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211-21 RESOLUTION
OF FAYETTf. J � 1 f u m .y q,QKASS PS 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 211-21 File Number: 2021-0573 2022 EMPLOYEE BENEFITS PACKAGE: A RESOLUTION TO APPROVE THE 2022 EMPLOYEE BENEFITS PACKAGE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the 2022 employee benefits package mainly as recommended by staff, but with a premium increase of 6% for both employees and the City as shown by the staff in their presentation rather than changes to the deductible amount. PASSED and APPROVED on o/24/2021 Page 1 Attest: ,���rrrrrrrrr�� G�ERK O's= Kara Paxton, City Clerk Treasures A. •�: '; ��•. 9iySAS Printed on 8125121 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2021-0573 Agenda Date: 8/24/2021 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Resolution Agenda Number: B.1 2022 EMPLOYEE BENEFITS PACKAGE: A RESOLUTION TO APPROVE THE 2022 EMPLOYEE BENEFITS PACKAGE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the 2022 employee benefits package mainly as recommended by staff, but with a premium increase of 6% for both employees and the City as shown by the staff in their presentation rather than changes to the deductible amount. City of Fayetteville, Arkansas Page 1 Printed on 812512021 Missy Cole Submitted By City of Fayetteville Staff Review Form 2021-0573 Legistar File ID 8/17/2021 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 7/26/2021 HUMAN RESOURCES (120) Submitted Date Division / Department Action Recommendation: Staff recommends City Council approve the 2022 employee benefits renewals as proposed in the staff memo. Budget Impact: xxxx.xxx.xxxx-5108.xx Citywide Account Number Fund Project Number Project Title Budgeted Item? Yes Current Budget $ 6,146,240.00 Funds Obligated $ 3,458,417.64 Current Balance 2,687,822.36 Does item have a cost? No Item Cost $ - Budget Adjustment Attached? No Budget Adjustment $ - Remaining Budget 2,687,822.36 V20210527 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE ARKANSAS MEETING OF AUGUST 17, 2021 TO: Mayor and City Council THRU: Susan Norton, Chief of Staff FROM: Missy Cole, HR Director DATE: July 23, 2021 SUBJECT: 2022 Employee Benefits Renewals CITY COUNCIL MEMO RECOMMENDATION: Staff recommends Council approve the employee benefits package for 2022 as outlined below and in the attached documents. BACKGROUND: Staff and Gallagher Benefit Services, the City's benefits broker, have reviewed the annual renewals for employee insurance plans. Employee benefits renewals are brought forward at this time to ensure the annual open enrollment may proceed according to schedule. DISCUSSION: Health Insurance The one year look back period of the City's health claims shows a 91.2% utilization rate of claims paid versus premiums paid. Under the City's current renewal rate guarantee with Arkansas Blue Cross Blue Shield, this utilization rate would result in a 6% premium increase for 2022 for the City's medical plans. Staff and the broker have reviewed the structures of the plans and utilization of the City's current offerings of both the HSA-compliant, HDHP and the PPO plan and recommend plan modifications to both plans to negate the 6% premium increase and lower premiums for both plans in 2022 as compared to current 2021 premiums. The 2022 HDHP plan will have a lower deductible ($2800 individual/$5600 family), after deductible is met coinsurance will be 80%, maximum in -network out of pocket ($5600 individual/$11,200 family). In adopting this plan structure, the overall premium will decrease by 7.4% from current year's premiums. The 2022 PPO plan will have a higher deductible ($1500 individual/$3000 family), however; this plan will provide co -pays for primary care, specialists and urgent care visits, co-insurance will be 80%, maximum out of pocket ($4500 individual/$9000 family). In adopting this plan structure, the overall premium will decrease by 0.6% from current year's premiums. Please refer to the attached document which reflects premium decreases and assumes current cost sharing percentages between employer and employee. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Staff and the broker recommend renewing with Arkansas Blue Cross Blue Shield for 2022 with the proposed plan structure changes and premium decreases of 7.4% to the HDHP option and 0.6% to the PPO option. By moving to the proposed plans, annual cost savings will be over $800,000.00 to premiums. Staff recommends changing vendors for COBRA administration to Consolidated Admin Services (CAS). The move to CAS will cost an additional $2,556 annually over WageWorks based on current enrollment. CAS is an Arkansas -based provider that will provide better communication and support for internal and external customers than the current vendor. City Paid Life and LTD Benefits OneAmerica has provided a rate hold on Employer Paid Basic Life and Employer Paid LTD products for 2022. Staff recommends renewing with OneAmerica for the same benefit coverage and current rates. Flexible Spending Accounts Staff recommends American Fidelity continue as the administrator of Flexible Spending Accounts with no cost for services. Health Savings Accounts Staff recommends First Security Bank continue as the administrator of Health Savings Accounts with no cost for services. Employee Paid Dental Insurance Delta Dental has provided a rate hold for 2022. Staff recommends renewing with Delta Dental. Voluntary Employee Paid Benefits OneAmerica has provided a rate hold for 2022 on employee paid Short Term Disability and Employee Paid Life Insurance. Staff recommends renewing with OneAmerica for these products. Supplemental Benefits Paid by Employees Staff recommends continuing to offer additional supplemental benefits to employees through American Fidelity which include: Disability Income Insurance, Accident Only Insurance, Cancer Insurance, Critical Illness Insurance, Life Insurance, AF Term Life Insurance, AAF Permanent Life Insurance and Hospital Gap Insurance. BUDGET/STAFF IMPACT: The costs of these planned insurance/benefit items are being budgeted in the City's 2022 budget. Attachments: 2022 vs. 2021 Health Plan Costs 11 2022 vs. 2021 Health Plan Costs PPO Plan Rate Tier Total Monthly Premium 2021 Total Monthly Premium 2022 Monthly Employee Contribution 2021 Monthly Employee Contribution 2022 Monthly Employer Contribution 2021 Monthly Employer Contribution 2022 Employee/ Employer Cost -Share % Employee Only $678.44 $674.34 $172.92 $171.88 $555.06 $458.181 $755.461 $505.52 $502.46 25.499/6/74.51% Employee + Spouse $1,479.32 $1,470.36 $558.44 $920.88 $915.30 37.759/o/62.25% Employee + Child(ren) $1,221.16 $1,213.76 $460.981 $760.181 $755.58 