Health Plan Shortfall Recouped Through Employee Pocketbooks
July 28, 2016 at 4:25 p.m.
Syracuse - Town employees will have less to smile about when the new year rolls around.
Town council, facing a $34,000 shortfall in its employee health care plan, chose to make up for it by making employees bear the brunt.
The town's 30 employees will see their deductible rise from $250 to $500 and an increase in contributions reflected in their paychecks.
Contributions under the family plan will increase from $35 to $42 per pay period. Single person health care contributions will rise from $15 per pay period to $18.
During council's debate Tuesday night, several options were explored, but all depended on employees to make up the shortfall.
Council president Barb Carwile said options were limited to the role of employees and not the town itself because the town's budget for 1998 has already been set.
Representatives of the clerk-treasurer's office said they learned of the increase after the budget was approved earlier this year.
That comes after town council adjusted its budget for a 20 percent increase they were told of, said Julie Kline, deputy clerk in the clerk's office.
Council was told that current health conditions of people in the plan make the program expensive and unlikely that other insurance companies would be interested in working with the town.
The current insurance program is run through Cotton and Cotton Insurance and John Alden Life Insurance.
Details about the policy were discussed Tuesday without the presence of a representative of the insurance firm.
No employees openly debated the proposals, but several sitting in the audience were heard grumbling.
In another matter, Carwile proposed the town consider annexing an area west of town limits that includes Bayview subdivision.
Carwile said the addition would be a great benefit to the town and that water and sewer could easily be extended. Utility commissioner Tom Miller said the town's sewer capacity is running at about 50 percent.
The town was also advised to ignore a request by the Indiana State Board of Accounts to have the municipality's property appraised for liability insurance purposes.
Town attorney Robert Reed advised against it, saying the appraisal would not serve any benefit to the town.
"Let the state board criticize - phooey on them," Reed said. [[In-content Ad]]
Syracuse - Town employees will have less to smile about when the new year rolls around.
Town council, facing a $34,000 shortfall in its employee health care plan, chose to make up for it by making employees bear the brunt.
The town's 30 employees will see their deductible rise from $250 to $500 and an increase in contributions reflected in their paychecks.
Contributions under the family plan will increase from $35 to $42 per pay period. Single person health care contributions will rise from $15 per pay period to $18.
During council's debate Tuesday night, several options were explored, but all depended on employees to make up the shortfall.
Council president Barb Carwile said options were limited to the role of employees and not the town itself because the town's budget for 1998 has already been set.
Representatives of the clerk-treasurer's office said they learned of the increase after the budget was approved earlier this year.
That comes after town council adjusted its budget for a 20 percent increase they were told of, said Julie Kline, deputy clerk in the clerk's office.
Council was told that current health conditions of people in the plan make the program expensive and unlikely that other insurance companies would be interested in working with the town.
The current insurance program is run through Cotton and Cotton Insurance and John Alden Life Insurance.
Details about the policy were discussed Tuesday without the presence of a representative of the insurance firm.
No employees openly debated the proposals, but several sitting in the audience were heard grumbling.
In another matter, Carwile proposed the town consider annexing an area west of town limits that includes Bayview subdivision.
Carwile said the addition would be a great benefit to the town and that water and sewer could easily be extended. Utility commissioner Tom Miller said the town's sewer capacity is running at about 50 percent.
The town was also advised to ignore a request by the Indiana State Board of Accounts to have the municipality's property appraised for liability insurance purposes.
Town attorney Robert Reed advised against it, saying the appraisal would not serve any benefit to the town.
"Let the state board criticize - phooey on them," Reed said. [[In-content Ad]]