Report of the Montpelier City Council's Citizen Budget Review ...

accounts (HRA) to cover the majority the high deductible costs. The city continued to payapproximately 95% of the premium for single and 80% for two-person and family plans(includes HRA funding).2012 - Although the changes made in 2010 saved the city $190,000 it still faced an additional20% premium increase in 2011. As a result, the city made further changes in 2012 switchingto a BCBSVT high deductible health plan (HDHP) with deductibles of $4,000 for individualsand $8,000 for families with an HRA to assist in covering the cost of the high deductibles. TheHRA covers up to $3,500 for individuals and $7,000 for families and the beneficiaries can rolloverup to 10% of their unused HRA for the following year. In budgeting for this the cityassumed a 65% usage rate of the HRA (in that not everyone would use the all of their HRA).The city continues to pay approximately 95% of the premium for single and 80% for twopersonand family plans (includes HRA funding). Employees can choose to opt-out of thehealth insurance coverage and receive $2,125/year (paid incrementally through the bi-weeklypayroll). NOTE: At this time it is not yet known what the total 2012 health costs will be until theend of calendar year 2012. The city projected a 1% cost above 2011 when it made its decisionto move to this plan.The chart below is a summary of the annual rates and cost sharing for the city’s 2012 healthplan.[Continued next page]Page 46 of 88