37.759/6/62.25% Family 1 $2,013.42 $2,001.241 $760.061 $1,253.361 $1,245.78 37.759/6/62.25% High Deductible Health Plan Rate Tier Total Monthly Premium 2021 Total Monthly Premium 2022 Monthly Employee Contribution 2021 Monthly Employee Contribution 2022 Monthly Employer Contribution 2021 Monthly Employer Contribution 2022 Employee/ Employer Cost -Share % Employee Only $352.98 $326.98 $49.62 $45.96 $303.36 $281.02 14.06%/85.94% Employee + Spouse $761.28 $705.20 $113.26 $104.92 $648.02 $600.28 14.88%/85.12% Employee + Child(ren) $576.681 $534.20 $85.801 $79.48 $490.881 $454.72 14.88%/85.12% Family $1,069.041 $990.30 $159.041 $147.36 $910.001 $842.9414.889/o/85.12% Overall Comparison of Cost Savings of Staff Proposed Plan vs. Renewal Rate Rate Tier Current HDHP Rates HDHP w/ 6% Renewal Proposed HDHP Current PPO Rates PPO w/ 6% Renewal Proposed PPO Employee Only $352.98 $374.16 $326.98 $678.44 $719.15 $674.34 Employee + Spouse $761.28 $806.96 $705.20 $1,479.32 $1,568.08 $1,470.36 Employee + Child(ren) $576.68 $611.28 $534.20 $1,221.16 $1,294.43 $1,213.76 Family $1,069.04 $1,133.18 $990.301 $2,013.421 $2,134.23 $2,001.24 Total Monthly Premium $474,711.24 $503,193.91 $439,746.01 $56,650.94 $60,050.00 $56,308.19 Annual Premium $5,696,534.88 $6,038,326.97 $5,276,952.07 $679,811.28 $720,599.96 $675,698.33 Annual Costs Savings $761,374.90 $44,901.63 Total Annual Savings on Premiums w/ Proposed Plans: $806,276.53 CITY OF FAYETTEVILLE ARKANSAS Renewal Analysis and Process Gallagher Benefit Services 1 8/17/2021 Gallagher Risk Management I Consulting © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM Tailored Solutions for your needs Energy Equity Advisors Healthcare Higher Education Gallagher Insurance Risk Management 1 Consulting Hospitality & Restaurant n•••nI C14) D) Public Sector Religious Nonprofit Transportation © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM �Il MEETING MgI2KE�,��(i �S 5����G T wTF�'i �y9 Develop Goals �,�Issue Ongoing t�s� Resolution Client Support •� 2 z � 2 y Q Z 2 Z Understand Your Data Compliance Project Support nagement m kk z c� w S 3 00 3� Identify Opportunities ?i Vendor Financial Management Monitoring aY a o�y o y,� Continue to Optimize �OddnS1N-461117021N3'8 NOI1tl'31NnWW00 • L COF Utilization Claims v. Premium Gallagher Insurance Risk Management I Consulting Paid Month/Year 05/2020 Mem bers 1,811 Contracts 780 Premium $520,271 Medical Claims $234,449 Pharmacy Claims $172,767 Tota I Claims $407,216 06/2020 1,793 773 $502,026 $299,047 $138,692 $437,739 07/2020 1,795 769 $522,210 $310,374 $144,292 $454,666 08/2020 1,808 774 $526,645 $456,266 $147,125 $603,391 09/2020 1,783 767 $518,022 $316,082 $129,389 $445,470 10/2020 1,788 775 $507,755 $327,354 $123,250 $450,603 11/2020 1,758 766 $508,222 $373,080 $118,270 $491,349 12/2020 1,764 768 $522,074 $382,672 $124,293 $506,965 01/2021 1,791 781 $541,577 $297,263 $85,608 $382,871 02/2021 1,780 776 $538,313 $386,882 $114,594 $501,476 03/2021 1,771 773 $532,195 $300,612 .5163,531 $464,143 04/2021 1,752 769 $531,595 $405,830 $168,052 $573,883 Total 21,394 9,2711 $6,270,906 $4,089,910 $1,629,862 $5,719,772 91.2% MLR © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM • •• •. enewal i Percent o ncrease Year 2016 6.4% 2017 5.6% 2018 20% 2019 15% 2020 0% 2021 6% '- • 5/1/15 — 4/30/16 $4,322,202 5/1/16 — 4/30/17 $4,576,036 5/1/17 — 4/30/18 $4,713,036 5/1/18 — 4/30/19 $4,831,586 5/1/19 — 4/30/20 $5,455,647 5/1/20 — 4/30/21 $5,719,772 Totals $29,618,279 Gallagher Insurance Risk Management 1 Consulting $4,216,666 102.5% $4,513,431 101.4% $4,913,154 95.3% $5,757,503 83.9% $6,274,795 86.9% $6,270,906 91.2% $31,976,456 92.6% 5 © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM Paid Distribution of Claims HDHP Gallagher Insurance Risk Management 1 Consulting JAN IS- DEC 18 JAN 19 - DEC 19 JAN 20 - DEC 20 CLAIMANTS PAID CLAIMANTS PAID CLAIMANTS PAID TOTAL PAID # % $ % # % ., % # ac $ 9E [�® 3 0.2% [$8,166] 02% 2 0.1% [$651] 0.0%(227 05% [$7,742) 0.2% . s 504 33:7% $0 0% 530 31.9% $0 0% 19A% $0 0% $10.01 -$499 581 38.9% $113,457 42% 625 37.6% $136,347 3.5% 44.8% $500-$999 , 122 8.2% $86,639 32% 140 8.4% $95,340 2.4% 13.7% 156,385 4.1% $ 1 ,000 - $2,499 103 6.9% $161,896 6.0% 135 8.1% $208,802 5.3% 142 1226,245 6.0% $2,500 - $4,799 65 4.3% $225,558 8A% 76 4.6% $279,940 7.1% 65 3.9% $236,140 6.3% ai5D00-$9,999 58 3.9% $423,899 15.7% 75 4.5% $521,270 13.2% 70 42% $521,246 13.7% $10,000-$14.999 25 1.7% $299,602 11.1% 28 1.7% $341,032 0.6% 27 1.65 $343,700 9.1% $15,000-$19.999 7 0.5% $113,909 42% 11 0.7% $100,946 4.0% 14 0.0% $253,060 6.7% $20,OM0-$24,999 8 0.5% $177,151 6.6% 11 0.7% $245,692 6.2% 9 05% $199,770 5.3% $25A00 - $49,999 13 0.9% $466,289 17.3% 15 0.9% $537,474 13.6% 15 0.9% $522,990 13.8% $50,000-$74,999 2 0.1% $136,895 5.1% 8 0.5% $491,192 12.5% 7 OA% $404,381 10.7% $75,000-$99,999 1 0.1% $79,776 3.0% 3 0.2% $280,563 7.1% 7 OA% $600,539 15.8% $100400 - $249,999 3 0.2% $4 18,598 15.5% 4 0.2% $618,58 1 15.7% 1 0.1% $176,240 4.6% ® ®® 78.4% of HSA Members spent < $1,000 in 2020 6 © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM Paid Distribution of Claims HDHP & PPO Combined JAN 1 8- DEC 18 JAN 19 - DEC 19 CLAIMANTS PAID CLAIMANTS PAID TOTAL PAID & # % $ j % # % $ 1 % ,so 1 7 0.4% ($10,019) 03% 6 0.3% ($19,039) 0.4% P1 $o , 557 32.2% $0 0% 604 31.7% $0 Oho 1 $0.01 -$499 638 36.9% $124,049 33% 679 35.6% $148,188 2.87. I$500-$999 142 8.2% $101,578 2.7% 155 8.1% $105,824 2.0% I$1 J000 - $2,449 , 129 7.5% $203,577 5.5% 160 8.4% $248,929 4.6% $2,500 - $4,999 95 5.5% $329,404 8.9% 103 5.4% $374,864 7.07o $5)000 - $9,999 77 4.5% $553,450 14.9% 92 4.8% $647,608 12.1% $11=0-$14,999 33 1.9% $402,634 10.8% 37 1.9% $459,297 8.6% $1 5D00 - $19,99 9 11 0.6% $105,659 5.0% 17 0.9% $294,403 5.5% $20=0 - $24,999 13 0.8% $287,655 7.7% 14 0.7% $314,313 5.9% $25d000 - $49,499 18 1.0% $642,349 17.3% 19 1.0% $660,203 12.3% $50dD00 - $74,999 4 0.2% $247,065 6.7% 9 0.5% $562,100 10.5% P $75DO®-$99,999 1 0.1% $79,776 2.1% 3 0.2% $280,563 5.2% $100,000-$249,999 4 0.2% $568,080 15.3% 7 0.4% $1,030,599 19.27. $i250400-$49P,999 - - - - 1 0.1% $255,727 4.8% Gallagher Insurance Risk Management 1 Consulting JAN 20 - DEC 20 CLAIMANTS PAID /12 0.7% \ ($8,394) 0.2% 355 19 3% \ $0 0% 782 42.57. 