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Two Warsaw employees questioned the council's plan to retool health insurance benefits Monday. The plan is aimed at reducing the city's costs for the self-funded program.
About a dozen city employees attended the meeting, with Gerry Moser and Deborah Watters speaking for the group.
"These guys out here have given everything," Moser said. "I know you have an obligation to the taxpayers. You also have an obligation to us. People earning $11 or $11.25 per hour are barely making it.
"You're taking it out of our pocket. We're the first one you call for services and we're the last ones to leave."
Several options were proposed this summer during budget workshops by an insurance committee that included councilmen Charlie Smith and George Clemens, Millissa Griffith from the clerk's office, Steve Foster from the police department, Lacy Francis from public works, Matt Warren from the fire department and Jennifer Whitaker, human resources.
"We're actually taking it out of the (insurance policy) user's pocket," said Clemens. "We absolutely have to deal with insurance costs."
"There are people living week-to-week on their paycheck. You're taking food out of their mouths," Moser said.
"We have a huge issue to deal with regarding salaries and salary issues," Smith said.
Watters said she has 18 years' experience with municipal wastewater treatment plants and has worked for two other facilities.
"We're your first line of defense for the protection of your families and the environment," she said. "To attract the kind of people we want, they have to be educated, have mechanical ability.
"At the two other municipalities, when they couldn't offer good wages, they offered good benefits. When you're making $11 an hour to start you're only making $22,880 per year before taxes.
"A minor problem with a pregnancy can cost thousands of dollars. During the first year of a child's life, they make numerous visits to the doctor's office," Watters said.
Councilman Joe Thallemer said Watters touched on the problem - the high costs of health care.
"The options lower it some, but costs still spiral upward. We have to try and keep our increases to a minimum," Thallemer said.
Councilman Jeff Grose said the state government has limited the amount of money the city receives. He noted that employees will receive a 3 percent increase in pay and the city has budgeted $9,000 per family and $4,500 per individual.
Gross noted that insurance costs have increased from $200,000 to $400,000 in five years.
"Public school teachers, with a teachers' union, earn about $35,000 per year and pay a family premium of $240 per month," Grose said. "This policy is just as good or better than what we're offering to our school teachers."
Although Grose is a public school teacher, he and all the councilmen are on the city's health insurance policy.
Mayor Ernie Wiggins asked for a consensus from the council regarding the proposed changes to the policy. He said the policy is coming up for renewal in November. Unanimous support was given for the following options which would save about $287,720 per year:
The contributions will not change. Single employees will pay $1 per year and family policies are $15 per month. The deductible will increase to $300 (from $100) for singles and to $500 (from $300) for families. The co-insurance limit will increase to $1,500 (from $500) for singles and to $3,000 (from $1,000) for families. Covered expense payment percentages are 80 percent for in-network and 50 percent for out-of-network after deductible.
The prescription drug benefit is now mandatory generic. The city pays only the generic benefit and the member pays the remainder, including the cost difference. Costs are $7 for generic brands for a 34-day supply and $14 for a 90-day mail order supply.
Office visits are $20, a $5 increase. Out-of-network office visit costs remain the same, 60 percent after deductible.
The "spousal rule" will go into effect, too. If the spouse of an employee is employed and eligible for coverage with their own employer, the spouse's policy will be primary on the spouse's claims. The plan will pay secondary if family coverage is elected.
Spouses will be given a grace period to comply and expected to sign up for health insurance during their employers' next open enrollment period. This rule could be implemented for all employees immediately, requiring spouses to enroll in their employers' plans.
City councilmen are: Bill Rhoades, Jerry Patterson, Clemens, Smith, Grose, Bob Morrison and Thallemer.
