Village employee health insurance rates go up

By on October 5, 2012

by Susan O’Neill
ELBURN—Health insurance rates for Elburn village employees went up for fiscal year 2012-13, but the dollar amounts will be close to what they were two years ago, Village Administrator Erin Willrett said at the Village Board meeting on Monday.

Two years ago, the village switched to a high-deductible benefit plan (e.g., from a deductible of $1,000 per individual to $2,000 per individual) coupled with a health reimbursement account and a health savings account.

According to Village President Dave Anderson, the village paid the difference in the deductible for employee’s single coverage and still saved $60,000 over the two years. This was because the experience rating went down. In other words, employees did not go to the doctor as often.

The board approved a pledge of $500 into an individual employee’s health reimbursement account, and $1,500 into an individual employee’s health savings account.

According to Willrett, the increase in the rates for this year was dependent on three things: cost trends, the changes in the demographics of the insured group, and a change in risk and compliance rates based on a law recently enacted.

Although there are only 19 full-time village employees who are eligible for benefits, there are more than 50 people on the payroll, including seasonal and part-time employees. The rates are higher because the new law doesn’t differentiate between full-time and part-time employees.

“It seems to me that we’re being penalized because we don’t insure everybody that we gave a W-2 to,” Anderson said. “We send out over 50 W-2’s.”

The new rates go into effect as of Thursday, Nov. 1.