4,1 7n a7� 244 132% $169,149 3.2% 175 % $278,905 5.3% 85 4.67. $309,523 5.9% 84 4.6% $613,614 11.7% 34 I B% $437,003 8.3% 17 0.9% $309,297 5.9% 12 0.7% $269,024 5.1% 21 1.1 % $700,554 13.4% 10 05% $504,336 11.2% 7 OA% $600,539 11.5% 3 027. $524,570 10.0% 1 0.1% $279,704 5.3% 75.7% of all members Members spent < $1,000 in 2020 7 © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM Medical Renewal — PPO Gallagher Insurance Risk Management I Consulting Gruup Naar City of Fayetteville_ Fayetteville Public Library Age/Crender FaCtOT (Lao C r u u p Number (y) 028723 , 028724 Area Factor Lk" Effective Date 3JIJ2022 Industry Factor LISO Cur rem Renewal 4 6 7 $ I ine. of Business 6C BC B Plan Type PPO PPO PPO (�ruup/Benefil Custom 3.000 PPO Custom 1000 PPO ALT UPTION1 PLm Description PPU C r and fat he r ed Status Nun-Grandfalhered Nun-Crandf3the red N On-G ra ndfat he red In-Nalwork Benefits Ded urtihr- Individual $1, n110 $1,Dnn $1,snn Deductible - Family $2,000 $2,DDO $3,000 Cnln]nrariLe 80.0 80.0% 8D()% I rid ivid WI Cu i rrsur ante M as NIA NIA N/A Family Coinsurance Max N/A N/A N/A I nd ivid ual Tr ue O in Of Po[ke4 $3,000 $7,0n0 $4,.900 Family TrLIC Out CA Pocket $6,000 $6,nnn $anon IIrinary Care Cries Visits Coins after Ded Coins after ucd $40 Specialist Office Visits Coi ns after Ded Cum after Ded $80 Llr ge nt C are C ImiC V isit5 COinsaRer Ded Coins after Ded $80 F me.. rgP. myRoom Visit$ Coins afte..r Ded (Dins. afte..r Ded Coins ,aft er Ded I n patwrit :.r NicM COm4 after Ded COinc after Drd Coins after Ded Out pat r m Snrgir.al Service$ Coins after ped Coins after Ded Coins after Ded wellness Included Yes Yes Yes Out of Network Benefits Deductible hidivilual $1,000 $1,000 $1,500 nedurtihle-Family i),nlln 5z,ono S3,000 (ninsrrranrr 601 60.0% 60.09E I rid ivid a al Coi nsur ance. M ax $4,nnn $anon 5r,,nnn Family coinsurance Max $S,UVU $8,Uut] $12,uou Pharmacy Rx Deductible (Before Co pays Non -I I5A PI3 ris) $0 GP ne. riC $10 $10 $10 Dmterred Rrand $40 $40 $4n Non-Preterred Brand $GO SG9 $GU Specially $15U $15(1 $1S0 DPd net i We Type Fu01IIment Fulfillment Fulfillment Imi N❑ N0 NO Hearin Aid Yes Yes Yes Covers eTier Om lr ees Current Rates Renewal Rates Rates: O tion'I Rates: Option 5 Rates: Option 6 Rates: O tiun 7 Rates:0 tiun 8 Fmpicryee Onty 48 $678214 $719.14 $674.3) $O.nn $n.nn $n.nD Fmpiny" r Spouse 7 $1A79.32 $1,ms.111t $1,470.37 50.00 $0.00 $0.00 Employee Children) 3 $1,221.16 $1,294A2 $1,213.7G $0.00 $D.DO $9.00 Em ilu ee+Spa use *Child Ten 2 013A2 $1,2a41Z $0.00 $0.uu O.W I utal L rnp loyees/ M onthly Pre mium 63 $56,650.2 $6D,049.44 $56,107.25 $0.00 $D.Du $9.UU Ann uaI Pre mium $679,811-720,593.24 $ $515,686.98 $0.00 $0.00 $0.nll © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM Medical Renewal - HDHP Gallagher Insurance Risk Management I Consulting C nµp Name City of Fa Vattevil le_Fayettevi a Pu b lic Li b nary Age -,der Fa 0.869 &-4, Nun6cr[s] 028725 • 02872A Are Foote 1.059 Fff"n- Date 1f 1f 2 o22 I nduntry Factor 1. 1so cumin Renewal .1 2 - - 7 - Line Of RtAi r*. 8 BC la Nan Type STANDRRD HSA STANDAfia MASTANDAP.D F6"L Crnr 4lenehF 00 BC30.1D0_HDHP_E C =M&100 HDFP F RC 2A0CFR0 HnHP F PlanOesorl 'OR BC 2BC)aBD I iDI P E Grandathered Status No.rGrardtadh red NorrGrandathered Na Grardtadwed In-Netvmrk 15—ribs Deducahle - Inr -A'al s'vM umo ,p pm Deducahle -Famiy SFom A000 S,-, F, ] Crinsur_ IONIC% AMC& WUN Individual Colnslrance Max WA WA M1Y ramfly Careurance Mac WA WA W rndviduA Ifye Out OFF [Xket $SOW Alien $}bD0 Famdy True Out OF Pocke r Aorx7 A000 5A1,7[X] Fammary Care O ire M" C irn afrar ned Wir4 after ned Cni re, after ned rpeciallst Oftl ce N sets Calre at�f Ded Wlrs alter Ded GOlm atte Ded Lrgent Care Olnl c 4lsl t3 Gains attef Ded Co:after Ded Calns otter Ded Emergency Room Nsl is Co,m attef Ded Cabs alter Ded Colre atte Ded hr{ruhcvd Scrvi W-uFlxv Ded Colt. af4r Uud Caren uFlx•r Dcd Orapanenr Slurp r l Serwras C., after ned Wire, after Ded (-Iern after ned WellnexInd rxied Yes Yes Yes Out of Network Bmelhs UeduW hie-hrdividuul $CaOW $6,ow $k6400 Deducahle-Famly $12,000 $1M000 $ifa W C'omwr _ mcm W.[L5 bLU9i rndrldukd Coin;v met NA. SIZQW S3,2001) $1ta8W FamAy(mre,uran- Ntar SA000 S7'l,t]FA 5 600 Pha"I Rx ❑educable {Before Copays NorrI IS4 Plenq W Generic Cans after Ded Colns alter Ded Care after Ded Pr •!e—i•duiand Calm after Oed Colrr; after Ut•d (oim Jw: ued Non f§c•Fened 8rund Calm after Ded colrc;Atcr Ut•d Care uFlx•r Ucd $penalty Corral after pod Cobs after ned Corral Afr.r ned Deduuble type Embedded Embedded Embedded TMI NO No No Heap Nd Np N6 W mven Tler Ern Cur re nL Hu li•s Reruwul Mt— Rule•:: ❑ 11on 1 Hu li••:: np bona R'J" 00M.. Hull•.: U hon S R.h,' Opti..b Huk•s: U tion I Rur— Opw, 8 Ernployc•u r]nly -3 $371g3 S-314.1b $3'2Eig3 lu. LU 91L :i).W $0. $ow g1. rX] Employee+Spouse l0.` 570L 7R $R0[ 90 57[li Xl SC1.CA 90- SC1 x Sa psis Employee+Chlld[re n] b r,,57E.643 `G112B `,534.20 �.(b $D. r,,b. DO $D. $0.00 �.W Employee+S use+Children `10ea 5 130.1B �90.30 50.00 $D. r,,b. DO 9000 `MOO %00 Total Employees l Monthy Premium 7 WA711. , 50319RS1 $4474E.01 r%00 % `,,b.00 Aw $0 $B. Pnr—1 Remlum $5•b98r$A 3 S&0A316. 97 yS,2lE1972D1 SOW 71 eu.to Sam 00 W 9J.W SAW © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM Medical Rate Comparison Overall Comparison of 6% Renewal of Current Health Plans W Proposed Plan Design BCBS 6% Renewal of Current Ha HP Plan BCBS Proposed HDHP Plan De Sign Rate Tier ZDZ1 HD Hp Monthly Rates HDHP.. MA #of em ID es Monthly Premium cast to COF EE with renewal Monthly Premium Cost tD City wf Renewal parEE Tote l Annua l Cost to Employees with WA renewal Total Annual Coat to COF Proposed HDHP #of -ply- Monthly Premium cDst to COF EE Monthly Premium Cast to C'y Total Annual Coct to EE w Pro Dsed Total Annual tact to COF wf Pop -ad Employee Only $352.9C $374.16 3D4 $52.6a $321.56 $141,BB4.SD Si}73,O51).88 $326.46 304 545.96 $2E1.02 $167,66Z.a!! $1,025,160.96 Em to a+5 Dose $761.28 $806.96 iD5 $120.08 $686.86 $1513ao.86 $efi5466.80 $7O5.20 105 $i0d.92 $600.28 $132194.20 $756352.E0 Em to e + C1rld ran $576.68 $61116 fil $90.gtil $520.32 $66 562.72 $380 874.24 $534.20 fii "AS S454.72 $56 179.3fi $332 E55.04 Family $1,G64.Ob $1,133.19 236 $168.621 $964.561 $477,531.941 $2,731,653.92 OW.30 236 $14796 $842.94 $417,323,52 $2387,2a5.64 Total Employees 706 $897,300.161 $5,15L67.84 706 $775,364.16 $4,501,574.88 otal Suhstri bens (EE + Dependents 16601 1 1 166D BCBS 69'D Renewal of Current PPO Plan BCBS Proposed PPO Plan Design Rate Tier ZD21 PPO Monthly Rates PPO wf 6u Rene,raI #of employees Monthly Premium cast to €OF EE with wa rc l n Monthly Premium Cost tD City .1 Renewal per EE Total Annual Cost to Employees with 6% rxnewel Total Annual Cost to COF P-p-ad PPO #of -ploy- Monthly Premium oost to COF EE Monthly Premium Cost to City Total Annual Cost to EE w Proposed Total Annual Cost to COF wf Proposed Em to a Only$676.CG $719.14 48 � 183.30 $535. 