Employees of the city of Columbus will see increases in their health insurance premiums because, as opposed to past years, they will be paying their full 30 percent share of the costs, should Columbus Council approve a proposed new plan, councilors learned Tuesday.

Councilors heard an overview of the plan Tuesday morning during a work session. They will not act on the plan until later in the year, probably in August.

The city pays 70 percent of insurance costs and the employees pay 30 percent. But because of inaccurate forecasting, the health care fund has been underfunded historically. Thus, the city has had to pay the difference in a lump sum at the end of the year. So in effect, the city was paying a much higher percentage. Last year, for example, the city’s share was about 83 percent and the employee share was about 17 percent, Human Resources Director Reather Hollowell told councilors.

Health care consultants ran Columbus’ numbers through an actuarial, which recommended that the city increase per-employee health care spending from $5,650 per employee to $6,100 to prevent the year-end deficits the city has been dealing with.

The new insurance plan also replaces the old three-plan program with a two-plan approach. It eliminates the Health and Wellness Center (HWC) program, but opens the city health clinic to all city employees, not just those on that plan.

Employees currently in the Health and Wellness plan will see the most significant changes in their coverage and premiums. Their deductible will quadruple from $500 per individual and $1,000 per family to $2,000 per individual and $4,000 per family. Employees in the current HMO and PPO plans, which are also being eliminated, will see their deductibles double, from $1,000 per individual and $2,000 per family to $2,000 and $,000.

The three plans are being replaced with a “silver” and “gold” plans, both of which are Point of Service plans.

Premiums for the current HMO plan range from $71 per two-week pay period for individuals up to $196 for full families. If those employees choose the gold plan next year, their premiums would range from $104 per pay period for individuals to $290 for full families.

Employees currently in the HWC plan have premiums ranging from $60 a pay period for individuals to $165 for full families. If they opt for the silver plan, their rates would range from $75 per pay period for individuals to $202 for full families.

Mayor Teresa Tomlinson has proposed, and council has tentatively approved, a 2 percent cost of living adjustment to cover the premium increases. Hollowell said that the 2 percent would be sufficient to cover any employee’s higher premiums if they choose individual coverage in the silver plan.

The proposed insurance plan also includes a wellness incentives program. Under it, employees would undergo a biometric screening, a health risk assessment and, if deemed necessary, would be provided with a health coach to advise and supervise a wellness program. The program would be voluntary, but the proposal gives councilors two incentive options, either to charge non-compliant employees $50 per pay period or to offer them a $500 annual credit toward their deductible.

No councilors showed any enthusiasm for the punitive approach and indicated they would lean toward the paid incentive approach.

The proposed plan is not part of the mayor’s fiscal 2017 budget, which has all but been finalized. Council will act on the health plan just before the city’s open enrollment period, which is in August.

This story was originally published May 31, 2016 at 3:11 PM with the headline "City health insurance rates likely to rise again."