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- i <br /> S Personnel and Finance Committee <br /> March 24, 2003 <br /> Page 2 <br /> only those companies which have payroll deduction are currently used. <br /> Council Member King noted that the huge spikes are in other areas. He inquired whether the city's <br /> efforts are hitting the fight targets. <br /> Susan Wallace stated that in the infectious category it was one (1) claim, and in the injury category <br /> it was for one(1) child. <br /> Dr. Varner inquired whether there is any movement to have a program where there would be a <br /> general pool of employees and a high risk pool of employees. <br /> Greg Downs stated that this is a very complex issue legally. The city has been very pro-active <br /> however the jury is out whether such programs work. He noted that Abbot Laboratories and <br /> Johnson &Johnson are conducting studies. <br /> Council Member Pfeifer cautioned that the impact on infectious diseases or morbid obesity are far <br /> beyond just what the city pays out. <br /> Council Member Coleman noted that often specific behavior results in detrimental effects. He <br /> inquired whether the city should offer incentives to overcome unhealthy behavior. <br /> • <br /> Susan Wallace noted that there is a program in place that would pay up to $500 if an employee <br /> successful quits smoking,noting that only one person has qualified for the incentive. <br /> Greg Downs stated that there is no"silver bullet". He stated that the city has to face the facts that it <br /> has an aging workforce and the costs of medicines are not going down. <br /> Council Member King thanked everyone for their information, but inquired as to what the city is <br /> trying to accomplish. He noted that the Administration has given two (2) presentations. He <br /> questioned whether is was just for information sharing or whether we should be trying t o move <br /> into another direction. He suggested that perhaps a fundamental choice should be made. For <br /> example, the City of South Bend can not afford to continue to pay for growing costs and that a set <br /> dollar amount be placed, such as a$5 million cap. What would have to be done to break the cycle <br /> of going over budget by almost$2 million. <br /> Greg Downs noted that the city has taken steps over the past ten (10) years such as instituting <br /> various incentives and PPO, noting that the figures may be worse if they were not taken. Now the <br /> city as at a point where it will be forced to take unpopular steps such as shifting the percentages of <br /> cost-sharing. <br /> Council Member King suggested that perhaps there could be tiers of coverage,instead of providing <br /> a Cadillac version for all employees at taxpayers expense. He stated that the trend is not going to <br /> go away and that the city must look at alternatives. He suggested that alternatives be prepared for <br /> the next Committee meeting when this topic is discussed. <br /> Kevin Webber stated that it is "all about the spectrum of paying". Dramatic shifting in costs may <br /> • be necessary,often with the first year shift being so large that the employees would"choke on it". <br /> Susan Wallace noted that currently a single employee is paying 18% of the cost when it should be <br />