94 $1B5 5B0.8D $30B 643.84 $674.34 46 iM.E8 $ 502.46 $94 00Z.88 $299 416.96 Em 1. a+5 ❑use $i,d79.32 S1,5mm 7 "591.9d $976.14 s49722.96 $91995.76 $1,A7a36 7 $555.06 $915.30 $46625.04 S715,995.20 Em 1. e + Childl-1 $1,221.16 SL294-4ZI 31 5488.641 SSDS.7BI $17,591.041 $24 008.08 SLZ13-761 3 $458.18 $755.581 $16 444.48 1 $27 300.8E Fa mi I $2,013.42 52,13422 151 E05.66 $1,321t.56 146 339.60 574 713.60 $Z,OOLZ4 5 $755.46 SL245.781 545 27.6fl $74 746.E0 otal Employees 63 $221.234.401 $499,361.29 63 1 $207,450.00 5468,249.84 otal Substribcrs(EE +DI Indents 921 1 1 1 92. Total Celt to Employces w 6% R--1 Plans $1,108,534.56 Total CDA to Employcec with Proposed Plan^. $982,814.16 Total Celt to COF wf 5% Renewal Plans $5,554,384.12 Total Celt to COF with Proposed Plans $4,969,824.72 © 2020 ARTHUR J. r-5,1_LP:GHER Council Member Benefits Fayetteville City Code § 31.16 Current Benefits Offered Health Insurance — (BCBS) Health Savings Account Flexible Spending Account Accidental Death & Dismemberment — (AML) Supplemental Products (American Fidelity): • Disability Insurance • Whole Life Insurance • Term Life Insurance • Texas Life Insurance • Hospital Gap Insurance • Cancer Insurance • Accident Insurance • Group Critical Illness Potential Offerings (2022) • Dental Insurance — (Delta) • Vision Insurance — (Superior Vision) • Life Insurance Flat Rate of either $5K, $1 OK or $15K - (One America) Thank You! G-) Gallagher Insurance Risk Management I Consulting © 2020 ARTHUR J. GALLAGHER & CO. I AJG.COM Received 08/24/21 10:21 AM Actual Annual COF Claims Paid High Deductible Health Plan 3000 (current plan) 1484 158 15 $3000 or less $3100 - $50,000 $50,000 - $250,000 $3000 or less $3000 $3000 High Deductible Health Plan 2800 $3000 or less $3100 - $50,000 $50,000 - $250,000 $2840 or less $2860 - $5600 $5600 Claims data source: BCBS for City of Fayetteville claimants January 1, 2020 — December 31, 2020 HDHP Plan Rates High Deductible Health Plan 3000 (current plan) =09 E+S E+C Family Total COF Monthly Contribution (premium + HSA) Total COF Annualized Cost: 304 $52.60 105 $120.08 61 $90.96 236 $168.62 $321.56 $70.80 $686.88 $106.66 $520.32 $132.50 $964.56 $156.66 $507,029.08 $6,084,348.96 High Deductible Health Plan 2800 =9 E+S E+C Family Total COF Monthly Contribution (premium + HSA) Total COF Annualized Cost: 304 $45.96 105 $104.92 61 $79.48 236 $147.36 $281.02 in $70.80 $600.28 $106.66 $454.72 $132.50 $842.94 $156.66 $452,908.00 $5,434,896.00 Annual Employee Max Exposure High Deductible Health Plan 3000 (current plan) ,11ndividual Expe"RM-se-EL. Individual premium pd by EE: $631.20 EE Out -of -Pocket Max: HSA paid by COF: Total exposure to employee: Family premium pd by EE Family Out -of -Pocket Max: HSA paid by COF: Total exposure to family: $3000.00 -$849.60 $2781.60 �I An n -I im $2,023.44 $6000.00 -$1879.92 $6143.52 High Deductible Health Plan 2800 ndividual Expens Individual premium pd by EE: EE Out -of -Pocket Max: HSA paid by COF: Total exposure to employee: Family premium pd by EE Family Out -of -Pocket Max: HSA paid by COF: Total exposure to family: Annual A $551.52 $5600.00 $2800 + 80120 coinsurance -$849.60 $5301.92 Annuailom $1,768.32 $11,200.00 $5600 + 80120 coinsurance -$1879.92 $11..088.40 This is a one-year snapshot of annual maximum exposure and does not factor in HSA balances that employees have built over time. Received 08/23/21 11:57 AM Submit Public Comment This page is provided for efficient submission of public comment for City Council and Planning Commission meetings. All submissions must be directly related to a specific agenda item for the next meeting. Please ensure your comments conform to the Rules of Order and Procedure. RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Full Name* Cody Ashworth Address or Ward* Address Ward Locate Your Ward Number Address* 2435 S Industrial Dr Ex. 113 W Mountain St Phone Number 4792365707 Email cashworth@fayetteville-ar.gov Meeting Body* City Council Agenda Item 2021-0573 Number/Subject Please click the link below to navigate to the Agenda Page Locate City Council Agenda Item Locate Planning Commission Agenda Item Position Comment Only Comments I am a concerned City of Fayetteville employee. The proposed changes to the High Deductible Health Plan could have devastating financial impacts on a lot of people. Under the proposed plan the maximum out-of- pocket costs for employees is going to nearly double. Currently the max out-of- pocket an employee on the HDHP family plan is $6000.00. The proposed plan sees that figure go to $11,200.00. Currently the City contributes to employees Health Saving Accounts. These contributions are a blessing. They help offset the high deductibles. The IRS sets the restrictions for these types of savings accounts. Currently the most that can be legally contributed to an HSA is $7,200.00 for those on a family plan (half of that for an individual plan). The City currently puts in around $2,000.00 to an employees account (that is on the family plan). IF an employee could afford to do paycheck deductions for the remaining amount to max out their HSA contributions, they would still be on the hook for nearly $4,000.00 under the proposed plan. That's if they can afford to max out their contributions. Most of us can't do that. I understand the City offers supplemental insurance plans. However, we can better utilize these plans if our maximum out-of-pocket costs stayed where they are currently at (as opposed to nearly doubling). Going to the proposed plan will save employees around $10 a paycheck. The caveat is that our potential out-of-pocket maximums will nearly double. I don't think it's worth the risk. Every employee I've spoken to doesn't think it's worth the risk. We pay for insurance for worst case scenarios. the way our plan is currently structured provides security for a lot of people. Hit your individual deductible and everything is covered. Hit the family deductible and everything is covered. Please keep our coverage the way it currently is. In the past when our premiums increased the City and the employees split it. We kept our great coverage and helped mitigate the cost to the City. Attachments PDF preferred Section from the RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Adopted 01/07/2020 by Resolution #01-20 & Amended 06/16/2020 by Resolution #170-20: Public Comments. Public comment at a City Council meeting shall be allowed for all members of the audience who have signed up prior to the beginning of the agenda item they wish to address being opened for public comment. Speakers shall be limited to a maximum of five (5) minutes to be broken into segments of three and two minutes. Amendments may receive public comments only if approved by the City Council by unanimous consent or majority vote. If public comment is allowed for an amendment, speakers will only be allowed to speak for three (3) minutes. The City Council may allow both a speaker additional time and an unsigned -up person to speak by unanimous