City Council approves raise in insurance stipend to cover rising premiums

December 05, 2001
Santa Paula News

A cafeteria is usually considered a setting where you can pick and choose what you want, and now city employees and elected officials have received a $61.04 boost in the amount of money they receive each month to apply the same cafeteria theory to health insurance.

By Peggy KellySanta Paula TimesA cafeteria is usually considered a setting where you can pick and choose what you want, and now city employees and elected officials have received a $61.04 boost in the amount of money they receive each month to apply the same cafeteria theory to health insurance.The City Council approved the increase of $42,630 to increase the monthly benefit with $27,330 coming from General Fund reserves and the balance from the other special revenue funds.The increase is not the first time the premium price of the city’s health care insurance providers has occurred; the city’s HMO family medical plan saw an increase of $60.95 from $431.15 to $492.10 per month during the last round of employee negotiations. Subsequently, the cost again increased.According to the report by Assistant to the City Manager Melissa Macias, various city memorandums of understanding (MOU) with employee bargaining groups, the city is willing to provide for any reasonable cost increases to the least-costly HMO family medical and dental plans beyond the current amount.
The increase also applies to all city management, mid-management, confidential, and certain part-time employees who “have traditionally been offered the same package,” as the SEIU’s approximate 35 city employees.“Therefore, the provisions would apply to them as well,” Macias reported.The city reserves the right to reopen employee negotiations on the health care cost issue if the increase exceeds 8 percent of each year of the MOU. The cafeteria increase did exceed the 8 percent, totaling an approximate increase cost of 13.5 percent to the current cafeteria plan.The cost of the cafeteria plan will now go from $455.96 to $517, according to Macias’ report, “However, staff’s recommendation is that negotiations not be reopened, and that the full increase for the current year be approved by the city council.Employees and elected officials have the option of using the monthly cafeteria plan payment for city insurance coverage or purchasing their own from an outside source.



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