Correction: Little Rock employees who opt not to take a physical or complete an online assessment must pay 15 percent of their health care coverage cost. An article in Friday’s paper incorrectly reported the amount.
The Little Rock Board of Directors asked the city manager to look into other health care options after the current provider raised premiums by more than 7 percent for the next calendar year.
"I was surprised to see an increase this large," Ward 3 Director Stacy Hurst said of the 7.4 percent jump in QualChoice premiums.
The increase amounts to about $1.3 million -- most of which the city would assume under the current cost-sharing arrangement. Employees would be responsible for $229,500 of the increase, which amounts to about $35 per month, according to Jim Bradshaw, the city's risk manager.
In all, the projected total premium costs for the QualChoice health care plan in 2014 is $16,766,613, and that is expected to rise to $18,101,096 next year.
"I really would like to ask that we send our information over to the Municipal League and let them tell us what they would charge relative to this issue," Mayor Mark Stodola said. "I know they were flat last year with no increase. I just think it would be our fiduciary responsibility to see if we can save some money."
The city's premiums under the QualChoice plan already rose 6.4 percent for the 2014 plan year. Before that, there was a 15.2 percent increase, mostly due to changes resulting from mandates under the Patient Protection and Affordable Care Act.
"We really need to look at all avenues to keep our cost down because this is not planned for," Ward 4 Director Lance Hines said. "It's kind of funny that the Affordable Care Act does not seem very affordable right now as we keep seeing premiums go up."
He suggested the city look at moving to a high-deductible health savings account option, which he said has worked out at his company.
At-large Director Dean Kumpuris suggested the city also research self-insured plans.
"I just think that adding $1.3 million to the budget that we have no way of covering right now, I just think we need to look at our options -- employee contribution, municipal league, self-insurance," Kumpuris said.
City Manager Bruce Moore told the board and mayor that he would have staff members research various options and report back to them in coming months. He added that this is the first year employees have had to take a physical and do an online assessment or choose not to and instead pay 50 percent of their coverage cost. A "substantial number" of employees chose not to get the physical done, Moore said.
For those who did get a physical, several learned of conditions they needed treatment for and the program has been good for preventive care, Moore said.
"What we really are wanting to move toward is incentive and not punitive measures to encourage wellness," Moore said.
City employees' dental coverage with Delta Dental Plan of Arkansas is also set to increase next year. The composite rate increase of 5.4 percent amounts to about $66,000 -- $60,000 of which would be borne by the employees. Bradshaw said that amounts to between a $5 and $10 increase per month for a family under the expanded plan and hardly any increase for employees under the basic plan.
The board asked that the city also look for other dental options to see if money could be saved.
A memo sent to the board before directors discussed looking at other plans said that the increase in dental premiums "is approximately the same as the expected inflation rate for dental services plus cost increases driven by the federal Affordable Care Act."
Metro on 09/12/2014