consent or majority vote Courtesy and Respect. All members of the public, all city staff and elected officials shall accord the utmost courtesy and respect to each other at all times. All shall refrain from rude or derogatory remarks, reflections as to integrity, abusive comments and statements about motives or personalities. Any member of the public who violates these standards shall be ruled out of order by the Mayor, must immediately cease speaking and shall leave the podium. Enter the text you want this field to display Received 8/24/21 10:28 AM Submit Public Comment This page is provided for efficient submission of public comment for City Council and Planning Commission meetings. All submissions must be directly related to a specific agenda item for the next meeting. Please ensure your comments conform to the Rules of Order and Procedure. RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Full Name* Devyne Beasley Address or Ward* Address Ward Locate Your Ward Number Address* 13967 Hogeye Rd Ex. 113 W Mountain St Phone Number 4793058508 Email dbeasley@fayetteville-ar.gov Meeting Body* City Council Agenda Item 2021-0573 Number/Subject Please click the link below to navigate to the Agenda Page Locate City Council Agenda Item Locate Planning Commission Agenda Item Position Opposed Comments Please don't change our insurance coverage. People can't afford the potential out- of-pocket maximums on the proposed plan. We can't even legally put enough into our HSA accounts to cover the costs of the proposed plans. Please keep our coverage the same as it is. Let's just pay the 6% premium increase. Insurance is for when the worst happens. Please keep employee cost exposure lower. Attachments PDF preferred Section from the RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Adopted 01/07/2020 by Resolution #01-20 & Amended 06/16/2020 by Resolution #170-20: Public Comments. Public comment at a City Council meeting shall be allowed for all members of the audience who have signed up prior to the beginning of the agenda item they wish to address being opened for public comment. Speakers shall be limited to a maximum of five (5) minutes to be broken into segments of three and two minutes. Amendments may receive public comments only if approved by the City Council by unanimous consent or majority vote. If public comment is allowed for an amendment, speakers will only be allowed to speak for three (3) minutes. The City Council may allow both a speaker additional time and an unsigned -up person to speak by unanimous consent or majority vote Courtesy and Respect. All members of the public, all city staff and elected officials shall accord the utmost courtesy and respect to each other at all times. All shall refrain from rude or derogatory remarks, reflections as to integrity, abusive comments and statements about motives or personalities. Any member of the public who violates these standards shall be ruled out of order by the Mayor, must immediately cease speaking and shall leave the podium. Enter the text you want this field to display Received 8/24/21 10:35 AM Submit Public Comment This page is provided for efficient submission of public comment for City Council and Planning Commission meetings. All submissions must be directly related to a specific agenda item for the next meeting. Please ensure your comments conform to the Rules of Order and Procedure. RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Full Name* Address or Ward* Nicholas Brooks Address Ward Locate Your Ward Number Address* shortst Ex. 113 W Mountain St Phone Number 4796011890 Email nbrooks@fayetteville-ar.gov Meeting Body* City Council Agenda Item 2021-0573 Number/Subject Please click the link below to navigate to the Agenda Page Locate City Council Agenda Item Locate Planning Commission Agenda Item Position Opposed Comments It is my opinion that this new proposed plan will negatively impact the mass majority of people. many others who I have talked to share this opinion as well and would prefer the slight premium increase as opposed to the large deductible increase than most could not afford. I have not heard from a single person who is for this proposition nor any benefits of it going through. Attachments PDF preferred Section from the RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Adopted 01/07/2020 by Resolution #01-20 & Amended 06/16/2020 by Resolution #170-20: Public Comments. Public comment at a City Council meeting shall be allowed for all members of the audience who have signed up prior to the beginning of the agenda item they wish to address being opened for public comment. Speakers shall be limited to a maximum of five (5) minutes to be broken into segments of three and two minutes. Amendments may receive public comments only if approved by the City Council by unanimous consent or majority vote. If public comment is allowed for an amendment, speakers will only be allowed to speak for three (3) minutes. The City Council may allow both a speaker additional time and an unsigned -up person to speak by unanimous consent or majority vote Courtesy and Respect. All members of the public, all city staff and elected officials shall accord the utmost courtesy and respect to each other at all times. All shall refrain from rude or derogatory remarks, reflections as to integrity, abusive comments and statements about motives or personalities. Any member of the public who violates these standards shall be ruled out of order by the Mayor, must immediately cease speaking and shall leave the podium. Enter the text you want this field to display Received 8/24/21 10:58 AM Submit Public Comment This page is provided for efficient submission of public comment for City Council and Planning Commission meetings. All submissions must be directly related to a specific agenda item for the next meeting. Please ensure your comments conform to the Rules of Order and Procedure. RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Full Name* Jodi Batker Address or Ward* Address Ward Locate Your Ward Number Ward * Ward 1 Phone Number Email Meeting Body* City Council Agenda Item 2021-0573 Number/Subject Please click the link below to navigate to the Agenda Page Locate City Council Agenda Item Locate Planning Commission Agenda Item Position Opposed Comments As an employee for the City I am currently on the High Deductible family plan. My current family deductible is $6,000. On the new rates for next year, 2022, my new family deductible will be $11,200. That is a large increase that I'm sure many of us cannot afford. Even with the HSA at the maximum, it would only cover $7,200. 