To the applause of municipal employees in the audience, the Mandeville City Council Thursday night opted to continue providing health insurance at no cost to city workers rather than have them pay for a portion of the premiums. The council asked Mayor Donald Villere to use money the city will save through a reduction in the cost of its workman's compensation coverage to help offset the higher rates for employee health insurance.
The city two weeks ago was poised to have employees start paying for a portion of the cost of their health insurance coverage. Villere presented the council several options, the most popular of which would have required employees to contribute $11.54 per bi-weekly pay period to maintain their existing coverage, which currently costs them nothing. Under that plan, the employee could add his of her family for $46 per pay period. Another option would have kept the employees' cost for the insurance at zero, but would have required deductibles and provided less coverage.
At its Jan. 10 meeting, the council discussed the issue but delayed a decision. On Thursday night, the council heard from several community members who lauded the city government's workforce and urged the council to cover the cost of the rising premiums, which Villere said would amount to about $120,000 this year. Part of that increase could be offset by savings of $87,000 in the city's workman's compensation coverage, he said. And, officials noted that the city saved about $100,000 a year ago when it switched its provider to United Health Care.
Former City Council members Jack McGuire and Jerry Coogan both urged the council to pony up to cover the higher insurance costs rather than passing the increase on to the workers. McGuire noted that Mandeville is one of the wealthiest cities in the state with a median household income of over $90,000, yet some of its employees are at income levels that put them dangerously close to the poverty level.
John Endres, an employee of the city's planning department, said good employees will leave for greener pastures if their compensation packages are reduced. "You're not going to have anybody who's going to stay," he said. "You can hire them, but they won't stay."
Calling the city employees the "backbone of our community," Councilwoman Carla Buchholz urged her council colleagues to cover the cost of employee health insurance "as long as the city can afford to pay" for it. The city has about 125 employees.
In agreeing to side with Buchholz, Councilmen Rick Danielson and Clay Madden said the city needs to plan ahead for the time when it may not be able to afford to continue to pay for the entire cost of employee health coverage. The council's approval was unanimous.
Currently, the city picks up 100 percent of the cost of its employees' health coverage, an expense of just over $2 million a year. An employee can add his or her family to the plan for $21.62 per pay period. The council's decision Thursday night, which drew an ovation from about a dozen employees in the audience, leaves that structure unchanged.
Council also gave a thumbs up to renew worker's compensation insurance with John W. Doussouy & Co. Inc. The total premium for 2013 is estimated at $133,309. The city budgeted $220,290 in the 2013 budget for that coverage, creating a savings of just under $87,000, which will be allocated to offset health insurance costs.
Source: http://www.nola.com/politics/index.ssf/2013/01/mandeville_city_workers_will_c.html
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