Health Insurance-Related Costs In Many Quarters Have Been Rising

Stevens said in order to comply with the reporting requirements for Other Post-Employment Benefits from Statement 45 of the Governmental Accounting Standards Board, every other year a number must be actuarially determined for budgeting purposes to address the outstanding liability for retired employee benefits.

Stevens said compared to the significant premium increases that have annually occurred in many public and private entities throughout the country, Edmonds program has been much more successful in cost containment. City employees deserve part of the credit for this track record, as their ownership of the program has helped to monitor and contain costs, he said.

Two different fiscal years are now involved in each year of the health insurance program because the annual contract is now based on a calendar year.

Numbers of recipients in individual departments range from 125 individuals in the Police Department and 117 in the Fire Department to seven each in the animal welfare, facility maintenance, community image and planning departments.

But health insurance-related costs in many quarters have been rising.

We have implemented the law at every step of the way to minimize disruption and maximize affordability for businesses, workers, and families, she wrote.

ANOTHER COST RISES

The overwhelming majority of employees  93 percent  opted to pay more to keep the same coverage, Stevens said.

Stevens said to continue funding this liability at the actuarially determined 70 percent then about $300,000 per year will be added to this total. Options need to be considered that would not indirectly lower the health insurance reserve for specific fund purposes, he stated.

No increases are anticipated in the first half of the next budget year for either the city or the employee contribution rates, Stevens said. However, another increase in both rates is a possibility in January, he said.