1 would much rather have the 6% increase in our premium. That would be much more reasonable and affordable solution. Please consider having them reevaluate this before you decide on it. Attachments PDF preferred Section from the RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Adopted 01/07/2020 by Resolution #01-20 & Amended 06/16/2020 by Resolution #170-20: Public Comments. Public comment at a City Council meeting shall be allowed for all members of the audience who have signed up prior to the beginning of the agenda item they wish to address being opened for public comment. Speakers shall be limited to a maximum of five (5) minutes to be broken into segments of three and two minutes. Amendments may receive public comments only if approved by the City Council by unanimous consent or majority vote. If public comment is allowed for an amendment, speakers will only be allowed to speak for three (3) minutes. The City Council may allow both a speaker additional time and an unsigned -up person to speak by unanimous consent or majority vote Courtesy and Respect. All members of the public, all city staff and elected officials shall accord the utmost courtesy and respect to each other at all times. All shall refrain from rude or derogatory remarks, reflections as to integrity, abusive comments and statements about motives or personalities. Any member of the public who violates these standards shall be ruled out of order by the Mayor, must immediately cease speaking and shall leave the podium. Enter the text you want this field to display Received 8/24/21 11:21 AM Submit Public Comment This page is provided for efficient submission of public comment for City Council and Planning Commission meetings. All submissions must be directly related to a specific agenda item for the next meeting. Please ensure your comments conform to the Rules of Order and Procedure. RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Full Name* Jeana Mathis Address or Ward* Address Ward Locate Your Ward Number Address* 1056 Madison 4425 Ex. 113 W Mountain St Phone Number 2409250782 Email jmathis@fayetteville-ar.gov Meeting Body* City Council Agenda Item 2022 EMPLOYEE BENEFITS PACKAGE: 2021-0573 Number/Subject Please click the link below to navigate to the Agenda Page Locate City Council Agenda Item Locate Planning Commission Agenda Item Position Opposed Comments I am concerned for myself and my fellow employees. I am opposed to the new High Deductible Plan. For anyone to say that having an HSA account would help with the $11,200.00 plan as a family, obviously do not have children and they are not a NEW employee. I am a new employee, married with 3 children, and there is absolutely no way that I can afford this proposed plan if I had a catastrophic event in my family. I would love for you to give me an example of your average American worker who DOESN'T make 100k a year, that has a savings account of more than $1,000 in it. Move to the traditional plan you say... Well this plan is as much as a car payment and I can't live paycheck to paycheck just for medical/dental insurance. How about we use the COVID relief package that was given to the city to make up for what the city would be saving by increasing our medical package. Why can't we just pay the 6% premium increase? I can afford $21.26 extra dollars from my paycheck. I can't afford the thousands of dollars more of a premium in a catastrophic event. This proposed plan is going to negatively impact MANY of the city employees. Attachments PDF preferred Section from the RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Adopted 01/07/2020 by Resolution #01-20 & Amended 06/16/2020 by Resolution #170-20: Public Comments. Public comment at a City Council meeting shall be allowed for all members of the audience who have signed up prior to the beginning of the agenda item they wish to address being opened for public comment. Speakers shall be limited to a maximum of five (5) minutes to be broken into segments of three and two minutes. Amendments may receive public comments only if approved by the City Council by unanimous consent or majority vote. If public comment is allowed for an amendment, speakers will only be allowed to speak for three (3) minutes. The City Council may allow both a speaker additional time and an unsigned -up person to speak by unanimous consent or majority vote Courtesy and Respect. All members of the public, all city staff and elected officials shall accord the utmost courtesy and respect to each other at all times. All shall refrain from rude or derogatory remarks, reflections as to integrity, abusive comments and statements about motives or personalities. Any member of the public who violates these standards shall be ruled out of order by the Mayor, must immediately cease speaking and shall leave the podium. Enter the text you want this field to display Received 8/24/21 11:59 AM Submit Public Comment This page is provided for efficient submission of public comment for City Council and Planning Commission meetings. All submissions must be directly related to a specific agenda item for the next meeting. Please ensure your comments conform to the Rules of Order and Procedure. RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Full Name* Jeremy Bickel Address or Ward* Address Ward Locate Your Ward Number Address* 947 S Regency Dr Ex. 113 W Mountain St Phone Number 479-684-9923 Email jbickel@fayetteville-ar.gov Meeting Body* City Council Agenda Item 2021-0573 Number/Subject Please click the link below to navigate to the Agenda Page Locate City Council Agenda Item Locate Planning Commission Agenda Item Position Opposed Comments Hello, My name is Jeremy Bickel and I have lived in the city for 15 years and have been employed with the city for 13 years this month. It was brought to my attention thru email that our insurance structure is about to change. As an employee our insurance has gone up almost every year and I felt like the only way I could afford the city's insurance was to switch to the HSA account. Well with the insurance choices being narrowed down to not much this coming year I feel like I need to reach out to you out of concern. By doubling our potential out-of-pocket cost my family could lose everything we have worked for. I know Covid this year and last year has probably played a toll on our claims for Blue Cross. But I feel like if you go ahead with double our out-of-pocket for next year it may cause a HUGE financial burden on my family and others I work with. I have been very lucky that I haven't had to use my insurance much in the past, but with more Covid cases on the rise daily i could be forced to use it and I cant afford to put to max contribution limit into my hsa, which the government sets at $7,200.00. 