Summary
To: Finance Board
From: Stefan Massol, Director of Support Services
Date: 3/15/2018
______________________________________________________________________
Subject:
Title
Discussion of Health Insurance and Benefits, Health Savings Account
Summary:
The health insurance and benefits provided to general employees will be discussed as well as some new options available for the next fiscal year
End
Body
Previous Commission Action: N/A
Background/Problem Discussion: See Below
Overview of Current Benefits Offered
The town offers a comprehensive benefits package to its general employees. Several benefits are provided at no cost to the employee, including individual health insurance, life insurance of $50,000, and a cafeteria Section 125 plan allowance of $100 per month. The Section 125 plan includes a variety of benefits such as vision/hearing, dental, short and long-term disability, additional life insurance and supplemental health coverage. Employees have the option to pay on a pre-tax basis for Section 125 coverages in excess of the $100 allowance. Some employees use the $100 allowance to fund a small portion of the cost of dependent care coverage for their spouse or children.
Historical Cost Changes
The cost of group health trust benefits has increased over the past five years, driven in large part by the rising cost of health insurance. Below is a chart showing the annual percentage cost increase the group health trust benefits as compared to the National Healthcare Trend.
2017
2016
2015
2014
4-year avg.
National Healthcare Trend
7%
7%
8%
9%
7.75%
Group Health Trust
7%
4.1%
8.3%
6%
6.36%
As the chart shows, the cost of health trust benefits is rising significantly. Fortunately, the Group Health Trust is increasing at a lower rate than the National Healthcare Trend. The rate of increase also fluctuates significantly from year-to-year, but increased at an average annual rate of 6.36% over four years.
Health Plan Participation (Individuals and Depe...
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