Council approves city employees insurance package

City employees should get better health insurance coverage, while at the same time with less cost to the city, under a plan given the go-ahead by the Sidney City Council at its regular meeting Tuesday evening.

Officials from Holmes & Murphy insurance presented the company’s proposal that gives employees the same basic coverage they currently have, with additional options that haven’t been available for a couple of years.

The new option, providing for a co-pay plan, has not been an option since the city had to change its coverage two years ago to hold down city costs. Under that plan, employees went to a straight $2,000 (single) deductible, increasing their up front costs.

That deductible, with a $3,500 out of pocket maximum, remains, but Craig Johnson from Holmes & Murphy explained that the co-pay option, which does come at a slightly higher cost, allows for some costs to be handled without an employee having to come up with $2,000 before any insurance share kicks in.

While employees will have more options, the city’s cost to provide coverage will decrease by about seven percent, from $609,598 for a 12-month plan, to $545,232 for 13 months of coverage.

An employee committee helped review plans, and council members thanked them for their input as both sides worked toward providing coverage at a reasonable cost.

“The employees were a big part of this,” City Manager Ed Sadler told council. “With the shock they got in the past couple of years, they are every bit invested in watching costs as you are.”

Just prior to council giving its approval to move forward Councilman Wendall Gaston, a pharmacist by trade, said he was impressed with the plan brought forth.

“I see a lot of health care plans, and this one is put together very well,” Gaston said.

Council also gave its approval to Sadler to pursue a contract from economic development consultants to provide market analysis, community assessment, strategic planning and other services to identify and plan toward fulfilling the community’s needs.

Tina Hochwender, the city’s economic development director, told council that staff had received a number of inquiries on the city’s request for proposals and received four proposals for review.

Hochwender said two of those proposals did not address all of the points the city had put forth, so just two were being brought to council for consideration.

Foremost Quality Logistics (FQL) and Creative Economic Consulting were the top candidates. FQL’s had a lower base bid of $50,000, with up to $72,000 for services depending on the end package. Creative Economic Consulting’s base bid was $72,000, with options for deductions.

Council ultimately gave Sadler approval to seek services with FQL, with a maximum outlay of $60,000.