1 feel there is not a much time to contribute enough even to offset with the new plan. Its so easy to make a call on insurance rates and not feel the effects of it on a person that a lower wage employee but us blue collar employees who stretch every penny for the well being of our family will feel the effects of the increase to the max out-of-pocket. Please as a father and only insurance provider for my family, think about us and other employees in this situation. Let's split the premium increase with the City. Please keep our coverage structure the same. Sincerely, Jeremy Bickel Attachments PDF preferred Section from the RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Adopted 01/07/2020 by Resolution #01-20 & Amended 06/16/2020 by Resolution #170-20: Public Comments. Public comment at a City Council meeting shall be allowed for all members of the audience who have signed up prior to the beginning of the agenda item they wish to address being opened for public comment. Speakers shall be limited to a maximum of five (5) minutes to be broken into segments of three and two minutes. Amendments may receive public comments only if approved by the City Council by unanimous consent or majority vote. If public comment is allowed for an amendment, speakers will only be allowed to speak for three (3) minutes. The City Council may allow both a speaker additional time and an unsigned -up person to speak by unanimous consent or majority vote Courtesy and Respect. All members of the public, all city staff and elected officials shall accord the utmost courtesy and respect to each other at all times. All shall refrain from rude or derogatory remarks, reflections as to integrity, abusive comments and statements about motives or personalities. Any member of the public who violates these standards shall be ruled out of order by the Mayor, must immediately cease speaking and shall leave the podium. Enter the text you want this field to display Received 8/24/21 12:37 PM Submit Public Comment This page is provided for efficient submission of public comment for City Council and Planning Commission meetings. All submissions must be directly related to a specific agenda item for the next meeting. Please ensure your comments conform to the Rules of Order and Procedure. RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Full Name* Bobby Reeves Address or Ward* Address Ward Locate Your Ward Number Address* 1808 Patty Ave Ex. 113 W Mountain St Phone Number 4797569132 Email breeves@fayetteville-ar.gov Meeting Body* City Council Agenda Item 2021-0573 Number/Subject Please click the link below to navigate to the Agenda Page Locate City Council Agenda Item Locate Planning Commission Agenda Item Position Opposed Comments I do not want the changes to the City high deductible plan. I work at the City partially for the insurance coverage. The proposed changes to this plan would see my maximum out-of-pocket cost nearly double. It's a shame that I will be priced out if this change happens. I am someone who meets my deductible. If these changes happen this will negatively affect my way of life as well as others I work with. We have had our premiums go up before. I don't understand why we can't split the increased premium and keep our current plan. Attachments PDF preferred Section from the RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Adopted 01/07/2020 by Resolution #01-20 & Amended 06/16/2020 by Resolution #170-20: Public Comments. Public comment at a City Council meeting shall be allowed for all members of the audience who have signed up prior to the beginning of the agenda item they wish to address being opened for public comment. Speakers shall be limited to a maximum of five (5) minutes to be broken into segments of three and two minutes. Amendments may receive public comments only if approved by the City Council by unanimous consent or majority vote. If public comment is allowed for an amendment, speakers will only be allowed to speak for three (3) minutes. The City Council may allow both a speaker additional time and an unsigned -up person to speak by unanimous consent or majority vote Courtesy and Respect. All members of the public, all city staff and elected officials shall accord the utmost courtesy and respect to each other at all times. All shall refrain from rude or derogatory remarks, reflections as to integrity, abusive comments and statements about motives or personalities. Any member of the public who violates these standards shall be ruled out of order by the Mayor, must immediately cease speaking and shall leave the podium. Enter the text you want this field to display Received 8/24/21 12:38 PM Submit Public Comment This page is provided for efficient submission of public comment for City Council and Planning Commission meetings. All submissions must be directly related to a specific agenda item for the next meeting. Please ensure your comments conform to the Rules of Order and Procedure. RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Full Name* Lisa Branson Address or Ward* Address Ward Locate Your Ward Number Address* 697 N Centennial Ave Ex. 113 W Mountain St Phone Number 4798411225 Email Ibranson@fayetteville-ar.gov Meeting Body* City Council Agenda Item 2022 Employee Benefits Package Number/Subject Please click the link below to navigate to the Agenda Page Locate City Council Agenda Item Locate Planning Commission Agenda Item Position Comment Only Comments First let me say how thankful I am for the current city insurance plan. I am currently on the family plan. I would much rather pay a 6% increase than to go with the proposed plan being offered. I have had multiple kidney stones the last few years and my HSA account is drained from paying deductibles. I would be very concerned if my family had a catastrophic event. I am the voice of multiple employees, with concerns. Please see listed below some the concerns of employees: Employees with families would prefer to pay a 6% increase. Many employees do not make $15 dollars an hour. Therefore, they cannot afford to put money into a saving account much less contribute max funds into their HSA accounts. Paying for supplemental insurance will actually use the premium money that you are saving on the new proposed plan and you can better utilize the supplemental plans with the lower out of pocket cost we have now. Young families with children do not have enough money in their HSA accounts to cover individual/family deductibles. New employees do not have enough money in their HSA accounts to cover deductibles. Employees would prefer to have more plans to choose from like last year. 90% of employees are on the high deductible plan because the traditional plan is no longer affordable. An employee