12-13-04 Health & Public Safety - Laserfiche WebLink

Home Browse Search

Council members asked to know the average age of City employees which is 46. Council member Varner questioned whether City employees appeared to under use or over use medical services. Ms.Wallace stated that the average number of claims per employee is seven, of which employees pay roughly 10%. It was also noted that 91% of each health care dollar goes toward actual health care costs. Under a non-self funded plan,the administrative cost would be 20- 25%, rather than 9% under the City's plan. Mr. 011ett pointed out that while this year's results were positive in terms of budgeting, the health care plan is the second highest cost in the City's budget and that the City must promote wellness. The emphasis might cause short term cost increases,but would produce long term savings. He noted that most private health plans pay 75% of a participant's costs while the City plan covers roughly 90%. Council member Pfeifer questioned the amount of health plan costs attributable to conditions that are preventable,e.g. smoking, obesity,etc. Ms. Wallace said she didn't have this data with her but would get it later. Ms. Wallace also stated that one large claim in 2003-2004 was caused by obesity, a gastric surgery that didn't turn out. She also said that in 2005 there will be two possible liver transplants. Council member Kirsits asked whether emergency room visits were abused by participants. Ms. Wallace said that she was watching that statistic. She thought that by keeping the co-pays low ($15.00),participants were more inclined to use their primary physician. Margaret Hartsough added that the health budget component for emergency room visits is only 7% which is not significant. Mr.011ett concluded by saying that in 2005 the premium rates for employees will remain the same as in 2004. As this was the only agenda item,Committee Chair Puzzello adjourned the meeting at 4:47 p.m.