The Mountain Home City Council is set to meet in a special session Monday evening at 6 to consider a change in dependent health insurance coverage for city employees. Mayor Hillrey Adams says the council may also take another look at the city’s millage rate for the upcoming year.With regard to the insurance change, the proposed ordinance seeks to amend the definition of “dependent” in the city’s health and hospitalization plan. The ordinance was placed on its second reading at the council’s meeting earlier this month, but did not advance to be considered for adoption.
Specifically, beginning with the 2020 plan year, “dependent” would not include an employee’s spouse if he/she is offered healthcare coverage outside the city’s plan.
The proposed change to the city’s health insurance policy comes in response to a negotiated 22.9 percent increase in next year’s premium costs.
Mayor Adams says a survey conducted earlier this year indicated at that time 48 employees had a spouse with the option of obtaining health coverage outside the city’s plan. He says the anticipated annual savings to the city is $290,000, if the change is adopted.
With open enrollment for healthcare coverage set to begin Friday, time is of the essence. Mayor Adams says any changes to the city’s health insurance policy must be made at least 60 days before the new one becomes effective on Jan. 1.
Mayor Adams says he also anticipates the council will take a second look at the city’s millage rate.
At its Oct. 17 meeting, the council passed a resolution continuing the city’s 2 mill city tax for the upcoming year.
However, he says some council members have expressed an interest in revisiting the resolution. He says at the council’s last meeting, it was unclear the amount of anticipated revenue generated by 1 mill.
Since the meeting, information provided from the county indicates 1 mill would generate approximately $200-$220,000 annually.
The meeting will be held in the council chambers of the Municipal Building.
WebReadyTM Powered by WireReady® NSI