this morning stated they are not on the family plan and have never met their deductible, and they do not foresee ever meeting a deductible. They stated they have concerns for those on the family plan and would be willing to pay the 6% increase premium. Employees are concerned if they have a catastrophic event one year after the next, which could lead to having a devastating financial burden. During the last meeting, there was talk about what the costs were for the City of Fayetteville. By going with the new plan, the City would save around $600,000. Thank you for all you do for the City of Fayetteville and for taking the time to read the concerns of the employees. Attachments PDF preferred Section from the RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Adopted 01/07/2020 by Resolution #01-20 & Amended 06/16/2020 by Resolution #170-20: Public Comments. Public comment at a City Council meeting shall be allowed for all members of the audience who have signed up prior to the beginning of the agenda item they wish to address being opened for public comment. Speakers shall be limited to a maximum of five (5) minutes to be broken into segments of three and two minutes. Amendments may receive public comments only if approved by the City Council by unanimous consent or majority vote. If public comment is allowed for an amendment, speakers will only be allowed to speak for three (3) minutes. The City Council may allow both a speaker additional time and an unsigned -up person to speak by unanimous consent or majority vote Courtesy and Respect. All members of the public, all city staff and elected officials shall accord the utmost courtesy and respect to each other at all times. All shall refrain from rude or derogatory remarks, reflections as to integrity, abusive comments and statements about motives or personalities. Any member of the public who violates these standards shall be ruled out of order by the Mayor, must immediately cease speaking and shall leave the podium. Enter the text you want this field to display Received 08/24/21 1:17 PM Submit Public Comment This page is provided for efficient submission of public comment for City Council and Planning Commission meetings. All submissions must be directly related to a specific agenda item for the next meeting. Please ensure your comments conform to the Rules of Order and Procedure. RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Full Name* Randy Bolinger Address or Ward* Address Ward Locate Your Ward Number Address* 2219 S Coleman Ave Ex. 113 W Mountain St Phone Number Email rbolinger@fayetteville-ar.gov Meeting Body* City Council Agenda Item 2021-5372 2022 Employee Benefits Renewals Number/Subject Please click the link below to navigate to the Agenda Page Locate City Council Agenda Item Locate Planning Commission Agenda Item Position Comment Only Comments I do not want the proposed changed on the High Deductible insurance, I would much rather see the 6% premium increase and we keep our current structure. A big reason I have stayed at the City for 40 years is because of the benefits that have been offered. I had hoped to be able to retire in the next few years and carry the City's insurance. If these changes happen, I will not be able to do that because I could not afford the potential financial burden the proposed plan has. The proposed plan will see out-of-pocket maximums for employees nearly double. On the current plan (family plan) the max out-of-pocket an employee would pay is $6000.00. Under the proposed plan that figure jumps to $11,200.00. The individual rates would go from $3000.00 currently and jumps to $5600.00 on the proposed plan. The City puts money into our Health Savings Accounts each check. If you are on the family plan it will amount to a little less than $2,000.00 a year that the City contributes. The IRS regulates how much can go into these accounts each year. The current threshold is $7,200.00. Next year it will be about $7,300.00. That means an employee would have to contribute over $5,000.00 out of their paychecks to MAX it out. Even with the HSA maxed out an employee could still have to pay $4,000.00 out of their pocket to cover the costs in the worst case scenario. We have insurance for the worst case scenarios. The current plans offer security to employees. The proposed plans could negatively impact a vast majority of people. Our plan structure should remain the same. We have had premium increase before. We can survive another one. The City offers several supplemental insurances that can make the hardships easier. Keeping our max out-of-pocket expenses lower allows employees to fully utilize those supplemental plans. The majority of employees would rather keep their plan structured the way it currently is. Please do not approve the proposed changes. Please consider the 6% premium increase. Employees can not afford these increases. The new City of Fayetteville employees will not be able to afford this increase and will not be able to built their health saving account, if they have to pay these higher deductibles. The people that have dedicated their career to the City of Fayetteville like my self. And choose to kept the city's insurance will be affected. This is going to really in - pack their out-of-pocket expenses especially on a fixed income. Please consider these thoughts. Attachments PDF preferred Section from the RULES OF ORDER AND PROCEDURE OF THE FAYETTEVILLE CITY COUNCIL Adopted 01/07/2020 by Resolution #01-20 & Amended 06/16/2020 by Resolution #170-20: Public Comments. Public comment at a City Council meeting shall be allowed for all members of the audience who have signed up prior to the beginning of the agenda item they wish to address being opened for public comment. Speakers shall be limited to a maximum of five (5) minutes to be broken into segments of three and two minutes. Amendments may receive public comments only if approved by the City Council by unanimous consent or majority vote. If public comment is allowed for an amendment, speakers will only be allowed to speak for three (3) minutes. The City Council may allow both a speaker additional time and an unsigned -up person to speak by unanimous consent or majority vote Courtesy and Respect. All members of the public, all city staff and elected officials shall accord the utmost courtesy and respect to each other at all times. All shall refrain from rude or derogatory remarks, reflections as to integrity, abusive comments and statements about motives or personalities. Any member of the public who violates these standards shall be ruled out of order by the Mayor, must immediately cease speaking and shall leave the podium. Enter the text you want this field to display